Our guest today is Matt Faircloth, a real estate investor and author. In this episode, we dig deep into the key members you need in your multifamily team, how to set reasonable expectations, scaling fast, and how to exit a deal gracefully. If you’re ready to take the leap from single-family to multifamily investing, then this episode is for you!
Learn more about Matt and his journey at reiclarity.com!
“The mantra for my company is to transform lives through real estate.”
Matt started his career in sales. He got interested in real estate investing after reading Rich Dad, Poor Dad and started investing in single-family homes.
Now Matt and his wife run a primarily residential real estate company together, but they have some commercial tenants as well. They acquired around 150 single-family units before they took the leap into multifamily.
“There are 4 very distinct activities in multifamily, and different personality traits that fit very well inside those buckets.”
Matt breaks down the different roles in a multifamily team. He believes that everyone has their own talents that need to be appreciated.
The 4 personality types that should be represented in your GP team:
These 4 personality types together can find the deal, create the business plan, finance the deal, and fulfill the plan successfully.
“Real estate investing, including apartment buildings, is a marathon. This is not a six-month or two-year type of deal.”
Matt talks about how to set expectations when you’re planning to leap from single-family to multifamily investing.
The 2 paths to choose from:
“The market will pay you a better price for a deal that has potential than a deal where you've knocked out everything that could get knocked out.”
At the end of the episode, Matt picks an action step from the REI Clarity Framework that is the most valuable for him. This is “Exit Gracefully”.
Matt’s advice for a successful exit is to put yourself in the buyer’s shoes from the start. Leave some “meat on the bone” for the new buyer, so they can have some opportunity to take it to the next level and add value. You get a better cap rate this way.
Mentioned in the show:
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Until the next time, We truly appreciate you listening.
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