10. What’s Your Portfolio Theory with Kent Ritter

12/20/22 • 32 min

Do you get a sense of community, transparency and a low risk/high return product in the stock market? Probably not! In this podcast, Kent Ritter, Multifamily Investor and Entrepreneur explains how investing in multifamily apartments provides all this and more.

LISTEN FOR THIS

Kent became a real estate investor because he recognized the need to diversify his investment portfolio and found real estate to be the best option.
After investing in many different real estate assets, Kent landed on multifamily apartments because the investment can be scaled, there is a high demand for a place to live, its value increases, it keeps up with inflation and it has the flexibility to adjust to different market conditions.
With apartment investments, the risk involved is considered and factored into projected returns. This makes the chance of getting the returns stated much higher than other types of investments.
It is becoming more costly to own a home than it is to rent. As this gap widens, so does the need for apartment living.
Three things that multifamily apartment sponsors should deliver to investors is community, investor experience and product performance. It can be lonely to become an investor outside of Wall Street but when you invest in multifamily apartments, you become part of a community of like-minded people where you can find reassurance and a lot of help along the way.

QUOTES
“I was looking for a way to diversify my assets. I had everything in the stock portfolio so I felt like I was sitting there with all my eggs in one basket. And I knew, because I was a finance major in college and I learned about portfolio theory, that that wasn't the right way to set up your allocations...Ineeded to find a way to diversify and find something that could provide some great returns and then some tax savings and real estate was checking all those boxes for me.”
“It's about more than just providing properties but it's about creating a community of like-minded folks. I think being an investor, especially investing in alternatives, can be a lonely endeavor. There's not a lot of people that understand it. There's not a lot of people that do it. There are not a lot of friends you can talk to about it that understand.”

ABOUT KENT RITTER
Kent is a former management consultant, corporate executive and startup owner. After successfully exiting his first company, Kent turned his focus to real estate. Now, Kent is the CEO of Hudson Investing, a multifamily investment firm which helps busy professionals scale and diversify their real estate portfolio with cash flowing, wealth building assets. He is also the host of the popular podcast called Ritter on Real Estate.

CONNECT WITH KENT
Website: kentritter.com
Podcast: https://www.kentritter.com/podcast

CONNECT WITH US
Learn more about passively investing in apartment buildings:
Website: hansenholdings.com
Free Webinar Training: hansenholdings.com/webinar
Schedule Call with Matt: Schedule Intro Call
Facebook, LinkedIn, Instagram

LISTEN FOR THIS

Kent became a real estate investor because he recognized the need to diversify his investment portfolio and found real estate to be the best option.
After investing in many different real estate assets, Kent landed on multifamily apartments because the investment can be scaled, there is a high demand for a place to live, its value increases, it keeps up with inflation and it has the flexibility to adjust to different market conditions.
With apartment investments, the risk involved is considered and factored into projected returns. This makes the chance of getting the returns stated much higher than other types of investments.
It is becoming more costly to own a home than it is to rent. As this gap widens, so does the need for apartment living.
Three things that multifamily apartment sponsors should deliver to investors is community, investor experience and product performance. It can be lonely to become an investor outside of Wall Street but when you invest in multifamily apartments, you become part of a community of like-minded people where you can find reassurance and a lot of help along the way.

CONNECT WITH KENT
Website: kentritter.com
Podcast: https://www.kentritter.com/podcast

Previous Episode

9. Know Thyself Before Investing…Tips from Pros with Rachel & Dylan Grunn

What type of real estate should you NOT invest in? Get the answer to this question and more as Matt chats with Rachel and Dylan Grunn — experienced active and passive investors in multifamily apartment syndications. They’ll also share why you need to be clear on your investing criteria and goals.

LISTEN FOR THIS

There is not a lot of advertising that goes on in the space of multifamily investing so a lot of people find out about it through word of mouth.
Rachel made her first passive investment in 2015. When she started to see the returns and the cash flow, she was hooked.
Dylan had a good understanding of stocks, mutual funds and 401ks but didn't really understand there was another path to take that was a lot more lucrative — apartment investing.
Key things to look for when evaluating an apartment investment will not always be the same depending on the investor’s phase of life. However, communication, transparency and market research are key elements to look for in any apartment investment.
A big difference between apartment investing and Real Estate Investment Trusts (REITs) is REITs’ lack of transparency and communication. In a typical apartment investment, your sponsor will answer your questions as soon as possible and be transparent with financials. Also, unlike REITs, with an apartment investment you actually own the real estate and have a lot more control over which properties you’d like to invest in.

QUOTES
“I understand it's a lot of money that you're investing and we've been there before. It's scary at first, but after the first cycle of a deal you're suddenly addicted and there's no rehab out there for you.” :)

“I ask investors what their biggest regret is and it's always that they didn't start earlier. The perfect time to invest was 10 years ago. The second best time is right now and I think to get better returns you really just gotta commit.”

ABOUT RACHEL & DYLAN
Rachel and Dylan Grunn are the co-founders of Third Coast Capital, which is an innovative investment company offering passive investors the opportunity to become co-owners of large multifamily apartment buildings. From Airbnbs, to mobile home parks, to development, and commercial real estate funds, Dylan and Rachel have done it all — but multifamily remains their favorite asset in their portfolio!
CONNECT WITH RACHEL & DYLAN
Website: thirdcoast-capital.com
Podcast: GoodGood Investing

Next Episode

11. Musician to Mega Multifamily Investor with Rick Martin

Get the inside scoop on how real estate investors get into the biz from Rick Martin. He shares all the ways apartment syndicators are making sure investors get great returns for their money.

LISTEN FOR THIS

Rick’s journey from a one house rental to investing primarily in large multifamily apartments.
There’s currently a shortage of housing in the U.S. and with 1 in 7 houses purchased by a corporation, more people are turning to apartment rental.
Even compared to the current “sale” in the stock market, apartment investing still provides more consistent and higher returns.
What apartment investing syndicators are currently doing to offer the best opportunities for investors.

QUOTES
“Don't suffer from paralysis by analysis. Don't wait for the perfect deal. Definitely do your homework. Do your due diligence on who you're investing with and where they're investing. But I see people let five years go by and they still haven't invested."
“Slowly but surely, real estate kind of became my side gig because I could see the big payoffs.”

ABOUT RICK MARTIN
Rick has been investing in real estate since 1997. He is the founder of Fortress Federation Investments, which provides value-add, multifamily investment opportunities in the Southeast, Texas and Arizona. He helps investors build generational wealth and multiple income streams. Fortress Federation is currently a General Partner in over 2,200 units. Rick is also a limited partner across multiple syndications giving him insight into how powerful passive investing can be.CONNECT WITH RICK
Website: fortressfederation.com
Free Guide: fortressfederation.com/guide

Better Returns: Invest Like a Pro - 10. What’s Your Portfolio Theory with Kent Ritter

Transcript

Welcome to better returns where you will learn how to escape the volatility of the stock market by passively investing in real estate like a pro 90 of millionaires earned and maintain their wealth by investing in real estate we will share real-life examples from Savvy investors so you can do the same the show is for educational purposes only should not be considered legal tax or investment advice he has an extreme fear of snakes and pretty much all reptiles like Indiana Jones your host and my