The secret to successfully managing apartments long distance

05/07/24 • 40 min

The Allocator: A New Way to Finance Real Estate

My YouTube show/podcast guest today is Andrew Cushman, founder and principal of Vantage Point Acquisitions, who shares his experience and insights on remote management of multifamily real estate assets from the other side of the country, discussing the challenges and strategies for successful long-distance investing.

We discuss the current state of the multifamily market and how rising interest rates have impacted prudent sponsors’ ability to acquire new properties. Andrew talks about the spread between what sellers are asking and what buyers are bidding, and discusses the various factors that may lead to a surge in properties coming to market in the near future.

Andrew also shares his philosophy on optimal deal sizes for efficient management, revealing the "sweet spots" at 120 and 220 units where fixed costs can be spread most effectively. He explains how his company has adapted to the changing market conditions and maintained strong performance despite challenges such as rising insurance costs.

As an active LinkedIn user, Andrew also provides insights into his content strategy and the types of posts that tend to generate the most engagement. From market analysis to the realities of property management, he aims to share valuable information and connect with his audience.

****

In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.

You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.

You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn. Subscribe to our free newsletter here.

****

You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.

Previous Episode

Self-Directed IRAs - SDIRA - Explained

Today's episode is the next in my series covering some of the key tax benefits of investing in real estate and my guests are the CamaPlan duo of Joe Fulvio and Will Mucker. CamaPlan is a company that specializes in self-directed IRAs (SDIRAs) and Joe and Will share their insights into how to create SDIRAs, the regulations around them, and how they can be used by real estate investors.

We begin by defining SDIRAs and exploring how they differ from traditional IRAs and 401(k)s and then we focus on how investors can use these accounts to invest in real estate syndications to generate tax deferred (or tax free) returns.

A significant portion of our discussion covers the tax implications of using an SDIRA and the push back you may have heard from your accountant – as I did when I first researched this type of retirement planning. We cover the concepts of UBIT (Unrelated Business Income Tax) and UDFI (Unrelated Debt-Financed Income), which can trigger taxes within the SDIRA under certain circumstances and is what led to my accountant advising (erroneously it turns out) against using these instruments.

You’ll learn two main things from today’s podcast; one, you should definitely investigate setting up and SDIRA if you have not already done so, and two, to ask your accountant for more information. These things are not as easy as they appear at first glance so working with someone knowledgeable is going to be important.

****

You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.

Next Episode

Publicly traded (private) equity real estate

Today's guest is Chris Loeffler, CEO and co-founder of Caliber, a publicly traded private equity real estate firm (is that a contradiction in terms?). In this episode, Chris shares his insights on the evolution of the real estate private equity industry and Caliber's journey as one of the first publicly-traded sponsors of its kind.

We talk about the impact of the 2012 JOBS Act on real estate syndications and how it allowed for public solicitation from investors starting in 2013. Chris discusses the challenges posed by newer entrants in the industry who often relied on aggressive proformas and immediate distributions to attract capital, putting pressure on established firms like Caliber.

We then shift to the current state of the commercial real estate market, with prices down 21.5% peak to trough. Chris talks about the opportunities this presents for buying distressed assets at deep discounts and for adapting them, in some cases, to new uses. He also shares Caliber's strategy of focusing on harder asset classes and complex strategies to generate consistent returns in various market conditions.

And, as every guest loves to do (not!) I ask Chris for some predictions about the future of the real estate private equity industry, including the increasing role of technology, the moderation of fees, and the potential for more regulation. He believes that the industry is set for consolidation, with investors gravitating towards best-in-class partners for long-term relationships.

This episode offers valuable insights for anyone interested in the evolution of real estate private equity, the current state of the commercial real estate market, and the future of the industry. Chris Loeffler's unique perspective as the CEO of a publicly-traded private equity firm makes this a must-listen for investors and industry professionals alike.

****

You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.