Lessons from a $650M Portfolio: Insights from Real Estate Veteran Dusty Eddy

In this episode, Brad chats with Dusty Eddy, founder of Eddy Capital Group, and a veteran real estate investor with over 23 years of experience. Dusty, who has led over $650 million in multifamily investments and completed 15 full-cycle deals with impressive returns, shares his journey from an institutional background to building his own firm. He discusses the importance of local expertise in avoiding bad deals and leveraging relationships. Dusty also opens up about his best and worst deals, revealing how even a "worst" deal can yield fantastic returns and what he learned from each one.

🔑 Key Topics Covered:

• Dusty's journey from an analyst at a prior firm to a solo real estate investor

• The importance of having "boots on the ground" and deep local market knowledge

• The challenges and advantages of buying from "mom and pop" owners

• The story of a "worst" deal that still generated a 26% IRR and 1.6x equity multiple

• The flawless execution of a "best" deal that delivered an 80% IRR and 4.4x equity multiple at the peak of the market

• The value of pushing rents and increasing NOI to create a floor for property valuation

• The long-term strategy of focusing on A and B locations with a value-add approach

• The benefits of adding creative amenities like private patios and outdoor spaces

• What's next for Eddy Capital Group and the importance of building a dedicated team

💬 Memorable Quotes:

• "Being local helps you avoid more bad deals than necessarily get good deals." — Dusty Eddy

• "Sometimes you literally get a rent roll on a napkin... I'm exaggerating, but not very much to be honest." — Dusty Eddy

• "The positive and the negative is that investors start to think that's normal and that's like, that's right, you're gonna do that every time, right?" — Dusty Eddy

🔗 Connect with Dusty Eddy:

💼 LinkedIn: https://www.linkedin.com/in/dusty-eddy-mba-5630b53

🌐 Website: https://eddycapgrp.com/

 

🎙️ Connect with Host Brad Weaver:

💼 LinkedIn: https://www.linkedin.com/in/bradweaver