5 Biggest Lessons Learned from Value Hound Interviews in 2011
As we go forward into this year with lots of big goals to build our
real estate business, I want to look in the rear view mirror to
expose some big lessons learned in 2011 from interviews we
did with the industry’s smartest minds and most successful
dealmakers. These lessons will uncover critical ideas and
strategies to help you make more money in your real estate
In 2011, we spoke to over 40 of the top leading real estate
entrepreneurs on how they are capitalizing on today’s
distressed real estate market. What is behind their dare
to be different mentality and how are they making things
happen? What were the common characteristics among
these entrepreneurs? What lessons can we learn from them
so that we can be more successful with our deals?
Top 5 Lessons
1. Focused Plan:
All of the real estate entrepreneurs we interviewed
are VERY focused at executing a strategic business model. They are
experts within their product niche whether office, multifamily, retail,
industrial or self storage. They are experts within the markets they
invest. They are experts at executing a finely tuned investment
strategy. They are focused on only chasing ONE rabbit versus
chasing lots of rabbits all over the world.
Michael Brennan of Brennan Investment Group preaches that he is
an industrial guy. To be successful buying industrial properties you
have to be a guy who likes dealing with people at industrial sites.
Michael’s focused on being the best industrial guy in his space.
In our interview with Carlos Vaz, The Conti Organization, he told us
that he only buys value add multifamily properties in the state of
Texas. If you bring him a self storage deal that has a 30 IRR, he
wouldn’t know how to underwrite the deal, so he would pass. By
choice, Carlos sticks with his value add multifamily deals with
15 IRR’s instead of going outside his expertise. Carlos doesn’t
I know this may sound elementary, but successful
Value Hounds only buy great deals because they are PATIENT.
They do not buy deals until they can be bought at their price and
on their terms. Many times, it might take two years pursing a deal
before they can buy it at their price and terms.
In my last article, I wrote about real estate entrepreneur, Chad
Carpenter. He was pursuing a value add office building for
almost two years. Chad was patient until he finally bought the
property on his price and terms. Because Chad was patient,
when pursing this office building, he made $4 million within 18
months….like a wise old owl.
Building strong and lasting relationships with
everyone one in your universe is the engine that drive your
business. Ultimately, uncovering deals and dollars comes down
to the relationships you have developed. The best deals are found
off market, and the only way to learn about these deals is from
your strong relationships.
In a market where investors were having a tough time buying
properties, Gary Sabin of Excel Trust, bought over 20 retail
properties totaling in excess of $500 million because of the
relationships he had built over the years.
Carlos Vaz moved to a new city with no money, few contacts
and little experience syndicating value add multifamily properties.
In about 3 years, he built his company to almost 4,500 units
because of the relationships he built with investors.
Building, developing and growing your relationships is paramount
to your success uncovering great deals and finding the dollars
to get your deals done.
4. Repetitive Action.
Real estate entrepreneurs continually
execute the same business model over and over again through
repetitive action. They continually refine and improve their
business model so that it becomes more efficient and profitable.
It’s an on-going pursuit of fine tuning their expertise.
Real estate entrepreneur Jerome Fink of The Bascom Group
exemplifies this trait. Jerry refers to his company as the
“merchant builder” in the repositioning of multifamily properties
space. Over the last 16+ years, his company has done over
200 property renovations all over the country. Each time they
do a renovation, Jerry continually improves his business model
through repetitive action.
5. Personal Development.
Every one of the real estate
entrepreneurs we interviewed are continually trying to personally
grow and improve themselves. They are not complacent or
content with the status quo, but continually strive to be the best.
Make 2012 a great year by following the tracks of the industry’s
most successful real estate entrepreneurs. Start today to
implement some of these big lessons so that you create a
life that matters…one that improves the quality of your life,
as well as, the life of others around you.
You are on a journey to build and grow your business so
enjoy the trip.
I hope this serves you. I look forward to helping you reach for the stars!