This is an LFI episode and LFI is now part of PassivePockets.
Join us on the latest episode of Passive Investing from Left Field, where Matt Faircloth and Chad Ackerman break down the crucial role of transparency in real estate investments. They tackle the importance of clear communication and discuss how today’s market challenges demand a more conservative approach to deal underwriting.
Matt shares his inspiring journey in real estate, scaling from a modest loan to managing thousands of multifamily units. Join us for an insightful session filled with expert advice on navigating investments, emphasizing cash flow, and a glimpse into the evolving buy-and-hold strategy. It’s an episode packed with value that no passive investor should skip!
About Matt Faircloth
Matt Faircloth is a seasoned real estate investor and the co-founder of the DeRosa Group, a company he started with his wife Liz. He has been active in the industry since 2004, engaging in various projects like fix and flips, and multifamily properties. Faircloth’s journey began with a $30,000 loan, which he and Liz turned into a substantial real estate portfolio that includes thousands of units and a significant investment fund. He advocates for conservative investing, the importance of generating cash flow, and transparency in real estate syndications. Faircloth’s work emphasizes education for investors and partners, aiming to ensure a stable and profitable real estate market experience.
Key Points From The Episode:
1. Matt Faircloth stresses that real estate syndication investments are not akin to bonds and thus should not be expected to guarantee monthly payments to investors.
2. During economic changes, distributions were paused to prioritize the protection of capital, illustrating the company’s financial conservatism and focus on responsible management.
3. Faircloth describes the rigorous due diligence process that resulted in no successful multifamily deal acquisitions during the year due to unreasonable asking prices and a disciplined investment approach.
4. Investing in branded hotels, which unlike multifamily properties, are said to provide immediate cash flow and require different market considerations.
Timestamps:
02:25 His real estate journey
03:41 What is new in the world of investing since he had been on the show?
09:54 What is his investment strategy?
13:37 His journey to the hotel space
17:44 What metrics have changed that he has put emphasis on?
21:05 How has his loan structure strategy changed?
27:45 Has the economy effected how he analyzes deals?
32:13 How do you approach the exit strategies?
34:33 Podcast recommendations
35:30 Contact Matt
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