Gary Lipsky - Multifamily Operations and the True Value of Asset Management

Standout Quotes:

"Don't have too much pride that you need to know everything” - [Gary]

"We like to give ourselves margin for error so we can also have that flexibility to pivot our business plan if need be" - [Gary]

"We're constantly massaging our numbers and seeing, where might we spend more money?"- [Gary]

“There's a tons of foreign money that's coming in because multifamily real estate is still the best risk adjusted returns out there.” – [Gary]

“Interest rates are going to go up and then it'll level off, but people need a place to place money” – [Gary]

“I don't think enough people out there understand what true asset management is.” – [Gary]

Key Takeaways:

Gary describes himself in one word as "Tenacious". I've been an entrepreneur as far back as I can remember. If I didn't have that tenacity, I wouldn't have been as successful as I was. With the cap rates compressing so much, we're not solely focused on what the buying going in cap rate is, but where we can drive it to and what our reversion is. You're not going to know everything. You're not going to know when COVID is going to hit next or Texas freeze. We have a particular style that we underwrite and we have an underwriter and then we fine tune it from there and then keep massaging it all the way through. I think you just have to be very careful on what you're investing in because there's 10 31 money, there's people writing really aggressively to get these deals. We focus a lot on Facebook marketplace for advertising and that's free. We didn't have to spend a lot of money on apartments.com and this and that. Property management manages the day-to-day operations of that property, leasing and turns. For an investor, know your syndicator, know your general sponsor.

Episode Timeline:

[02:28] I’m excited about our guest today, Gary Lapinski.

[04:57] Gary describes himself as Tenacious.

[05:14] Gary shares his backstory.

[07:45] Gary talks about integrity and ethics in life and business.

[08:54] How do you make high stake decisions?

[11:06] What’s acceptable to you in underwriting from a financial metrics piece?

[12:25] Where do you think cap rates are going to go?

[14:19] Gary talks about Asset management versus Property management.

[17:10] Do you do asset management solely on your properties or do you do third-party?

[19:31] Technology wise, what other tools do you like to use?

[20:26] Any specific secret that you would give a new investor today?

[20:58] Gary talks about vetting a sponsor.

[22:03] What’s your favorite tourist attraction?

[22:27] How about the best book you've ever read?

“Crucial Conversations" by Kerry Patterson, Joseph Grenny, Al Switzler, Ron McMillan.

[23:30] How to contact Gary

Website: aptcapitalgroup.com