173: The Ins and Outs of Ground-Up Development with Andrew Brewer

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This is an LFI episode and LFI is now part of PassivePockets.

Join host Jim Pfeifer and real estate developer Andrew Brewer as they explore the intricate world of real estate development. Discover the crucial steps, potential risks, and expert strategies for successful property development. Whether you’re a seasoned investor or new to the field, this episode offers invaluable insights to help you navigate your investment journey with confidence. Tune in to learn how to assess projects, select the right partners, and manage development risks effectively.

About Andrew Brewer
Andrew is the Founder and Managing Partner of IronGall Investments, a real estate development firm based in Austin, and Distance 3 Development, a real estate investment firm based in San Antonio.
As a developer and project sponsor Andrew has helped hundreds of busy professionals achieve time and financial freedom through passive real estate investments in markets across the US.
He has experience in apartments, townhomes, single family home subdivisions, mobile home parks, RV parks, and office warehouse spaces. The value of projects sponsored by Irongall Investments and Distance 3 Development has a combined market value of hundreds of millions of dollars.
Too often, we’ve seen working professionals miss far too many school plays and soccer games, and we’ve also seen individuals too busy to pursue their passion projects. Andrew wants to help as many people as possible to take control of their time and accumulate wealth through real estate so they won’t have to miss any more significant occasions.
Andrew has a varied background in real estate and has participated in projects as an owner, developer, operator, engineer, and consultant.
As an operations engineer, Andrew implemented comprehensive building turnarounds of underperforming assets, resulting in enhanced operations, cheaper maintenance costs, and better resident experiences.

Key Points From The Episode:
1. Experience and Background: Andrew Brewer discusses his journey from starting as a building engineer to becoming a successful real estate developer, emphasizing the importance of having a solid professional background.
2. Project Planning and Execution: The discussion highlights the significance of having a well-defined business plan and a team of reputable professionals to mitigate risks in development projects.
3. Investor Advice: Andrew offers advice for passive investors, particularly limited partners (LPs), on what to look out for when investing in development projects, such as the experience of the sponsor and the detailed plan of the project.
4. Strategic Exits and Returns: The episode covers strategies for structuring project phases with potential exits, allowing investors flexibility and security in their investment timeline.

Timestamps:
02:07 His background
05:25 What projects he has right now
10:39 How to vet an operator?
15:26 How to vet partners?
20:26 Questions for the deal
26:31 How the returns are structured
31:52 How the phases work
34:39 Podcast recommendations
34:57 contact


Podcast Recommendations:
Best Ever Podcast
Bigger Pockets

Resources Mentioned:

Contact the guest:
LinkedIn

Advertising Partners:

Vyzer:
https://vyzer.co/

Left Field Investors:
https://www.leftfieldinvestors.com/

Rust Belt Capital
https://rustbeltcapital.com/

Tribevest:
https://www.tribevest.com/

Avoiding Rookie Errors as a Left Field Investor: 20 Lessons Learned From 14 Years of Passive Investing in Private Syndications by Steve Suh
https://www.leftfieldinvestors.com/books/

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