CP12: Syndication is a B*tch: How Bruce Petersen raises capital and syndicates multifamily

Join Duc and Vince with Bruce “The Apartment Guy℠” Petersen as they talk about the secrets to real estate and syndication. Bruce was a college dropout, found himself in retail, and worked there until he retired at the age of 43, with no wife and kids. Seeing that all his friends are still going to work and providing for their families, he made a move to figure it all out. Bruce went on Google to find a mentor, and eventually made his way to become a syndicator for multi-family properties across Central Texas. He shares his take on the current market condition, an impressive trick to cost segregation, the value of mentorship, and many more!

 

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 About Bruce Petersen:

 The Apartment Guy℠, Bruce Petersen, is a syndicator of large multi-family properties throughout Central Texas ranging in size from 48-292 units. He was awarded the Austin Apartment Association’s Independent Rental Owner of the Year for 2016 and the National Apartment Association’s Independent Rental Owner of the Year for 2017 as well as Think Realty's Multifamily Investor of the Year 2019.

 Bruce targets stabilized properties where he can buy a cash-flowing asset and drive value through building "community" and improved operations. He is able to do this by implementing his proven systems and deploying his experienced staff to replicate his business model across new acquisitions.

 Outline of the Episode:

• [02:13] A 43-year-old retiree turned real estate investor!
• [03:32] Learning finances as a stockbroker. It’s not as glamorous as you think!
• [05:33] A passion project of building a special needs apartment complex. They need a place where they can be independent.
• [07:29] Buying a two-property portfolio of 484 units and needing to raise $12 million.
• [12:48] Why you should be conducting due diligence – leaky pipes and plastic bathtubs.
• [16:13] The faster velocity of scaling in syndication versus flipping in multi-family. There is a huge value to at least doing something rather than not doing anything.
• [21:53] The uncertainty of gauging the value of anything at the moment because of the variety of unknown variables in the market.
• [25:04] Don’t assume anything in real estate! 
• [27:50] You need to get out of your comfort zone and build your network. Be self-aware and know your strengths and weaknesses.
• [32:33] Tax protests and cost segregation. How did Bruce get three tax refund checks all over $30,000?
• [39:39] Don’t put yourself in a position where you are prone to making irrational decisions. The importance of having someone looking out for you from the outside!
• [43:19] Making money off of your residents’ opinions. It’s essential to build a community!
• [49:11] What if you taught your residents financial literacy, so they learn how to save and be able to pay rent even during times like these?
• [51:50] Understanding how money flows in the economy through resources outside of school.
• [53:11] Tough love and being truthfully supportive.

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