Developing a $20,000,000 Commercial Real Estate Project š¢šļø| Founders Club ft. Sal Buscemi
08/13/19 ā¢ 74 min
How do you build relationships with high-net-worth individuals who have the resources to invest in your real estate deals? By treating them like friends, not ATMs.
Connect with Founders Club Host Oliver Graf on Instagram
Sal Buscemi is Managing Director at Dandrew Partners, a market leader in short-term loans and equity financing. He mentors aspiring fund managers through The Commercial Investor, a division of Dandrew that teaches wealth creation through real estate the Wall Street way. Sal started his career as an investment banker with Goldman Sachs before transitioning to real estate, and to date, he has raised a total of $500M in capital for other peopleās projects as well as his own. He is also a sought-after speaker in the realm of real estate finance and has written countless articles on residential and commercial investing.
Today, Sal joins Oliver to discuss the details of his current project, a 166K square-foot class A industrial development in Las Vegas. He shares his three rules for choosing an operator and offers advice on vetting real estate deals ālike a jilted ex-lover going through the cell phone records.ā Sal also provides guidance on presenting deals to potential investors, staying top-of-mind without becoming annoying, and conducting a capital call for a new deal. Listen in for insight into how Sal raised money for his current commercial investment and learn how to build and nurture positive relationships with a network of investors!
Key Takeaways[0:45] An overview of Salās current project
- 166K ft2 industrial development
- Class A (credit-worthy tenants)
[3:54] Salās background and experience
- 5 years at Goldman Sachs
- āHired gunā for family office
- Two distressed credit funds
[9:42] Salās 3 rules for choosing operators
- Audited track record
- Been through 2 market cycles
- 10% hard equity in game
[21:01] Salās advice on vetting deals
- Compare to market (cap rate)
- Rental income drives value
[24:38] Why Sal prefers industrial to multifamily
- Fewer inefficiencies
- Steady, credible tenants
[31:18] How to present a deal if you canāt put your own money in
- Equity in building business and relationships
- Demo conviction in other ways (e.g.: no management fee)
[35:20] Salās guidance around raising money
- Talk to people trust, build following
- Handle concerns re: liquidity
[40:16] How to build positive relationships with HNWI
- Get involved with charities, boards
- Treat network like friends
- Avoid conspicuous spending
[46:33] How to present deals to potential investors
- Reach out with newsletter on market
- Host cocktail mixers at office
[48:43] How to stay top-of-mind without becoming annoying
- Send article or text once per quarter
- Dedicated time to reach out via email
[59:36] How to conduct a capital call
- Offer fast-action bonuses
- Be specific with deadlines to create urgency
[1:06:07] How to deal with overbearing investors
- Recommend different asset
- Put in place (professional, passive investment)
[1:09:23] Salās process for offering a new deal
- Send out tear sheet
- Wiring instructions on page 1 of email
Monkey Business: Swinging Through the Wall Street Jungle by John Rolfe and Peter Troob
How do you build relationships with high-net-worth individuals who have the resources to invest in your real estate deals? By treating them like friends, not ATMs.
Connect with Founders Club Host Oliver Graf on Instagram
Sal Buscemi is Managing Director at Dandrew Partners, a market leader in short-term loans and equity financing. He mentors aspiring fund managers through The Commercial Investor, a division of Dandrew that teaches wealth creation through real estate the Wall Street way. Sal started his career as an investment banker with Goldman Sachs before transitioning to real estate, and to date, he has raised a total of $500M in capital for other peopleās projects as well as his own. He is also a sought-after speaker in the realm of real estate finance and has written countless articles on residential and commercial investing.
Today, Sal joins Oliver to discuss the details of his current project, a 166K square-foot class A industrial development in Las Vegas. He shares his three rules for choosing an operator and offers advice on vetting real estate deals ālike a jilted ex-lover going through the cell phone records.ā Sal also provides guidance on presenting deals to potential investors, staying top-of-mind without becoming annoying, and conducting a capital call for a new deal. Listen in for insight into how Sal raised money for his current commercial investment and learn how to build and nurture positive relationships with a network of investors!
Key Takeaways[0:45] An overview of Salās current project
- 166K ft2 industrial development
- Class A (credit-worthy tenants)
[3:54] Salās background and experience
- 5 years at Goldman Sachs
- āHired gunā for family office
- Two distressed credit funds
[9:42] Salās 3 rules for choosing operators
- Audited track record
- Been through 2 market cycles
- 10% hard equity in game
[21:01] Salās advice on vetting deals
- Compare to market (cap rate)
- Rental income drives value
[24:38] Why Sal prefers industrial to multifamily
- Fewer inefficiencies
- Steady, credible tenants
[31:18] How to present a deal if you canāt put your own money in
- Equity in building business and relationships
- Demo conviction in other ways (e.g.: no management fee)
[35:20] Salās guidance around raising money
- Talk to people trust, build following
- Handle concerns re: liquidity
[40:16] How to build positive relationships with HNWI
- Get involved with charities, boards
- Treat network like friends
- Avoid conspicuous spending
[46:33] How to present deals to potential investors
- Reach out with newsletter on market
- Host cocktail mixers at office
[48:43] How to stay top-of-mind without becoming annoying
- Send article or text once per quarter
- Dedicated time to reach out via email
[59:36] How to conduct a capital call
- Offer fast-action bonuses
- Be specific with deadlines to create urgency
[1:06:07] How to deal with overbearing investors
- Recommend different asset
- Put in place (professional, passive investment)
[1:09:23] Salās process for offering a new deal
- Send out tear sheet
- Wiring instructions on page 1 of email
Monkey Business: Swinging Through the Wall Street Jungle by John Rolfe and Peter Troob
Previous Episode
DOMINATE Your Local Real Estate Market: Here's How... š š| Founders Club ft Mike Bjorkman
When youāre a celebrity agent, you donāt have to chase real estate business anymore. Instead, it comes to you. But how do you become a rock star in your community? How do you get media attention? How do you develop relationships with the right people? What does it take to become THE go-to realtor in your market?
Connect with Founders Club Host Oliver Graf on Instagram
With 26 years of experience as an agent, Mike has perfected the art of building strategic relationships to become a celebrity in Santa Clarita. He is a well-known leader in the community, supporting business galas and charity events and serving as a board member and volunteer for local nonprofits. Mike is also the co-owner of California Leasing Property Management and the cohost of Santa Clarita Valley Today and The Real Estate Marketing Show.
Today, Mike joins Oliver to share his journey to becoming a local celebrity, explaining how he developed the idea of a Mega Open House and leveraged speaking engagements to establish authority in the community. He also describes his approach to developing relationships with the right people and getting your face in the media. Listen in for insight on how Mike uses branded swag to promote his business and learn how to become the center of attention at events and dominate your market!
Key Takeaways[0:23] Mikeās early days in real estate
- 19 years old, not known as professional
- Back to basics (expireds, FSBOs, farming)
- Study Proctor & Ferry, attend seminars
- Strategy to stand out and get known
- Owned neighborhood within year
[4:50] How Mike developed the Mega Open House
- Flyers, door knock and cold call invitation
- Promote giveaways and drawings
[7:21] Mikeās unique selling propositions
- Sell in 90 days or free
- Quick over-the-phone market evaluation
- Seasonal promotions
- āBuy from me and weāll buy yoursā
[10:59] How to use speaking to become an authority
- Offer seminars for free ads in newspaper
- āPeople line up to talk to youā
[12:47] Mikeās advice on attending events
- Attend 2 to 4 per week
- Chamber events, nonprofits and charities
[14:47] Mikeās approach to taking over a room
- Pick 4 or 5 people must meet
- Get cell # and connect on social
[17:16] Mikeās strategy for getting your face in media
- Write free articles, ask to add headshot
- Volunteer for real estate segment on local TV
[22:55] How to develop strategic relationships
- Connect with business owners
- Join country club, send kids to private school
- Fly first class
[30:03] How to work social media
- Film what already doing (e.g.: speaking)
- Reach out re: life events like vacations
[33:26] How Mike leverages swag and gear
- Free stuff people donāt throw away (e.g.: koozies)
- Guilt gifts at open house or listing appointment
- Dickieās line, people tag on social media
[35:54] Mikeās branded moving vans and trucks
- Serve as rolling billboard ($2K to wrap)
- Churches and charities use for free
Next Episode
Losing Everything & Rebuilding A $50,000,000 Multi Family Real Estate Empire šøš¢ | Founders Club ft. Rod Khleif
How do you come back from losing $50M? Rod Khleif had achieved incredible success as a real estate investor, building a portfolio of SFHs and apartment complexes that grew his net worth by $17M in 2006 alone. And then came the crash. So, how did Rod recover and revive his real estate career? And what did he learn about finding true fulfillment along the way?
Connect with Founders Club Host Oliver Graf on Instagram
Rod combines his passion for real estate investing with his personal philosophies around goal-setting, envisioning and manifesting success as one of Americaās top multifamily investment and high-performance life coaches. Rod is an accomplished entrepreneur, building several multimillion-dollar businesses and developing a real estate portfolio of 2,000-plus properties. He is also a community philanthropist, founding the Tiny Hands Foundation, an organization dedicated to improving the quality of life for children in Sarasota, Florida, and the surrounding areas.
On this episode of Founders Club, Rod joins Oliver to share the goal-setting system that helped him recover from losing $50M in the crash and explain what drew him back to real estate in the last couple of years. He offers an overview of the apartment buying process, explaining how to choose the best properties and markets for multifamily. Rod also walks us through his five-step weekly planning process for prioritizing whatās really important. Listen in for Rodās advice to would-be apartment investors and get inspired to achieve true success and fulfillment!
Key Takeaways[0:53] The goal-setting system that helped Rod recover from the crash
- Brainstorm list of everything you want in life
- Make it measurable (# of years for each item)
- Pick juiciest goal + top 3 for year on new sheet
- Write paragraph re: WHY each goal is a MUST
- Collect pictures and visualize things you want
- Journal on qualities necessary to achieve goals
[23:46] How Rod overcame depression after achieving his big goal
- Vision for future, other goals lined up behind
- Remove focus on self by giving back (e.g.: feed families)
[29:59] Rodās 5-step weekly planning process
- Celebrate what got done
- Journal to capture magic
- Single page of declarations (top areas of focus)
- Must-do tasks for this week
- Block time for things get further faster
[42:55] What drew Rod back into multifamily real estate
- Ability to scale faster
- Easier to buy than SFH
- āTeam sportā
[45:30] Rodās overview of the apartment buying process
- Decide between residential and commercial multifamily
- Build team (brokers, property managers, bankers, etc.)
- Align with investors with resources
- Brand self through LLC, add value on social for reach
- Educate self around joint venture vs. syndication deals
[57:56] Rodās advice around the best properties to invest in
- Look for B and C properties in A and B areas
- Add value to force appreciation
[1:02:57] What Rod looks for in an area to buy multifamily
- Growth in population, income and jobs
- Research on Best Places or City-Data
[1:05:29] Rodās take on the current multifamily landscape
- Hard to find good deals right now
- Best time to learn, market correction yields opportunity
[1:07:23] Why Rod recommends specializing in one market
- Must know what people want to be competitive
- Learn business in one location before expand
[1:10:18] Rodās favorite tech tools for real estate investing
- Slack + Asana to communicate with team, manage projects
- Maximize social media to add value for potential clients
[1:11:20] Rodās advice for aspiring multifamily investors
- Learn the business
- Take action
Lifetime CashFlow Through Real Estate Investing Podcast
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