What does it take for real estate investors to thrive in challenging times?

Join host Chad Sutton as he engages in a captivating conversation with Tommy Brandt, a seasoned real estate investor, and operator. Tommy shares his valuable insights and personal experiences, from transitioning from an engineer to becoming a successful real estate investor, to the acquisition of a 50-unit apartment complex. Discover the strategies and wisdom that can help you navigate the unpredictable real estate market and achieve success!

Learn more about ALTERNATIVE BUSINESS and INVESTMENT STRATEGIES through QUATTRO CAPITAL!

• LinkedIn: /TeamQuattroCapital

• Instagram: @TeamQuattroCapital

• Facebook: @TeamQuattroCapital

• Website: www.TheQuattroWay.com

• TikTok:@realestaterunwaypodcast

[00:00 - 06:43] Tommy Brandt's Real Estate Journey and Insights

• Tommy Brandt joins to discuss making decisions to walk away from a deal versus doing a deal in tumultuous times

• Tommy's journey from an engineer to a full-time real estate investor

• Tommy's experience working for a general contractor servicing mobile home parks in middle Georgia

• Tommy shares his project of buying a short-sale house in Nashville

[06:43 - 12:53] From Modest Beginnings to Real Estate Triumph

• Bought a house in 1979 and slowly renovated it over a few years

• Tommy received a letter from the city with an appraisal value of the house that was over twice what he paid for it, this led to a mindset shift around money

• He started to invest in single-family homes, syndications, short-term rentals, apartments, build-to-rent communities, and self-storage

• Focused on value add multi-family investments to service the lowest level of needs in the economy

• He found a 50-unit complex through a pocket listing from a broker after networking and building relationships for 6 months

[12:53 - 19:07] Identifying Red Flags and Avoiding Risk in Real Estate Transactions

• Tommy stressed the importance of identifying foundational issues, rods in the flooring, and other surprises during the inspection

• He discovered property manager was failing fiduciary responsibility and coaching roommates to not pay rent

• Red flags included a lack of boots on the ground outside of PM, no business plan, and no execution of a plan

• Contract structured to allow walking away relatively unscathed

[19:07 - 25:44] Tommy Brandt's Acquisition of a Thriving 49-Unit Complex

• Closed on a 49-unit complex in Louisville, Kentucky with a 3.5 million purchase price

• Underwritten to know where to invest and where not to

• Assumed mid-four interest rate loan

• 57% loan-to-value ratio, and 94% occupancy at the time of closing, but inexplicably dropped to 90%

• $20,000 made to the previous owner after closing from Section 8

[25:44 - 32:06] How Tommy and His Group Are Doing Things Differently: Expert Advice

• Always trust but verify when it comes to renting roll and delinquency

• Make sure to do a construction walkthrough or something similar pre-closing

• Avoid going to court if possible; legal bills can be expensive

• Be picky with market risk and avoid tertiary and rural markets

• Look for job growth, population growth, absorption, crime rate, median income, etc.

[32:06 - 38:32] Tommy's Superpower, Biggest Mistake, and Philanthropic Heart

• Tommy's superpower is staying organized and planning to execute and repeat

• His biggest mistake was not vetting partners on the front end

• Philanthropic heart is Habitat for Humanity and National Association of Asian American Professionals

Quote:

"If you've dealt with evictions, you know that this, it's like opening a can of worm." - Tommy Brant

Connect with Tommy through LinkedIn and Facebook, or visit his webpage: http://www.tbcapitalgroup.com

LEAVE A 5-STAR REVIEW + help someone who wants to explode their business growth by sharing this episode. Find out how team Quattro can help you by visiting www.TheQuattroWay.com.

Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.

Nectar:

https://app.usenectar.com/quattro-capital

Entity Keeper:

Join the EntityKeeper community today to simplify the way you manage your entities and org charts while reducing manual errors. Easily organize corporate data, visualize ownership structures, store unlimited documents, and manage important filing dates with one secure solution. Click here to start simplifying your entity management with EntityKeeper now!