Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest is Matt Faircloth, a real estate investor and best-selling BiggerPockets author. Today, we dive deep into the key members of a successful multifamily team, how to scale up from single-family to commercial properties, and how the industry will change in the foreseeable future. You don’t want to miss out on this conversation!
Learn more about Matt and his story at creclarity.com!
“What smaller real estate can teach you so you can graduate up into bigger real estate is tenant relations.”
01:00
Matt is managing thousands of multifamily real estate units. At the beginning of our conversation, he shares his insights about the differences between residential and commercial real estate investing. While larger apartment complexes of 50-100 units offer more diverse income streams, the fundamentals remain consistent.
Matt shares some value add strategies like pet fees, laundry machines, or even trash valet. He also recommends renter’s insurance as a value add, as it is beneficial for both the owner and the tenant.
“The four seats in the GP are the Hunter, the Brain, the Money, and the Hammer.”
12:08
Matt delves into the critical roles within a GP team, emphasizing the importance of recognizing each member’s unique talents.
He identifies 4 key personality types, each suited to a specific role:
- The Hunter: These types of people are good at acquisition. They are adept connectors, closers, and negotiators.
- The Brain: They excel at analyzing deals and running the numbers, making them suitable for the underwriter role.
- The Money: They are more extroverted and good at sales, so they should assemble the debt and raise capital.
- The Hammer: This type of personality is great at multitasking and project management. They should be asset managers as they are highly driven to implement and fulfill the business plan.
“I think now investors want stability, some cash flow, and to get through the next couple of years while rates are really high.”
27:25
Towards the end of the episode, Matt discusses how to raise money successfully in today’s market and how to build good relationships with investors. In recent years, the focus has shifted towards cash-flowing deals, reflecting LP investors’ preference for short-term gains.
At the end of the conversation, Matt shares what he’s most excited about in the CRE world right now. He looks forward to the impending change in the industry. There will be a repositioning in America’s real estate, creating many opportunities for creative real estate investors. The innovation will also change many of the asset classes we’re familiar with now. However, Matt expresses concern that the current polarization in politics may destabilize the country.
Finally, Matt shares one point of clarity with the listeners. “See the opportunities, hop in, and you’ll figure it out.”
About our Guest, Matt Faircloth
Matt Faircloth has been a full-time investor since 2005. In that time, he has successfully completed projects involving dozens of fix and flips, office buildings, single-family homes, and apartment buildings. He commands thousands of multifamily units in partnership with millions in passive investor equity, earning him recognition as a trusted authority, regular contributor and podcast guest on BiggerPockets®.
With an active YouTube channel dedicated to educating investors and a bestselling book, “Raising Private Capital: How to Build Your Real Estate Empire with Other People’s Money,” Matt offers invaluable insights and strategies to elevate your real estate journey.
Mentioned in the show:
- www.derosagroup.com/
- His LinkedIn
- Matt Faircloth – Raising Private Capital
- www.shineinsurance.com/reiclarity
- The REI Clarity Framework
Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/
Special thanks to Matt Faircloth for taking the time to share so many great insights with us
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Show produced by Eni Horvath
