Episode Transcript
Speaker 0 00:00:02 Welcome to the untold stories of real estate investing hosted by Wayne courageous, a third, a place where active and passive investors come to hear the good, bad and ugly of real estate investing. Our guests consist of experienced operators and investors who want others to succeed by sharing their stories. If you're looking to send the key deals or grow your wealth passively in real estate, you've come to the right show. It's now time, sit back, take minutes on notes and enjoy our next episode of the untold stories of real estate investing. Welcome to the
Speaker 1 00:00:40 Stories of real estate investing. This is your host wink courageous for our next episode, I'm excited to have Andrew Lucas try Tran properties based out of Los Angeles. Triune properties has closed over $400 million with an average internal rate of return to investors at over 30% through increasing net operating income. I hands-on property management and renovating properties to achieve aggressive lease ups. Andrew is the director of capital markets with Trion responsible for sourcing new investors and maintaining relationships with current investors. He has an extensive background in finance investor relations and both commercial and residential real estate. Welcome to the show, Andrew, how are you doing well? Thank you, Wayne. You're down in Dallas or Houston. So I'm in Austin. I'm in the capital city of Texas yet. So I know we met in Dallas back in March, but I grew up here in Austin and, uh, I was in Washington D C for awhile, Houston, and now back in my hometown.
Speaker 1 00:01:32 So it's been, been pretty nice, but I appreciate your time. I'm excited. I feel like this will add a lot of value, especially with your experience in the capital markets. And you've got a lot of experience with residential and commercial and, you know, we also share Alma mater with chapel Hill UNC, so go tar heels. So I know we've talked about that, Matt, Brown's bringing the football team back. We have a top five recruiting class. Yeah. And then with me bleeding orange, you know, university of Texas here in Austin, I, I'm excited to have Matt Brown there and chapel Hill. So, but Andrew, tell us more about yourself. And so your real estate journey you've done, you've done a lot in your career and just give the listeners a little bit more background on yourself. I graduated from North Carolina in 2004 in sports. I did some traveling right after college and then went to work for a large national home builder, Ryan homes, the largest home owners in the U S primarily focused in, and they had their own in house mortgage companies. So I was originally purchased mortgages for single family homes. It's a great little beach town. I was there for about three and a half years. University of Baltimore. You got an MBA finished that in 2010 and Los, he wasn't
Speaker 2 00:03:00 The most well thought out decision, but, um, my brother was out here. I had kind of a network out here already and moved out to LA in 2000 and I linked up with Colliers international. I joined one of the highest producing multifamily, brokerage keys in the LA market. And that's really how I got the move into commercial real estate. It took me going back to school and getting an MBA to realize that I'm really just a salesman, so probably could have better allocated that time and money, but fortunately it all worked out. So the opposite call years from 2010 for about two and a half years, I had a good experience. I was able to close some, some decent sized deals and probably not to the point I was working with it at team structure. And I was kind of at the point where I needed to really branch out on my own, or I needed to make a movie and create more outside for myself.
Speaker 2 00:03:56 At that point, I was actually sourcing a bridge loan for a client, and that led me to dispute with the company bullshit finance partners. They were a private money lender. They had historically basically originated loans and sold them off his first trustee. And they were in the process of launching and then ultimately trying to grow to real estate debt funds. So they were looking for somebody with real estate experience, help start raising money for them through, you know, high net worth individuals, registered investment advisors. So that's how I made the move from the brokerage side of the business to the capitalist half of reason. And that was, uh, it was ended up being a great movie. You know, it's funny how things worked out. I, I really enjoy, you know, not, you know, ultimately it's it's sales, but really the education process understand asking the questions as to what are you looking for investment.
Speaker 2 00:04:51 And then ultimately if what you're offering is what they're seeking really trying to apply that need. And that's, that's the fun process of finding a solution for somebody's investment investment need. So I wasn't, Wilsher for 2013 till to the August, 2016 had a great experience. There was very well run company. Um, but the, you know, it was more of a slow growth company. Uh, don't make a mistake. Um, and then I actually reached out to, by a recruiter for this position to try on properties and had, when I was a broker, I was familiar with trying, I had never transacted with them, but I felt like I was in a unique position to add them as a company. And I knew many people that were friends with maximum mission profound. You know, I'd also toyed with the idea of, you know, potentially trying to start my own shop.
Speaker 2 00:05:45 And I had a young daughter at the time, so kind of made the decision. I wasn't ready to take on the risk. And, you know, my, my conclusion was I'm not going to do it myself. At least with entrepreneur guys, they're high growth, you know, looking at the copy of the world and, you know, max and <inaudible> and the two partners are very in the early forties, they started triumph when they were in their mid twenties. And it really demonstrated that progressive growth had been important where I joined really organic growth. It started off when they launched the company in 2006, um, you know, friends and family money friends began to have family, family began to have, uh, you know, introduce their friends. And that's really how the, the investor network built out. And then when I joined in 2016, we really started trying to make them robust, you know, investor relations and impactful raising platform.
Speaker 2 00:06:42 And, you know, we've been able to almost double our investor base. And, you know, in the last couple of years, right now we have about 450 investors and they're primarily made up of your high net worth individuals. We have a lot of industry doctors, lawyers, a big footprint in the Bay area, people that work in tech and they're your individuals that want to allocate a couple hundred thousand dollars to commercial real estate, but they don't have really the time or the expertise to go out and buy a building, managing themselves through our fortunately we've had a pretty strong track record. So we've also been able to establish relationships with a handful of family offices and institutions. So oftentimes the way we capitalize our deals is we, we are on our second fund now. And really our fund is our vehicle. We try to steer our high net worth individuals. So if you're, you know, your deck, you know, just somebody that wants to allocate a few hundred thousand dollars to hyper commercial real estate. In our opinion, our funds are really strong option because it gives you diversification, you know, spreads of risk over a pool of assets, but offers the same fairly the same outside. And then so oftentimes when we ideally allocate money for March and then we'll raise money directly into the deal from a fact one or two family offices or institution
Speaker 1 00:08:08 On that point, the fund. So when investors put in money into a fund, they don't know exactly what property is going to be bought, correct with that.
Speaker 2 00:08:16 So the answer to that is yes. And so we've raised any allocate. So if you're one of the first investors into the fund, we'll, it will be blind. You will not, you know, we have a very narrow definition of what we can buy, so we can only buy value, add multifamily in a handful of markets. But you know, now we're about a year into our fund. So we do have investments in pie properties and work on your contract on three more. So you can actually, if you have the ability to look at what is currently in the fund and what would be going into the fund with the next great acquisition. So, so yeah, we, the way we try to compensate for that is we try to incentivize earlier investors with a slightly higher preferred return. Um, so, you know, we create an incentive to come in early because when you do come in later, there is that benefit of, of, of booking under the hood of, of what you're investigating. But again, a lot of our fund investors are investors that have been with us for years and years a year or so they, they have a comfort level. They've, they've had investments come full circle. I've seen the way we report kind of narrow scope of the deals that we do. So
Speaker 1 00:09:26 Yeah, there's that trust and that experience, especially if you are averaging 30% IRR over the term of investment. So it makes people want to get back.
Speaker 2 00:09:34 So certainly if you look at our tracker, when we have exceeded 30% and you know, currently in the last couple of years, we have not been underwriting to those returns. That would be excessive. So in the current environment, we typically are underwriting for return. If you look at our charter, we have very active announcer in 2009, 2000 and 2012, we hit some pretty big numbers. The wait, that average return off,
Speaker 1 00:10:01 Are you all primarily focused in California since being based out of Los Angeles? Like, what are your target markets and how do you come?
Speaker 2 00:10:07 Yeah, so, so our, our markets historically been San Diego LA the Bay area and greater Portland, Oregon, and we are about to enter the Colorado market. So in the past couple of years, we have been most active in East pan and the Western suburbs of Portland, Oregon it's San Diego has been tough. LA has been tough, but we've actually been the largest buyer on a transaction basis in any market over the past three or four years. You know, we like the first spring summers. So we've been most active in the Western suburbs of Portland to the tiger view in submarket. And then the East Bay, also, not San Francisco, not San Jose, but really that core Oakland and Oakland and San Jose that it's historically been a bit more blue collar, but there's been a craziness of rents in the Bay area. There's been a lot of high quality residents weighing your traditional markets, your San Francisco's and your, your San Jose Silicon valleys.
Speaker 2 00:11:14 And that's put a lot of upward pressure on rents in the East Bay. There's more kind of working class suburbs. And then what we try to do is we try to identify properties that have not participated in rental increases. So oftentimes that your owners that have owned the property 15 plus years, in some cases, maybe a parent has passed away. Now their children are managing the property. They may not live locally or be a professional real estate operator. So they also own the property at very low basis. So, you know, a lot of cases, they really haven't had a need, the one or really reason to go in and renovate it, and it really optimized the property. So for value, add attributes like that by assets, we typically 50 to about 300 units and we look to increase the value through pretty significant renovations. Typically we'll do full exterior renovations.
Speaker 2 00:12:18 We'll try to, you know, a lot of times 72 properties and have a mud Brown exterior to him. So if you're driving past the property, they won't really catch your eyes. So we try to do it to in color, improve the signage, you know, oftentimes with like a neon sign, that cool shape design, and then we'll renovate the interior is put in a bottle by floor that looks like hardwood, stainless steel appliances. And we do the bathrooms. We'll redo the common areas. And in some of the properties we'll put in you to wash your dryers, which will then enable us to repurpose the laundry facilities and try. And, you know, so you can't put in a full gin, but we'll put in what we call a cardio lab where we'll have a Peloton and lift the goal, a treadmill to really try to maximize the experience that the resident experience. We're not competing with those brand new class, a properties, but we're really creating a middle ground where you may not want to pay $3,000 for that new class, a property, but you're willing to pay all a hundred dollars more a month or a renovated kitchen and breakfast that through. And the ability to survive before
Speaker 1 00:13:32 I liked the Peloton idea, definitely getting people to get engaged with the property and feeling like they have a lot of the amenities and a nicer property.
Speaker 2 00:13:40 Yeah. In one of our properties in San Leandro, we actually had a single file line in the mornings waiting for the Peloton. So we bought another there's weird things, you know, when we bought it, you just kind of one of those cities, you see how people react and if it works yet,
Speaker 1 00:13:58 Have you seen as some of the biggest hurdles to continue raising capital from investors and securing debt from lenders during this COVID-19?
Speaker 2 00:14:06 Yeah. You know, I think initially, what was it like March? And I may not be wrong with this. It's like March 9th through 12th, whatever it is, like NBA shut down the stock market tank. And I mean, you know, we all thought we were losing our jobs. So that was, that was pretty scary. And I think initially, you know, what, whatever, whatever there's, anything that significantly hurts you, you're, everyone's first reaction here and, you know, for the first week or so, I would say that kind of took over and, you know, we weren't generating a ton of, of new investment leads, but then, you know, I think one of the things we focused on as a company, I think a lot of, some of the other real estate companies out there that have strong communication, you know, the last thing we wanted to do is go into a hole and alienate our investors and not just our meshes, but our residents are our network.
Speaker 2 00:14:58 So I think it made us do, is really doubled down on our communication, explain to our investors and our residents that we're here to work with them. The last thing we wanted to do was be adversarial, trying to put our customers versus our residents cause that's that doesn't help anyone. We increased our communication. We were very active in relaying what our collections are and our occupancies are. And our properties, historically, we report quarterly. We still will moving forward. But in this time we've been recording much more regularly than that, just cause it's a, it's a fast moving dynamic. Ultimately we communicated to our investors that we actually think this is the best opera buying opportunity since 2012, the last couple of years, it's no secret. It's been pretty competitive out there. And we, as soon as the markets got shook up, we what we feel.
Speaker 2 00:15:51 So we have relationships with, you know, maybe 20 or 30 family offices or institutions that we've done deals with and, or look at deals with. So we immediately wanted to get on the phone with them, see how they were seeing the world. And then, you know, so we wrote the mind that there would be buying opportunity. So we wanted to get in touch with our seven figure, check writers to see what they were thinking. So if we did see an opportunity, we knew who to show it to. And we've been fortunate. We have we've synced since go ahead. We've been able to type three deals, large feet on in Colorado, uh, East Bay and San Leandro, and then a new construction property to provide CBO in greater Portland. We're, we're very happy with all three acquisitions. We think we're getting strong buying opportunity. I think it's in the market in general.
Speaker 2 00:16:43 There's kind of a bid ask spread. No one's really celebrated now because they think that timing is excellent for reselling the property. It's really no one's telling you out of luck or selling need. So, and there's cause there's a bid ask spread on a lot of the passively marketed properties. So it's really, our acquisitions team has done a really strong job. They have like NFI opportunities finding those there's people that are, that have the need to sell or as opposed to, Oh, I'll look at an offer that meets my criteria, then maybe all that stuff. And I think we've been able to communicate that to our investors. That again, there's a lot going on right now. It's, country's going through a lot in many different aspects, but it's kind of one of those old cliches, you know, I watch CNBC every morning, you hear the old, you know, the old heads spouting off their lines. And you know, one of the ones that I think is applicable, it's when the market is, is greedy. It's time to be fearful. And when the market's fearful, you know, that's the time that the opportunistic degree and not that we're being good.
Speaker 1 00:17:51 Yeah. I've been on your investor email list. And one thing I have noticed about try-on and what you're doing, doing a great job at is, is definitely communicating and letting people know that, Hey, this is a good time to look and get educated about the opportunities. So that way, when those opportunities do come, you know, you're able to hop on now, are you seeing, we're seeing the, here in Texas, the rents have been fairly stable, 90% plus on collections. So really if you were struggling before, COVID then definitely look into potentially get out of your investment. But in California, Oregon, are you seeing more distressed properties or have the, have the rents been pretty steady and making it harder to buy?
Speaker 2 00:18:30 We're generally been pretty stable. We have, we're kind of similar as the problem, what you're hearing in Texas, where you know, about 90% collections, you haven't, you know, initially when covert hit and cooled back rents with it, but you know, we're pretty much <inaudible> levels. And fortunately to this point, you know, who knows what the next month hole is, but at this point, our portfolio is held up pretty strong. And, you know, I think with this is also done is solidified some of our institutional for PR company philosophies. Um, you know, I wasn't with a tribe during the great recession, but they have, they have an institutional philosophy that we only invest in markets that do well in times of that. Not hard as well. Um, so we try to maintain presence in the coastal cities that have supply constraints that have diverse economies, not to say that people have not done extremely well in certain markets.
Speaker 2 00:19:28 But you know, if you look at the unemployment rate in Los Angeles or the Bay area versus Vegas, you understand why Vegas tends to be more of a boom or bust market the way it's over 30% right now. Sure. There's a lot of people struggling. So I'm not trying to glorify that. I'm just say from real estate perspective, you know, we may be giving up some upside when we provide the waves right up, but we think we better protect ourselves from downside risk. I, I stayed in more, more deeply city markets, not, not going out to the areas that tend to have less supply trades to constraints with more boomer bus.
Speaker 1 00:20:06 What has been some of your biggest struggles or difficulties in your career with raising capital and acquiring properties? Do you mind giving some examples and how you navigate it?
Speaker 2 00:20:14 Yeah, sure. Um, one of the, this goes back to my days with Wilsher and then also here as well, specifically at Loescher, it was, we always had money and no loans or loans and no money, maybe not, you know, it wasn't that drastic, but it always seemed, you know, you're in an ideal world, you'll always raise money and be able to raise money and be able to apply it. But I think kind of one of the natural kind of, one of the natural obstacles in capital raising and allocating money is having that equilibrium equilibrium of raising capital, being able to allocate capital at the same level. You know, that's something that's always going to be an issue, you know, but I think we've done a good job here. We are, Farhana moves our managing director of acquisition. So he oversees the acquisition scheme. And then we recently promoted an analyst to a director.
Speaker 2 00:21:06 So he's now sourcing deals as well. David McCallum is sourcing. We do a little ground up just in Los Angeles. And so he sourced some ground up deals in LA and then also spearheading our entrance into the Colorado market. And then we also have an analyst who works with them, learn better. So I think we've, you know, we've really been able to number one, we have really a really talented team, you know, they're, they're able to find deals when, despite it being competitive and over the last couple of years, and then now there's not a lot of trading, but able to find stuff. That's got a bit of profile. And then when the capital raising side, um, it's really, uh, you know, I kind of, this is the channel I focus solely on the capital raising and investor relations within our managing partners. We're also always working, working as well. It's a good team effort. We've to this point, been able to pretty efficiently raise and allocate capital.
Speaker 1 00:22:04 So how come do you, do you think that the debt and the equity never, in some cases didn't fit that equilibrium? Sometimes you said that there were more loans, more debt available than capital from an equity side.
Speaker 2 00:22:16 Oh, somewhere else. So when I was sick, so when I was at Wilsher we were the, so we raised capital and then lend it out. So we would have, you know, I may have a couple of investors that wanted to allocate three or $4 million out. And when did too, and landed on properties and there may be, you know, we wouldn't see any good loans that would fit their criteria. And then a couple months later we'd have four or five really good loans. And we weren't able to raise the capital to fulfill those ones. Yeah. I was speaking more on the debt fund side as opposed to Trump properties. But unfortunately here, when we find, when we've been able to have good deals, we haven't had much issue raising the money for it. I think, you know, a lot of that goes to number one, having a tracker of you, number two, being able to find good deals. And then also us really focusing on educating our investor base, building our investor base to engaging our investor base, you know, to really try to have a robust,
Speaker 1 00:23:23 Well, I met Rebecca in March. I remember you saying you were about to travel. I think it was San Francisco. You were about to do some big event dinner event. So I'm obviously that has changed dramatically since, you know, a few months ago. So what are you doing to keep your investors engaged? And then are you getting back out there in the near future and doing some road shows, we
Speaker 2 00:23:46 Don't have any road shows plan. So we're based in Los Angeles. If you had to take a cross section of our investor base, I think we have about four 50 investors and you know, probably 200 are in LA, a hundred are in the Bay area and then a hundred are scattered across the country. So every year we have an investor there at the last couple of years, we've had a really hotel where we treat, you know, bring everybody out, we'll give them a presentation, but you know, it's not a formal presentation. It's more just for us to meet our investors and for our messages to meet each other. And it's been kind of cool to see because you've actually seen some of them building, build relationships and know like if we send a deal out, they'll call, they'll talk to each other about it. Um, so we do our annual LA investor dinner.
Speaker 2 00:24:35 We do meet this year. So when I saw you in Dallas, I was flying. So I speak at the conference in Dallas, then immediately getting on a plane to go to San Francisco to host that investor dinner there. Um, so we try to, it's not rocket science, you know, you try to meet great people, educate them, let them know what you're doing, be transparent. And then you're going to engage at the end of the day, make them money as well. You know, the, the, the two partners, the guys that own our firm, max and Michonne, and done a pretty good job being available. You know, if somebody's family office is gonna invest $50 million with us, obviously get on a plane and go and meet them. But we'll also, those guys will also get on a call or company in a meeting with somebody that may be investing $50. I think it's that, you know, being available, providing solid communication, being transparent, being, you know, being honestly, we've never had a system of checks and balances that we put in place that we're very transparent about the third party administrator on all of our properties and fondant audited. So, you know, it's kind of that combination of trying to run a solid business that's ethical and being available to your investors, being transparent, providing a solid communication.
Speaker 1 00:25:50 Yeah. All those are great tidbits for both, you know, people starting and people that are experienced that investment transparency and that trust and that communication, the things that you're done well. And one thing I like about trying is you're that dedicated person, you know, a lot of real estate investment companies, they don't have that. Right. And they don't have the ability yet. They haven't grown to that scale. So it's nice to have that. So one of the questions I have for you, you know, what are some of the most overlooked aspects to real estate investing that can cause investment mistakes from your,
Speaker 2 00:26:21 I think so it kind of goes back to what I was saying. I think then you'd rather be an inch wide and a mile mile wide and an inch. We've the last three or four years. We've gone pretty deep in the East Bay and greater Portland, Oregon. And we have a lot of success there because if it feel is coming to the brokerage community. So we ran a lot of offers, one, one market heals. Then occasionally we'll be one. But the way it usually shakes out is we'll be invested file, but we may not win the bid. But what that does that gives the brokerage community, the ability to see how we underwrite it, look at our LOI and our on calls with our acquisitions team. So oftentimes when the, you know, specifically in the East Bay of Portland where we've bought many deals and we've written offers on many more, when the brokerage community sees a deal, here's a deal coming to market.
Speaker 2 00:27:16 Oftentimes we already take a look at it and look at it before it goes on the mind, so we can tie it up without the video. And we really like going live for scrubbing, sorry, going deep versus going live. And I think a good example of that is also we've the trying to break into the Denver market for about two years. It's been, it's been frustrating for the acquisitions team just because they've been on a plane out there driving the markets chart house, we bring offers on probably 30 deals. And finally with, you know, we've kind of probing adjustment. We were able to tie it to be alone. And I think it's one of those lessons where Alaska two years has been pretty, pretty frustrating, but I think remaining disciplined, not being too aggressive that is really worked out for us. Cause you know, we we're, we're getting a great deal. And I want to ask that and we think he may be in a position yet.
Speaker 1 00:28:14 Yeah. When you were talking there, the big, the one word that was going through my mind is disciplined. Like y'all are, y'all were staying discipline. Cause if you wanted to get into Denver, you could have gotten into Denver, you just would apply overpaid, right. There's deals. And so there's a lot of investors that want to own that tangible asset. You know, whether they don't understand the underwriting or they're taking the brokers, you know, underwriting at its word, they're not digging into it. So I mean, that's definitely a big one for mistakes when people are just yet they're not patient enough or they're not underwriting the deal to make a strong, strong LOI that, and if they come back and it's overpriced, it is what it is. You know, it's not emotional. It is, you know, it either hits the returns that you're looking for with your investors or it doesn't. So, you know, definitely a good point on that for sure. We'll try on success. I mean, y'all have had a lot of success, but I'm sure there's been some times where everybody's scratching their head, getting everybody in the conference room, talking how we're going to get through it. Do you mind sharing any of those as far our listeners to help learn from mistakes? I mean, obviously y'all have you rebounded recovered, but any, any actual property due diligence or, um, underwriting mistakes that y'all have y'all gone through.
Speaker 2 00:29:25 Yeah. I think kind of going, going back to my last point where we, so we've been very active in Denver when we entered the Denver market for the first hive, there was definitely a learning curve in terms of number one. I'm sorry, not ever Portland. I, when we entered the Portland market, there was a big learning curve. Number one, Portland's very wet. So the first deal we bought had a mold issue and unfortunately we were able to remediate it and the deal ended up doing very well, but something that we probably could have identified in hindsight and have a better grasp on prior to closing on the asset. And then along those lines as well in California, we have our own construction crew that goes out and actually does the renovations and Portland hadn't been not have that if you didn't have a crew up there.
Speaker 2 00:30:20 So I think there was an adjustment in terms of the labor. You know, the people move a little slower up there and there's not, it wasn't as an unfunded as much of an abundance of labor, labor availability. So initially our unit terms, weren't going as fast as expected. And again, we were able to sort that stuff out, but that's something I'll take that experience of entering a new market is something that we definitely take with us. And it's probably one of the reasons why it's taken us so long to do the number just cause we understand real estate level. And hopefully I think we've done our due diligence, our homework that we want to experience the same thing in Denver, but it's definitely anytime you enter a new market there's yeah.
Speaker 1 00:31:06 So shifting gears on passive investor. So you're dealing with passive investors or investors daily. So what are some things that they need to know to make the right decisions with their investments? Obviously the trust and transparency that jar providing, but what other tangible things they need to go through? What type of questions should they ask me? Any advice as if, as if you were talking to one of your family members, if they're interested in getting started with another investor outside try-on
Speaker 2 00:31:34 What would you tell them? Yeah, I would say nothing out of the usual, you know, ask for references, look at the track record, ask if there's any checks and balances. So I think one of when I'm speaking to somebody that doesn't have a familiarity with our company and I tell them that I'm talking about investing in a fund and I tell them that we outsource the fund, accounting you a third party. So we're not the ones calculating the distributions preferred return. We outsource that to a third party. So we purposely are not the judge, jury and execution. We want to create that system of checks and balances. So I would say really when you invest in real estate, passively, obviously you're investing in real estate, but either equally or through a greater extent, you're investigating the sponsor. You could have a prime piece of real estate on brew drive in Beverly Hills.
Speaker 2 00:32:22 And if you have a bad manager, it's not going to perform well. So ask for references, look at the track record. I mean, even this is, you know, it's, it's kind of a, you know, for people starting out it's, it's not great, but you know, look at the documents. Does the sponsor have the ability to have professional legal documents that are written well, things like that. So like if are they dotting your I's and crossing their keys and even responsiveness, like one of the things, obviously at any point, somebody misses an email, but you know, if you're inquiring about potentially investing, somebody's not responding to you, then chances are when you're actually investigated. They probably won't respond to you as well. So that's, I mean, it is tough. Cause if you're, if you're an entrepreneur and in a way you're in the process of starting your company, you're going be wearing a lot of hats. Um, so it's, you know, it is difficult, you know, for those smaller enterprises to tryin, to manage all of that. But you know, as an investor, you know, Southeast, you would want to look for,
Speaker 1 00:33:30 Yeah, that's all good advice. And especially with the people that are starting out that are carrying or wearing multiple hats, you know, what are some good, you know, routine habits that you do daily, you know, stay focused on, you know, raising the capital, having your team look through on the acquisition side, but just trying to keep yourself motivated during these times. Is there any advice you have for those?
Speaker 2 00:33:52 Yeah, I think, you know, obviously try to have it. My dad was a military guy, so he was always about structure and attention to detail. And he used to wake me up to tell me I had to be up in a half hour. So I think fortunately that wasn't the military guy, but I played sports in high school in college. So I, you know, I tried to structure my day and make sure if I need to finish this off the calendar, do that. He don't have Uber abundance of bleedings, which I think is beneficial. You know, one of the things that I think one of our real advantages at this company, it's a cool culture. No, there's not a lot of employee turnover and there's also not a lot of micromanaging. So, you know, I, I pretty much run this vertical and you know, max and Mitch are there as a resource for me, you know, they, I work with them daily, but they're not, you know, they, they let me run with it. And I think that, you know, empowers me to number one, want to do well. And number two, you know, I know what's effective because I'm the guy doing it every day. And I think they've done that with all the different channels in the company, probably managing acquisitions.
Speaker 1 00:35:04 You know, I always like to ask these last few questions sort of the end of the show, but what are some of your proudest moments investing in real estate with Troy?
Speaker 2 00:35:12 What I enjoy is talking to somebody that has an interest in learning more about not even just investment with us, but real estate investing. And a lot of our investors are successful people. And you know, it's a lot of people that have had success in different fields, but they may not be, you know, have a tremendous knowledge about real estate investors. So I really enjoy speaking with them, talking to them, understanding that you don't do you need cash flow out of the Gates if they do then, Hey, our investments, probably not for you because we're value added, you know, 18 months or so to receive a distribution, but asking those probing questions, find it, you know, understanding that what we offer actually is a really good fit for them and then explaining what our program is, how it's structured and then ultimately them choosing to invest with us and then seeing them have a successful investment.
Speaker 2 00:36:09 I'm not a real estate guy, I'm a relationship guy. So I think one of the things that I think I have the ability to do, because I'm not, you know, not the acquisitions guy, that's in the weeds with the models. I feel like I could explain our investments at a high level. So that goes without that technical real estate knowledge, have you going to understand? So I really get a kick out of find number one, finding their, what their investment goals are. And then number two, if our investment is a fit, being able to explain that and demonstrate that to them. And then hopefully if they invest seeing them have a successful investment. No, that's good because I mean, especially with people that are getting in and expecting that cashflow to come pretty quickly, it's not a good for value. Add it's may not be the best investment as you said, you know, once we get the proper stabilize sure.
Speaker 2 00:36:58 Then the returns, and then at the end, when you see that 30% IRR, a lot of that's coming from the sale at the end. Right. So that's good. I mean, it's all good information, Cod moments of walking through, helping others see the investment strategy and making sure it's a good fit. And then, you know, like I've done, you know, a gentleman reached out a few weeks ago, you know, I sent him your way. He was looking in Southern California and also, you know, it's, it's, it's about the abundance of just helping others, right? Whether it's investing with you or investing with others just to help fit their investment strategy. Yeah, absolutely. Absolutely. So what are some, any other items you want to share on the show about you or your company and then how can listeners find you if you are, you know, I know we're not the only group out there, but if you are, if any listener is interested in passive real estate investments, you do some ground up in the LA market, primarily value-adds orchestrate high growth West coast markets then feel free to reach out. Obviously I'm going to try on properties, it's trial, taking properties.com, find some educational information you're reaching out to us, but you have the opportunity to speak with you. Well, thank you, Andrew. Highly recommend trying on properties and talking to you. Appreciate it. You're a good guy. I appreciate your time today. And if I can do anything for you, just let me know. Yeah, absolutely. If we get on this conference circuit again, I look forward to seeing you on the road. Yeah, that sounds good. Thanks Andrew.
Speaker 0 00:38:29 That's all for this episode, we hope you subscribe, share and leave a review of the show for more information about passively investing in multifamily apartments, check out Wayne's free ebook by going to <inaudible> dot com or slash ebook. Also follow us on Facebook by searching, see our partners. This was the untold stories of real estate investing.
