Transitioning from traditional investments to Real estate development with Sam Bates
- E58
- 1:01:58
- May 11th 2021
Join Vince and Matt as they chat with Sam Bates about what new development is and why networking is instrumental. Sam is one of the founders of Trinity Capital Group. It is a privately held real estate investment company, providing superior risk-adjusted returns for its investors while minimizing risk. The company is committed to developing lasting relationships with its investors by providing them with exceptional wealth-building opportunities through quality real estate investments. Today, Sam shares his journey, transitioning from traditional investments to real estate development. There’s a lot to unpack, so stay tuned and enjoy the episode!
About Sam Bates:
Sam Bates is a principal of Trinity Capital Group and owner of Paradigm Real Estate Investments. Sam’s background is in financial services, state and local taxes, and real estate. He has been directly involved in the acquisition, rehabilitation, and management of over $40MM in multifamily and single-family assets since 2009.
Sam spent ten years in Corporate America, where he honed his business acumen and developed many characteristics that help him succeed in the real estate industry. He started at UBS Financial Services, where he cultivated his knowledge about financial markets. Sam directly worked with advisors that had over $3 Billion in assets under management. After graduate school, He transitioned his career to state and local taxes. During his tax career, Mr. Bates helped companies save more than $45MM in tax.
Outline of the episode:
● [02:23] How Sam got into real estate after having numerous formal education in finance.
● [07:49] His response to pushback from people who solely believe in traditional investments.
● [10:57] What new real estate development is, illustrated by Sam’s most recent deal.
● [15:33] What his market research looks like and how different it is from the traditional model.
● [18:17] The different finance options in new development and how Sam flips carrying costs.
● [22:19] How the most significant failure Sam had was not in ‘development’ but in ‘acquisition’ and what he learned from it.
● [27:01] The lagging indicator model and how it solves issues like large-scale vacancies ahead of time, especially with military bases.
● [33:11] What advice would Sam give to his 20-year-old self and why networking is instrumental.
● [36:38] The resources Sam Bates recommends for people looking to get into real estate.
● [38:48] Taxation in new development and how the demand for new development housing does not need tax breaks.
● [40:55] How Sam and his team adapted to the pandemic conditions from then to now.
● [49:52] The books that impacted Sam Bates’ life the most.
● [51:50] What Sam’s superpower is and his affinity for numbers.
● [52:59] The most important lesson he learned throughout his career.
● [54:06] Sam’s advice to busy working professionals so that they can achieve financial freedom.
Resources:
● The Miracle Morning by Hal Elrod
● The Success Principles by Jack Canfield
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The Cashflow Project
This is for busy professionals who are looking for financial freedom through passive income, with a focus on cashflow assets in Multifamily Real Estate. We will be covering a variety of topics such as buying, managing, and selling real estate assets, specifically apartments.
To learn more about us, visit tricityequity.com