Welcome to another episode of the Passive Income through Multi-Family Real Estate Podcast. Today, we welcome a new host, Peter Pomeroy, who interviews our own Kyle Mitchell about our recent acquisition of the Redondo Tower. Tune in to hear how a property’s inequalities can create opportunity for investors, why micro-units are trending, and what benefits you have when you purchase an older high rise. We talk about location and marketing budget, and the capital required to transform a property. There are big plans to transform the property, and Kyle talks us through what needs to happen to upscale it. We talk about the costs involved in taking the building from a Class C building to a Class A and learn about deferred maintenance. You’ll hear about investor relationships, transferable business plans, and why it’s so essential to work alongside the right team. Kyle also gets personal and shares what motivates him in his career, how he manages personal stress, and what’s next for the business. Join us to hear all this and more today!
Key Points From This Episode:
- Meet our new host, Peter Pomeroy.
- How the Redondo acquisition differs from other investments they have made.
- How the property’s inequalities create opportunity for tenants and investors.
- The trend towards building micro-units and the benefit of buying an older high rise.
- How the location reduces the marketing budget.
- The transformation process and capital.
- Why the building has the unique potential to be turned into a Class A property.
- The 6.6 million value add lift required to upscale the building.
- The cost of deferred maintenance on an older building.
- How tackling deferred maintenance is good for existing tenants, leading to reduced turnover, as well as helping reduce your day-to-day expenses.
- The importance of building strong relationships with all the teams you work with.
- Why the same business plan applies regardless of size.
- How having a relationship with the investor set them up to get the deal.
- Investor concerns: age of the property, individual heating, and heavy value add.
- Why Kyle highly recommends having the right team.
- Reporting to your investors.
- What Kyle considers his motivation: continued education and motivating others.
- How he manages his personal stress.
- What’s next: hiring more people, launching an academy,
Tweetables:
“Nowadays you’re hearing more about new builds being more micro-units, so they’re trying to fit in as many units as they can in the smallest amount of space. So you’re seeing units that are shrinking in size which shrinks your living space. And rents are still going up. The benefit of buying an older high rise is that the units are so large!” — Kyle Mitchell [0:05:11]
“This is one of those unique opportunities in which you can actually take a Class C building into a Class A building.” — Kyle Mitchell [0:08:14]
Links Mentioned in Today’s Episode:
Limitless Estates
Peter Pomeroy on LinkedIn
Kyle Mitchell on LinkedIn
Passive Income Through Multifamily Real Estate Facebook Group
