Jul 2, 2020
In this episode of Passion for Real Estate Investments, we’re covering deals. We will learn what it takes to be an expert deal maker, like the 900-unit owning Kyle Jones of TruePoint Capital. Kyle shares his expertise on structuring deals, building relationships, and handling challenges in the multi-family investing space.
Kyle’s first taste of real estate began in college, watching the original episodes of “Flip This House”; but, his journey as a real estate investor didn’t start until years later, after he did a profitable flip on his own home.
As Kyle details with Fuquan, he’s been through his share of challenges. He’s had deals fall through. He’s had property with water leaks that turned into expensive budget leaks. He’s had to deal with a lot of the unexpected.
One of the unique solutions to a common problem many investors face is scaling up his business. It takes time to produce a good flip and that time is not spent building more profit. While Kyle could wait and slowly build an empire built on house flips, he didn’t want to wait.
Kyle, like many other investors, turned to multifamily. Getting into multi-family units was only part of the solution for Kyle, though. The other part of the equation was structuring the deal.
When you’re investing in multi-family units, relationships and systems are crucial to your continued success. You need to build and maintain relationships with brokers, syndicates, and any other members of your team. You have to structure the deal in a way that makes everyone happy. You also have to communicate well with people who are at different levels of understanding when it comes to the numbers.
In short, there’s a lot going on if you want to get into multi-family investing deals.
There is also a lot of money to be made in multifamily and a lot of ways to make that money. Kyle broke down some creative ways behind some of his deals in the episode, including a ground lease and the way he structures deal splits.
If you’re a multi-family investor who is looking for more insight into challenges that go into structuring a deal or creative ways to structure new deals, this episode will provide that insight from someone who’s done hundreds of deals. This episode is also for you if you’re a single-family flipper or investor and wanted to know what life as a multi-family investor looks like.
Highlights from the Interview
- Why Kyle’s journey into real estate started with “Flip This House”
- Why real estate investing can be a path to financial and time freedom
- The BIG problem in scaling single family flips
- Are there still good returns in the multifamily space?
- Disadvantages as a multi-family investor
- How Kyle built a huge real estate empire with just 2 brokers
- How to build a relationship with your broker….remotely
- The compression of cap rates and other problems Kyle is seeing in Class B & C properties
- Why Kyle is focused on the Southeast for investing
- How to get creative with your real estate deals
- Big challenges in multifamily investing
- Splitting the deal so everyone leaves happy
- Communicating with investors: What’s the best way to share results?