Andrew Dressel is an accomplished attorney and real estate investor. After teaching history in Edison, New Jersey, he graduated with honors from the University of Pennsylvania Law School in 2008. He began his legal career at Boies, Schiller & Flexner in 2011 and founded his own firm in 2018, focusing on commercial litigation, corporate, and securities law. Andrew and his wife started investing in real estate in 2016, expanding to over 200 units across several states by 2021. In 2023, he joined the Warrior program to enhance his investing skills and network with peers nationwide.
Here’s some of the topics we covered:
- Teacher/Lawyer to Successful Real Estate Investor
- Balancing Real Estate Investing with Your Lifestyle
- Overcoming Obstacles & Making A New Plan
- Leveraging Your Investing Strengths
- Tips and Techniques for Raising Capital
- Industrial Real Estate Deal Deep Dive
- This Opportunity Stand Out
- Advice and Guidance for Aspiring Real Estate Investors
If you’d like to apply to the warrior program and do deals with other rockstars in this business: Text crush to 72345 and we’ll be speaking soon.
Full Transcript Below
00:04:32:23 – 00:04:52:08
Andrew
Get to it. Welcome back to multifamily rock star. So as you guys know, these are the episodes where we dive deep into our guest deals and we give you some practical and actionable items for getting started and doing your first deal, especially if you’re brand new to multifamily. And as always, I’ve got my co-host, Mark Nagy, from my massive action team here with me.
00:04:52:08 – 00:04:54:01
Rod
Good to see you, Ron. Sounds like good to.
00:04:54:01 – 00:04:55:01
Andrew
Be seeing.
00:04:55:03 – 00:04:59:14
Rod
You. You’ve got a busy day. You just mentioned closing on Texas deal, right?
00:04:59:19 – 00:05:17:15
Andrew
Yeah, closing on a $20 million asset in San Antonio. It’s about a mile away from another a 296 unit asset that we own. It’s a screaming deal. God. It’s exciting because we’re paying 100,000 a door and the one next door sold for 137 a door. So we’re getting it at about 40% discount because it’s the same vintage and everything.
00:05:17:15 – 00:05:41:22
Andrew
So very exciting deal. So that’s closing today. We’ve got our Warrior event coming up this weekend in Sarasota with a few hundred of my closest friends coming to connect and network and we’re going to go deep dives on underwriting and deal analysis and just a lot going on. But it’s all good. You know, it’s good for, you know, as you go as you go through life, you want better quality problems.
00:05:41:22 – 00:06:02:19
Andrew
You’re going to problems, but you want a better quality problem. So these are quality problems. So today we’ve got an awesome guest. His name’s Matt Iverson, and Matt is actually a luxury resort broker. And I’m not sure when he joined the Warrior program, we’ll find out. But he is a in about $450 as a general partner and a limited partner.
00:06:02:19 – 00:06:11:12
Andrew
I think the general partner piece is a 97 unit we’re going to dive deep on today, so we’ll have fun finding out about that deal. Welcome to the show, brother. Good to.
00:06:11:12 – 00:06:25:12
Mark
See you. Thanks, Robert. Good to be here. It’s a little surreal to be here as I joined the group two years ago. I’ve listened to I’ve got to be hundreds of interviews in at this point. So to be a guest is a little. Well, it was pretty crazy.
00:06:25:14 – 00:06:40:18
Andrew
that’s cool. Well, I appreciate that. And we’re glad you’re here, man. And I know you’re going to add value today, so why don’t you start by just giving the listeners an idea of who you are, where you came from, why real estate?
00:06:40:20 – 00:07:06:13
Mark
Yeah, well, so really, I’ll start with the real estate side. Just because that goes back all the way to my childhood. Real estate’s really been in my blood since. Since I was a kid. My family’s been doing it, and I’d say since the mid eighties in, in the area of Vail, Colorado. We moved up here when I was about 12 years old, and my mom ended up getting her real estate sales license back when there was the sales versus the broker.
00:07:06:13 – 00:07:26:06
Mark
Eventually she became a broker in that process, they started buying and building homes in in the Vale Valley area. And so most of my childhood, I remember going to projects where, you know, we’d have a family dinner and then we’d load up in the car and we start, we’d go look at the hole in the ground and we look at the footers, and then we’d watch them frame it.
00:07:26:06 – 00:07:46:24
Mark
And so that was so I’ve watched the real estate business since I was a kid growing up in Vail. The we watched the Mill Valley grow. I went from Edwards, which was literally a four way stop sign to now a major intersection, billions of dollars of development. My my mom has helped broker and sell a lot of them to ground up development here.
00:07:46:24 – 00:08:13:00
Mark
So so it’s really been in my blood. In late 99, I was actually in the finance business right out of college thinking I was going to be a private wealth manager, fund manager of some sort. And about a year into that, I got a call from the CEO of their resource development company and I said, Hey, if you’re half the sales person that your mom is, I could use your help launching some projects in Breckenridge.
00:08:13:02 – 00:08:41:11
Mark
And my mom has been one of the top producing brokers in that really in the nation. She’s been ranked in the top five by Wall Street Journal. So of course it’s wise to do that. So so I moved my wife and I, who we’ve been married for all of four months, moved to Breckenridge, and I helped the resorts launch a couple condominium developments there and the base of Breckenridge of just a little bit of pre-planning on a big base ski area expansion, if you will.
00:08:41:17 – 00:08:53:01
Mark
So a base of peaks, seven and eight, they were expanding at multibillion dollar development. So once I got my license, I joined the team. I realized real estate was really in my blood. That was what I wanted to do.
00:08:53:07 – 00:09:08:03
Andrew
You know, it’s funny. I love Vail. I’ve got so many great memories. I usually go there in the summer, though, you know, and I take a gondola, I take renting bikes, taking them up to the top of Vail Pass, riding the bikes down. I remember writing down this trail and running right into to deer right in front of us.
00:09:08:03 – 00:09:24:19
Andrew
It was really cool. And then I took the wrong turn and we ended up going in a real sketchy part of the mountain going down. But yeah, and I’m just triggering some memories. I remember there was a kind of like a hot dog place that sold veal hot dogs, you know, man, they were good. You know what I’m talking about?
00:09:24:21 – 00:09:43:24
Andrew
yeah, that was it. Swiss dog. my God. You were fantastic. This is bringing back memories. And, you know, you talked about your mom starting as a salesperson and then becoming a broker. I was actually a broker in Colorado when I was 18. So this is 1978. And I was able to do it all through education because back then you could become a broker with education.
00:09:43:24 – 00:10:00:16
Andrew
Now they get smart, you need some frickin experience, which I’m sure your mom experienced. She had to have some experience. So that’s that’s kind of cool. And, you know, you’ve triggered a lot of memories for me. You mentioned Vail Resorts. My best friend does a lot of their re rehabs in their in their hotel are hotels up in that area and they’re the largest up there.
00:10:00:16 – 00:10:23:13
Andrew
But he does their refurbishments carpet and all that. So anyway I digress but yeah yeah maybe his name is Pete Austin. He’s a really good friend. He’s like my best friend. Hospitality, bro. But give him give him a shout out. He’s literally my best friend. So, so anyway, you know, we have a lot of aspiring real estate investors on this show, people that know they want to go do something.
00:10:23:15 – 00:10:37:04
Andrew
Who do you think as our avatar? What avatar do you think would relate the most to you and who you are? Because we get all types, you know, and so how would you answer that in any way you like?
00:10:37:05 – 00:10:42:07
Mark
Yeah, well, and I think that would actually probably bring me to the story of kind of how I joined the Warrior group.
00:10:42:09 – 00:10:43:01
Andrew
Okay.
00:10:43:03 – 00:11:04:02
Mark
Because that that ties into who my avatar is because that’s exactly why I ended up joining. So I’ve spent 23 years in the luxury real estate sales, very transactional, and my wife and I have bought and flipped multiple homes. Everything was equity based. So we just kind of put the money in, sold a few layers, took the money out, not a lot of passive cash flow.
00:11:04:04 – 00:11:28:19
Mark
Right. So in in 2020, in March 2020, before the lockout, when they just started locking down, I thought we were going out of business and it was quite the opposite. We ended up absolutely exploding like most brokers did, and I ended up writing a pretty large tax check that year. And so I was talking to my accountant was like, I got to figure something out on how to start reducing my tax bill while I’m doing this.
00:11:28:19 – 00:11:44:13
Mark
And he said, You know, Matt, you’re really good at selling real estate. You need to start investing in it. And so I started whining about it to my wife and I’ll never I could tell you exactly where I was. I was driving on the highway from Moab. We were coming home from Arizona on a road trip with the girls.
00:11:44:13 – 00:12:05:04
Mark
We had just come through Moab about to get onto I-70 on I-70, back to Colorado. And I was whining about, you know, I’m tired and, you know, big tax check. And I wish I had bought some commercial real estate. I wish I was an investor for the last 20 years. And my wife, in all of her wisdom, kind of looks at me and nicely says she goes, you know what, honey?
00:12:05:04 – 00:12:11:23
Mark
I’ve been listening to you talk about this for 20 plus years. I think it’s either time you poof or get off the pot.
00:12:12:00 – 00:12:13:02
Andrew
I love it.
00:12:13:04 – 00:12:26:14
Mark
So? So I was like. And I was like, Yeah, you’re right. And she goes, And by the way, if you’re going to decide to do it, you need to find a mentor as I go, okay? And it just so happened I pulled up your podcast for the first time and started listening.
00:12:26:14 – 00:12:29:07
Andrew
Is all downhill from there. It was all downhill from there.
00:12:29:07 – 00:12:48:11
Mark
Yeah, right. So. Well, I one, I was listening all these, but I started listening to bigger pockets and then I pulled, I started listening to the years and, and just kept listening to interview after interview of people that got started. And I was literally driving, This is terrible. But I was driving and I texted your number that you give on your podcast, No kidding on the highway.
00:12:48:13 – 00:13:11:05
Mark
And that’s and I think a couple of days later I was on an interview with with you and Mark and, and start the process. So that’s it. So, so my, my avatar, the people I’m talking to, typically higher income, transactional, you know, dollar for time for dollar people. So salespeople, doctors, accountants, you know, people who are making a lot of money, you know, put it in their time into their business.
00:13:11:07 – 00:13:25:08
Mark
But are starting to see the end of the you know, the end of the road, their skill sets diminishing. I just I don’t have the energy to do what I do. And we do, you know, on average previously we did about 100 million a year in sales.
00:13:25:10 – 00:13:26:22
Andrew
Wow. That’s significant. Wow.
00:13:26:22 – 00:13:45:12
Mark
Yeah, it’s it’s an it’s a lot of work. It’s a lot of time. But in 2020, we did 267 million we get about about killed My mom and I we actually hired my brother we brought my brother on as a partner. We just said we’re going to pay you through the nose, just come join us. And so that’s so now the three of us.
00:13:45:12 – 00:14:07:13
Mark
But, but I realize I was like, I can’t I can’t make this kind of money for the rest of my life. And I need to replace it with with more reliable, passive and tax efficient income. And so who I work with is a lot of people who have a good deal of wealth. They’re making a good deal of money, and they just want to kind of keep putting money into into their passive income portfolio.
00:14:07:15 – 00:14:18:18
Andrew
Yeah, Yeah. So, so I know that and you’re talking about bringing in investors to like a syndication like, like this one we’re going to talk about. Okay, so.
00:14:18:18 – 00:14:38:00
Rod
Matt, having experience in the real estate industry, obviously, and I know you necessarily didn’t work on multifamily, but what are some of your superpowers and skill sets that maybe other high income earners or salespeople or other people relating to that can maybe think, I can take that skill set and then bring that into multifamily? How did you do that?
00:14:38:04 – 00:14:58:20
Mark
Yeah, so I mean, my my skill set, my biggest asset is I’m a sales person, you know, I can sell. So I enjoy working with Mike with clients. So my number one thing is I would say I’m taking that ability in, in I work with a lot of high income people, a lot of ultra high net worth in.
00:14:58:20 – 00:15:16:18
Mark
They don’t, you know, I’m very comfortable around them. So I it’s very easy for me to have conversations. So investor relations is a big deal for me. I enjoy it. I like getting on the phone with with high income, high net worth people. I can just talk to them, I service them, I help them buy their buy and sell houses constantly.
00:15:16:18 – 00:15:42:17
Mark
And and so I’ve had a lot of windshield time with with great people, and I’ve learned to talk to them very comfortably at normal, everyday people. So so I do like investor relations, having transacted, you know, thousands and thousands of real estate properties, doing due diligence, looking for opportunities, seeing issues is really second nature. I mean, I can walk a property, I can look at.
00:15:42:17 – 00:15:58:03
Mark
I was looking at a deal the other day in just the photos alone. I picked out about six construction issues. I was like, you know, just little tiny siding is falling off in that picture. The things warping this picture, you know. And it was in Ohio. I’m in Colorado. I was just looking at pictures of the deal in Ohio.
00:15:58:03 – 00:16:15:16
Mark
And I was like, there’s there’s some deferred maintenance on that just from the picture. So, yeah, so I’ve done a lot of due diligence on properties. My wife and I have remodeled, you know, half a dozen properties and flipped them. And, and so working with contractors and, you know, these are all very easy for me to do.
00:16:15:18 – 00:16:30:18
Andrew
And of course, capital raising, I mean, you have no problem asking for money. You’re used to dealing with high net worth, people buying, you know, a second home in Vail, right. Or Beaver Creek or wherever up there. So, you know, that that makes, you know, talking to people that have money and and see a lot of people hanging up on this.
00:16:30:18 – 00:16:45:04
Andrew
And I’m going to be I’m going to be talking about this at the Warrior event this weekend and raising capital. A lot of people have this block, but it’s just it’s just having a friendly conversation and showing them that you’re passionate about it. You believe in it. You you know, you believe in the deal. You believe in the area.
00:16:45:06 – 00:17:11:09
Andrew
And and just communicating that. It’s just, you know, communicating a lot of inter very people really struggle with that. But but well, there’s no question that’s your superpower. I mean, just listening to you talk for a few minutes, I mean, hello. So, you know, what is an action item that we could dive deep on today that so let’s say that might benefit a listener or a new, you know, a budding entrepreneur or a budding investor.
00:17:11:12 – 00:17:16:07
Andrew
What’s what’s an action item? Let’s let’s let’s pick something that we can dive deeper on. Yeah.
00:17:16:07 – 00:17:37:09
Mark
Well, and I think it goes back to the conversation with my wife, you know, either decide to either do it or don’t, but make a decision one way or the other. And so I would tell I spent a lot of time wishing for 20 some years wanting to buy commercial real estate and rental income and never taking action towards it.
00:17:37:11 – 00:17:58:11
Mark
You know, I thought that maybe it was a belief system, it was a mindset. And Roger, your group does a phenomenal job of dealing with mindset. I mean, joining the Warrior group truly changed my life. I mean, it changed it changed the trajectory of everything I’m doing. And in the your training and the warrior, all the warriors I get to connect with are phenomenal.
00:17:58:11 – 00:18:21:18
Mark
I mean, it’s truly, truly changed my life. So I would say your number one thing is action. And and I found in my journey action is subsides fear. If you keep absolutely fear starts reducing. But if you don’t question fear takes hold so so that’s that was what I did I took action. I joined the group and just started plugging away.
00:18:21:22 – 00:18:39:24
Andrew
Love it. You know what’s interesting is, is what you just said, you’ve got to make a decision. It starts with a decision and it doesn’t mean you dip your frickin toe in the water. It doesn’t mean one foot in, one foot out. It is done. You’re doing it. Whatever it is. You decide, you know, Latin word for the word decision means to cut off if you’re going to.
00:18:40:05 – 00:18:57:03
Andrew
A great analogy would be if you’re going to attack the island, you burn your ships because you’re taking their damn ships home. That’s a decision. And then then you said, you know, massive freakin action, you got to take action. And you talked about action in its relationship to fear, you know, or stress, which is just the achievers word for fear.
00:18:57:08 – 00:19:16:17
Andrew
You know, any time I’m stressed or fearful, you know, I don’t care if it’s midnight, I’ll get my ass up and I’ll do something because that mitigates it. Any action at all will mitigate it. So that’s that’s really helpful. And so the next question really is let’s talk about that 97 unit. I know you took down a deal.
00:19:16:17 – 00:19:22:08
Andrew
I assume you syndicated it. You know, let’s let’s let’s drill down on a brother. Yeah.
00:19:22:10 – 00:19:36:07
Rod
That tells a story because I think you’ve got we’ve talked about networking. And speaking of right, our networking event, you know, we always say, hey, you never know who you’re going to do your first deal with. You haven’t, I think, an interesting story about how you came across this deal. Tell us about how you found.
00:19:36:07 – 00:19:47:22
Mark
Yeah, that it is interesting in networking and I’d say action and networking are your two biggest things. If you’re going to do this, you just, you know, and the Warrior program actually accomplishes both of them for you.
00:19:47:22 – 00:20:07:08
Andrew
So let me let me interject something before you. Before you answer, let me interject something. You know, it’s interesting. When I get a new warrior, I tell them because we discovered I don’t know about four or half years ago that our most successful was by far the ones that are the most connected in the warrior community. So we started doing all these things to connect them, like the Warrior event this weekend that was we didn’t start doing those.
00:20:07:08 – 00:20:22:21
Andrew
We do. We just started those the last couple of years and other things that we do to connect people. But people I think might you might think I’m a little crazy when I say what I’m going to say next, but I’m going to tell you and I tell my my new warriors this connecting with other warriors is actually more important than learning the business.
00:20:23:01 – 00:20:31:03
Andrew
In this business, it’s really more who you know than what you know. And I know that sounds crazy, but it’s absolutely the truth. So anyway, sorry to interrupt. Please continue, though.
00:20:31:05 – 00:20:55:11
Mark
Well, to that point, knowing you know who you know, so. So, yeah, I saw this transaction, this deal. This was not a warrior deal, but I got this. It’s a deal that was run by Endurance Capital Project. Simon, I think you’ve had him on your show, Yeah. And so his partner, Drew Watson, is the finance professor at Bethel University and in Saint Paul.
00:20:55:13 – 00:21:14:05
Mark
My nephew was a student of his, and so he was in one of his classes and my nephew was talking to Drew at the end of class and said, Hey, my uncle’s doing this. And I’ve been watching his stuff, I’ve been talking to my nephew about it. And he goes, what’s what’s what’s your uncle’s name? And can I can I reach out to him?
00:21:14:05 – 00:21:31:23
Mark
And so Drew actually reached out to me. I had a couple of phone calls with their team. We got on a couple Zoom calls with him and he just said, hey, we just so happened to be about a month away from closing on a deal in Columbus, Ohio. We’re going to we’re going to give our first webinar, literally, I think, that night.
00:21:31:23 – 00:21:50:05
Mark
And so I logged in Watson webinar, reviewed the deal. I like the guys and that’s the number one thing I think, you know, you’re really you’re betting on the jockey, not necessarily the horse, but but the deal made sense to me. So, so they and they were kind of I hadn’t race for anything. I’ve never I just lost my company.
00:21:50:05 – 00:22:14:19
Mark
I think November of 2022 is when I literally I was in Phenix at my parents house in Phenix on Thanksgiving Day, sitting on their, you know, deck when I when I literally hit the email and launched my company to my database and so, you know, I was able to connect with these guys. They were phenomenal operators, great character.
00:22:14:24 – 00:22:15:17
Mark
Ah values.
00:22:15:22 – 00:22:18:11
Andrew
Did you go look at as you go look at it or what what you do?
00:22:18:15 – 00:22:33:05
Mark
I did so after the webinar I committed to trying to race for it and they were kind enough. They said, Hey, we know you’re green, we know you’ve never done this, but we’ll would be more than happy to support you and give you a shot at it. So my wife, I called, my wife has said, Put us on a flight.
00:22:33:05 – 00:22:56:04
Mark
Let’s go out there and go look at the asset that’s been 48 hours and Columbus and we did I we secret shopped all the properties around it. We toured the property, got really comfortable with it, took photos of me on the property, sent it to my database when I got home and I had started having some clients call, said, Hey, you know, gosh, Matt, you’ve always done well with our real estate in Vail.
00:22:56:06 – 00:23:17:01
Mark
We’d be happy to partner with it on that. So obviously one of the things that we did when I was on site and having had a lot of real estate experience, the team had me walk to the when I was onsite to actually know construction deficiencies. Maybe some areas we could see some improvement, some value add opportunities. You know, I’ve remodeled a lot of homes.
00:23:17:01 – 00:23:37:02
Mark
So I mean, walking through the clubhouse alone, I was like, Guys, we really need to fix some of the look and feel here. Maybe separate the the leasing desk from the workout area. Yeah. And and so so we were able to do that while I was on site. I actually got to interview a couple of tenants and just kind of take some notes for the team just to see what the tenant feedback was.
00:23:37:04 – 00:23:57:10
Mark
We, my wife and I pretended like we were about to lease and asked them what to write about it, what they didn’t like about it, you know, gave some feedback on their onsite onsite staff as well. So, you know, just kind of again took what I understood, just looking at construction and remodel rehab, exterior and try to bring some value to that.
00:23:57:15 – 00:24:16:24
Andrew
Yeah, no question you’re helping with the due diligence. I mean, the tenant conversation, I can tell you, I saved $1,000,000 on a deal from a conversation I had with a tenant in Louisiana. So, you know, awesome. And then and then you also, you know, we’re helping with the due diligence on on renovation, renovating that clubhouse and other deficiencies that you saw.
00:24:17:04 – 00:24:22:03
Andrew
Deficiencies that you saw that. That’s fantastic. Were you going to add something, Mark?
00:24:22:05 – 00:24:39:18
Rod
Yeah, something you glossed over that I get asked all the time, right? People come to me and say, Hey, I’m new in the multifamily. Why would other people want to work with me? And you kind of glossed over the fact that you said, you know, you’ve done real estate in terms of sales, but you’re brand new in terms of this whole general partnership, multifamily sort of thing.
00:24:39:20 – 00:24:47:11
Rod
Why do you think these people were willing to take a chance on you and work with you here since you hadn’t done any of that stuff before?
00:24:47:11 – 00:24:50:14
Mark
I should probably ask them that and get their answers.
00:24:50:16 – 00:24:51:14
Andrew
Yeah.
00:24:51:16 – 00:25:12:12
Mark
But you know, I think a lot of it truly it was just the conversations we had. I think it’s it’s pretty quick. When you connect with someone, you’re like, okay, we hold similar values. I’ve listened to Todd’s podcast a bunch. I knew his character and values and I liked it and it aligned with mine. I think they found out that we would probably be a pretty.
00:25:12:14 – 00:25:14:24
Andrew
you did this one, dude. Todd Todd’s one of the principals.
00:25:15:04 – 00:25:16:24
Mark
He’s. Yeah, they are. Yeah.
00:25:17:01 – 00:25:19:17
Andrew
yeah. Okay. Yeah, he’s a good guy. Okay, good.
00:25:19:18 – 00:25:43:11
Mark
All right. Yeah. Super quality group, super cool. So and so I think I think we just connected on the phone calls and. And they were willing to do it. And this is a good advice to anyone who’s getting started. Just own where you’re at. Yet if you have no experience, just be humble about it. And I talked to Todd and his group and said, I’ve never done this.
00:25:43:11 – 00:25:57:07
Mark
I haven’t been a part of this. I it I can tell you what I see. I can try to bring it to my my database, but I’m new and they are like, you know, that’s all we care about, that you’re honest where you’re at, you own it, and let’s just go from there.
00:25:57:10 – 00:26:16:12
Andrew
In answer to Mara, an additional answer to Mark’s question, you know, you’ve built a relationship with these people. They see that you have integrity. They see you do what you say you’re going to do. And and then when you align on your values as well as is pretty much a no brainer. People again, you said the same thing about, you know, aligning with those guys that you met through the professor.
00:26:16:14 – 00:26:36:08
Andrew
It really is is building a relationship. And I’m going to talk about that this weekend. It really is. You know, don’t overthink raising equity. You know, let them see you’re you have integrity. And if you don’t understand the numbers, bring in somebody that does. But you’ve got to you know, you weren’t going to do finance. So you obviously know how to do the numbers.
00:26:36:08 – 00:26:43:12
Andrew
And you’ve you’ve had, you know, the benefit of our training as well. So so talk about the underwriting on this thing.
00:26:43:14 – 00:27:05:13
Mark
Yeah. So, you know, I think the big thing that the Warrior Group teaches is conservative underwriting and truly what that means. Everybody is a conservative underwriter when you get in the business, you realize everybody’s conservative underwriter. It takes a keen eye to look at underwriting and see who really is a conservative. So that was a big one. Is is I looked at their underwriting model and they were truly conservative.
00:27:05:13 – 00:27:34:13
Mark
They were not, you know, pie in the sky stuff. A lot of a lot of hopeful projections. He was like, here’s the real picture. The big thing is they got they had good that they had good locked in debt. They de-risked the deal. And that’s the one thing I look for with anyone who sends me a deal is I look at where they’re de-risking it for me and my investors in in how can we And I think now more than ever, people are seeing how important managing risk is in buying these assets.
00:27:34:15 – 00:27:35:11
Andrew
What is the.
00:27:35:13 – 00:27:58:18
Mark
Five? I think it’s five and a half percent, ten year fixed agency. Their five year interest only. And here’s what a lot of people don’t realize, and I saw it in the model, if everything goes according to plan and we all know it doesn’t always, but when the interest only fell off, we were still able to pay the full press out of cash flow.
00:27:58:20 – 00:28:02:16
Mark
So, I mean, that was it was a good projection. So it wasn’t what.
00:28:02:16 – 00:28:08:01
Andrew
Sort of rent project, what sort of rent bumps did they project organically.
00:28:08:03 – 00:28:10:19
Mark
About between 250 and 300 a.
00:28:10:19 – 00:28:21:23
Andrew
Month. Okay. So okay. But that’s over the term of the five years. So that just I’m talking yearly. Yearly. that was a value add. So you went in a repositioned. Got it. Okay. Well, the.
00:28:22:00 – 00:28:34:05
Mark
Projections right out the gate, I think we were about $200 a month below the area comps day one. So Gotcha, gotcha. Roughly 1500 a month projections were right around 1800.
00:28:34:07 – 00:28:43:19
Andrew
The question I’m asking is what sort of rent percentage increases did they calculate in each year for the five years?
00:28:43:21 – 00:28:47:05
Mark
So yeah, conservative. So there were about 2 to 3%.
00:28:47:07 – 00:29:13:15
Andrew
Okay, good, good, good, good. Because sometimes you’ll see 5%. I’ve seen Grant put saw him put 10% on one of his like come on, dude, I love you. No, no, but no. So this is in Columbus, Ohio. I love Columbus, Ohio. I’ve we’ve got an asset in Columbus as well. And, you know, and it’s all townhomes, which it doesn’t get any better than that because nobody’s living above or below you.
00:29:13:17 – 00:29:20:23
Andrew
And let’s see what else is what else Can you talk about the asset itself. What did you like about the asset itself?
00:29:20:23 – 00:29:45:24
Mark
You know, I think I think being in real estate location was always the biggest discussion. I mean, I’ve helped developers launch project, I’ve consulted pre-construction and I’ve seen a lot of developers eat their shorts because they put the right product in the wrong location. And so that’s a skill set I do have. I’m a big location person. So when we flew out to look at it, it was almost instant.
00:29:45:24 – 00:29:47:22
Mark
We knew it was right. I had to do it.
00:29:47:22 – 00:29:51:11
Andrew
Why, why? Why? I’m going to stop. Okay. There you go. Keep going. Sorry, I interrupted. Keep going.
00:29:51:16 – 00:30:13:24
Mark
That’s right. So I had a Starbucks within three blocks of it at a Culver’s burger. I had a a brand new Taco Bell, KFC. There was a Sam’s Club, three brand new hotels and a major highway exchange within a quarter of a mile of the property. And that highway itself, by the way, I fed straight into all the employment centers.
00:30:14:01 – 00:30:33:02
Rod
And by the way, just just real quick to add on that for people that are listening, that don’t know why, why do they care? There’s a Starbucks there that maybe don’t know that when these huge corporations decide to put these restaurants or Starbucks or whatever in these locations, they typically they do their homework on population job growth, all of these sorts of things.
00:30:33:02 – 00:30:45:17
Rod
And so those are signs that that’s a good area that people are moving to. And I just wanted to mention that because you talked about that and some people may not know why does it matter? There’s a burger place nearby, why does it matter? There’s a Starbucks. So I wanted to make well.
00:30:45:19 – 00:31:12:06
Andrew
It depends on what burger place is nearby. If it’s Bob’s Burgers and Sushi, that’s a problem. Okay. We want to we want to see national retailers. And I will tell you, even more than Starbucks, if you see the larger big box stores like the big grocery store chains, the Wal-Marts, the Whole Foods, the bigger boxes, they really do their demographic research and and yeah, and I won’t buy a place unless there’s a Starbucks within a mile.
00:31:12:06 – 00:31:29:07
Andrew
I should own stock in that stupid company. But but yeah now that’s and and and the transportation is critical as well you know and I you know I teach this at my boot camps is you don’t want to see a bunch of local retail you want to see a bunch of big in big national retail. So you went right to that.
00:31:29:09 – 00:31:47:15
Andrew
And then of course, like I say, that the ability to go to the employment centers and the fact that they just put in three new hotels talk tells you that it’s an emerging market that’s growing. It’s growing for sure. We want to see three things growing population, income and jobs. And and I know Columbus ticks off all those boxes.
00:31:47:20 – 00:31:49:17
Andrew
So talk about the asset itself.
00:31:49:22 – 00:31:58:17
Mark
So to to the point of the location, I didn’t touch on it, but about a mile and a half away, there was a huge hospital that was doubling. It was under construction and doubling in size.
00:31:58:23 – 00:32:00:03
Andrew
There you go. There you go.
00:32:00:03 – 00:32:01:24
Mark
Yeah, it was pretty quick.
00:32:02:01 – 00:32:17:04
Andrew
Yeah. One of the things. Hold on before you can move on, I want to mention this as well. One of the things that we have our warriors do is we have them do an area presentation, even if they haven’t got an asset yet. So they present to the group so they can become good at what to look for, you know, and what to look for on the website.
00:32:17:04 – 00:32:37:11
Andrew
So one of the biggest things is what’s coming in, you know, like a hospital expanding in size and the San Antonio asset I’m closing on today, they’re putting 4 billion into the airport. I mean, that’s the kind of stuff you want to have in a presentation that you show you and investors. And there’s a big, huge development right down the road from that asset, the one I’m closing on today.
00:32:37:11 – 00:33:02:22
Andrew
But but the point is, so when you’re, you know, looking at a market, a geographic area, you know, get plugged in to the Chamber of Commerce and the local economic development office and and have, you know, alerts on your computer for Google Alert for anything, articles that pop up about that either that big MSA metropolitan statistical area or the smaller submarket so that you can, you know, really have your ear to the ground as to what’s happening.
00:33:03:01 – 00:33:05:03
Andrew
All right. Now back to the asset. Sorry.
00:33:05:03 – 00:33:19:10
Mark
Yeah. So the asset itself after the location was kind of a quick check checked off that box. So it’s a townhome style community. All everyone has a front door. Every one of them had a one car garage as well. Detached one.
00:33:19:13 – 00:33:21:07
Andrew
wow. Nice, nice.
00:33:21:09 – 00:33:45:05
Mark
So small little backyard area. So what what the strategy was was trying to hit that demographic that can’t afford to buy a house, but they want a little bit more space. So that was the play. And come to find out Columbus has a lot of this kind of product coming online as well. So so we knew it was it was going to it was going to meet the needs of the community.
00:33:45:05 – 00:33:51:15
Mark
But so it was a little larger profile which made the tenant base maybe a little stickier than the normal as well.
00:33:51:21 – 00:33:55:21
Andrew
So I’m sorry, could you elaborate on what you just said? What do you mean, larger profile?
00:33:55:23 – 00:33:58:15
Mark
So the units are a little bit larger, so.
00:33:58:17 – 00:34:00:02
Andrew
good. Okay. Got you. Okay.
00:34:00:02 – 00:34:22:23
Mark
Sometimes some of them had a lower level basement that could be almost like a 30 Nice area. So where it was going to young families who are raising kids, things like that. So again, we’ve we’ve figured it’s probably got a little stickier tenant base. We’ll be able to keep them in on property longer and and so which is makes for a healthy community.
00:34:22:23 – 00:34:40:19
Andrew
Absolutely. You know and one of the things you just mentioned, this is one of the slides on my economic update this weekend. I’m starting, you know, kind of a markets condition market condition as I start the warrior event this weekend. And one of the slides talks about this growing despair pretty between a person’s ability to buy versus rent.
00:34:40:19 – 00:35:01:24
Andrew
And it’s just getting it that gap is becoming wider and wider. And candidly, you know, one of the things you want to look for is that disparity, because in fact, if you’re listening and you want to see an incredible presentation of a deal, go to see our capital com and watch the webinar for the San Antonio asset that that we did.
00:35:02:01 – 00:35:29:06
Andrew
So it’s c r e capital dot com. In fact we’re still got a couple of slots left in it if you’re accredited check it out. But that the reason I’m telling you to watch it even if you’re not is you’ll see that we highlight some just some disparity that we want to see. One is rent versus buy because if if you can buy a place for what we look at there, as we look at two things, we look at, you know, what we’re paying per unit versus the median home price.
00:35:29:06 – 00:35:54:00
Andrew
And if they’re close together, they’re going to buy instead of rent. Right? So that’s one thing. The second thing is we look at the median income to make sure we can that that people that make three times what our ultimate rent is going to be. Okay. So those are two things that that we highlight. But anyway, you can go to CRE capital dot com and watch that webinar to really give you an education on what we look for in a deal and in a in a market.
00:35:54:02 – 00:35:58:01
Andrew
So talk about the value add that you were going to do there brother. Yeah.
00:35:58:03 – 00:36:20:17
Mark
So the interior units where we walked from when I was walking through them, obviously there was we got to see a couple of the ones that were already value added. So there was already a little bit of a proof of concept there and it was working for the previous owner. So we’re going to go in and put Slab in the kitchen’s new stainless steel paint counter to replace it if it needs to.
00:36:20:19 – 00:36:45:15
Mark
You know, the vinyl hardwood floors upgrade bathrooms, the the complex was a little unique, as it used to be, individually owned townhomes. And the previous owner actually started buying them back up and packaged them back together. And so then that actually has one that is I’m now a member of the HRA board as well because we had a former way around it.
00:36:45:17 – 00:37:10:14
Mark
Sure. So it’s under under ownership. And so lawyers were in various stages of of rehab. We just had an asset manager meeting on it actually this morning. And we’re going to actually pull back on the value add because we realized just by replacing appliances where they needed to, replacing some vinyl, hardwood floors and painting, we’re still getting the rip out we needed.
00:37:10:14 – 00:37:11:05
Mark
Yep.
00:37:11:07 – 00:37:29:14
Andrew
Do you don’t want to overspend? That’s a common that’s a common thing. You are you overspend. Yeah. We teach that in the Warrior program. By the way, if you’re interested in applying to the Warrior program, text the word crush to seven two, three, four or five, and then we’ll have a call again to text crush so we can help you crush it in this business.
00:37:29:16 – 00:37:34:23
Andrew
And 272, three, four, five. And yeah, so.
00:37:34:23 – 00:37:52:10
Rod
Projects out to the future here Matt you’ve done you’ve done that deal I know we always talk about the great thing about bigger multifamily is one deal can certainly change your life, but what is project us out for what you feel. Your version of financial freedom is going to look like you’re moving forward and how you plan on getting there.
00:37:52:10 – 00:38:15:04
Mark
Yeah, so, so my, my brand, by the way, is it of passive income. I’ve branded it to freedom income because for me I like I like working on the assets. So I’m not looking to retire on a beach and set my ties. I’ll do that from time to time. But that’s I still like I love real estate, I love being on site, I love managing properties.
00:38:15:06 – 00:38:33:07
Mark
I love visioning them out. So so I, you know, I think the long term kind of what they call the be had goal is probably right around 7500 units. I want to kind of get to a critical mass that my kids will eventually take over. I want to pass it on to them. I want to be as direct owner of these assets as possible.
00:38:33:07 – 00:39:02:02
Mark
I’m not I’m working on, you know, my role right now. But eventually I just want to be as close to the ownership as in management of them day to day as I can. I’d say in the next two years, because I think the next 24 months are a buying opportunity like we’ve never, never going to see. And I think it’s only just getting started, you know, I’d like to get about 2500 units under ownership where I’m a I’m either a high hire or lead on them.
00:39:02:04 – 00:39:18:02
Andrew
Yeah, love it, love it, love it, love it. So listen, last question. You know, if anyone has questions about this business or about the Warrior program or just wants to reach out to you, are you okay with releasing an email or something, they can reach you.
00:39:18:03 – 00:39:39:21
Mark
And I love talking to people. I really do. It’s okay. Okay. I love coaching. And I’ll tell you what I know so far, and I love love people. And I’m looking for, you know, my my goal is to partner with, you know, maybe half a dozen to a dozen GP’s and just kind of rinse and repeat with a group of people that have strong relationship with.
00:39:39:23 – 00:39:42:17
Andrew
What’s your email, brother, or how do you want to how do you want them to reach you?
00:39:42:19 – 00:39:50:00
Mark
Yeah, you can email is always great. It’s Matt at Veritas Equity dot net in a spell.
00:39:50:00 – 00:39:52:12
Andrew
That out VR Yeah, I would spell that up.
00:39:52:13 – 00:39:58:00
Mark
Yeah. Veritas Equities, VR I t ace equity dot net.
00:39:58:02 – 00:40:14:22
Andrew
So love it. Love it. Yeah. Well, thanks for coming on, brother. It’s great to see you. And and I’m sure I’ll see you soon either at this weekend’s event or the next one. But. And, you know, I’m a little jealous that you’re in Vail, although it is pretty frickin beautiful here, right now. But, yeah, it’s good to see you, my friend.
00:40:15:00 – 00:40:15:10
Andrew
All right.
00:40:15:13 – 00:40:17:02
Mark
Thank you. Shade is on Emmalin.
00:40:17:04 – 00:40:18:00
Andrew
So one other quick.
