July 15, 2024 • 28 mins
Get ready to unlock the secrets to successful real estate investment with Ed Bailey, the managing partner of Vision Capital Partners and Chief Capital Officer at nectarflow™. Ed’s journey from Wyoming to New York and back to Utah is filled with invaluable lessons that shaped his approach to finance and business. He'll discuss how first impressions and having "skin in the game" are non-negotiable in his investment strategy, and provides a deep dive into his multifamily property ventures. From the importance of selecting the right third-party managers to his criteria for investment, Ed lays it all out.
Join us as we tackle property management best practices that can make or break an investment. Ed sheds light on why trusting your property management firm is key to maintaining quality and efficiency. We explore the critical roles these firms play, from vendor selection to ensuring maintenance staff stay focused on essential tasks. This segment offers both property owners and vendors actionable insights to help streamline operations and mitigate common pain points, such as tenant attraction and maintenance prioritization.
We'll also explore the art of collaboration and decision-making in real estate, right from securing funding to leveraging relationships. Ed shares his top strategies for navigating the financial landscape, emphasizing the importance of thorough due diligence and selecting the right management company. Plus, get a sneak peek into the future of multifamily real estate with the innovative nectarflow.com software. Whether you're an experienced investor or just getting started, this episode is packed with strategies and insights you won't want to miss.
About the Multifamily Innovation® Council:
The Multifamily Innovation® Council is the executive level membership organization that makes a difference in your bottom line, drives a better experience for your employees, and allows you an experience that keeps demand strong for your company. The council is uniquely positioned to focus on the intersection of Leadership, Technology, AI, and Innovation.
The Multifamily Innovation® Council is for Multifamily Business leaders who want to unlock value inside their organization so they can create better experiences and drive profitability inside their company.
To learn more or to join, visit https://multifamilyinnovation.com.
For more information and to engage with leaders shaping the future of multifamily innovation, visit https://multifamilyinnovation.com/.
Connect:
Multifamily Innovation® Council: https://multifamilyinnovation.com/
Patrick Antrim: https://www.linkedin.com/in/patrickantrim/
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome back to the Multifamily Innovation Podcast.
Thank you for sharing time withus today.
We are so excited about theguest that we have today, ed
Bailey.
He is the managing partner ofVision Capital Partners.
He is also now the chiefcapital officer at Nectar Flow
and he is a property owner inthe multifamily space.
He has some amazing advice foryou today around how to win that
(00:22):
business if you are athird-party manager, how to win
that business if you are athird-party manager, how to win
that business if you are asupplier and, if you are a
supplier, how you set yourselfup for success for funding in
your future.
And so I'm so excited to haveyou here today, ed.
Speaker 2 (00:36):
Happy to be here with you.
Speaker 1 (00:38):
So first off, let's start with your backstory how
you got into investing, whatinterested you and how you got
to where you're at today.
Speaker 2 (00:46):
Well, I've always been interested in business.
To start with, my father ownsbusinesses up in Jackson Hole,
wyoming, and so I've always beenworking alongside him and had a
real love and appreciation forbusiness, understood that the
costs and expenses and what youbrought in, and just understood
the whole accounting at a veryyoung age due to the fact that I
(01:09):
was by the side of my father,went to college and graduated
out of the University of Utahand went out to New York and
started working in the financeworld and I just really enjoyed
the finance world altogether andrealized that New York really
didn't want to have a love forlending or doing transactions.
(01:31):
In the middle part of theUnited States.
They like the outer perimetersand it's just frustrating
because I saw Utah, colorado,wyoming, arizona, all being kind
of left out of the fundingworld.
And so I moved back to Utah,opened up an office there and it
(01:53):
was Vision Capital Partners,established it 25 years ago and
started getting smallertransactions and then I would
take those small transactions toNew York.
So they understood if I hadskin in the game then they would
be interested in just puttingthe majority in.
(02:14):
And so it all began and startedgetting to where it is doing 100
, 200, $500,000 transactions.
Then it started, we got moneyinto it and we started building
a fund up my own fund of VisionCapital Partners and we started
looking at $2 to $5 million andbecame $10 to $25 million and it
just kind of grew.
And over the years we got towhere we're also doing debt and
(02:37):
equity.
So we'd go into a transactionwe'd look at how can we invest
in it to where we could get thereturns on a daily basis on the
interest from a loan but thenstack it with capital of the
equity side and that way we gotthe opportunity to make a lot of
money if it really won.
And so we started just buildingit up more and more and it just
(03:01):
became funner and funner and Ienjoyed it.
Speaker 1 (03:04):
I can tell by the excitement in your eyes that
this is something you'reactually really.
You get pumped up by this exactthing, and so how do you decide
who you're going to invest in?
What does that kind of sheetlook like?
List of questions.
Speaker 2 (03:16):
Yeah, the first thing is is who walks in the door.
We look at individuals thathave done something and been
successful at whatever they'relooking at doing, mm-hmm.
And if they're not successful,they brought somebody in that
was going to be a partner withthem, that is successful in that
category that they're trying toreceive money for Right,
(03:39):
whether it be real estate orcorporate side.
We're not just real estates.
We expanded in several otherareas of our buckets of funding.
So the first thing was theirappearance.
It's amazing, but we alwayslook at appearance.
What do their shoes look like?
What are they wearing?
How are they dressed?
(04:00):
Is it nice and neat?
If you're coming in to ask formoney, you better be dressed up
to the nines.
Speaker 1 (04:04):
Yeah.
Speaker 2 (04:05):
Yeah, and not coming in and looking like a slob, and
yet you want $50 million andyou're looking like this.
Speaker 1 (04:11):
Are you pointing at me?
No, I'm just kidding.
Speaker 2 (04:15):
I tried really hard for you.
Would we look at that?
And those are first impressionsthat you get.
So you're always looking atfirst impressions.
But then you move and you startlooking at the experience of
what they've done.
How much are they asking for?
How much money do they have init?
And I say skin the game when wefirst started.
We're looking for skin in thegame with them.
Speaker 1 (04:35):
Yeah.
Speaker 2 (04:39):
If they have no skin in the game and they're just
saying, will you do this andwe'll do the work, but you put
in 100% of the money, that's apretty high risk for us to even
think about and the answer isalways no.
Speaker 1 (04:47):
Right.
Speaker 2 (04:48):
Right, so you do have to have skin in the game.
Speaker 1 (04:49):
Be prepared to have something in there Anything,
yeah, and that actually makes alot of sense because, I mean,
that would show you howdedicated they are and how much
they actually believe in thisconcept, right, if they're
actually putting their owninvestments towards it as well.
So that makes a lot of sense.
And so, um, so you do have realestate.
How many properties have you ordo you have investments in in
(05:13):
real estate?
Speaker 2 (05:14):
Well, we've.
We've been narrowing it downsince the pandemic.
We've really stayed away from alot of investments and we
haven't gotten back in um overthe years, though it's.
You know you're talking about ahundred.
(05:34):
I don't know.
You know investments into realestate and corporate side, not
just real estate, so we can'tjust say that, but in all of our
transactions together, you knowa couple of hundred investments
.
Speaker 1 (05:41):
Yeah, yeah, and you did have properties that were
managed by in multifamily aswell.
Yes, yes, for sure.
And so, in that world, how manytimes have you kind of vetted
third-party managers and how doyou go about making a decision
on who's going to manage thoseassets?
The million dollar question,great question.
Speaker 2 (06:05):
Yeah, we do not manage our own property when
it's a multifamily.
Yeah, we always believe ingetting the best.
Let them do what they do best.
If we bought it, I want to makesure the best is overseeing it.
So you know, our vettingprocess really is in that area,
not just one company throughoutthe United States, but what
(06:26):
company in that area is thestrongest, has the best ties,
the best in, you know, to theareas that you really want to
make sure you're strong,represented in Right.
So that's the first thing we'redoing is looking at who's the
biggest and best and then you'relooking at what success they
have.
You know what their portfoliolooks like and the other
(06:48):
transactions.
Are they competing directlywith you in a, in a within a
three to five mile geographicalradius?
We're looking at, you know, alot of the.
We don't want to competeagainst ourselves in some other
transaction with that sameproperty management firm.
Yep, that makes a lot of sense,so we want to make sure that
they're diversified enough andnot close enough to us to where
(07:09):
they said well, if you don'tlike this one, we got another
one just over here.
Speaker 1 (07:11):
Yeah.
Speaker 2 (07:12):
Yeah, we are the ones if they come to a certain part
of that town.
We want to be the choice thatthey pick.
Speaker 1 (07:19):
And what in that pitch?
Just because I'm curious formyself, because I've helped make
some of those pitches whereit's like, here's some branding
we could do.
What is it in that pitch that'sreally the meat that makes you
say, yeah, this is the one.
Is it the numbers?
Does it really come down tojust that?
Speaker 2 (07:34):
Well, I want to see the record of how many walk-ins
they receive and what theclosing ratio is.
Speaker 1 (07:43):
Right.
Speaker 2 (07:44):
I want to see that they were closing in that 30
plus range, not in the 15 to 20range.
I want to see that they'redriving in traffic as high as
anybody else in that area,whether it be 50 tenants a week
or 40, 30 or 100.
I want to see that they're inthe top realm of that.
I know their marketing works.
(08:04):
Yes, that's a very importantthing for any of the property
management.
If they're going to be yourleasing agents, you've got to
make sure they're driving peoplein the door and they're closing
on those people who come in thedoor.
Speaker 1 (08:14):
Yeah, yeah.
And from a marketing side,you're talking more like not so
much branding, but more so.
You know, how are youattracting the right residents
and prospects for this property?
Speaker 2 (08:26):
A lot of it comes back to anymore is social medias
, and how are they driving thatin?
Are they also, you know,sponsoring different, like a
football event, and they have abooth there and therefore
they're attracting all thesepeople coming to it, the booth,
and they're able to talk to themand tell them the benefits of
just down the road is property?
I love that so any amusementsthat are around in that area
(08:50):
attractions you want to makesure they're involved in those
attractions and being able tobring people from those into
your facilities.
Speaker 1 (08:57):
I think that's really smart, like one of the
conversations that we werehaving was you know what the
amenities are now just rinse andrepeat and you might have one
or two more innovative amenityat your property.
But really the amenity can bethe location and how close in
proximity you are to X, y or Zand how you get to come home and
have comfort after you go tothat football game, right?
(09:17):
So we don't always think aboutthe amenity as like the
surrounding area.
But I think it's reallyfascinating that you mentioned
that, because I believe the samething that we don't focus hard
enough on those pieces for sure.
Speaker 2 (09:27):
So you've got to have the nicest amenities on your
facility.
But we would never buy orreally invest too heavy into a
facility that did not have niceamenities around it.
Yeah, that is your attraction.
Is it the work, play, concerts,shopping about where the
grocery stores are?
(09:47):
How close is it for them toconveniently be able to live
there and enjoy it and have fun?
This is your home.
Yeah, so let's make home fun.
Speaker 1 (09:58):
Yeah, exactly, I love that.
And so, from the third partymanagement side, there are also
the suppliers in our industrywho are trying to bring new
technology to these propertiesor new amenities, whatever it is
service that they provide.
I know I've been a supplierbefore.
More on, like the data side ofthings, I bet a lot of our
(10:18):
listeners would want to know howa lot of them think they need
to access the use.
Who are the ones that are maybewriting the check for this
software, writing the check forwhatever is going to roll out?
So are you making thosedecisions?
Are you letting the managerkind of make those decisions?
What process do you go throughwhen a supplier wants to roll
out a new tool or something atyour property?
Speaker 2 (10:39):
Well, we went after and done our due diligence and
we went after the best, and thebest got there by having the
best surround them.
So we're counting on them beingthe property manager, bringing
in the best suppliers Right, and, as an owner, I don't want to
be involved in that.
That's why we paid them.
(11:01):
And they get paid handsomelyfor it, but that's what they're
doing is bringing those vendorsin.
Speaker 1 (11:08):
Yeah.
Speaker 2 (11:08):
So we're allowing them to.
Now we do have to write thechecks, yeah, but at the same
time, we know that that check isgoing to the right person for
the right purpose.
Situation and they come.
Property manager will come tous and I'm always looking for
the pros and cons.
Why is this the best and whatis the downside of it?
Is there one better and betweenus we can work it out pretty
(11:32):
quickly of why they picked thatand why they chose it, and I'm
comfortable with that.
Speaker 1 (11:36):
Yeah, but for the most part you do trust the
decisions that that manager,that management company, has
made for you.
Speaker 2 (11:46):
Yes, they didn't get there for no reason at all.
Speaker 1 (11:47):
They got there because the best decisions were
made Right.
That's really good information,I think, for a lot of our
listeners because, again, I'vebeen on the supplier side where
I was like you know, how do weget after those investors,
owners and the people that arereally making those decisions?
And truly I do think that whenyou trust the management company
that you've chosen, that issomething that you should trust
them with as well.
So I think that makes a lot ofsense.
Speaker 2 (12:06):
It's amazing how many vendors train, circumvent
property manager and call me.
And I get phone calls andthey'll be like hey, I'm XYZ and
I do this.
And I said, well, did you talkto my property manager?
No, you know, we just I said no, no, no, that doesn't work that
way.
You got to go down and talk toXYZ property management firm at
(12:27):
the site and let them, let themsee it and then, if they like it
, then they can come talk to meon it.
Speaker 1 (12:34):
And is that?
Is that the answer you normallygive Always?
Speaker 2 (12:37):
give.
Speaker 1 (12:37):
Every time You're like talk to here's, do you give
them their email and just sayhere go.
Speaker 2 (12:42):
Yes, direct phone number.
Here you go Absolutely.
Always the office number, solet them talk to them yeah.
Speaker 1 (12:49):
And do you imagine that that's the case for most
people who do own properties?
Speaker 2 (12:52):
I mean, there's probably some that are a little
more hands-on, but there'shands-on and I think the smaller
individuals are hands-on, butthey generally don't have a
property management firm.
They are managing the propertyTrue, I talked to a fair amount
of them and obviously have overthe years because we've lent to
them for so many years.
Yeah, and you know they do saythat they get a fair amount of
(13:14):
phone calls from these vendorswho are constantly trying to
sell them on something.
Yes, the property management.
They're always referring backover there.
So if you're a vendor andyou're trying to call the owner,
it's the wrong move.
Speaker 1 (13:27):
What do you think?
And this question is actuallyprompted by one of our viewers
who pre-submitted this question.
I know Well, we've already beenkind of talking about his
questions, but because he's veryPaul Bergeron, he wanted to
know what the process is orwhat's the worst thing that a
vendor can do when trying to getyour business, or something
along those lines too.
Speaker 2 (13:48):
Well, again, I don't deal with the vendors, so the
worst thing they can do is callme.
Speaker 1 (13:54):
Yeah, and if they call you every single night, you
know, don't call me.
Speaker 2 (13:58):
I mean then yeah, you see that they're calling on
bases and you hit.
You know, hit, delete orvoicemail.
So best Don't want to be bondedwith it.
Speaker 1 (14:08):
Yeah, yeah, exactly, that makes a lot of sense.
Ok, and then we have anotheruser submitted question from
Todd Thorpe.
What are your top three painpoints right now, and I would
say more in the area of owning aproperty that you're having
managed?
What are three pain points thatyou've hit along the way that
(14:28):
just are like, oh, if only wecould solve for this.
Speaker 2 (14:31):
Well, I think number one is just getting people in
the door.
It's amazing that differentproperty management firms that
we've used can take the samebudget and actually drive people
in and close them, whereas theother one will use the same
amount of funds and can't seemto get people in.
Speaker 1 (14:54):
Yeah, why.
Speaker 2 (14:56):
So it's a pain point.
I got one right now.
That's been a big pain pointand that's the one right there.
Speaker 1 (15:02):
It's like, oh, just totally.
Speaker 2 (15:04):
The second one is on a property when I have a manager
for a maintenance individualthat is not prioritizing the
highest quality of things heneeds to do.
Speaker 1 (15:16):
Right.
So having more of thatself-starter attitude where it's
, you know, I see a problem, I'mgoing to fix it, even though
someone hasn't necessarily toldme that is my top priority.
To take the initiative and say,hey, here's my top priority,
yeah, I think that makes a lotof sense.
And I don't know, you know,that could be a training thing,
that could be just a prioritiessituation, or maybe, you know, a
lack of access.
Speaker 2 (15:35):
Yeah, I just went back to the manager of that
property and said listen, pleasework with each one of your
individuals in each departmentand make sure they show you what
the highest priority is rightnow.
And make sure they get it done.
Follow up on them to get itdone.
Speaker 1 (15:50):
Yes, I think that makes a lot of sense and I will
say I worked on site before andthe mentality when someone like
you or we knew you were comingto visit, it would be okay, do
all the things.
And it's almost like whyweren't we doing that to begin
with?
Why are we all in a frenzyright now Because Ed's coming?
(16:11):
So I think that makes a lot ofsense and that's not to knock
anything that people are doingon site.
I will say that it's atremendously difficult job in
that you're being pulled in somany different directions at all
times and you're not alwaysbeing told exactly what that top
priority item would be.
So I will say I have a lot ofempathy for that, for that
position, because in that wayit's the same thing.
(16:32):
But at the same time, you knowwe can all hold ourselves to a
higher standard of saying youknow, we should maybe operate as
if Ed's always coming to visit,right, and not just for you,
for our residents.
That's the kind of place thatthey should be living and
calling home, right.
So I think that makes a lot ofsense.
Speaker 2 (16:49):
It is their home.
Let's take care of it and getit the most comfortable for them
.
So at the end of one year,they're renewing.
Instead of that sucked.
I want to move on, yeah exactlyso I hear down the road.
They really are great, it's agreat units and you know they
take care of them and it's funto be at.
I don't want that.
I want that to be ours, solet's make it.
Speaker 1 (17:10):
Yeah, oh, I think that's really smart and then so
so, speaking of the going backto the suppliers in our industry
, so I've watched you now kindof.
So we're you know, Patrick isrolling out the software Nectar
Flow, and you're kind of helpingout to raise some of the
capital for that.
You are chief capital officerfor Nectar Flow, actually, so
(17:31):
this might be great advice forsuppliers in this industry as to
how to fund their businesses,right?
So having someone like you whocan help raise capital, what
does that look like?
What's the process?
What are you going through nowfor that?
Without mentioning, you know,any of the nitty gritty details,
but definitely, if you had togive advice to someone who's
(17:52):
setting up a business withinthis industry, what's your
advice there?
Speaker 2 (17:56):
Well, no matter what business you're going into let's
just say you want to go buy amultifamily or a rental property
be smart and do it the rightway.
Get a great foundation to yourcompany and I always talk about
the foundation.
You've got to lay down the best.
You've got to make sure thecorporation is set up properly.
(18:17):
You've got to make sure youroperating agreement is there and
that everybody understands thatoperating agreement and is very
well aware of it, and pay alittle money to get it done
right.
Don't take the little templatesoff the internet.
Get it done right.
You can take that template buthand it to a great attorney that
can then mold it to you.
(18:37):
Yeah, yeah.
And then from there you want tomake sure that if you're going
to raise some capital, that youare getting what's called a
private placement memorandum orsome legal document that really
lays it out.
Don't just get another templateoff the shelf.
If you're going to raise money,do it properly, Otherwise that
(18:58):
can get you in.
The most trouble in the legalsystem is the capital side.
Yeah, when somebody's got moneyin the game, they're expecting
X, Y or Z, and if you're notperforming on X, Y and Z, they
are coming after you and just doit smart yeah.
And again, I've been in thisfor 25 years where people have
(19:19):
come with us, come to us withvery inadequate documentation
and you're looking at it andgoing, wow, okay, if you go
visit ex-attorney and get thesethings all straightened up, your
property looks great.
But let's get the foundationdone first, let's get it done
right and then let's go afterand we can look at investing in
(19:42):
your property.
Speaker 1 (19:43):
Yeah.
Speaker 2 (19:43):
Yeah, so from an investing standpoint, we really
look at those documents and makesure they are tight and
buttoned up and everybody'scovered and everybody
understands the the players inthe game that you're playing.
Speaker 1 (19:58):
Yeah.
Speaker 2 (19:58):
If you don't understand them and you don't
know who's doing what and what'swhat's who's confusing.
Yes, it ends up a mess.
Yeah, it just does, absolutely.
So just do it right.
Yeah, take a little extra time,a little extra money and do it
right.
So that's the first thing.
The second thing we always lookfor is where have they?
Have they really researched thearea and found this location is
(20:20):
the best location?
Yeah, or is it just becausethey happen to have a friend who
sold them some property thatwas a great deal and they picked
this up for next to nothing,but it's next to the dump or a
power station.
Speaker 1 (20:31):
Yeah, yeah.
Speaker 2 (20:33):
How big it won't fly.
Yeah, you can put a first classtimes 10 facility in there.
If it's under a power stationand a dump's right next door to
that, it's not going to work.
Speaker 1 (20:47):
Yeah, yeah.
Speaker 2 (20:48):
So get your ducks lined up with the right location
.
And they keep saying location,location, location, and it's so
true.
Yeah, get somewhere where it'sjust an attraction to employment
, shopping, playing, somethingthat really is a magnet for that
area.
Look for that.
Speaker 1 (21:05):
Yeah.
Speaker 2 (21:06):
And make sure you have enough size of property.
A lot of times they'll you know.
I'm trying to put 300 units ontwo and a half acres.
It's like wow.
Speaker 1 (21:15):
That's pretty, can you do that?
Speaker 2 (21:17):
Yeah, go straight up units on two and a half acres
like, wow, can you do thatStraight up?
You know I understand what theparking is for, that it's
underground now and you'recounting on an extra $25, $30
million just for the parking,yeah, yeah.
So just be smart about layingit out.
Make sure that you have yournumbers together, you understand
the numbers and you can moveforward with those.
Speaker 1 (21:36):
That makes sense, sense, and then the the supplier
side would be the same.
So if I were to roll out asoftware like nectar flow, what
are the ducks in a row I wouldwant to have in place for
something like that?
Well since I'm without again,without giving away too much you
know I'm so involved with that.
Yeah, yeah.
Speaker 2 (21:55):
You know, being on this side of the table now and
we will be raising some capitalfor it, I do what I'm preaching
others to do.
Yeah Is we're getting a strong,strong foundation.
The software is done, it'sthere.
You can go out and run with itright now.
But we got to make sure thateverything is really solid on
(22:17):
our side and we're making surethat it is really really solid.
Speaker 1 (22:21):
Yeah, so from the standpoint of raising capital
for nectar flow and thetechnology side, it's been a lot
of fun yeah again, this is whatI do I know I see you light up
about joy and and my comfort isin this arena yeah and I feel I
can do a very good job for thecompany.
Speaker 2 (22:40):
But I know that there's certain truths to
raising capital and I'm tryingto follow all the truths that
I've been saying for years andyears and years for everybody
else to do.
Speaker 1 (22:49):
Yeah, I'm doing.
Everyone right now is like howdo I get an ed, how do I get an
ed behind me?
Yeah, ed, how do I get an edbehind me?
Yeah, I think it's just.
I think it's really brilliantto have someone like you as of.
You know not, you know not thatsomeone couldn't do it without,
but again, could they do itright and could they make sure
it has longevity.
And I think that's where havingyou backing this and backing
(23:12):
you know, someone like youbacking any type of software or
rollout or venture anything.
Right, it just makes sense.
Speaker 2 (23:19):
Because you know who to go to for money too.
Speaker 1 (23:22):
Yeah.
Speaker 2 (23:23):
I mean, you can go to a very, very high interest rate
quick loan company, then get $2, $5 million to do all your soft
costs and then remember you'vegot to come after more money and
this guy over here is chargingyou a very high interest rate
over here.
It's eating you up, yeah.
So don't get caught in thatlittle gamble of getting eaten
(23:46):
up by the shark over here.
Speaker 1 (23:49):
Well, and they're not advising right.
They're not necessarily goingto provide you with advice like
you would right on how tonavigate a certain situation or
a certain, you know, financialhiccup that comes up.
Whatever it is, you'd be thefirst person to be able to step
in and give that sound advice onhow to navigate that.
Speaker 2 (24:06):
Yeah, we work.
When we loan money or investdebt or equity.
We're bringing in top-notchplayers for them.
We're bringing in top-notchplayers for them.
We're bringing in ourexperiences and if we're
investing in a certain area, wehave pretty strong experience in
there.
Speaker 1 (24:25):
Yeah.
Speaker 2 (24:26):
And a knowledge of it and contacts.
A Rolodex is very, veryimportant.
So we have the Rolodex.
I've got a Rolodex of all thefunders, yeah, so I've been in
it for 25 years.
I've been on that side of jointventure and we've, you know,
done so much on the funding that, um, do I go after the large
institutional today?
No, but I know the smallerinstitutionals and those who
(24:49):
want to invest in smaller sizesand then when we really get
rolling, then we go after thebig institutionals.
You're not calling a New Yorkbig hedge fund when you only
need two million bucks or asmall amount.
They're laughing you out of theplace.
Speaker 1 (25:04):
Yep.
Speaker 2 (25:08):
They're sending you down to the small guys and if
you don't know them or don'thave an experience with them,
they're not too interestedreally in you.
Speaker 1 (25:13):
Yep.
Speaker 2 (25:14):
Unless it's a very, very high interest rate.
Edgy guy, that's not the bestto deal with.
Speaker 1 (25:19):
Yeah, yeah, that makes a lot of sense.
Well, I'm sure everybody isgoing to hit you up after this.
No, really, I think what you'redoing is incredible and I think
you have a really amazing storybehind all of it to give the
credibility for you to justskyrocket anything that you back
.
So I think it's really excitingthat you're here and I'm
(25:40):
excited to know you because I,full transparency, know very
little about what you do, verylittle about your side of it,
and I think I probably resonatea lot more with our audience
when I'm asking these questionsaround.
Wow, I really thought that youwould have a lot stronger views
on who we're using and all thesethings.
So it's really nice to knowthat you pick a management
(26:01):
company and you trust them andto make those choices, and
that's why I picked you and Ihand that to you.
I think that's importantknowledge for our audience to
have, for sure.
Speaker 2 (26:11):
Yeah, I'm not looking for that management company to
know all about the finance side.
That's my side, but I don'tknow all about their side.
Speaker 1 (26:19):
I'm trusting on them.
Speaker 2 (26:21):
And if you can't trust who you picked, you better
have done your due diligenceand been smart about it and pick
the best, and then you'rerelying on them with that, I
think that's.
I can't emphasize that enough.
You're relying on them to makethose best decisions.
If there's some major issue orsomething that comes up, they
will come talk to you and thenyou get to discuss it with them
and work out a good solution forit and who do you communicate
(26:45):
with the most?
Speaker 1 (26:46):
Is it your regional?
Your community manager, like,who on the team do you?
Do you on that team do you andyou don't have to name names,
but which what positions do youinteract with the most at a
third party?
Speaker 2 (26:57):
to name names.
But what positions do youinteract with the most at a
third party?
It depends on what property,but generally it's the property
manager I discuss any issueswith.
If there's any major issues,it's always the regional manager
will come with the propertymanager and say, Ed, we have
this situation, and then theylay it out and then we discuss
it and come up with the rightanswer.
Speaker 1 (27:17):
Right.
Speaker 2 (27:18):
With the pros and cons and understanding it.
I want them to understand theproblem and bring me the pros
and cons.
I don't want them to.
Here's the problem.
What do we do?
They need to come with thesolutions and lay it out to me.
Speaker 1 (27:31):
That makes a lot of sense.
Wow, I'm really excited and Ithink this was a really amazing
wealth of knowledge that youbrought to the audience today.
And I know you're going to beon a couple more and you're
probably going to be talkingmore strategic detail about the
rollout of software and arollout of Nectar Flow
specifically.
So I will leave that for thatpodcast, but I want to thank you
(27:53):
for sharing time with us todayand answering a lot of these
questions.
It's great to be here.
Speaker 2 (27:57):
It's a lot of fun.
Speaker 1 (27:58):
Thanks, ed, and thank you for tuning in to the
Multifamily Innovation Podcast.
Visit us atmultifamilyleadershipcom and be
sure to register for our AISummit in December, and we will
see you on the next episode.
Welcome back to the Multifamily Innovation Podcast.
Thank you for sharing time withus today.
We are so excited about theguest that we have today, ed
Bailey.
He is the managing partner ofVision Capital Partners.
He is also now the chiefcapital officer at Nectar Flow
and he is a property owner inthe multifamily space.
He has some amazing advice foryou today around how to win that
(00:22):
business if you are athird-party manager, how to win
that business if you are athird-party manager, how to win
that business if you are asupplier and, if you are a
supplier, how you set yourselfup for success for funding in
your future.
And so I'm so excited to haveyou here today, ed.
Speaker 2 (00:36):
Happy to be here with you.
Speaker 1 (00:38):
So first off, let's start with your backstory how
you got into investing, whatinterested you and how you got
to where you're at today.
Speaker 2 (00:46):
Well, I've always been interested in business.
To start with, my father ownsbusinesses up in Jackson Hole,
wyoming, and so I've always beenworking alongside him and had a
real love and appreciation forbusiness, understood that the
costs and expenses and what youbrought in, and just understood
the whole accounting at a veryyoung age due to the fact that I
(01:09):
was by the side of my father,went to college and graduated
out of the University of Utahand went out to New York and
started working in the financeworld and I just really enjoyed
the finance world altogether andrealized that New York really
didn't want to have a love forlending or doing transactions.
(01:31):
In the middle part of theUnited States.
They like the outer perimetersand it's just frustrating
because I saw Utah, colorado,wyoming, arizona, all being kind
of left out of the fundingworld.
And so I moved back to Utah,opened up an office there and it
(01:53):
was Vision Capital Partners,established it 25 years ago and
started getting smallertransactions and then I would
take those small transactions toNew York.
So they understood if I hadskin in the game then they would
be interested in just puttingthe majority in.
(02:14):
And so it all began and startedgetting to where it is doing 100
, 200, $500,000 transactions.
Then it started, we got moneyinto it and we started building
a fund up my own fund of VisionCapital Partners and we started
looking at $2 to $5 million andbecame $10 to $25 million and it
just kind of grew.
And over the years we got towhere we're also doing debt and
(02:37):
equity.
So we'd go into a transactionwe'd look at how can we invest
in it to where we could get thereturns on a daily basis on the
interest from a loan but thenstack it with capital of the
equity side and that way we gotthe opportunity to make a lot of
money if it really won.
And so we started just buildingit up more and more and it just
(03:01):
became funner and funner and Ienjoyed it.
Speaker 1 (03:04):
I can tell by the excitement in your eyes that
this is something you'reactually really.
You get pumped up by this exactthing, and so how do you decide
who you're going to invest in?
What does that kind of sheetlook like?
List of questions.
Speaker 2 (03:16):
Yeah, the first thing is is who walks in the door.
We look at individuals thathave done something and been
successful at whatever they'relooking at doing, mm-hmm.
And if they're not successful,they brought somebody in that
was going to be a partner withthem, that is successful in that
category that they're trying toreceive money for Right,
(03:39):
whether it be real estate orcorporate side.
We're not just real estates.
We expanded in several otherareas of our buckets of funding.
So the first thing was theirappearance.
It's amazing, but we alwayslook at appearance.
What do their shoes look like?
What are they wearing?
How are they dressed?
(04:00):
Is it nice and neat?
If you're coming in to ask formoney, you better be dressed up
to the nines.
Speaker 1 (04:04):
Yeah.
Speaker 2 (04:05):
Yeah, and not coming in and looking like a slob, and
yet you want $50 million andyou're looking like this.
Speaker 1 (04:11):
Are you pointing at me?
No, I'm just kidding.
Speaker 2 (04:15):
I tried really hard for you.
Would we look at that?
And those are first impressionsthat you get.
So you're always looking atfirst impressions.
But then you move and you startlooking at the experience of
what they've done.
How much are they asking for?
How much money do they have init?
And I say skin the game when wefirst started.
We're looking for skin in thegame with them.
Speaker 1 (04:35):
Yeah.
Speaker 2 (04:39):
If they have no skin in the game and they're just
saying, will you do this andwe'll do the work, but you put
in 100% of the money, that's apretty high risk for us to even
think about and the answer isalways no.
Speaker 1 (04:47):
Right.
Speaker 2 (04:48):
Right, so you do have to have skin in the game.
Speaker 1 (04:49):
Be prepared to have something in there Anything,
yeah, and that actually makes alot of sense because, I mean,
that would show you howdedicated they are and how much
they actually believe in thisconcept, right, if they're
actually putting their owninvestments towards it as well.
So that makes a lot of sense.
And so, um, so you do have realestate.
How many properties have you ordo you have investments in in
(05:13):
real estate?
Speaker 2 (05:14):
Well, we've.
We've been narrowing it downsince the pandemic.
We've really stayed away from alot of investments and we
haven't gotten back in um overthe years, though it's.
You know you're talking about ahundred.
(05:34):
I don't know.
You know investments into realestate and corporate side, not
just real estate, so we can'tjust say that, but in all of our
transactions together, you knowa couple of hundred investments
.
Speaker 1 (05:41):
Yeah, yeah, and you did have properties that were
managed by in multifamily aswell.
Yes, yes, for sure.
And so, in that world, how manytimes have you kind of vetted
third-party managers and how doyou go about making a decision
on who's going to manage thoseassets?
The million dollar question,great question.
Speaker 2 (06:05):
Yeah, we do not manage our own property when
it's a multifamily.
Yeah, we always believe ingetting the best.
Let them do what they do best.
If we bought it, I want to makesure the best is overseeing it.
So you know, our vettingprocess really is in that area,
not just one company throughoutthe United States, but what
(06:26):
company in that area is thestrongest, has the best ties,
the best in, you know, to theareas that you really want to
make sure you're strong,represented in Right.
So that's the first thing we'redoing is looking at who's the
biggest and best and then you'relooking at what success they
have.
You know what their portfoliolooks like and the other
(06:48):
transactions.
Are they competing directlywith you in a, in a within a
three to five mile geographicalradius?
We're looking at, you know, alot of the.
We don't want to competeagainst ourselves in some other
transaction with that sameproperty management firm.
Yep, that makes a lot of sense,so we want to make sure that
they're diversified enough andnot close enough to us to where
(07:09):
they said well, if you don'tlike this one, we got another
one just over here.
Speaker 1 (07:11):
Yeah.
Speaker 2 (07:12):
Yeah, we are the ones if they come to a certain part
of that town.
We want to be the choice thatthey pick.
Speaker 1 (07:19):
And what in that pitch?
Just because I'm curious formyself, because I've helped make
some of those pitches whereit's like, here's some branding
we could do.
What is it in that pitch that'sreally the meat that makes you
say, yeah, this is the one.
Is it the numbers?
Does it really come down tojust that?
Speaker 2 (07:34):
Well, I want to see the record of how many walk-ins
they receive and what theclosing ratio is.
Speaker 1 (07:43):
Right.
Speaker 2 (07:44):
I want to see that they were closing in that 30
plus range, not in the 15 to 20range.
I want to see that they'redriving in traffic as high as
anybody else in that area,whether it be 50 tenants a week
or 40, 30 or 100.
I want to see that they're inthe top realm of that.
I know their marketing works.
(08:04):
Yes, that's a very importantthing for any of the property
management.
If they're going to be yourleasing agents, you've got to
make sure they're driving peoplein the door and they're closing
on those people who come in thedoor.
Speaker 1 (08:14):
Yeah, yeah.
And from a marketing side,you're talking more like not so
much branding, but more so.
You know, how are youattracting the right residents
and prospects for this property?
Speaker 2 (08:26):
A lot of it comes back to anymore is social medias
, and how are they driving thatin?
Are they also, you know,sponsoring different, like a
football event, and they have abooth there and therefore
they're attracting all thesepeople coming to it, the booth,
and they're able to talk to themand tell them the benefits of
just down the road is property?
I love that so any amusementsthat are around in that area
(08:50):
attractions you want to makesure they're involved in those
attractions and being able tobring people from those into
your facilities.
Speaker 1 (08:57):
I think that's really smart, like one of the
conversations that we werehaving was you know what the
amenities are now just rinse andrepeat and you might have one
or two more innovative amenityat your property.
But really the amenity can bethe location and how close in
proximity you are to X, y or Zand how you get to come home and
have comfort after you go tothat football game, right?
(09:17):
So we don't always think aboutthe amenity as like the
surrounding area.
But I think it's reallyfascinating that you mentioned
that, because I believe the samething that we don't focus hard
enough on those pieces for sure.
Speaker 2 (09:27):
So you've got to have the nicest amenities on your
facility.
But we would never buy orreally invest too heavy into a
facility that did not have niceamenities around it.
Yeah, that is your attraction.
Is it the work, play, concerts,shopping about where the
grocery stores are?
(09:47):
How close is it for them toconveniently be able to live
there and enjoy it and have fun?
This is your home.
Yeah, so let's make home fun.
Speaker 1 (09:58):
Yeah, exactly, I love that.
And so, from the third partymanagement side, there are also
the suppliers in our industrywho are trying to bring new
technology to these propertiesor new amenities, whatever it is
service that they provide.
I know I've been a supplierbefore.
More on, like the data side ofthings, I bet a lot of our
(10:18):
listeners would want to know howa lot of them think they need
to access the use.
Who are the ones that are maybewriting the check for this
software, writing the check forwhatever is going to roll out?
So are you making thosedecisions?
Are you letting the managerkind of make those decisions?
What process do you go throughwhen a supplier wants to roll
out a new tool or something atyour property?
Speaker 2 (10:39):
Well, we went after and done our due diligence and
we went after the best, and thebest got there by having the
best surround them.
So we're counting on them beingthe property manager, bringing
in the best suppliers Right, and, as an owner, I don't want to
be involved in that.
That's why we paid them.
(11:01):
And they get paid handsomelyfor it, but that's what they're
doing is bringing those vendorsin.
Speaker 1 (11:08):
Yeah.
Speaker 2 (11:08):
So we're allowing them to.
Now we do have to write thechecks, yeah, but at the same
time, we know that that check isgoing to the right person for
the right purpose.
Situation and they come.
Property manager will come tous and I'm always looking for
the pros and cons.
Why is this the best and whatis the downside of it?
Is there one better and betweenus we can work it out pretty
(11:32):
quickly of why they picked thatand why they chose it, and I'm
comfortable with that.
Speaker 1 (11:36):
Yeah, but for the most part you do trust the
decisions that that manager,that management company, has
made for you.
Speaker 2 (11:46):
Yes, they didn't get there for no reason at all.
Speaker 1 (11:47):
They got there because the best decisions were
made Right.
That's really good information,I think, for a lot of our
listeners because, again, I'vebeen on the supplier side where
I was like you know, how do weget after those investors,
owners and the people that arereally making those decisions?
And truly I do think that whenyou trust the management company
that you've chosen, that issomething that you should trust
them with as well.
So I think that makes a lot ofsense.
Speaker 2 (12:06):
It's amazing how many vendors train, circumvent
property manager and call me.
And I get phone calls andthey'll be like hey, I'm XYZ and
I do this.
And I said, well, did you talkto my property manager?
No, you know, we just I said no, no, no, that doesn't work that
way.
You got to go down and talk toXYZ property management firm at
(12:27):
the site and let them, let themsee it and then, if they like it
, then they can come talk to meon it.
Speaker 1 (12:34):
And is that?
Is that the answer you normallygive Always?
Speaker 2 (12:37):
give.
Speaker 1 (12:37):
Every time You're like talk to here's, do you give
them their email and just sayhere go.
Speaker 2 (12:42):
Yes, direct phone number.
Here you go Absolutely.
Always the office number, solet them talk to them yeah.
Speaker 1 (12:49):
And do you imagine that that's the case for most
people who do own properties?
Speaker 2 (12:52):
I mean, there's probably some that are a little
more hands-on, but there'shands-on and I think the smaller
individuals are hands-on, butthey generally don't have a
property management firm.
They are managing the propertyTrue, I talked to a fair amount
of them and obviously have overthe years because we've lent to
them for so many years.
Yeah, and you know they do saythat they get a fair amount of
(13:14):
phone calls from these vendorswho are constantly trying to
sell them on something.
Yes, the property management.
They're always referring backover there.
So if you're a vendor andyou're trying to call the owner,
it's the wrong move.
Speaker 1 (13:27):
What do you think?
And this question is actuallyprompted by one of our viewers
who pre-submitted this question.
I know Well, we've already beenkind of talking about his
questions, but because he's veryPaul Bergeron, he wanted to
know what the process is orwhat's the worst thing that a
vendor can do when trying to getyour business, or something
along those lines too.
Speaker 2 (13:48):
Well, again, I don't deal with the vendors, so the
worst thing they can do is callme.
Speaker 1 (13:54):
Yeah, and if they call you every single night, you
know, don't call me.
Speaker 2 (13:58):
I mean then yeah, you see that they're calling on
bases and you hit.
You know, hit, delete orvoicemail.
So best Don't want to be bondedwith it.
Speaker 1 (14:08):
Yeah, yeah, exactly, that makes a lot of sense.
Ok, and then we have anotheruser submitted question from
Todd Thorpe.
What are your top three painpoints right now, and I would
say more in the area of owning aproperty that you're having
managed?
What are three pain points thatyou've hit along the way that
(14:28):
just are like, oh, if only wecould solve for this.
Speaker 2 (14:31):
Well, I think number one is just getting people in
the door.
It's amazing that differentproperty management firms that
we've used can take the samebudget and actually drive people
in and close them, whereas theother one will use the same
amount of funds and can't seemto get people in.
Speaker 1 (14:54):
Yeah, why.
Speaker 2 (14:56):
So it's a pain point.
I got one right now.
That's been a big pain pointand that's the one right there.
Speaker 1 (15:02):
It's like, oh, just totally.
Speaker 2 (15:04):
The second one is on a property when I have a manager
for a maintenance individualthat is not prioritizing the
highest quality of things heneeds to do.
Speaker 1 (15:16):
Right.
So having more of thatself-starter attitude where it's
, you know, I see a problem, I'mgoing to fix it, even though
someone hasn't necessarily toldme that is my top priority.
To take the initiative and say,hey, here's my top priority,
yeah, I think that makes a lotof sense.
And I don't know, you know,that could be a training thing,
that could be just a prioritiessituation, or maybe, you know, a
lack of access.
Speaker 2 (15:35):
Yeah, I just went back to the manager of that
property and said listen, pleasework with each one of your
individuals in each departmentand make sure they show you what
the highest priority is rightnow.
And make sure they get it done.
Follow up on them to get itdone.
Speaker 1 (15:50):
Yes, I think that makes a lot of sense and I will
say I worked on site before andthe mentality when someone like
you or we knew you were comingto visit, it would be okay, do
all the things.
And it's almost like whyweren't we doing that to begin
with?
Why are we all in a frenzyright now Because Ed's coming?
(16:11):
So I think that makes a lot ofsense and that's not to knock
anything that people are doingon site.
I will say that it's atremendously difficult job in
that you're being pulled in somany different directions at all
times and you're not alwaysbeing told exactly what that top
priority item would be.
So I will say I have a lot ofempathy for that, for that
position, because in that wayit's the same thing.
(16:32):
But at the same time, you knowwe can all hold ourselves to a
higher standard of saying youknow, we should maybe operate as
if Ed's always coming to visit,right, and not just for you,
for our residents.
That's the kind of place thatthey should be living and
calling home, right.
So I think that makes a lot ofsense.
Speaker 2 (16:49):
It is their home.
Let's take care of it and getit the most comfortable for them
.
So at the end of one year,they're renewing.
Instead of that sucked.
I want to move on, yeah exactlyso I hear down the road.
They really are great, it's agreat units and you know they
take care of them and it's funto be at.
I don't want that.
I want that to be ours, solet's make it.
Speaker 1 (17:10):
Yeah, oh, I think that's really smart and then so
so, speaking of the going backto the suppliers in our industry
, so I've watched you now kindof.
So we're you know, Patrick isrolling out the software Nectar
Flow, and you're kind of helpingout to raise some of the
capital for that.
You are chief capital officerfor Nectar Flow, actually, so
(17:31):
this might be great advice forsuppliers in this industry as to
how to fund their businesses,right?
So having someone like you whocan help raise capital, what
does that look like?
What's the process?
What are you going through nowfor that?
Without mentioning, you know,any of the nitty gritty details,
but definitely, if you had togive advice to someone who's
(17:52):
setting up a business withinthis industry, what's your
advice there?
Speaker 2 (17:56):
Well, no matter what business you're going into let's
just say you want to go buy amultifamily or a rental property
be smart and do it the rightway.
Get a great foundation to yourcompany and I always talk about
the foundation.
You've got to lay down the best.
You've got to make sure thecorporation is set up properly.
(18:17):
You've got to make sure youroperating agreement is there and
that everybody understands thatoperating agreement and is very
well aware of it, and pay alittle money to get it done
right.
Don't take the little templatesoff the internet.
Get it done right.
You can take that template buthand it to a great attorney that
can then mold it to you.
(18:37):
Yeah, yeah.
And then from there you want tomake sure that if you're going
to raise some capital, that youare getting what's called a
private placement memorandum orsome legal document that really
lays it out.
Don't just get another templateoff the shelf.
If you're going to raise money,do it properly, Otherwise that
(18:58):
can get you in.
The most trouble in the legalsystem is the capital side.
Yeah, when somebody's got moneyin the game, they're expecting
X, Y or Z, and if you're notperforming on X, Y and Z, they
are coming after you and just doit smart yeah.
And again, I've been in thisfor 25 years where people have
(19:19):
come with us, come to us withvery inadequate documentation
and you're looking at it andgoing, wow, okay, if you go
visit ex-attorney and get thesethings all straightened up, your
property looks great.
But let's get the foundationdone first, let's get it done
right and then let's go afterand we can look at investing in
(19:42):
your property.
Speaker 1 (19:43):
Yeah.
Speaker 2 (19:43):
Yeah, so from an investing standpoint, we really
look at those documents and makesure they are tight and
buttoned up and everybody'scovered and everybody
understands the the players inthe game that you're playing.
Speaker 1 (19:58):
Yeah.
Speaker 2 (19:58):
If you don't understand them and you don't
know who's doing what and what'swhat's who's confusing.
Yes, it ends up a mess.
Yeah, it just does, absolutely.
So just do it right.
Yeah, take a little extra time,a little extra money and do it
right.
So that's the first thing.
The second thing we always lookfor is where have they?
Have they really researched thearea and found this location is
(20:20):
the best location?
Yeah, or is it just becausethey happen to have a friend who
sold them some property thatwas a great deal and they picked
this up for next to nothing,but it's next to the dump or a
power station.
Speaker 1 (20:31):
Yeah, yeah.
Speaker 2 (20:33):
How big it won't fly.
Yeah, you can put a first classtimes 10 facility in there.
If it's under a power stationand a dump's right next door to
that, it's not going to work.
Speaker 1 (20:47):
Yeah, yeah.
Speaker 2 (20:48):
So get your ducks lined up with the right location
.
And they keep saying location,location, location, and it's so
true.
Yeah, get somewhere where it'sjust an attraction to employment
, shopping, playing, somethingthat really is a magnet for that
area.
Look for that.
Speaker 1 (21:05):
Yeah.
Speaker 2 (21:06):
And make sure you have enough size of property.
A lot of times they'll you know.
I'm trying to put 300 units ontwo and a half acres.
It's like wow.
Speaker 1 (21:15):
That's pretty, can you do that?
Speaker 2 (21:17):
Yeah, go straight up units on two and a half acres
like, wow, can you do thatStraight up?
You know I understand what theparking is for, that it's
underground now and you'recounting on an extra $25, $30
million just for the parking,yeah, yeah.
So just be smart about layingit out.
Make sure that you have yournumbers together, you understand
the numbers and you can moveforward with those.
Speaker 1 (21:36):
That makes sense, sense, and then the the supplier
side would be the same.
So if I were to roll out asoftware like nectar flow, what
are the ducks in a row I wouldwant to have in place for
something like that?
Well since I'm without again,without giving away too much you
know I'm so involved with that.
Yeah, yeah.
Speaker 2 (21:55):
You know, being on this side of the table now and
we will be raising some capitalfor it, I do what I'm preaching
others to do.
Yeah Is we're getting a strong,strong foundation.
The software is done, it'sthere.
You can go out and run with itright now.
But we got to make sure thateverything is really solid on
(22:17):
our side and we're making surethat it is really really solid.
Speaker 1 (22:21):
Yeah, so from the standpoint of raising capital
for nectar flow and thetechnology side, it's been a lot
of fun yeah again, this is whatI do I know I see you light up
about joy and and my comfort isin this arena yeah and I feel I
can do a very good job for thecompany.
Speaker 2 (22:40):
But I know that there's certain truths to
raising capital and I'm tryingto follow all the truths that
I've been saying for years andyears and years for everybody
else to do.
Speaker 1 (22:49):
Yeah, I'm doing.
Everyone right now is like howdo I get an ed, how do I get an
ed behind me?
Yeah, ed, how do I get an edbehind me?
Yeah, I think it's just.
I think it's really brilliantto have someone like you as of.
You know not, you know not thatsomeone couldn't do it without,
but again, could they do itright and could they make sure
it has longevity.
And I think that's where havingyou backing this and backing
(23:12):
you know, someone like youbacking any type of software or
rollout or venture anything.
Right, it just makes sense.
Speaker 2 (23:19):
Because you know who to go to for money too.
Speaker 1 (23:22):
Yeah.
Speaker 2 (23:23):
I mean, you can go to a very, very high interest rate
quick loan company, then get $2, $5 million to do all your soft
costs and then remember you'vegot to come after more money and
this guy over here is chargingyou a very high interest rate
over here.
It's eating you up, yeah.
So don't get caught in thatlittle gamble of getting eaten
(23:46):
up by the shark over here.
Speaker 1 (23:49):
Well, and they're not advising right.
They're not necessarily goingto provide you with advice like
you would right on how tonavigate a certain situation or
a certain, you know, financialhiccup that comes up.
Whatever it is, you'd be thefirst person to be able to step
in and give that sound advice onhow to navigate that.
Speaker 2 (24:06):
Yeah, we work.
When we loan money or investdebt or equity.
We're bringing in top-notchplayers for them.
We're bringing in top-notchplayers for them.
We're bringing in ourexperiences and if we're
investing in a certain area, wehave pretty strong experience in
there.
Speaker 1 (24:25):
Yeah.
Speaker 2 (24:26):
And a knowledge of it and contacts.
A Rolodex is very, veryimportant.
So we have the Rolodex.
I've got a Rolodex of all thefunders, yeah, so I've been in
it for 25 years.
I've been on that side of jointventure and we've, you know,
done so much on the funding that, um, do I go after the large
institutional today?
No, but I know the smallerinstitutionals and those who
(24:49):
want to invest in smaller sizesand then when we really get
rolling, then we go after thebig institutionals.
You're not calling a New Yorkbig hedge fund when you only
need two million bucks or asmall amount.
They're laughing you out of theplace.
Speaker 1 (25:04):
Yep.
Speaker 2 (25:08):
They're sending you down to the small guys and if
you don't know them or don'thave an experience with them,
they're not too interestedreally in you.
Speaker 1 (25:13):
Yep.
Speaker 2 (25:14):
Unless it's a very, very high interest rate.
Edgy guy, that's not the bestto deal with.
Speaker 1 (25:19):
Yeah, yeah, that makes a lot of sense.
Well, I'm sure everybody isgoing to hit you up after this.
No, really, I think what you'redoing is incredible and I think
you have a really amazing storybehind all of it to give the
credibility for you to justskyrocket anything that you back
.
So I think it's really excitingthat you're here and I'm
(25:40):
excited to know you because I,full transparency, know very
little about what you do, verylittle about your side of it,
and I think I probably resonatea lot more with our audience
when I'm asking these questionsaround.
Wow, I really thought that youwould have a lot stronger views
on who we're using and all thesethings.
So it's really nice to knowthat you pick a management
(26:01):
company and you trust them andto make those choices, and
that's why I picked you and Ihand that to you.
I think that's importantknowledge for our audience to
have, for sure.
Speaker 2 (26:11):
Yeah, I'm not looking for that management company to
know all about the finance side.
That's my side, but I don'tknow all about their side.
Speaker 1 (26:19):
I'm trusting on them.
Speaker 2 (26:21):
And if you can't trust who you picked, you better
have done your due diligenceand been smart about it and pick
the best, and then you'rerelying on them with that, I
think that's.
I can't emphasize that enough.
You're relying on them to makethose best decisions.
If there's some major issue orsomething that comes up, they
will come talk to you and thenyou get to discuss it with them
and work out a good solution forit and who do you communicate
(26:45):
with the most?
Speaker 1 (26:46):
Is it your regional?
Your community manager, like,who on the team do you?
Do you on that team do you andyou don't have to name names,
but which what positions do youinteract with the most at a
third party?
Speaker 2 (26:57):
to name names.
But what positions do youinteract with the most at a
third party?
It depends on what property,but generally it's the property
manager I discuss any issueswith.
If there's any major issues,it's always the regional manager
will come with the propertymanager and say, Ed, we have
this situation, and then theylay it out and then we discuss
it and come up with the rightanswer.
Speaker 1 (27:17):
Right.
Speaker 2 (27:18):
With the pros and cons and understanding it.
I want them to understand theproblem and bring me the pros
and cons.
I don't want them to.
Here's the problem.
What do we do?
They need to come with thesolutions and lay it out to me.
Speaker 1 (27:31):
That makes a lot of sense.
Wow, I'm really excited and Ithink this was a really amazing
wealth of knowledge that youbrought to the audience today.
And I know you're going to beon a couple more and you're
probably going to be talkingmore strategic detail about the
rollout of software and arollout of Nectar Flow
specifically.
So I will leave that for thatpodcast, but I want to thank you
(27:53):
for sharing time with us todayand answering a lot of these
questions.
It's great to be here.
Speaker 2 (27:57):
It's a lot of fun.
Speaker 1 (27:58):
Thanks, ed, and thank you for tuning in to the
Multifamily Innovation Podcast.
Visit us atmultifamilyleadershipcom and be
sure to register for our AISummit in December, and we will
see you on the next episode.
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