CP28 Multifamily syndications and operations with Kyle Jones

Join me and my co-host, Vince, as we chat with Kyle Jones about how he transitioned from starting out in the single-family space to multifamily real estate. Kyle is the co-founder of TruePoint Capital and the American Grid Company.

50% to 100% Occupancy Rate 

Kyle had an experience with a 56 unit deal where he had to take the occupancy rate down to 50% within the first three months of owning the property. There were a lot of residents at that time that was refusing to pay. The property manager had to remove the bad tenants. With the vacant units, they were struggling to lease them back up. Then, Kyle decided to renovate when the occupancy rate was low. And by month nine, they were able to bring it back to 100% occupied. An excellent performance and achievement by Kyle because he was able to accomplish that in less than a year! This experience shows that he has great leading and management skills.

 

Staying Connected With Your Property Managers during COVID-19

 

Human connection has significantly decreased over the past few months. A lot of people are struggling because of the massive changes in how we normally do things. This has impacted almost everybody’s mental health. That is why it is necessary to keep everybody engaged in the business, especially now because of the COVID-19. Staying connected with your property managers will be one of the driving forces that will help your business survive the pandemic, through conducting weekly calls, chats, and meetings. By doing these, you’ll be able to check up and be updated with their current situations. Keeping them aligned and headed towards the same goal or direction, thus holding the property managers accountable for their roles and responsibilities. Furthermore, your small acts of checking up on how they are handling this pandemic will help alleviate their stress, even just a little. 

Outline of the episode:

·        [00:36] Multifamily real estate is the best asset class to start investing in. 

·        [04:14] Successfully building cash flows provide a financial security blanket.

·        [05:40] Transitioning from investing in the single-family space to the multifamily real estate. You can make more money by aiming and going bigger.

·        [07:39] The benefits of having a partner in the real estate industry. Why did Kyle Jones decide to create and build a partnership? 

·        [08:34] The real estate portfolio of Kyle consists of mostly an incredible 100 unit plus buildings. 

·        [10:23] Businesses are slowly rising from the devastating impact of the COVID-19.

·        [11:56] Raising 50% occupancy rate to 100% in a short period.

·        [14:44] It is very important to find the right property managers who will listen and understand your strategies

·        [20:00] The struggle of looking and acquiring new deals during the COVID-19.

·        [24:15] Increasing the net operating income by focusing more on collections and managing your expenses better.

·        [28:46] Staying engaged with all your property managers through having weekly calls.

·        [31:20] What are the key changes that Kyle has made with the underwriting in dealing with this pandemic?

·        [32:39] The Multi-Family Millions by David Lindahl, a book that has helped Kyle the most in learning about the multifamily space.

·        [33:26] Kyle’s superpower is his amazing capability of building rapport quickly.