Working Capital Commercial Real Estate

Jesse discusses Return on Equity (ROE) and how it can be applied to real estate investments. Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Hello, Jesse, could you describe return on equity as it relates to real estate investments? I've heard this term used before, but I'm a little confused about how it compares to IRR internal rate of return he's referring to there and cap rates. So, yeah, return on equity. I think it's a, a metric that's for some reason, not in Vogue or not used as much in real estate, but I think it's a useful metric. I think any metric you use, whether it's IRR cap rates, a return on equity return on assets for anything re re investment related, whether that's real estate stocks, it doesn't really matter. I think that you typically have to use these in conjunction with each other because cap rates, for instance, can be useful. But if a building is half vacant and you only have half of the rental income, all of a sudden your cap rate is extremely skewed. So just for people to understand return on equity is a little different than cash on cash. Return cash on cash return is you put a hundred thousand dollars of your own cash in a deal. And in the first year, if you make $10,000, that would be a 10% cash on cash. Now cash and cash is typically only used as a one-year metric. That's the way it's, it's traditionally taught return on equity is a little different in the sense that your equity in a property. So in that same example, the return on equity in the first year might be the same as the cash on cash return, but as with any amortizing mortgage. So let's assume leverage that a hundred thousand dollars or your equity, excuse me, in the deal will slowly go down as you pay off your mortgage. So for instance, if you have a hundred thousand dollars of equity in a deal and you make $10,000 a year, that first year will be 10%. Now let's fast forward to say five years later, and your equity you've built it up to $200,000. That same $10,000 is now a 5% return. So it is a metric to keep in mind that over time, I like how it illustrates the fact that putting equity into a property is kind of a double-edged sword. As you know, most of us were raised when it comes to your own principal residence, it's pay off your mortgage, but with investments, if you completely pay off your mortgage, you pretty much are going to zero with your return from this standpoint, the return on equity. So I think it's a good tool to illustrate how the asset performs over time, but I think it still needs to be done in conjunction with the IRR and cap rates, you know, as a first pass when you're looking at properties. But I think the theme of this idea of the right amount of equity in a deal, I think is a powerful one. And this came up in our office this week, actually, where we talked about, especially in Toronto, this market, just like, you know, San Francisco, New York, Boston, very, very expensive markets where most of the investment properties that you buy, or a lot of them, if you don't put over 15, 20, 25, 30% or more in some areas, you're not going to cashflow. Now the IRR, if it's a levered IRR, that's going to be, you could have a, an amazing percentage. You might have a 25% IRR, a lot of property. That's not cash flowing. So is that a good investment? Well, I think most traditional investors want their properties to cashflow. So if you have a cash flowing property in this circumstance, now that IRR will probably drop because you have to put a lot more equity in the d

In this episode we talked about: Covid Effect Listing work US Investing Rent Control Real Estate Market Outlook Useful links: Book “How the world works from the economic perspective” https://www.instagram.com/jessefragale/ https://workingcapitalpodcast.com/ Transcription: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time And more broadly, just the forecast or outlook on real estate for the next year or two. So if any of those topics are of interest, I think you're going to really enjoy the episode for those that want to reach out.   I've got a number of different messages and emails, just with questions as it relates to real estate, you can always send me a message. Jesse, at working capital podcast.com or you can just go to www dot, working capital podcast.com. So happy to discuss those. And I think the next episode we do have in the pipeline is kind of a deal analysis of a purchase that we did in Orlando, Florida. So anyway, so without further ado, enjoy the show.   Jonny (1m 1s): What's up guys, and welcome to another episode of the investor relations real estate podcast. I'm your host, Johnny Katani and I am joined today by Jesse for galley. Jesse is a commercial real estate broker and investor as an investor. Jesse specializes in multi-family acquisitions as a broker in both office leasing and investment sales transactions is also the host of working capital, the real estate podcast. Jesse, welcome to the show.   Jesse (1m 24s): Hey John, how's it going?   Jonny (1m 25s): Doing well, happy to have you you're up in Toronto, we were just talking offline, had a few Canadian guests, which is always a treat to get kind of a different perspective on the U S market from, from outside. Before we get into that, kind of give us the reader's digest version. You know what you're doing before this and, and how you got into real estate.   Jesse (1m 47s): Yeah, no problem. First of all, I want to say I didn't put the two and two together from Johnny Katani. That is an amazing name. He has like Jonathan Katani, Johnny Katani. Yeah, man. Well, first of all, I appreciate you having me on, I guess, you know, I give you, like you said, I'm just a condensed version of how I got into the industry. Like you mentioned before I work as an investor and, and a broker or commercial realtor up in Toronto, the way I initially got into the industry was I started investing in oh 7 0 8 when I was in my second year in college for first to second year.   And it was basically student rental properties. I was playing football at a school called Lauria Wilfrid Laurier university. It's a in Waterloo, it's kind of like our silicone light area where there's a lot of startups, a lot of tech. And I went to school at there and basically I was living with a couple of guys I played ball with and one of the, one of the friends of mine, his dad and him owned the property that we were renting out. It was kind of like that light bulb moment of, you know, I'm giving, I'm paying a buddy of mine and he owns the property and that's kind of the first foray saw into r

Andrew Joyner is the Managing Director at Tricon Residential and head of their Canadian apartment platform, tasked with trying to create thousands of brand-new apartment units in the Greater Toronto Area. Andrew is responsible for all aspects of day-to-day platform activities, including setting strategic direction and sourcing investment opportunities, as well as overseeing dedicated teams responsible for business plan execution: development and construction, asset management and operations. In addition, Mr. Joyner manages senior relationships with joint-venture partners. In this episode we talked about: * Andrew’s Bio & Background * View on Multifamily Housing Market * GP vs LP Structure * Rent Stabilization Policy * Interest Rates Impact on Andrew’s Investment Decisions * View on Zoning * Mentorship, Resources and Lessons Learned Useful links: Book “The New Kings of New York” by Adam Piore https://www.linkedin.com/in/andrew-joyner-cfa-149ba124/?originalSubdomain=ca https://triconresidential.com/ https://www.instagram.com/triconresidential.home/?hl=en Transcription: Jesse (0s): Welcome to the working capital real estate podcast. My name's Jessica galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. All right, ladies and gentlemen, my name's Jess Fraga, you're listening to working capital the real estate podcast. My special guest today is Andrew joiner. Andrew is the managing director at Tricon residential and head of their Canadian apartment platform tasked with creating thousands of brand new apartment units in the greater Toronto area.   We were just chatting before the show and correct me if I'm wrong. Andrew, you guys are now over 6,000 apartment units spanning over 12 different projects. Do I have that right?   Andrew (49s): Yeah. Yeah. Jesse, thanks for having me. And yeah, no, that, that is right. You know, Tricon residential was, was one of the first groups back in 2016 to, to push into the purpose built rental apartment here in Toronto with scale and yeah, we've, we've now, you know, we're executing on the most active development pipeline in the city and, and continue to add projects.   Jesse (1m 11s): No, that's great to hear. Well, first of all, thank you for coming on. I'm glad that we've got a chance to sit down here, cuz there's a lot going on right now, as you know, and, and listeners know in the real estate space in general, I think whether, you know, you're in San Francisco, Toronto or Vancouver, there's, there's a lot going on economically and just from a policy standpoint with Canada in the us. So maybe for, for listeners that don't know your background, Andrew, maybe you could give us a little bit of a kind of primer on, you know, how you got into real estate at the beginning of your career and you know, how you've gone through the different permutations to get where you're at right now at trigon.   Andrew (1m 53s): Sure. Yeah. So I, you know, I grew up in Toronto, you know, my, you know, unlike a lot of people in real estate, I, I don't have a, a family business in, in real estate per se, but I, I always thought it, it, you know, represented this intersection of, you know, business and, you know, design and urbanization and, you know, people that, that I thought was profound and interesting. And so, you know, my, my summer jobs and

Tamar is a full-time real estate investor. She’s a coach author and the founder of wealth building concierge. As the CEO of wealth building concierge. She empowers women to become financially free by teaching them how to invest in real estate. She is also a contributing writer for entrepreneur and her first book, The Millionairess Mentality, a professional woman’s guide to growing wealth through real estate was released just recently a month or two ago. And as a three times Amazon number one best-selling book.  In this episode we talked about: Tamar’s Bio & Background Duplex Investment Real Estate Investment Geography Partnership Deal Structure Tamar’s Role in Closing Deals A book “The Millionairess Mentality” Mentorship, Resources and Lessons Learned   Useful links: Book: The Power of One More: The Ultimate Guide to Happiness and Success by Ed Myllet https://www.themillionairessmentality.com/ https://quiz.tryinteract.com/#/60bd0792decf1d00177af595 Discover your Investing Personality https://wealthbuildingconcierge.com/ Transcriptions: Jesse (0s): Welcome to the working capital real estate podcast. My name's Jessica galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. All right, ladies and gentlemen, my name's Jess Fraga and you're listening to working capital real estate podcast. My guest today is Tamar Hermas. She is a full-time real estate investor, coach, author, and founder of wealth building concierge, guiding women to become financially free through real estate investing.   She's also a contributing writer for entrepreneur and bigger pockets and has been featured in Buzzfeed fem founder, and the bigger pockets podcasts. Her first book, the millionaires mentality, a professional women's guide to growing well through real estate was released last month and is three times Amazon. Number one, best seller. Well congrats number one and tomorrow. How are you doing?   Tamar (57s): Thank you. I'm awesome. It's an awesome day to be recording an episode with you.   Jesse (1m 4s): Yeah. Well thank you again for coming on the show. You're joining us from Austin today.   Tamar (1m 9s): That's correct. The great, the great city of Austin, where we have booming real estate and lots of people moving here and lost of opportunity.   Jesse (1m 19s): Yeah. Despite your government's best efforts.   Tamar (1m 22s): Yes. We won't talk about politics today.   Jesse (1m 26s): Well, being north of the 45th, we won't get into us politics, but again, thanks for coming on the show. I thought it'd be great to talk real estate with yourself, from your perspective and some of the, the unique aspects and adventures that you've taken in your career to kick us off. What we like to do with guests is number one, talk a little bit about how you got into this crazy world that we call real estate.   Tamar (1m 51s): Yes. So I was 28 years old, an executive in the entertainment industr

Jay Conner is a Real Estate Investor from North Carolina. He started his first Real Estate Investment way back in 2003. He rehabbed over 450 houses. Even better, he also developed the ‘golden touch’ in creating unlimited potentials in private money.  Completed over 52 million in Real Estate Transactions and consulted 1:1 with over 2000 Real Estate investors and is a leading expert in private lending    In this episode we talked about: Jay’s Bio & Background Private Lenders Search Why Private Lending Access Strategy Resources   Useful links: https://www.jayconner.com/ https://www.jayconner.com/7-reasons-report/ - Money Guide Transcription: Jesse (0s): Welcome to the working capital real estate podcast. My name's Jessica galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Ladies and gentlemen, my name's Jess Fraga. You're listening to working capital the real estate podcast. My guest today is Jay Connor. Jake Connor is a real estate investor from North Carolina has been doing that since 2003 rehab and over 450 homes all averaging over 71,000 in profits per deal.   Completed 52 million in real estate transaction and has consulted one on one with over 2000 real estate investors and is a leading expert on private lending. Jay, how you doing today,   Jay (52s): Jess? I'm doing fantastic. And I'm so excited. You invited me to come along to be on the show to talk about my favorite subject, private money.   Jesse (1m 2s): That's fantastic. Well, thanks for coming on. It's been a while since we had that Southern twang on the, on the podcast, so glad to hear it. Oh,   Jay (1m 8s): My land. Are you saying I've got a Southern twang? I didn't even know. I had a Southern twang.   Jesse (1m 13s): Yeah. Yeah. I'm the one with the accent, I guess from your vantage point,   Jay (1m 19s): Actually you sound normal to me.   Jesse (1m 20s): There you go. We call, I think it's called the neutral language. It's it's whatever the, you know, the broadcaster's voices, they think we've got an, a accent up here in can or up here in Toronto, but I feel like that's maybe east, east and west coast.   Jay (1m 33s): Yeah. I don't know. My wife is from Texas and I mean, they just like talk flat just like their state it's flat. So,   Jesse (1m 43s): Yeah, that's great. Well, I have some relatives in Jersey and New York, but we won't get started on wood accents coming out there again. Thank you for, for coming on Jay. I really appreciate it. I think it's a topical time to talk. I don't mean to make that much alliteration topical time to talk about private lending, given the fed right now, interest rates the, the environment with real estate. But before we get started on that topic, maybe you can give listeners a little bit of a background on basically how you got into the real estate world and, and where you're at today.  

Dave Dubeau is a Real Estate Entrepreneur, Best-Selling Author, Speaker and Investor Attraction Expert based in Beautiful British Columbia, Canada.  He began his real estate investing career in 2003 doing 18 deals in 18 months.  He later switched his focus to client-first rent to own deals, and nowadays he invests in multi-family (apartment building) properties.  For the last several years Dave has been a leading authority on helping mom and pop real estate investors to find money partners and raise capital. Using his proprietary 5 Step Money Partner Formula™, Dave helps his real estate entrepreneur clients to grow their portfolios significantly and in record time by attracting investors (instead of chasing after them).    In this episode we talked about: Dave’s Bio & Background Real Estate Business Evolution Legal Aspect of Raising Capital Three Biggest Mistakes Real Investors Make when Raising Capital Lineup Resources   Useful links: How to raise capital 101 show https://www.raisecapital101show.com/ https://www.linkedin.com/in/davedubeau/?originalSubdomain=ca Transcriptions: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Ladies and gentlemen, my name's Jessica gala, and you're listening to working capital the real estate podcast. I'm happy to introduce a returning guest to the show. Dave, Dubo a fellow Canadian and Dave was on the, a working capital podcast episode 1 0 3.   If you want to see the older episode we did about raising capital. Dave is a podcast host and creator of the money partner formula. He and his team work with mom and pop real estate investors providing done for you marketing services to help them raise capital. He's a best-selling author and speaker based in British Columbia, Canada. He began his real estate investing career in 2003, doing 18 deals in 18 months. We talked about that last time and he invest passively in multifamily properties. Dave, welcome back,   Dave (1m 6s): Jesse. Great to be here. Thanks for having me, bud.   Jesse (1m 8s): Yeah, it was a pleasure to have you back, you know, nothing's changed in the last two years, so we won't have much to talk about, but yeah, I mean, I, I thought it would be, it'd be good to, you know, we're doing another, I guess, multi or a podcast swap here and always, always great to speak with you. So I guess first how's everything going out in Western Canada? How have you been, have you been fairing over the last a year, year and a half?   Dave (1m 38s): Well, you tell, I tell you what, if people are watching this video, they can see it's been hair back for me a way back too far back. No, it's good. Good life is good. Can't complain Jesse. It's it's always good in beautiful British Columbia.   Jesse (1m 52s): Absolutely. Well, I mean, it's, it's also nice to speak to a fellow Canadian. We can talk about, you know, Canadian real estate, but it does, you know, pretty much pairs up with most north American real estate. A lot of the similarities, even when raising capital and even some of the legal nuances, but we're not giving accounting or legal advi

Mark Reisman is a Founder and CEO at Empower Living Management and Chief of Acquisitions & Asset Management at Touzi Capital. In this episode we talked about: Mark’s Bio & Background Senior Living & Multifamily Market Acquisition Process Management Underwriting Deals  2022-2023 Real Estate Market Outlook Geographic Areas for Investment Vetting Deals  Mentorship, Resources and Lessons Learned   Useful links: Senior Living Foresight https://www.youtube.com/c/seniorlivingforesight The National Investment Center for Seniors Housing & Care (NIC)  https://www.nic.org American Seniors Housing Association (ASHA) https://www.ashaliving.org Linkedin https://www.linkedin.com/in/mark-reisman/ Transcription: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Ladies and gentlemen, my name is Jesper galley and you're listening to working capital the real estate podcast. My guest today is mark Riesman. He is the founder and CEO of in power living.   He is also the chief of acquisitions and asset management for Tuesday. Capital mark. How's your day going today?   Mark (38s): Going well, glad to be here.   Jesse (39s): Well, thanks again for joining, joining us today. I think listeners will get a lot of value. It's kind of hearing your background and story in the industry and where you specialize, but like we do with all of our guests before we kick it off, maybe you could give us a little bit of a background on your path in real estate where you got started and how that journey has been.   Mark (1m 2s): Yeah, it sounds good. I, I grew up in Los Angeles, went to school at UC Santa Barbara and we didn't have too many practical majors there for business. So my path was to go the emphasis in accounting from the biz econ major and got the main recruiters out of that program were a big four accounting firms. So from that I went into, I worked at PricewaterhouseCoopers for about five years plus some internships and, you know, spent a lot of time in accounting and finance have always had the entrepreneurial mindset though.   You know, I on real estate, after living with my parents for a couple of years to save up, I did buy a condo and rented out a couple of those bedrooms. And then, you know, from there just acquire more. So, you know, they had a house that I rented to. Students had some fourplexes, couple of partners in those here in Dallas, but Pricewaterhouse Coopers did bring me out here to, to Dallas, Texas. And I've been here for that about 16 years, a long time during that time again, you know, a lot of accounting and finance was controller of a restaurant fry franchising company.   Also I owned, well, I started doing triathlon and it's kind of spiraled out of control before you knew it. I owned the DFW tri club. And so I bring that up because one of my, my cl

Kurt Uhlir is a globally recognised marketer, operator and speaker. He has built and run businesses from startups to over 500 million in annual revenue, assembled teams across 6 continents, has been part of a small team leading an IPO ($880M), and participated in dozens of acquisitions. Kurt serves as Chief Marketing Officer for Showcase IDX, which has helped real estate agents and brokers bring more than 3 million visitors to their websites in the past year.    In this episode we talked about: Kurt’s Bio & Background Differences between Residential and Commercial Sites Implementing Marketing Strategy Approaches Lead Magnets Building Digital Strategies Common Mistakes in Marketing Strategy Building a Team Upwork 2022-2023 Marketing and Business Development Trends   Importance of Consistency View on Mentorship Resources and Lessons Learned   Useful links: Book “Deep Work: Rules for Focused Success in a Distracted World” by Cal Newport https://www.linkedin.com/in/kurtuhlir/ https://kurtuhlir.com/ instagram Transcription: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time.   Jesse (23s): Ladies and gentlemen, my name's Jennifer galleon, and you're listening to working capital the real estate podcast. Our guest today is Curt EULAR. Kurt is a globally recognized marketer operator and speaker he's built and run businesses from startup to over 500 million in annual revenue, assembled teams across six continents. I've been part of the small team leading an IPO 880 million and participate in dozens of acquisitions. We're talking today about real estate coaching marketing, and just generally topics regarding real estate as we normally do on the podcast.   Kurt, how's it going?   Kurt (56s): That's great. Thanks for having me.   Jesse (58s): Thank you for coming on. I appreciate you taking the time out of your, out of your day for our guests. What we typically like to do is a little bit of a background rather than me. Just kind of reading things out. Maybe you could give a little bit of a background on how you got into this world of real estate.   Kurt (1m 15s): Yeah, I, I've always been a kind of entrepreneur, an operator, you know, at, at heart a little bit came from family, but I mean, like I started two legal entities when I was 14. One of those is still running today. Now it's only an eight figure a year business, but oh, sorry. It is a seven year figure a year business. It was an eight figur

Rich Fettke has a passion for helping people improve their businesses, grow their wealth, and live more fulfilling lives. He is the author of The Wise Investor, Extreme Success, and the audio program Momentum. Rich is also a co-founder of RealWealth. Since 2003, the company has helped over 60,000 members improve their financial intelligence and acquire cash flowing income properties — so they can live life on their own terms. As a licensed real estate broker and an active investor, Rich was selected as a Rich Dad Author for his expertise as a Wealth Mindset Expert. In this episode we talked about: * Rich’s Bio & Background * Helping Individuals with Real Estate Investment * Geographic Preferences * Interest Rates and Inflation Overview * Coaching * Writing a Book * Mentor’s View on Assets and Liabilities * Definition of Real Wealth * Thoughts on Being Self-made * Wealthy People Mindset * Resources Useful links: Book: “ Be Your Future Self Now: The Science of Intentional Transformation” by Benjamin Hardy Book: “The Willpower Instinct: How Self-Control Works, Why It Matters, And What You Can Do To Get More Of It” by Kelly McGonigal https://realwealth.com Transcriptions: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. All right, ladies and gentlemen, my name's Jennifer gal. You're listening to working capital the real estate podcast. My guest today is rich. Feki rich has a passion for helping people improve their business, grow their wealth and live more fulfilling lives.   He's the author of the wives, the wise investor, extreme success and the audio program momentum, which is also co-founder of real wealth. Since 2003, the company has helped over 60,000 members improve their financial intelligence and acquire cash, flowing income properties, all things that we like as a licensed real estate broker and an active investor, rich has selected, was selected as rich dad author for his expertise as a wealth mindset expert. Rich, how are you doing today?   Rich (1m 3s): Really good, Jesse. Good to be here.   Jesse (1m 5s): So you're joining us from Malibu today. So jealous whether weather's good things are good.   Rich (1m 10s): Yeah. Life is good and awesome. Yet disconnected when my little two year old grandson yesterday. So feeling fulfilled.   Jesse (1m 17s): Beautiful. Well, I, coincidentally, my sister just had a baby last night, so   Rich (1m 23s): Whoa, nice congrats uncle,   Jesse (1m 26s): Uncle Jesse. So yeah, I got to get out there and, and see the little, the little girl. So I'm very happy and fortunate, so exciting   Rich (1m 35s): Times. Good stuff.

Antony Davies is the Milton Friedman Distinguished Fellow at Foundation for Economic Education, associate professor of economics at Duquesne University, and co-host of the podcast, Words & Numbers. Dr. Davies authors monthly columns on economics and public policy for the Philadelphia Inquirer and Pittsburgh Tribune-Review. He has written a book on understanding statistics, published by the Cato Institute, and has co-authored hundreds of op-eds for, among others, the Wall Street Journal, Los Angeles Times, and Washington Post. His YouTube videos on economics, government, and policy have garnered millions of views. In this episode we talked about: Antony’s Bio & Background View on Inflation: Dangers and Outlook Money Printing Stagflation Fiscal and Monetary Measures to Defend against Inflation Interest Rates Government Policies on Housing Regulations Resources Useful links: https://podcasts.apple.com/us/podcast/words-numbers/id1237781005 https://www.youtube.com/c/AntonyDavies