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:
- The Hunter: These types of people are good at acquisition. They are good connectors, closers, and negotiators.
- The Brain: They are good at analyzing deals and running the numbers, so their role should be the underwriter.
- The Money: They are good at financing and raising capital, so they should assemble the debt and the equity.
- The Hammer: This type of personality should be the asset manager. They are very driven to implement and fulfill the business plan.
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:
- Start on a small scale and double your portfolio every time you do a deal. Document your process and build your team as you go. This way you’re financially responsible, but also fully in charge of the process.
- Think about your talents and find out which of the 4 personality types matches you the best. Then find yourself a real estate team that is either forming or has had some successes, but wants to get to the next level. It’s important to have someone on the team that already has experience, so you can grow faster.
“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:
- His LinkedIn
- Matt Faircloth – Raising Private Capital
- The REI Clarity Framework
Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity.
Special thanks to Matt Faircloth for taking the time to share so many great insights with us
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Show produced by Eni Horvath