Matt Iverson, founder of Veritas Equity, is a seasoned real estate investor with a proven track record in multimillion-dollar resort fix-and-flips and over a decade in family brokerage, overseeing billions in transactions. He launched Veritas Equity to create lasting passive income, reduce tax burdens, and build sustainable generational wealth through real estate.

Here’s some of the topics we covered:

  • From $3 Billion in Transactions to Crushing It in Multifamily
  • The Hidden X Factor That Separates Multifamily Winners from the Rest
  • Massive Action vs Hesitation Why Speed of Decision is Everything
  • Breaking Down the Anatomy of a Multifamily Deal Like a Pro
  • The Shocking Reason Experts Always Talk to Tenants Before Closing
  • Playing It Safe = Bigger Profits Why Conservative Investing Wins Long Term
  • The Asset Location Secret Insiders Don’t Want You to Miss

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

00:00:28:24 – 00:00:47:20
Rod
Welcome back to multifamily Rock. 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.

00:00:47:21 – 00:00:49:17
Mark
Good to see you. It sounds like good to be.

00:00:49:17 – 00:00:50:14
Rod
Seeing.

00:00:50:16 – 00:00:55:02
Mark
You. You’ve got a busy day. You just mentioned closing in on, Texas Steel, right?

00:00:55:06 – 00:01:13:03
Rod
Yeah. Closing on a $20 million asset in San Antonio. It’s about a mile away from another 296 unit asset that we own. It’s a screamin deal. Oh, 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 at about 40% discount because it’s the same vintage and everything.

00:01:13:03 – 00:01:32:23
Rod
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.

00:01:33:03 – 00:01:51:18
Rod
You know, as you go, as you go through life, you want better quality problems. 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 is Matt Iverson. And Matt is actually a luxury resort broker. And, I’m not sure when he joined the warrior program.

00:01:51:18 – 00:02:07:00
Rod
We’ll find out, but, he, is a in about 450 doors as a general partner and a limited partner, 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.

00:02:07:00 – 00:02:21:02
Matt
See you. Thanks, rod. Good to be here. It’s a little surreal to be here. It’s. 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. It was pretty crazy. Oh.

00:02:21:02 – 00:02:36:06
Rod
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?

00:02:36:08 – 00:03:04:06
Matt
Yeah. Well, so, real. So I’ll start with the real estate side, just because that goes back all the way to my, my childhood. It 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 80s 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, and eventually she became a broker.

00:03:04:08 – 00:03:21:18
Matt
In that process, they started buying and building homes in, in the Vail Valley area. And so most of my childhood, I remember going to projects we, you know, we we’d have family dinner and then we 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 and frame it.

00:03:21:18 – 00:03:43:06
Matt
And so that was so I’ve watched the real estate business since I was a kid, and growing up in Vail, the, we watched the 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, so.

00:03:43:08 – 00:04:08:12
Matt
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 that 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.

00:04:08:14 – 00:04:30:13
Matt
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 it’s it’s I’ve watched her 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 resource launch a couple, condominium developments there in the base of Breckenridge.

00:04:30:15 – 00:04:48:15
Matt
Helped with a little bit of, pre-planning on a big base, ski area expansion, if you will. So base of peaks seven and eight. They were expanding at multi-billion dollar development. So once I got my license, joined the team, I realized real estate was really in my blood. That was what I wanted to do.

00:04:48:21 – 00:05:03:16
Rod
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 taken a gondola, take renting bikes, taking them up to the top of Vail Pass, riding the bikes down. I remember riding down this trail and running right into two deer right in front of us.

00:05:03:16 – 00:05:19:22
Rod
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.

00:05:19:24 – 00:05:39:12
Rod
Oh, yeah, that was it. Swiss dog. Oh, my God, do you ever. Fantastic. This is bringing back memories. And, you know, you talked about your mom starting as a sales person, 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.

00:05:39:12 – 00:05:56:04
Rod
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 rehab rehabs in their in their hotel, hotels up in that area, and they’re the largest up there.

00:05:56:04 – 00:06:16:18
Rod
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 pro. 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.

00:06:16:18 – 00:06:32:17
Rod
People that know they want to go do something. What 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, and and so how would you answer that in any way you like?

00:06:32:18 – 00:06:51:13
Matt
Yeah. Well, I and I think that would actually probably bring me to the story of kind of how I joined the warrior group. Okay. Because that, that ties into who my avatar is, because that’s exactly why I ended up joining. So I’ve, I’ve spent 22 years and in the luxury real estate sales, very transactional. My wife and I have bought and flipped multiple homes.

00:06:51:15 – 00:07:08:04
Matt
Everything was equity based. So we just kind of put the money in, sold a few layers. We took the money up. Not a lot of passive cash flow. So in in 2020, in March 2020, before the lock, when they just started locking down, I thought we were going out of business, and it was quite the opposite.

00:07:08:04 – 00:07:27:13
Matt
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. I was like, I gotta figure something out on how to start reducing my tax bill while I’m doing this. And he said, you know, Matt, you’re really good at selling real estate.

00:07:27:13 – 00:07:44:18
Matt
You need to start investing in it. And so I started whining about it to my wife. And I’ll never, I can 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. We had just come through Moab, about to get on to I-70, on I-70 back to Colorado.

00:07:44:20 – 00:08:03:19
Matt
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 our wisdom, kind of looks at me and, and nicely says she goes, you know what, honey? I’ve been listening to you talk about this for 20 plus years.

00:08:03:21 – 00:08:07:11
Matt
I think it’s either time, you know, for good off the pot.

00:08:07:13 – 00:08:08:14
Rod
I love it.

00:08:08:16 – 00:08:22:02
Matt
So. So I was like, you know, 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. So I go, okay. And it just so happened I pulled up your podcast for the first time and started listening.

00:08:22:02 – 00:08:25:06
Rod
It’s all downhill from there. It was all downhill from there.

00:08:25:08 – 00:08:43:24
Matt
Right? So. Well, I was I was listening to all this, but I started listening to Biggerpockets and then I pulled, I started listening to the errors and, and just kept listening to interview after interview of people who 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.

00:08:44:01 – 00:09:12:01
Matt
And that’s and I think a couple days later, I was on an interview with with you and Mark and, and started 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 sales people, doctors, accountants, you know, people who are making a lot of money, you know, put it in their time into their business, but are starting to see the end of the, you know, the end of the road, their skill sets diminishing.

00:09:12:01 – 00:09:20:20
Matt
I just I don’t have the energy to do what I do. And we do, you know, on average, to previously we did about 100 million a year in sales.

00:09:20:22 – 00:09:21:24
Rod
Wow. That’s significant.

00:09:21:24 – 00:09:39:01
Matt
Wow. Yeah, it’s it’s a, you know, it’s a lot of work. It’s a lot of time. But, in 2020, we did 267 million, care 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.

00:09:39:03 – 00:10:03:01
Matt
And so that’s that. So now it’s the three of us. But but I realized 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.

00:10:03:03 – 00:10:14:10
Rod
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 Matt.

00:10:14:16 – 00:10:33:12
Mark
Having experience in the real estate industry, obviously, and I know you necessarily didn’t work on multifamily, but what are some of your superpower and skill sets that maybe other high income earners or salespeople or other people relating to that can maybe think, oh, I can take that skill set and then bring that into multifamily. How did you do that?

00:10:33:17 – 00:10:53:16
Matt
Yeah. So, I mean, my, my skill set, my biggest asset is I’m a sales person, you know, I, I can sell. So I enjoy working with my, with clients. So my number one thing is I would say I, I’m taking that ability and, and I work with a lot of high income, people, a lot of ultra high net worth.

00:10:53:18 – 00:11:22:08
Matt
And 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 by their buy and sell houses constantly 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.

00:11:22:08 – 00:11:44:20
Matt
So, so I do like investor relations, having transacted, you know, thousands and thousands of real estate properties, doing due diligence, looking for opportunity, seeing issues is really second nature. I mean, I can walk a property I can look at. I was looking at a deal the other day in just the photos alone. I picked out about six, construction issues.

00:11:44:22 – 00:12:01:03
Matt
I was like, you know, just little tiny sightings falling off in that picture to the sightings warping this picture, you know. And it was in Ohio. I’m in Colorado. I was I was looking at pictures of the deal in Ohio, and I was like, oh, there’s there’s some deferred maintenance on that just from the pictures. So yeah. So I’ve done a lot of, due diligence on properties.

00:12:01:05 – 00:12:11:03
Matt
My wife and I have remodeled, you know, a half a dozen properties and flipped, and, and so working with contractors and, you know, these are all very easy for me to do.

00:12:11:05 – 00:12:30:02
Rod
And, of course, capital raising. I mean, you have no problem asking for money. Know, 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 hang up on this, and I’m going to be I’m going to be talking about this at the warrior event this weekend and raising capital.

00:12:30:02 – 00:12:46:01
Rod
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. And and just communicating that it’s just, you know, communicating. And a lot of introverted people really struggle with that.

00:12:46:01 – 00:13:08:04
Rod
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, a new, you know, a budding entrepreneur, a budding investor. What’s a what’s an action item?

00:13:08:04 – 00:13:11:19
Rod
Let’s, let’s let’s pick something that we can dive deeper on. Yeah.

00:13:11:19 – 00:13:32:22
Matt
Well, and I think it goes back to, the conversation with my wife, you know, either decide do it or don’t either, 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.

00:13:32:24 – 00:13:54:00
Matt
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 warriors, all the warriors I get to connect with are phenomenal.

00:13:54:00 – 00:14:17:05
Matt
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 what that was what I did. I took action, I joined the group and just started plugging away.

00:14:17:10 – 00:14:35:12
Rod
Love it. You know, what’s interesting is, is what you just said, you’ve got to make a decision. It starts with the decision. And it doesn’t mean you dip your freaking 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 root for the word decision means to cut off if you’re going to.

00:14:35:17 – 00:14:52:17
Rod
A great analogy would be if you’re going to attack the island or burn your ships because you’re taking their damn ships home, that’s a decision. And then then you said, you know, massive freaking action. You got to take action. And you you talked about action in its relationship to fear, you know, or stress, which is just the achievers word for fear.

00:14:52:20 – 00:15:12:04
Rod
You know, anytime 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 well mitigated. 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.

00:15:12:04 – 00:15:17:21
Rod
I assume you syndicated it. You know, let’s let’s, let’s drill down on it, brother. Yeah.

00:15:17:23 – 00:15:31:20
Mark
That was a story, because I think you’ve got, we’ve talked about networking and speaking in our networking event. You know, we always say, hey, you never know who you’re going to do your first deal with. You have an, I think, an interesting story about how you came across this deal. Tell us about how you found.

00:15:31:20 – 00:15:43:10
Matt
Yeah, that it is interesting and networking. And I’d say action and networking are your two biggest, things. And if you’re going to do this, you just, you know, and and the warrior program actually accomplishes both of them for you.

00:15:43:10 – 00:16:01:07
Rod
So let me let me interject something before you, before you answer, let me in or something. You know what’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 warriors, 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.

00:16:01:07 – 00:16:18:09
Rod
That was we didn’t start doing those. We we just started those last couple of years and other things that we do to connect people. But people think, my, 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.

00:16:18:14 – 00:16:26:04
Rod
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.

00:16:26:04 – 00:16:50:23
Matt
Oh, well, to that point, you know who you know. So. So, yeah, I found this this deal. This was not a warrior. Deal. But, I got this, it’s a deal that was run by Endurance Capital. Todd Dixon, and I think you’ve had them on your show. Yeah. And so, his partner, Drew Watson, is the finance professor at Bethel University and in Saint Paul.

00:16:51:00 – 00:17:08:04
Matt
My nephew was a student of his. And so he was in one of his classes. And my nephew was talking to, to drew at the end of class and said, hey, my uncle’s doing, you know, this, and I’ve been watching his stuff. I’ve been talking to my nephew about it. And he goes, oh, what’s, what’s, what’s your uncle’s name?

00:17:08:04 – 00:17:23:24
Matt
And can I, can I reach out to him? 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 happen to be about a month away from closing on a deal in Columbus, Ohio.

00:17:24:01 – 00:17:43:09
Matt
We’re going to we’re going to give our first webinar, literally, I think, that night. And so I logged in, wasn’t 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 the but the deal made sense to me. So so they and they were kind of I hadn’t raced or anything yet.

00:17:43:10 – 00:18:07:08
Matt
I’ve never I just launched my company. I think November of 2022 is when I, I literally I was in Phoenix at my parent’s house in Phoenix 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.

00:18:07:08 – 00:18:11:04
Matt
They were phenomenal operators. Great character, our values.

00:18:11:10 – 00:18:14:00
Rod
Did you go look at as you go look at it or what? What did you do?

00:18:14:03 – 00:18:28:18
Matt
I did so after the webinar, I committed, to trying to raise for it. And and they were kind enough. They said, hey, we know your grain. We know you’ve never done this, but we’ll we’ll be more than happy to support you and give you a shot at it. So my what I call my wife has said, put us on a flight.

00:18:28:18 – 00:18:51:04
Matt
Let’s go out there and go look at the asset. That’s been 48 hours in 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, send it to my database when I got home and, and I had started having some client call, said, hey, you know, gosh, Matt, you’ve always done well with a real estate in Vail.

00:18:51:06 – 00:19:10:09
Matt
I we’d be happy to partner with it on that. So obviously one of the things that we did when I was on site in having had a lot of real estate experience, the team had me walk through the when I was on site to actually know, construction deficiencies, maybe some areas we could see some improvement, some value add opportunities.

00:19:10:11 – 00:19:32:16
Matt
You know, I’ve, I’ve remodeled a lot of homes, 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. And and so, so we were able to do that. While I was on site, I actually got to interview a couple tenants and just kind of take some notes for the team just to see what the tenant feedback was.

00:19:32:16 – 00:19:52:23
Matt
We 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 on on site staff as well. So, you know, just kind of again, took what I understood just looking at construction and remodel, rehab experience and tried to, bring some value to that.

00:19:53:02 – 00:20:14:05
Rod
Yeah, that’s no question. You’re helping with the due diligence. I mean, the tenant conversation. I can tell you I saved $1 million 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, deficiencies that you saw that.

00:20:14:07 – 00:20:17:16
Rod
That’s fantastic. Were you going to add something, Mark?

00:20:17:18 – 00:20:35:01
Mark
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.

00:20:35:07 – 00:20:42:24
Mark
Why do you think these people were willing to take a chance on you and, and work with you here, since you hadn’t done any of that stuff before?

00:20:42:24 – 00:20:45:24
Matt
I should probably ask them that, and get their answers.

00:20:46:01 – 00:20:47:02
Rod
Yeah.

00:20:47:04 – 00:21:04:24
Matt
But, I, 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.

00:21:05:01 – 00:21:07:12
Matt
I think they found that that we would probably be a pretty.

00:21:07:12 – 00:21:10:12
Rod
Oh, oh, you did this one to Todd. Todd’s one of the principles.

00:21:10:17 – 00:21:11:20
Matt
He’s. Yeah. They are. Yeah.

00:21:11:23 – 00:21:15:17
Rod
Oh, yeah. Okay. Yeah. He’s a good guy. Okay, good. All right.

00:21:15:22 – 00:21:38:23
Matt
Yeah. Super quality group, super call. So, and so, I think I think we just connected on the phone calls and, and they were willing to do it, and, and this is a good advice to anyone who’s getting started. Just on where you’re at, if you have no experience, just be humble about it. Own it. And I talked to Todd and his group and, and said, I, I’ve never done this.

00:21:38:23 – 00:21:52:20
Matt
I haven’t been a part of this. I can 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.

00:21:52:23 – 00:22:12:00
Rod
An answer to 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, it’s it’s 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.

00:22:12:02 – 00:22:30:00
Rod
It really is, is building a relationship. And, 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 your you have integrity. And, if you don’t understand the numbers, bring in somebody that does. But you’ve got to, you know, you are going to do finance.

00:22:30:00 – 00:22:39:01
Rod
So you obviously know how to do the numbers. And you’ve you’ve had, you know, the benefit of art training as well. So, so talk about the underwriting on this thing.

00:22:39:03 – 00:23:01:01
Matt
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’s it takes a keen eye to look at underwriting and see who really it’s a conservative. So that was a big one is I looked at their underwriting model and they were truly conservative.

00:23:01:01 – 00:23:22:02
Matt
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 debt. 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.

00:23:22:02 – 00:23:30:01
Matt
And how can we, you know, and I think now more than ever, people are seeing how important managing risk is in buying these assets.

00:23:30:03 – 00:23:30:24
Rod
What is the.

00:23:31:01 – 00:23:54:04
Matt
Five? I think it’s 5.5%, ten year fixed agent, senior 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 profit out of, cash flow.

00:23:54:06 – 00:23:57:22
Matt
So, I mean, that was it was a good projection. So it wasn’t what.

00:23:57:24 – 00:24:03:13
Rod
What sort of rent, what sort of rent bumps? Did they project organically?

00:24:03:15 – 00:24:06:15
Matt
About between 250 and 300 a month.

00:24:06:18 – 00:24:16:20
Rod
Okay. So. Okay. But that’s over the term of the five years. So that’s talking. I’m talking yearly. Yearly. Oh, that was a value add. So you went in and repositioned. Got it. Okay.

00:24:16:20 – 00:24:29:12
Matt
Well the projections right out the gate I think we were about $200 a month below that area. Comps day one. So gotcha. I think we got roughly 1500 a month. Projections were right around 1800.

00:24:29:13 – 00:24:39:06
Rod
So the question I’m asking is what sort of rent, percentage increases did they calculate in each year for the five years?

00:24:39:08 – 00:24:42:18
Matt
So yeah, conservative. So they were about 2 to 3%.

00:24:42:20 – 00:25:07:11
Rod
Okay. Good good good good. Because sometimes you’ll see 5% I’ve seen Grant put I 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.

00:25:07:11 – 00:25:16:11
Rod
Yeah. And, let’s see what else is. What else can you talk about? The asset itself. What did you like about the asset itself?

00:25:16:11 – 00:25:38:04
Matt
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 skillset I do have. I I’m a big location person.

00:25:38:04 – 00:25:43:02
Matt
So when we flew out to look at it, it was almost instant. We knew it was right. I had to say.

00:25:43:02 – 00:25:46:24
Rod
Why, why, why, why? I’m going to stop. Okay. There you go. Keep going. Sorry. Interrupted. Keep going.

00:25:47:00 – 00:26:09:13
Matt
Oh that’s fine. So I had Starbucks within three blocks of it at Culver’s Burger. I had, 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’s how I was saved, by the way. I fed straight into all the employment centers.

00:26:09:15 – 00:26:28:15
Mark
And by the way, just just real quick to 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 these sorts of things.

00:26:28:15 – 00:26:41:05
Mark
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, oh, why does it matter. There’s a burger place nearby. Why does it matter? There’s a Starbucks. So I wanted to mention, well.

00:26:41:07 – 00:27:04:07
Rod
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 Walmarts, the Whole Foods, the bigger boxes, they really do their demographic research.

00:27:04:09 – 00:27:19:22
Rod
And and yeah. And I won’t buy a place unless there’s a Starbucks within a mile. I should own stock and that stupid company. But but yeah. No, that’s an and and and the transportation is critical as well. You know. And I you know I teach this at my boot campuses. You don’t want to see a bunch of local retail.

00:27:19:22 – 00:27:39:17
Rod
You want to see a bunch of built in big national retail. So you went right to that. 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.

00:27:39:19 – 00:27:45:06
Rod
And and I know Columbus ticks off all those boxes. So talk about the asset itself.

00:27:45:09 – 00:27:54:05
Matt
So and 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.

00:27:54:11 – 00:27:55:22
Rod
There you go. There you go. Yeah.

00:27:55:24 – 00:27:57:12
Matt
It was pretty quick.

00:27:57:14 – 00:28:12:16
Rod
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.

00:28:12:16 – 00:28:33:00
Rod
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 know, investors and there’s a big, huge development right down the road from that asset, the one I’m closing on today.

00:28:33:00 – 00:28:58:10
Rod
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.

00:28:58:14 – 00:29:00:15
Rod
All right. Now back to the asset. Sorry.

00:29:00:15 – 00:29:14:22
Matt
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 for all. Everyone has a front door. Every one of them had a, one car garage as well. Detached one.

00:29:14:22 – 00:29:16:19
Rod
Oh, wow. Nice, nice.

00:29:16:21 – 00:29:40:17
Matt
So small little backyard area. So what what that 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 had 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, of the community.

00:29:40:17 – 00:29:47:02
Matt
But so it was a little larger profile. Which made the tenant base maybe a little stickier than the normal as well.

00:29:47:08 – 00:29:51:09
Rod
So I’m sorry, could you elaborate on what you just said? What do you mean larger profile?

00:29:51:11 – 00:29:53:21
Matt
So the units are a little bit larger. So there.

00:29:54:00 – 00:29:55:14
Rod
Oh, good. Okay. Gotcha. Okay.

00:29:55:15 – 00:30:00:03
Matt
Sometimes, some of them had a lower level basement that could be at almost like a 30.

00:30:00:03 – 00:30:00:13
Rod
Oh oh nice.

00:30:00:13 – 00:30:18:11
Matt
Area. So we’re it was just 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, in on property longer and, and so which is makes for a healthy community.

00:30:18:11 – 00:30:36:06
Rod
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 market, condition, market condition, as I start the warrior event this weekend. And one of the slides talks about this growing disparity between, a person’s ability to buy versus rent.

00:30:36:06 – 00:30:57:11
Rod
And it’s just getting 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 Creek capital.com and watch the webinar for the San Antonio asset that, that we did.

00:30:57:13 – 00:31:19:22
Rod
So it’s Creek capital.com. In fact, we’re still got a couple slots left in it. If you’re accredited check it out. But 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 and what we look at there is we look at two things.

00:31:19:22 – 00:31:38:05
Rod
We look at, you know, what we’re paying per unit versus the median home price. 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.

00:31:38:06 – 00:31:53:13
Rod
Okay. So those are two things that that we highlight. But again anyway you can go to CRE capital um.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. So talk about the value add that you were going to do there, brother. Yeah.

00:31:53:15 – 00:32:16:05
Matt
So the interior units when we walk through them, 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 cabinetry or replace it if it needs to.

00:32:16:07 – 00:32:38:17
Matt
You know, the vinyl hardwood floors, upgrade bathrooms. The, the, the complex was a little unique. Is 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 the GP’s. I’m now a member of the HOA board as well.

00:32:38:19 – 00:33:04:05
Matt
Because we had two former HOA around it, once. Sure. Yeah. So it’s under under ownership. And so a lot of those 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.

00:33:04:09 – 00:33:06:17
Matt
We’re still getting the robot we needed. Yeah.

00:33:06:19 – 00:33:25:02
Rod
Do you don’t want to overspend it? That’s a common. That’s a common thing where 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, 4 or 5, and then we’ll have a call again to text crush so we can help you crush it in this business.

00:33:25:04 – 00:33:29:22
Rod
And, to 72345, and, yeah.

00:33:30:03 – 00:33:47:22
Mark
So 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 your project this out for what you feel. Your version of financial freedom is going to look like here moving forward. And how you plan on getting there?

00:33:47:23 – 00:33:48:05
Mark
Yeah.

00:33:48:05 – 00:34:06:14
Matt
So, so my, my brand, by the way, instead 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, you know, 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.

00:34:06:14 – 00:34:26:02
Matt
I love being on site. I love managing, properties. I love visioning them out. So, so I, you know, I think the long term kind of what they call the big 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.

00:34:26:04 – 00:34:44:13
Matt
I want to be as direct owner of these assets as possible. 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.

00:34:44:15 – 00:34:57:16
Matt
Like, we’ve never, never been to see. And I think it’s only just getting started. I’d like to get about 2500 units under, ownership where I’m a, I’m either a high higher or lead GP on them.

00:34:57:18 – 00:35:13:20
Rod
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 sent?

00:35:13:21 – 00:35:35:09
Matt
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 it 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.

00:35:35:11 – 00:35:38:05
Rod
What’s your email, brother? How do you want to know? How do you want them to reach you?

00:35:38:07 – 00:35:45:12
Matt
Yeah. You can email is always great. It’s Matt at Veritas Equity dot net and I spell.

00:35:45:12 – 00:35:48:00
Rod
That out VR yeah I would spell that out.

00:35:48:02 – 00:35:53:13
Matt
Yeah. Veritas equities Veritas equity dot net.

00:35:53:15 – 00:36:08:18
Rod
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, yeah. And, you know, I’m a little jealous that you’re in Vail, although it is pretty frickin beautiful here right now, but,

00:36:08:24 – 00:36:11:10
Rod
Yeah. It’s good to see you, my friend. All right. Exactly.

00:36:11:10 – 00:36:12:08
Matt
Shade is honored, man.