Finding Capital and Cashflow Pitfalls with Adam Adams

Finding Capital and Cashflow Pitfalls with Adam Adams

Adam A. Adams, also known in the real estate community as Triple A, has educated thousands of investors through real estate conferences, radio & podcast interviews, his coaching program, and his thriving Meetup group. In this episode of The Wild West Real Estate Show, Adam sit’s down with Mark to talk about attracting capital, branding, and the pitfalls of investing in high cash-flow markets.

Today Adam is partnered in 7 multifamily syndications with approximately 1,400 doors valued slightly over $100 million. His company, BlueSpruce Holdings, focuses on finding and managing apartment communities to allow passive investors diversification, cash flow, tax benefits, and freedom of time. Adam’s primary role in the company is to attract capital, successfully raising millions of dollars from private investors. He continues to grow his company’s brand as one of the top syndication teams in the United States.  

What You’ll Learn In Today’s Episode:

  • Adam credits much of his success to persistence, and this is evident from his story. After losing his first multifamily, purchased in the height of the great recession, Adam took a break from multifamily to focus on other aspects of his businesses, but never gave up. After jumping back into multifamily in 2016, he was able to scale his multifamily portfolio and syndication business, none of which would have been possible if he had thrown in the towel. In the words of his parents, “if you start something, you’ve got to finish it.” This persistence is shown in all of his endeavors, from business to podcasts, meetups, and conferences.

  • Adam followed his early mentor’s advice to look for high cap, high cash-flowing properties throughout the county. This led him to some tertiary markets that, while delivering good cash flow, did not perform as well overall as properties bought in solid, more established markets. Investing solely for cash flow can lead you to some risky, undesirable places.

  • Adam realized that in order to grow his syndication business, you had to get the most amount of people possible to know. His strategy is focused on building his thought leadership platforms, through his podcast, conferences, and top-rated meetup. “If you only know ten people, at most ten people will invest with you.”

Ideas Worth Sharing:

“I never used my degree, I went straight into real estate investing and owning my business.” – Adam Adams

“The best ones [deals] are in solid markets with one million people in the MSA.” – Adam Adams

“How do we get the most amount of people to know us?” – Adam Adams

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Post-Covid Opportunities and Leveraging Tech With The Mad Scientist of Multifamily Neal Bawa

Post-Covid Opportunities and Leveraging Tech With The Mad Scientist of Multifamily Neal Bawa

Neal Bawa is known as the mad scientist of multifamily real estate investing, and the founder of Grocapitus, which is invested in projects worth $150MM. He’s also the creator of Multifamily U, a multifamily education business that teaches thousands of students each year.

The Mad Scientist engages very frequently and deeply with his vast investor and RE Pro community, with tens of thousands of active connections and conversations across Facebook, LinkedIn, Meetup.com, Youtube and other channels. Neal is a backyard tomato farmer and a protein diet health nut. He believes in positivity and Karma. He is passionate about the sport of Cricket and about the enormous potential of self-driving electric vehicles to solve the global climate crisis.

What You’ll Learn In Today’s Episode:

  • eCommerce has jumped from 6% to 10% of U.S. sales during the coronavirus, and it is likely this trend will continue. Currently, there is a shortage of warehouses and the logistics of dealing with such a large shift to eCommerce, because of this Neal anticipates opportunities in industrial warehouses, both now and in the future.

  • The current pandemic, coupled with the lockdowns, has drastically accelerated the number of companies that are switching to full-time remote work. This could lead to a resurgence in suburban living, as people seek a lower cost of living, more space, and less traffic outside of large cities.

  • Neal doesn’t focus on cities, he focuses on corridors of opportunity. For example, the corridor between San Antonio and Austin, TX, where the smaller cities in between are experiencing dual compression due to the growth of the two larger cities. In his words, “dual compression is the most powerful force in real estate.”

  • In today’s virtual world, you can run a business with the bulk of your staff being remote, virtual workers. Neal has about ⅓ of his workforce as boots on the ground in his markets, with the remaining ⅔ being virtual, sourcing talent from across the globe at competitive rates. This has allowed him to 10x his growth and outreach.

Ideas Worth Sharing:

“20-30 years of shifting to virtual work happened in four months.” – Neal Bawa

“I believe in corridors of opportunities, not cities.” – Neal Bawa

“Data beats gut feel 100% of the time.” – Neal Bawa

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Achieving Exponential Growth in Competitive Markets with Sri Latha

Achieving Exponential Growth in Competitive Markets with Sri Latha

Sri Latha is a data scientist and researcher who transitioned into multifamily investing. Combining her skills with serious, out-of-the-box strategies, she’s succeeded in one of the most expensive, daunting markets in the country, San Francisco. She also runs a multifamily coaching program.

After a health scare in 2010, Sri and her husband shifted their focus to real estate, starting with a 12-unit in Dallas before transitioning to California. After many successful multifamily deals, Sri is now looking to reposition hotels into multifamily communities.

What You’ll Learn In Today’s Episode:

 

  • Sri was able to jump right into apartment investing by putting a plan in place. She was motivated by the health concerns of her husband, who in 2010 was diagnosed with rheumatoid arthritis and was told he would be unable to walk within 5 years. Instead of buckling to this pressure, Sri moved forward and purchased a 12 unit in Dallas. This set them down a path of financial freedom, and after her husband’s recovery, her mindset shifted towards thinking big, using leverage, and creating multiple streams of income.

  • Starting out, Sri bought into the myth that you “can’t make money in California real estate.” After her first successful exit of a 12 unit in Dallas, Sri shifted her focus to the East Bay and realized that was not true. Higher barriers to entry, a chronic lack of supply, and global demand all pointed to a very lucrative market. After figuring out their plan of action, buying older buildings, performing heavy renovations, adding additional units, and buying-out below market rent residents, Sri was able to quickly scale in a highly competitive market.

  • Sri believes that in order to get exponential growth early on in your investment career, you need to exit buildings and roll the proceeds into larger properties. The BRRRR method works well but doesn’t get you the exponential growth that a full-exit would. You get scale by not holding onto properties longer than necessary early on.

Ideas Worth Sharing:

“The only time you lose in real estate is when you have to sell.” – Sri Latha

“If you’re doing real estate, you might as well go all in.” – Sri Latha

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East Riverside SubmarketLocated just minutes from the Austin Central Business District, Oracle's new campus, and the...

From Silicon Valley to Multifamily Investing, The Power of Saying ‘No’ with Spencer Hilligoss

From Silicon Valley to Multifamily Investing, The Power of Saying ‘No’ with Spencer Hilligoss

Spencer Hilligoss is a former Silicon Valley tech leader, who helped grow several billion-dollar companies before transitioning into real estate. He’s the founder of Madison Investing, which focuses on raising capital for real estate syndications, and he’s invested in over 5000 units.

In November 2019, Spencer “retired” from his lucrative technology career – leaving behind the $4B loan origination teams he built at LendingHome. Now, he is focused on spending time with loved ones and growing Madison Investing by helping passive investors achieve their goals.

What You’ll Learn In Today’s Episode:

  • Trust, but verify. In Spencer’s words, “Everyone starts with an A,” but then he verifies their track record and information, going as far as running background checks. Spencer is a trusting person by nature, so he took the time to develop a system and process for vetting potential deal sponsors. He believes that even if it’s a deal brought to you by a sponsor you’ve done a dozen deals with, your loyalty has to be to your investors, not the sponsor.

  • Spencer took stock of his surroundings, background, and environment, and developed a strategy of investing that worked for him and his family. In the words of Spencer’s mentor, “You’re in a money state, not a deal state.” 
  • You have to learn to say ‘no’ a lot. Whether vetting sponsors, deals, or even investors. Establish criteria that work for you and your investors, and stick to it. This will likely mean saying ‘no’ much more than ‘yes.’

Ideas Worth Sharing:

“It’s like the Silicon Valley lottery, most of these things fail.” – Spencer Hilligoss

“They want the expertise of a person who is human. They are not going to go through a phone-tree to get advice on how to buy a house.” – Spencer Hilligoss

“I genuinely believe more people should have access to these investments.” – Spencer Hilligoss

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East Riverside SubmarketLocated just minutes from the Austin Central Business District, Oracle's new campus, and the...

Holding Yourself Accountable, How To Achieve Financial Security with John Casmon

Holding Yourself Accountable, How To Achieve Financial Security with John Casmon

John Casmon is a former marketing exec, who created campaigns for Fortune 500 companies, like General Motors and Coors, before turning to multifamily investing. He’s now the founder of Casmon Capital, the host of Target Market Insights, and has partnered with investors on over 900 multifamily units worth over $90M.

John realized, after the company he was working for filed for bankruptcy, that the only one he could rely on to provide financial security was himself.

Be sure to check out the upcoming Midwest Real Estate Networking Summit, July 25-26th, co-created by John himself!

What You’ll Learn In Today’s Episode:

  • John worked for one of the largest companies in the world and believed he had found financial security, until they filed for bankruptcy in 2008. John realized that the only one he could rely on to provide financial security was himself. Severing the ties with corporate America was scary, but John one of many who have proven that you can make it work.
  • Scaling your investing and turn it into a business requires working with others. Whether it’s partnering, finding teammates, hiring employees, or using 3rd party vendors, your investment business requires the skill of collaborating with, and managing, others.
  • When you invest in a multifamily property, you’re buying a business. You need to learn how to read a profit & loss statement, understand cash flow, and manage expenses. And it’s worth pointing out that, in my 20 years of investing I’ve learned broker setups usually are conveniently missing expense items. So don’t accept them as fact. Do your own financial due diligence.
  • Always be looking for opportunities. Be diligent, patient, and picky, but keep your eyes open in any market, because opportunities are always out there. Because there are a number of ‘mom and pop’ sellers, this can lead to operational opportunities to increase the value.

Ideas Worth Sharing:

“ I went through and evaluated all 77 Chicago neighborhoods, and there was only one neighborhood, out of 77, that did not lose any value from 2008 to 2011. I saw that stat and said, ‘I don’t need to know anything else.’” – John Casmon

“If you really want to scale, really want to make this a business, you have to work with other people.” – John Casmon

“There’s different things you can do to drive value other than increasing rents.” – John Casmon

Resources In Today’s Episode:

Books Mentioned In Today’s Podcast

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East Riverside SubmarketLocated just minutes from the Austin Central Business District, Oracle's new campus, and the...

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