Diary of an Apartment Investor

The day-to-day role of a capital advisor and consultant is laid out for all by John Azar, accompanied by Hersh Rai. Expert Azar also shares with Rai the importance of the math behind the deal.
Originally aired on Oct 2
Interested in being on the show? Visit our website at www.fouroakscapital.com/podcast or email me at [email protected]
Download our free investing guide at www.fouroakscapital.com
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John Azar
John is founder of Peak 15 Capital, a capital consulting firm for multifamily operators that can advise on all aspects of the capital stack. John also currently acts as a Managing Member of MACC Venture Partners, a syndicator based in Charlotte NC that owns and operates over 6000 multifamily units. Previously John was a co-Founder and Managing Partner of Boston Venture Partners (BVP), a private equity consulting and finance firm based in Boston specializing in real estate development, and structured finance.
Get in contact with him by
email [email protected] or
Linkedin https://www.linkedin.com/in/jalalazar/

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Hersh Rai
Hersh is an active duty Naval officer and a recent graduate from the United States Naval Academy. He commissioned as a Cryptologic Warfare Officer. Currently, he is pursuing his Master’s degree in Computer and Information Technology at Purdue University. During his time at Purdue, Hersh found a passion for real estate investing. He is focused on commercial multifamily and affordable housing. Through real estate investing, he hopes to teach others about the powerful investment opportunities it can present as well as teach others how to start their journey. He is excited to continue learning and connecting with others and hopes to make an impact in any way he can.​
Contact him through
email [email protected]
or LinkedIn https://www.linkedin.com/in/hershrai/

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Your host, Brian Briscoe, is a co-founder and principal in the real estate investing firm Four Oaks Capital. He and his team currently have 168 units worth $7.5 million in assets under management and are continuing to grow. He will retire as a Lieutenant Colonel in the United States Marine Corps in 2021. Learn more about him and the Four Oaks team at www.fouroakscapital.com or contact him at [email protected] - be sure to let him know where you found him.
Connect with him on LinkedIn, Facebook, or on Bigger Pockets.
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Tweetable Quotes
"[I]f you have a successful transaction, you should still look at the process and say, Okay, what did I do right? What made this transaction successful? What did I put in place that allowed me to have a successful closing? And on the flip side of the coin, you look at it from a different critical ways, like, hey, that that went really bad. What did I do that that went bad? What can I do to improve it next time?" -John Azar
"I'd love to help all the sponsors out there. But unfortunately, not all the sponsors out there have deals that are worth funding. I want to make sure that I am diligent enough to work with the sponsor, I don't want to say educate them, but give them my perspective, unvarnished perspective on what their deal look like and what the likelihood of the funding is."-John Azar

In this episode, I talked with experienced investor Spencer Hilligoss and aspiring investor Bailey Kramer. Spencer gives priceless advice about gaining investor confidence and helping them to reach their goals.
Originally aired July 1, 2020 at 5am
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Spencer Hilligoss is a passive real estate investor, co-sponsor and former technology leader. His company, Madison Investing, has co-sponsored deals totaling more than 5000 units for more than $600M in transaction volume. Spencer invests in syndications as an LP and actively leads Madison Investing alongside his Co-founder/Wife - Jennifer Morimoto. As a technology leader, Spencer built a 13 year track record of growing high-performing teams across five companies - three of them, "unicorns" - valued at more than $1B. In November 2019, Spencer “retired” from his lucrative technology career - leaving behind the $4B loan origination teams he built at LendingHome, funding 600 fix/flip transactions per month. Now, he is focused on spending time with loved ones and growing Madison Investing by helping passive investors achieve their goals.
Reach out to Spencer through his website: www.madisoninvesting.com
Or, connect with him on LinkedIn: https://www.linkedin.com/in/shilligoss/
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Bailey Kramer is a student at the University of Central Florida, pursuing a Bachelors's degree in Real Estate. He is the creator of the Greater Orlando Multi-Family Meetup Group and he focuses his efforts on investing in multi-family properties. Soon-to-be host of Real Estate Investing Made Simple podcast.
Connect with Bailey through his website: www.baileykramer.com
...or connect with him on LinkedIn: https://www.linkedin.com/in/bailey--kramer/
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Your host, Brian Briscoe, is a co-founder and principal in the real estate investing firm Four Oaks Capital. He and his team currently have 168 units worth $7.5 million in assets under management and are continuing to grow. He is a Lieutenant Colonel in the United States Marine Corps and brings years of leadership and management experience to his real estate investments. As a Marine officer, he has proven his ability to plan, lead, and effectively accomplish missions in both training and combat situations. He has earned graduate degrees from both the University of Utah and Naval Postgraduate School and is currently stationed at the Pentagon where he is finishing his last year of active duty. He has actively invested in real estate since 2007. Brian is an “Advisor” in Michael Blank’s Deal Maker Mastermind and has been featured on numerous podcasts. He runs a local meetup and has also spoken at numerous events on apartment building investing.
Connect with him on LinkedIn: https://www.linkedin.com/in/brian-briscoe-445658a/
Connect with him on Facebook: https://www.facebook.com/bribriscoe
Connect with him on Bigger Pockets: https://www.biggerpockets.com/users/BrianB304
Diary of an Apartment Investor Podcast is sponsored and produced by Four Oaks Capital, LLC, a real estate investing firm focused on value-add multifamily properties in the southeastern U.S. If you’re interested in learning more, please visit our website at www.fouroakscapital.com.

If you’re an aspiring investor and want to be considered for our show, please look for the link to our application form here: https://www.fouroakscapital.com/podcast -- or you can email me directly at [email protected]

Bruce Wuollet advises Bobby Jones on how to sniff out bad deals, and gives an example of how conservative underwriting can make up for a due diligence miss. Bruce shares from his experience thus far that sometimes what causes problems down the road are the unseen aspects of apartment buildings.
Download our free investing guide at www.fouroakscapital.com
Originally aired on August 19, 2020.

Interested in being on the show? Visit our website at www.fouroakscapital.com/podcast or email me at [email protected]

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Bruce Wuollet

Bruce is the founder, visionary and the current owner of Bakerson. Growing up in the bakery business in the Twin Cities in Minnesota, Bruce wanted to pay homage to his now late father; hence the name “Bakerson”. He has a proven track record of success throughout Bakerson’s nearly 18 years in business with thousands of individual units bought, repositioned and sold. Bruce has overseen all aspects of the business including operations, acquisition, project leadership, equity fund management, property specific syndications, legal, finance and more. His focus is finding good deals while his passion is serving the residents by providing them with one of their basic human needs – shelter.
Check out Bruce's website at https://bakerson.com/
Email [email protected]
Call (520)-808-9111

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Bobby Jones

Bobby Jones is a former nurse anesthesiologist turned apartment investor. He is passionate about helping people learn how to get out of the rat race through passive income strategies. He is the founder of On Call Capital, where he works with CRNAs and other working professionals to invest in cash-flowing, alternative opportunities outside of the traditional stock market. Bobby lives in Winston-Salem with his wife and three children. He enjoys hiking, running, reading, and bowling in his "spare" time. (Yes, that's a bowling pun, lol.)--
Check out his free report on Diversification at https://www.oncallinvestments.com/
Email [email protected]
www.linkedin.com/in/oncallcapital/
Call (336)-403-2256

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Your host, Brian Briscoe, is a co-founder and principal in the real estate investing firm Four Oaks Capital. He and his team currently have 168 units worth $7.5 million in assets under management and are continuing to grow. He will retire as a Lieutenant Colonel in the United States Marine Corps in 2021. Learn more about him and the Four Oaks team at www.fouroakscapital.com or contact him at [email protected] - be sure to let him know where you found him.
Connect with him on LinkedIn, Facebook, or on Bigger Pockets.
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Tweetable Quotes:

"The area that typically for us has been the steepest learning curve are the things you can't see and there are two areas and that's plumbing and HVAC" -Bruce Wuollet

" And then I thought to myself, if I can do this, why can't so many other people that I know do this and have that same freedom?" -Bobby Jones
"So the biggest thing is assume their numbers are going to be inflated on the income and the collections and deflated on the expenses. But then run your own numbers, do your rent comps, that's where the writing comes in and figure out the expenses of the building"-Bruce Wuollet

Brief overview of what an LP is and what a GP is...
Today we're going to talk about some terminology that is used a lot that may be new to some people. GP v LP

GP is general partner - also a managing partner

LP is limited partner - also called a silent partner

General partners run the company and make the decisions for the company. They are responsible for legal compliance, profitability, and determine if/when to refinance or sell the property.

Limited partners generally don’t have duties or responsibilities and can’t make decisions for the company. For this reason, they're also referred to as passive investors.

General partners shoulder the liability in the company - litigation or financial problems, and in certain scenarios, this liability may extend to personal assets.

Limited partners are shielded from liability and may only lose the amount of money they invested.

GP ownership is based on the various responsibilities in operating the company and the amount of risk that person is exposed to.

LP ownership is typically purchased by investing funds and is generally proportionate to the amount of money invested in the deals.

Overall ownership of a company is split between GPs and LPs. Like public companies, ownership is determined by shares, but the types of shares that GPs and LPs own are different. For example, an LP may purchase class A shares and a GP may have class B shares. The actual letters are not important, could be class C or D or E shares. What’s important is that there is a distinction between the types of shares.

Returns to the GPs and LPs are governed by the company operating agreement. In general, in apartment syndications, the GPs get paid for running daily operations, which amounts to a certain percentage ownership in the company with certain rights to incomes and fees.

Now, a lot of people that follow us are syndicators or trying to get into the syndication game, so here's a follow-on question that I'll answer:

What benefits are there as a GP?

• Experience - banks look at a groups credibility, so if you want to eventually be a deal sponsor, it is helpful to have had some GP experience in the past.
• Not only banks, but CRE brokers also look for viable buyers and experience in a GP contributes to your track record.

What benefits are there as an LP?

• Passive income.
• Learn from operators - investor communication, investor documents like the operating agreement, PPM, due diligence documents, financial reports, etc. You can educate yourself through an investment that also pays out returns. That sounds like a win-win scenario to me.

Each individual investment opportunity should have a company operating agreement which clearly defines the responsibilities of the GP and the limits of their authorities. It should also clearly define the ownership structure and exactly how and when any funds are distributed. So, please make sure you review the operating agreement thoroughly before making any investment decisions.
Originally aired on July 3, 2020

Originally aired on July 1 at 6am.
Diary of an Apartment Investor Podcast is sponsored and produced by Four Oaks Capital, LLC, a real estate investing firm focused on value-add multifamily properties in the southeastern U.S. If you’re interested in learning more, please visit our website at www.fouroakscapital.com.

If you’re an aspiring investor and want to be considered for our show, please fill out our application form at www.fouroakscapital.com/podcast -- or you can email me directly at [email protected]

In this episode, I talk about the various asset classes and what they mean to investors.
A-Class: new, high-end apartments with tons of amenities; generally more expensive and less cash flow, but tend to experience more growth in the first few years.
B-Class: not as new, not as high-end as A-Class. Some amenities, but not as much. Typically 10-25 year old apartments that aren't quite in the same league as the newer construction. Typically bring higher cash flow than A-Class and opportunity for higher returns if there's value to be added.
C-Class: Generally thought of as workforce housing. This is the average apartment building for average people. Typically has fewer amenities and buildings are 25+ years old. These have higher cash-flow than A- or B-class and frequently can have higher returns due to forced appreciation through renovations.
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Your host, Brian Briscoe, is a co-founder and principal in the real estate investing firm Four Oaks Capital. He and his team currently have 168 units worth $7.5 million in assets under management and are continuing to grow. He is a Lieutenant Colonel in the United States Marine Corps and brings years of leadership and management experience to his real estate investments. As a Marine officer, he has proven his ability to plan, lead, and effectively accomplish missions in both training and combat situations. He has earned graduate degrees from both the University of Utah and Naval Postgraduate School and is currently stationed at the Pentagon where he is finishing his last year of active duty. He has actively invested in real estate since 2007. Brian is an “Advisor” in Michael Blank’s Deal Maker Mastermind and has been featured on numerous podcasts. He runs a local meetup and has also spoken at numerous events on apartment building investing.
Connect with him on LinkedIn: https://www.linkedin.com/in/brian-briscoe-445658a/
Connect with him on Facebook: https://www.facebook.com/bribriscoe
Connect with him on Bigger Pockets: https://www.biggerpockets.com/users/BrianB304
...and of course, our website: www.fouroakscapital.com