June 24, 2025 • 24 mins
Episode Resources:
Website: apexinvestments.us
Email: Dangel@ apexinvestments.us
LinkedIn: www.linkedin.com/in/daniel-angel-mejia
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Ed Mathews (01:01):
Greetings and salutations, Real Estate
Undergrounders.
It is Ed Mathews, again withthe Real Estate Underground.
Thank you so much for makingus a part of your day.
I know how busy you all are andI'm grateful for the listen.
Today is a really interestingshow.
I am joined by Daniel AngelMejia and he is with Apex
Development Group.
(01:21):
So, Daniel, welcome to the show.
I'm really excited to have thisconversation because you happen
to run a business very similarto mine and I want to ask you
how you do it so I can get downto best practices.
Daniel Angel Mejia (01:30):
Awesome.
Thank you so much, Ed, forhaving me.
Pleasure to be here, pleasureto meet you, my pleasure.
Ed Mathews (01:34):
So, the folks who haven't discovered you on
LinkedIn or elsewhere, why don'tyou tell us a little bit about
you and your company?
Daniel Angel Mejia (01:39):
Yeah, of course, a little bit about
Colombia.
Originally from Colombia, southAmerica, born and raised there,
then I had the opportunity to goto school here.
Then I went back to Colombia togo corporate life, initially in
the finance world, and that'show it took me to the real
estate world, initially there,and then about 10 years ago I
got the opportunity to get backto the States and while I was
(02:02):
working corporate job in acement and ready mix company, I
decided to take some steps onthe side in the real estate
world, specifically in theresidential world, and that's
how everything started,initially doing some flipping,
some experience with side,trying to capture all the
experience I had from some fundsI used to work for back home,
(02:22):
slowly but surely startedgetting into something bigger
until I decided and found thatwas the path I really wanted to
take leap of faith, decided toclose the chapter of the
corporate life and started Apex,fortunately enough to found
who's my business partner, nowalso from Columbia, who used to
(02:42):
live in Miami and decided tomove to atlanta.
And that's where we joinedforces and started this amazing
path that we're still drivingand trying to bring okay,
congratulations on your success.
Ed Mathews (02:53):
So let's talk about the business a little bit what
niche do you tend to focus on?
I know you do a lot ofdifferent things, but I'm
curious where you've done mostof your days?
Daniel Angel Mejia (03:01):
no, totally.
We've stayed within theresidential space and that
initially covered more buying,existing distressed properties,
renovating and selling orrenting.
That has evolved into themultifamily space also.
So nowadays we cover singlefamily and multifamily.
In the single family space wedid evolve into more roundup
(03:24):
construction, both for sale andfor rent, and in the multifamily
space we only acquire toexecute value-add programs.
So we basically revolve aroundthat residential world and those
three were roundup for sale,for rent and then acquisitions
in the multi-space or value-addor plus approach.
Ed Mathews (03:44):
That's a lot.
Talk to me about your team.
What does that look like In?
Daniel Angel Mejia (03:47):
2021, we saw the need of starting to build a
team around us.
Initially it was just the twoof us and then another partner
we used to have for theconstruction part of the
business.
Right after COVID we understoodthe idea of virtual approach
and combined that with our rootsand started building a team
(04:11):
back home.
Today our team is split intothose two locations back in
Colombia about 15, 17 people,with us covering different areas
.
We try to be as verticallyintegrated as possible.
So we try to bring everythingin-house, except for property
management at this point,anything that has to do with
acquisitions, underwriting,structuring, capital markets and
(04:34):
stuff like that, even managingsome of the projects from there
parts of the process of projectmanagement from Columbia.
So that's why we built thatteam there.
And then the other part of theteam is whoever needs to be on
the ground, on the field, seeingand living the properties will
be here, so it's about a sevenpeople team in Atlanta at this
(04:54):
point.
Ed Mathews (04:55):
We do a similar model here, except our people
sit the Philippines, but similarconcepts.
Daniel Angel Mejia (05:13):
Now are those folks in Columbia?
Are they employees or are theyvirtual assistants or a
combination thereof ouremployees and our team members?
There's two advantages that wefound there.
One they're timezoner, so theywork at the same time as we are.
We're just sometimes of theyear we're an hour off, but it
(05:34):
works pretty well.
They are our team, we know theculture, we are bilingual, we
speak Spanish and English, whichhelps on the construction and
renovation side tremendously.
So basically, it ended up beinga great advantage to our
company and pretty much one ofour differentiators at this
point.
Ed Mathews (05:52):
Yeah, it's a competitive advantage, for sure,
because, yeah, not everybodyspeaks.
I speak enough Spanish to getto understand if somebody's
having trouble, or to conveywhat I'm trying to get across,
but I am by no means bilingual,so having the ability to speak
natively is a huge advantage.
Or to convey what I'm trying toget across, but I am by no
means bilingual, so having theability to speak natively is a
huge advantage.
(06:12):
So, with regard to the changingmarkets, right, you're based in
Atlanta.
Where are your properties?
Daniel Angel Mejia (06:16):
They are in Atlanta also, and that's another
important decision we've made.
With time, we've learned tomake some of those decisions,
which are important, sometimesOut of state, and looking at
other states and other marketsis interesting and can be kind
of like shiny and attractive.
For us, it's like focus.
(06:37):
Being close to the acid bootson the ground is really
important, something that wehave decided to stay on, at
least for now.
That doesn't mean we won't goto other states eventually, but
I think the knowledge of themarket and I think to your point
of like with changing marketsand after the great run that the
(06:58):
real estate world had from 2012or 2011 to probably a couple of
years ago, really didn't matter, so to speak, didn't really
matter where you were, it wasjust a great run.
At this point, in our opinion,it's really important for you to
know what you're doing, knowwhere you are and understand the
specifics of the submarkets.
(07:18):
In Atlanta specifically, it's apocket-by-pocket market.
In general, it's a great marketand great fundamentals.
You got to be calm.
Ed Mathews (07:26):
I was looking outside of Connecticut, down in
the Carolinas and out in theMidwest a little bit and came to
the conclusion that thephysical proximity is an
advantage.
Right, being able to be on sitewithin an hour or two is a huge
advantage is a huge advantageand mainly from a customer
service and project managementperspective.
If somebody picks up the phoneand calls you and says, hey, I
(07:49):
need you on site first thingtomorrow morning, we got
something important to talkabout.
To be able to not have to geton a plane and go do that is
really helpful for sure.
The other part of it is justbeing able to go out and touch
the property every once in awhile and be present there is
also valuable because,especially in the multifamily
world, the folks that live inyour buildings want to be heard,
right, they want to be seen,and when the boss is there, they
(08:10):
know stuff's going to get done.
That's always a good thing froma retention perspective, right.
Daniel Angel Mejia (08:15):
That's exactly right.
Yeah, To your point.
Our mantra for now is two hoursat the most from site.
That's been key to us, andobviously there's folks that are
in smaller markets and it's alittle bit challenging to find
opportunities there For us.
Fortunately, we're surroundedby 13 counties.
It's a pretty extent metro area, so it's good enough for that,
(08:38):
and then we have other potentialexpansion routes in close
states where you can't go atsome point.
Still keeping the two-hourradius, but yeah, for now Metro.
Ed Mathews (08:50):
Yeah, and the other thing you mentioned is really
important is understanding themarkets and the dynamics.
Here in Connecticut there are,I would say, at a macro level,
there's probably three majormarkets.
Right, there's Fairfield County, which is an entirely different
world, very much a growthmarket from a appreciation
perspective.
You got Central Connecticut,which is very much a cash flow
play, and then you've got I'dsay the same in Southeastern
(09:14):
Connecticut.
But Northeastern Connecticut is, again, is an appreciation
because it tends to trend afterWorcester and, indirectly,
boston.
But I live literally in themiddle of the state and it's two
hours, it's 120 miles to NewYork City and 125 miles to
Boston.
So there are investors whofocus on Fairfield County and
(09:35):
there are investors who focus onCentral Connecticut and there's
not a lot of overlap andbecause the market dynamic is so
different, I think there'ssomething interesting that you
mentioned there regarding thedifferent strategies dependent
on the market or the sub market,when you think there's a lot
that you guys are doing.
Daniel Angel Mejia (09:54):
one of the strategies is precisely that
staying in multifamily, and ithas been one avenue that we felt
to keep transactions goingregardless of the dynamic of the
market.
At some point we were trying tofocus more on multifamily, but
then 2022 and 2023 happened,where transactions just didn't
make sense.
(10:14):
We say it's a bit drastic here,but nobody kicked us out of
single family.
Why not go back?
You can keep it going, keepchurning.
Why not go back?
You can keep it going, keepchurning.
There's some sub market thatwill be suitable for sale
product and then some that willbe more cash flow place for rent
, and that's when the whole fundcame to be.
Or we can co-manage all thesestrategies, take advantage of
(10:36):
the fact that we have differentparticularities of the different
sub markets within the marketthat we are, and then we can
approach everything in a way atthe same time and find
opportunities suitable for eachone of the strategies.
Ed Mathews (10:49):
So I ascribe to the exact same strategy.
Take what the market's givingyou right, and there's no reason
to shoehorn a strategy into amarket that isn't going to
respond to that strategy.
It's better to understand okay,the inventory is low in this
particular market, so as webuild rehab houses, it makes
sense to sell those, and so onand so on.
(11:12):
So I'm curious about the fund.
What made you go down the pathof building a debt fund versus
private equity fund, or justworking with private investors
on an individual basis?
Daniel Angel Mejia (11:26):
Of course, that's a very interesting
question.
It has been a work where wecompiled a lot of experiences,
feedback and what we believeended up being a good balance
for passive investors right.
So initially the way we raisedequity and the way we went about
(11:46):
our projects was typical 506Bor LPGP structure, where we
would raise equity from friendsand family or an individual
check writer and then go abouteach project.
That meant at that time onemultifamily project with one
specific approach or a portfolioof single families with one
(12:08):
thesis, whether it was for sale,for rent or a combination or
whatnot.
What we found with time andwith the variations of the
market is that sometimes singles, sometimes doubles, sometimes
you foul and sometimes brandslam, but when you go one at a
time, then your investors couldbe a single, a double once you
(12:31):
put all that in a bag.
Basically we found what wethink most investors are looking
for when they go the passiveroute is they want certainty,
flexibility and know whatthey're getting.
The IRR double digits, 20s, 30s, whatever that sounds great.
(12:51):
Once they start realizing it'sa target, not a certainty, then
things can get a little bit iffy.
Our approach with that was thisis our business, this is our
passion.
This is what we're going to bedoing for the rest of our lives,
but for investors, it could besomething for a minute or some
years, could be potentially forthe rest of their lives.
So we came up with this idea ofa fixed return debt fund and the
(13:17):
reason why it's debt.
It's not that we're originatingdebt for investors, they're
creditors to the fund.
It's not that we're originatingdebt for investors their
creditors to the fund but theyhave a fixed return.
We have various, I guess, likethresholds or trenches,
depending on the amount theyinvest, but they know what
they're getting.
They can have a compoundingeffect which can get them to the
(13:41):
double digits that usuallyinvestors are trying to reach.
But they also have flexibility.
So if something comes up in ourcase it's a lock-up period of
18 months if something comes up,for whatever reason, they can
go out without having toliquidate a property or sell or
wait for whatever time right.
So when you start talking to andthis applies for individuals,
in our experience at leastindividuals, family offices,
whoever is, you can have along-term vision.
(14:03):
Life happens, what happens if Idon't know?
I have a need, something, a kidgraduated, someone is for
school, or every kind ofdifferent particularity that can
happen with a GP LP structure.
The answer, nine times out of10, is oh sorry, we need to wait
until we can full cycle thedeal.
We can't cycle the deal, wecan't sell the deal, or it's a
(14:31):
lot more trouble to get somebodyout just because you're sitting
on the equity position.
With this structure, we foundwhat we believe is a great
balance of good return,certainty, flexibility, cash
distributions if they need it,or all compounding, cash
distributions, if they need it,or full compounding.
So it's a combination ofvarious factors that we have
compiled with time, based on ourexperiences and feedback from
investors, and it's workingpretty well, we find the same
(14:52):
thing the whole concept ofallowing somebody to be able to
stay in the fund and compoundtheir returns.
Ed Mathews (14:58):
At some point that turns into some pretty good
money, and it's yeah, and I likeI so personally that one of the
things that I had done with ourown debt fund is in the exact
same thing.
There's an 18 month lock up andbut then there are periodic
opportunities to pull your moneyout If you need it.
Daniel Angel Mejia (15:15):
Somebody's getting married, somebody's
going to college, medical billwhatever, some investors at some
point want to get a little bitmore active and want to buy
their own stock, and that'sperfectly fine.
We just feel that theflexibility adds a lot of value
for investors and our pointreally is just trying to build a
diversified portfolio thatpeople can rely on and then for
(15:36):
the time that they want to be,hopefully as long as they can,
but sometimes there is needs inlife we understand.
So it's just serving investorsat the end.
Ed Mathews (15:44):
To each their own, all right, daniel.
Hey, I talked about what Imentioned before we started
recording.
I can talk about this stuff fordays and you've built a
tremendous businessCongratulations.
But I would like to get intothe final five, our lightning
round, if you'll indulge, allright.
First one is always.
First question is always aboutpurpose, right?
(16:04):
I'm curious what gets you outof bed on Monday morning?
I know you've done very welland the mortgage is paid, the
car payments are probably paidoff and kids, colleges, are
taken care of, and yet you stillget up and go to work in the
morning.
So what drives you?
What's your purpose?
Daniel Angel Mejia (16:19):
I would split that in two.
There's the personal side,which really happened after I
left corporate and started myown thing enjoying the ride
that's how I call it and it'sjust making sure, regardless of
what's happening good or bad orugly just enjoying every minute.
So to me it's like sometimes Idon't even know if it's Monday
or Sunday.
We're on a timer at the end ofthe day and we're probably the
(16:41):
end of that timer, so it's justmake sure you enjoy every second
.
From a company perspective orlet's call it Apex perspective
is being able to build aprofessional and strong team.
Something I feel very proud ofis the people that we work with
and the fact that we've beenable to get back to our roots.
We left our country.
We can build something at homewithout having to be at home,
(17:04):
working with great professionalpeople and being able to build
something around.
That is something that I veryclose to my heart.
Ed Mathews (17:11):
I couldn't agree more.
I think that there's acontribution that gets me out of
bed in the morning is thatyou're helping people get where
they want to go.
Right, yeah, all right.
So I'm always curious aboutyour mentors and coaches along
the way.
Talk to me about the bestadvice you ever got, and I'm
curious who gave it to you?
Daniel Angel Mejia (17:27):
Yeah, it's one of my mentors.
It's someone I would have likedto work with while I was at
corporate, but I didn't have thechance.
I worked alongside in some waysbut never liked him to be one
of my mentors or bosses, andthat never got to be that.
But then liked him to be one ofmy measures or bosses, and that
never got to be that.
But then converted him in oneof my mentors still there, great
(17:48):
guy.
The best advice that I got fromhim was when I was planning on
going back or getting back tothe states and I was kind of
like hesitant at the timebecause I've been doing a great
career there.
But he said just try, but makesure you burn your ships.
It's the meaning at the end ofthe day is just don't look back,
and it was something I at thetime.
(18:09):
It generated some fear, but itwas a great advice for anyone
that's taking a leap in anymoment of their lives that I
think that's a great adviceAlways.
Yeah.
Ed Mathews (18:20):
My reference to Cortez for those folks who are
not history geeks like me iswhen Cortez reached the new
world, he had his men burn theirboats and he strangely found
that they were highly motivatedto make it work Right.
I'm also interested,fundamentally believe that we
learn way more from the mistakeswe make than the successes that
we have, and I'm curious abouta decision or a mistake,
(18:43):
something that you'd love tohave back.
And what was it and how'd yourecover?
Daniel Angel Mejia (18:48):
One has to do a lot more with Apex.
The other one's a little bitmore like personal.
The Apex one is not bringingconstruction in-house tuner and
honestly find it amazing when Ifind groups that are able to
work with outside construction.
We were never able to make itwork.
There was always somethinguntil we brought it in.
(19:09):
That's something that I wouldhave done sooner and faster.
Probably I would have applied alittle bit more dedication to
that earlier.
Excellent.
And the personal I should haveleft corporate sooner.
Ed Mathews (19:23):
Should have started sooner.
Basically, I get that a lot,myself included.
Never late, but Could have beenfaster.
Yeah, I agree.
All right, how do you take ininformation, like as a leader?
I'm sure you're always readingand listening to podcasts and
audio books and all that.
So I'm curious what is themethod that you sharpen the saw
with?
And also, importantly, who areyou paying attention to these
(19:44):
days?
Daniel Angel Mejia (19:44):
Obviously, podcasts and books are a good
source that I rely on.
I also follow a lot of LinkedIn.
There's a lot of information onLinkedIn.
Some doesn't, but I'm aLinkedIn believer A few folks
there, jay Marcy, for examplethat offers great information,
great feedback with realsubstance.
For us that's important, justkind of like to follow trends,
(20:05):
understand what's going on.
There's a lot of variables andlike too many sometimes to
really get aligned, understand.
But I think finding those kindof people that are offering
interesting fundamentalinformation in my opinion is
always good.
And then keeping a couple booksaround, I think is always good
too.
Yeah, what are you readingthese days, right now?
(20:25):
Fraction?
Oh, my opinion is always good.
Ed Mathews (20:26):
And then keeping a couple books around.
I think is always good too.
What are you reading these days, right now?
Fraction oh Gina.
Daniel Angel Mejia (20:29):
Wickman Okay , yeah, it's an annual read for
me, is it?
Wow, I'm doing it for the firsttime and we're definitely
gearing towards that EOSapproach.
I've found it's interestingbecause it's just so simple, but
it just makes sense.
A couple of things that we'veimplemented are starting to look
pretty interesting.
Ed Mathews (20:51):
Yeah, it's this way to make a very complex system
fairly manageable, and we've hada lot of leaders on this show
who are also EOS entrepreneursand to a person they say it's
really hard to implement intotal right hard to implement in
total right.
So I find that a lot of peopledo what you and I do, which is
read a chapter, understand aconcept and then apply the
concept of the business withouthaving to go through the whole
eis consulting not the exact.
Daniel Angel Mejia (21:13):
That's the approach we're taking, at least
for now, like understandingsection by section, trying to
implement and apply andeventually, probably at some
point, we reach out.
In our opinion, it was likelet's understand first before we
get bombarded with too muchinformation.
Ed Mathews (21:30):
Yeah, so talk to me about success, like, how do you
define success in your life, inyour professional life and even
in your personal life, if youwant to talk about that?
Daniel Angel Mejia (21:39):
Yeah, of course, for us, Apex evolving
portfolio and our capabilities,a fully development capable tier
where we get to a point wherewhich community is multifamily
and stuff like that'll take afew years probably until we have
enough reps under our belt.
Once that's going successfully,we'll follow.
(22:01):
That's more like from a companyperspective right At a personal
level.
To me, is combined with thepurpose I mentioned earlier is
just understanding that everysituation in life, whether it's
good or bad, it's temporary.
So just making sure that you'reenjoying what you're doing.
To me, this is my passion, notonly real estate, but just the
(22:23):
fact being able to thingstogether, building teams,
working with people, working asa team and just making sure we
can be or add value to everyone,even at a personal level.
To me, that's success.
Awesome, love that.
Ed Mathews (22:38):
All right, sir, when you're not talking about real
estate with geeks like me, whatdo you like to do for fun?
Daniel Angel Mejia (22:45):
I like to ride my bike.
I used to run until my kneedecided not to Biking.
I always enjoy a nicerestaurant, also spending some
time with my wife and friends,and I love traveling too.
Ed Mathews (22:58):
Fantastic, Daniel.
I've really enjoyed thisconversation.
If folks want to learn moreabout you or Apex, what's the
best?
Daniel Angel Mejia (23:04):
way to get in touch.
I think our website is a prettygood route.
apexinvestments.
us Email is always a great routeto us.
Dangel@ apexinvestments.
us and in LinkedIn.
I'm pretty active there, DanielAngel Mejia, which I think
would be the best three ways toreach out, and happy to have
many conversations this morningas possible.
(23:25):
I really really love it.
Ed Mathews (23:26):
Daniel, thank you again for joining us and it's a
pleasure to see you.
And continued good success.
Thank you so much.
Daniel Angel Mejia (23:33):
Pleasure to meet you, pleasure to be here.
Greetings and salutations, Real Estate
Undergrounders.
It is Ed Mathews, again withthe Real Estate Underground.
Thank you so much for makingus a part of your day.
I know how busy you all are andI'm grateful for the listen.
Today is a really interestingshow.
I am joined by Daniel AngelMejia and he is with Apex
Development Group.
(01:21):
So, Daniel, welcome to the show.
I'm really excited to have thisconversation because you happen
to run a business very similarto mine and I want to ask you
how you do it so I can get downto best practices.
Daniel Angel Mejia (01:30):
Awesome.
Thank you so much, Ed, forhaving me.
Pleasure to be here, pleasureto meet you, my pleasure.
Ed Mathews (01:34):
So, the folks who haven't discovered you on
LinkedIn or elsewhere, why don'tyou tell us a little bit about
you and your company?
Daniel Angel Mejia (01:39):
Yeah, of course, a little bit about
Colombia.
Originally from Colombia, southAmerica, born and raised there,
then I had the opportunity to goto school here.
Then I went back to Colombia togo corporate life, initially in
the finance world, and that'show it took me to the real
estate world, initially there,and then about 10 years ago I
got the opportunity to get backto the States and while I was
(02:02):
working corporate job in acement and ready mix company, I
decided to take some steps onthe side in the real estate
world, specifically in theresidential world, and that's
how everything started,initially doing some flipping,
some experience with side,trying to capture all the
experience I had from some fundsI used to work for back home,
(02:22):
slowly but surely startedgetting into something bigger
until I decided and found thatwas the path I really wanted to
take leap of faith, decided toclose the chapter of the
corporate life and started Apex,fortunately enough to found
who's my business partner, nowalso from Columbia, who used to
(02:42):
live in Miami and decided tomove to atlanta.
And that's where we joinedforces and started this amazing
path that we're still drivingand trying to bring okay,
congratulations on your success.
Ed Mathews (02:53):
So let's talk about the business a little bit what
niche do you tend to focus on?
I know you do a lot ofdifferent things, but I'm
curious where you've done mostof your days?
Daniel Angel Mejia (03:01):
no, totally.
We've stayed within theresidential space and that
initially covered more buying,existing distressed properties,
renovating and selling orrenting.
That has evolved into themultifamily space also.
So nowadays we cover singlefamily and multifamily.
In the single family space wedid evolve into more roundup
(03:24):
construction, both for sale andfor rent, and in the multifamily
space we only acquire toexecute value-add programs.
So we basically revolve aroundthat residential world and those
three were roundup for sale,for rent and then acquisitions
in the multi-space or value-addor plus approach.
Ed Mathews (03:44):
That's a lot.
Talk to me about your team.
What does that look like In?
Daniel Angel Mejia (03:47):
2021, we saw the need of starting to build a
team around us.
Initially it was just the twoof us and then another partner
we used to have for theconstruction part of the
business.
Right after COVID we understoodthe idea of virtual approach
and combined that with our rootsand started building a team
(04:11):
back home.
Today our team is split intothose two locations back in
Colombia about 15, 17 people,with us covering different areas
.
We try to be as verticallyintegrated as possible.
So we try to bring everythingin-house, except for property
management at this point,anything that has to do with
acquisitions, underwriting,structuring, capital markets and
(04:34):
stuff like that, even managingsome of the projects from there
parts of the process of projectmanagement from Columbia.
So that's why we built thatteam there.
And then the other part of theteam is whoever needs to be on
the ground, on the field, seeingand living the properties will
be here, so it's about a sevenpeople team in Atlanta at this
(04:54):
point.
Ed Mathews (04:55):
We do a similar model here, except our people
sit the Philippines, but similarconcepts.
Daniel Angel Mejia (05:13):
Now are those folks in Columbia?
Are they employees or are theyvirtual assistants or a
combination thereof ouremployees and our team members?
There's two advantages that wefound there.
One they're timezoner, so theywork at the same time as we are.
We're just sometimes of theyear we're an hour off, but it
(05:34):
works pretty well.
They are our team, we know theculture, we are bilingual, we
speak Spanish and English, whichhelps on the construction and
renovation side tremendously.
So basically, it ended up beinga great advantage to our
company and pretty much one ofour differentiators at this
point.
Ed Mathews (05:52):
Yeah, it's a competitive advantage, for sure,
because, yeah, not everybodyspeaks.
I speak enough Spanish to getto understand if somebody's
having trouble, or to conveywhat I'm trying to get across,
but I am by no means bilingual,so having the ability to speak
natively is a huge advantage.
Or to convey what I'm trying toget across, but I am by no
means bilingual, so having theability to speak natively is a
huge advantage.
(06:12):
So, with regard to the changingmarkets, right, you're based in
Atlanta.
Where are your properties?
Daniel Angel Mejia (06:16):
They are in Atlanta also, and that's another
important decision we've made.
With time, we've learned tomake some of those decisions,
which are important, sometimesOut of state, and looking at
other states and other marketsis interesting and can be kind
of like shiny and attractive.
For us, it's like focus.
(06:37):
Being close to the acid bootson the ground is really
important, something that wehave decided to stay on, at
least for now.
That doesn't mean we won't goto other states eventually, but
I think the knowledge of themarket and I think to your point
of like with changing marketsand after the great run that the
(06:58):
real estate world had from 2012or 2011 to probably a couple of
years ago, really didn't matter, so to speak, didn't really
matter where you were, it wasjust a great run.
At this point, in our opinion,it's really important for you to
know what you're doing, knowwhere you are and understand the
specifics of the submarkets.
(07:18):
In Atlanta specifically, it's apocket-by-pocket market.
In general, it's a great marketand great fundamentals.
You got to be calm.
Ed Mathews (07:26):
I was looking outside of Connecticut, down in
the Carolinas and out in theMidwest a little bit and came to
the conclusion that thephysical proximity is an
advantage.
Right, being able to be on sitewithin an hour or two is a huge
advantage is a huge advantageand mainly from a customer
service and project managementperspective.
If somebody picks up the phoneand calls you and says, hey, I
(07:49):
need you on site first thingtomorrow morning, we got
something important to talkabout.
To be able to not have to geton a plane and go do that is
really helpful for sure.
The other part of it is justbeing able to go out and touch
the property every once in awhile and be present there is
also valuable because,especially in the multifamily
world, the folks that live inyour buildings want to be heard,
right, they want to be seen,and when the boss is there, they
(08:10):
know stuff's going to get done.
That's always a good thing froma retention perspective, right.
Daniel Angel Mejia (08:15):
That's exactly right.
Yeah, To your point.
Our mantra for now is two hoursat the most from site.
That's been key to us, andobviously there's folks that are
in smaller markets and it's alittle bit challenging to find
opportunities there For us.
Fortunately, we're surroundedby 13 counties.
It's a pretty extent metro area, so it's good enough for that,
(08:38):
and then we have other potentialexpansion routes in close
states where you can't go atsome point.
Still keeping the two-hourradius, but yeah, for now Metro.
Ed Mathews (08:50):
Yeah, and the other thing you mentioned is really
important is understanding themarkets and the dynamics.
Here in Connecticut there are,I would say, at a macro level,
there's probably three majormarkets.
Right, there's Fairfield County, which is an entirely different
world, very much a growthmarket from a appreciation
perspective.
You got Central Connecticut,which is very much a cash flow
play, and then you've got I'dsay the same in Southeastern
(09:14):
Connecticut.
But Northeastern Connecticut is, again, is an appreciation
because it tends to trend afterWorcester and, indirectly,
boston.
But I live literally in themiddle of the state and it's two
hours, it's 120 miles to NewYork City and 125 miles to
Boston.
So there are investors whofocus on Fairfield County and
(09:35):
there are investors who focus onCentral Connecticut and there's
not a lot of overlap andbecause the market dynamic is so
different, I think there'ssomething interesting that you
mentioned there regarding thedifferent strategies dependent
on the market or the sub market,when you think there's a lot
that you guys are doing.
Daniel Angel Mejia (09:54):
one of the strategies is precisely that
staying in multifamily, and ithas been one avenue that we felt
to keep transactions goingregardless of the dynamic of the
market.
At some point we were trying tofocus more on multifamily, but
then 2022 and 2023 happened,where transactions just didn't
make sense.
(10:14):
We say it's a bit drastic here,but nobody kicked us out of
single family.
Why not go back?
You can keep it going, keepchurning.
Why not go back?
You can keep it going, keepchurning.
There's some sub market thatwill be suitable for sale
product and then some that willbe more cash flow place for rent
, and that's when the whole fundcame to be.
Or we can co-manage all thesestrategies, take advantage of
(10:36):
the fact that we have differentparticularities of the different
sub markets within the marketthat we are, and then we can
approach everything in a way atthe same time and find
opportunities suitable for eachone of the strategies.
Ed Mathews (10:49):
So I ascribe to the exact same strategy.
Take what the market's givingyou right, and there's no reason
to shoehorn a strategy into amarket that isn't going to
respond to that strategy.
It's better to understand okay,the inventory is low in this
particular market, so as webuild rehab houses, it makes
sense to sell those, and so onand so on.
(11:12):
So I'm curious about the fund.
What made you go down the pathof building a debt fund versus
private equity fund, or justworking with private investors
on an individual basis?
Daniel Angel Mejia (11:26):
Of course, that's a very interesting
question.
It has been a work where wecompiled a lot of experiences,
feedback and what we believeended up being a good balance
for passive investors right.
So initially the way we raisedequity and the way we went about
(11:46):
our projects was typical 506Bor LPGP structure, where we
would raise equity from friendsand family or an individual
check writer and then go abouteach project.
That meant at that time onemultifamily project with one
specific approach or a portfolioof single families with one
(12:08):
thesis, whether it was for sale,for rent or a combination or
whatnot.
What we found with time andwith the variations of the
market is that sometimes singles, sometimes doubles, sometimes
you foul and sometimes brandslam, but when you go one at a
time, then your investors couldbe a single, a double once you
(12:31):
put all that in a bag.
Basically we found what wethink most investors are looking
for when they go the passiveroute is they want certainty,
flexibility and know whatthey're getting.
The IRR double digits, 20s, 30s, whatever that sounds great.
(12:51):
Once they start realizing it'sa target, not a certainty, then
things can get a little bit iffy.
Our approach with that was thisis our business, this is our
passion.
This is what we're going to bedoing for the rest of our lives,
but for investors, it could besomething for a minute or some
years, could be potentially forthe rest of their lives.
So we came up with this idea ofa fixed return debt fund and the
(13:17):
reason why it's debt.
It's not that we're originatingdebt for investors, they're
creditors to the fund.
It's not that we're originatingdebt for investors their
creditors to the fund but theyhave a fixed return.
We have various, I guess, likethresholds or trenches,
depending on the amount theyinvest, but they know what
they're getting.
They can have a compoundingeffect which can get them to the
(13:41):
double digits that usuallyinvestors are trying to reach.
But they also have flexibility.
So if something comes up in ourcase it's a lock-up period of
18 months if something comes up,for whatever reason, they can
go out without having toliquidate a property or sell or
wait for whatever time right.
So when you start talking to andthis applies for individuals,
in our experience at leastindividuals, family offices,
whoever is, you can have along-term vision.
(14:03):
Life happens, what happens if Idon't know?
I have a need, something, a kidgraduated, someone is for
school, or every kind ofdifferent particularity that can
happen with a GP LP structure.
The answer, nine times out of10, is oh sorry, we need to wait
until we can full cycle thedeal.
We can't cycle the deal, wecan't sell the deal, or it's a
(14:31):
lot more trouble to get somebodyout just because you're sitting
on the equity position.
With this structure, we foundwhat we believe is a great
balance of good return,certainty, flexibility, cash
distributions if they need it,or all compounding, cash
distributions, if they need it,or full compounding.
So it's a combination ofvarious factors that we have
compiled with time, based on ourexperiences and feedback from
investors, and it's workingpretty well, we find the same
(14:52):
thing the whole concept ofallowing somebody to be able to
stay in the fund and compoundtheir returns.
Ed Mathews (14:58):
At some point that turns into some pretty good
money, and it's yeah, and I likeI so personally that one of the
things that I had done with ourown debt fund is in the exact
same thing.
There's an 18 month lock up andbut then there are periodic
opportunities to pull your moneyout If you need it.
Daniel Angel Mejia (15:15):
Somebody's getting married, somebody's
going to college, medical billwhatever, some investors at some
point want to get a little bitmore active and want to buy
their own stock, and that'sperfectly fine.
We just feel that theflexibility adds a lot of value
for investors and our pointreally is just trying to build a
diversified portfolio thatpeople can rely on and then for
(15:36):
the time that they want to be,hopefully as long as they can,
but sometimes there is needs inlife we understand.
So it's just serving investorsat the end.
Ed Mathews (15:44):
To each their own, all right, daniel.
Hey, I talked about what Imentioned before we started
recording.
I can talk about this stuff fordays and you've built a
tremendous businessCongratulations.
But I would like to get intothe final five, our lightning
round, if you'll indulge, allright.
First one is always.
First question is always aboutpurpose, right?
(16:04):
I'm curious what gets you outof bed on Monday morning?
I know you've done very welland the mortgage is paid, the
car payments are probably paidoff and kids, colleges, are
taken care of, and yet you stillget up and go to work in the
morning.
So what drives you?
What's your purpose?
Daniel Angel Mejia (16:19):
I would split that in two.
There's the personal side,which really happened after I
left corporate and started myown thing enjoying the ride
that's how I call it and it'sjust making sure, regardless of
what's happening good or bad orugly just enjoying every minute.
So to me it's like sometimes Idon't even know if it's Monday
or Sunday.
We're on a timer at the end ofthe day and we're probably the
(16:41):
end of that timer, so it's justmake sure you enjoy every second
.
From a company perspective orlet's call it Apex perspective
is being able to build aprofessional and strong team.
Something I feel very proud ofis the people that we work with
and the fact that we've beenable to get back to our roots.
We left our country.
We can build something at homewithout having to be at home,
(17:04):
working with great professionalpeople and being able to build
something around.
That is something that I veryclose to my heart.
Ed Mathews (17:11):
I couldn't agree more.
I think that there's acontribution that gets me out of
bed in the morning is thatyou're helping people get where
they want to go.
Right, yeah, all right.
So I'm always curious aboutyour mentors and coaches along
the way.
Talk to me about the bestadvice you ever got, and I'm
curious who gave it to you?
Daniel Angel Mejia (17:27):
Yeah, it's one of my mentors.
It's someone I would have likedto work with while I was at
corporate, but I didn't have thechance.
I worked alongside in some waysbut never liked him to be one
of my mentors or bosses, andthat never got to be that.
But then liked him to be one ofmy measures or bosses, and that
never got to be that.
But then converted him in oneof my mentors still there, great
(17:48):
guy.
The best advice that I got fromhim was when I was planning on
going back or getting back tothe states and I was kind of
like hesitant at the timebecause I've been doing a great
career there.
But he said just try, but makesure you burn your ships.
It's the meaning at the end ofthe day is just don't look back,
and it was something I at thetime.
(18:09):
It generated some fear, but itwas a great advice for anyone
that's taking a leap in anymoment of their lives that I
think that's a great adviceAlways.
Yeah.
Ed Mathews (18:20):
My reference to Cortez for those folks who are
not history geeks like me iswhen Cortez reached the new
world, he had his men burn theirboats and he strangely found
that they were highly motivatedto make it work Right.
I'm also interested,fundamentally believe that we
learn way more from the mistakeswe make than the successes that
we have, and I'm curious abouta decision or a mistake,
(18:43):
something that you'd love tohave back.
And what was it and how'd yourecover?
Daniel Angel Mejia (18:48):
One has to do a lot more with Apex.
The other one's a little bitmore like personal.
The Apex one is not bringingconstruction in-house tuner and
honestly find it amazing when Ifind groups that are able to
work with outside construction.
We were never able to make itwork.
There was always somethinguntil we brought it in.
(19:09):
That's something that I wouldhave done sooner and faster.
Probably I would have applied alittle bit more dedication to
that earlier.
Excellent.
And the personal I should haveleft corporate sooner.
Ed Mathews (19:23):
Should have started sooner.
Basically, I get that a lot,myself included.
Never late, but Could have beenfaster.
Yeah, I agree.
All right, how do you take ininformation, like as a leader?
I'm sure you're always readingand listening to podcasts and
audio books and all that.
So I'm curious what is themethod that you sharpen the saw
with?
And also, importantly, who areyou paying attention to these
(19:44):
days?
Daniel Angel Mejia (19:44):
Obviously, podcasts and books are a good
source that I rely on.
I also follow a lot of LinkedIn.
There's a lot of information onLinkedIn.
Some doesn't, but I'm aLinkedIn believer A few folks
there, jay Marcy, for examplethat offers great information,
great feedback with realsubstance.
For us that's important, justkind of like to follow trends,
(20:05):
understand what's going on.
There's a lot of variables andlike too many sometimes to
really get aligned, understand.
But I think finding those kindof people that are offering
interesting fundamentalinformation in my opinion is
always good.
And then keeping a couple booksaround, I think is always good
too.
Yeah, what are you readingthese days, right now?
(20:25):
Fraction?
Oh, my opinion is always good.
Ed Mathews (20:26):
And then keeping a couple books around.
I think is always good too.
What are you reading these days, right now?
Fraction oh Gina.
Daniel Angel Mejia (20:29):
Wickman Okay , yeah, it's an annual read for
me, is it?
Wow, I'm doing it for the firsttime and we're definitely
gearing towards that EOSapproach.
I've found it's interestingbecause it's just so simple, but
it just makes sense.
A couple of things that we'veimplemented are starting to look
pretty interesting.
Ed Mathews (20:51):
Yeah, it's this way to make a very complex system
fairly manageable, and we've hada lot of leaders on this show
who are also EOS entrepreneursand to a person they say it's
really hard to implement intotal right hard to implement in
total right.
So I find that a lot of peopledo what you and I do, which is
read a chapter, understand aconcept and then apply the
concept of the business withouthaving to go through the whole
eis consulting not the exact.
Daniel Angel Mejia (21:13):
That's the approach we're taking, at least
for now, like understandingsection by section, trying to
implement and apply andeventually, probably at some
point, we reach out.
In our opinion, it was likelet's understand first before we
get bombarded with too muchinformation.
Ed Mathews (21:30):
Yeah, so talk to me about success, like, how do you
define success in your life, inyour professional life and even
in your personal life, if youwant to talk about that?
Daniel Angel Mejia (21:39):
Yeah, of course, for us, Apex evolving
portfolio and our capabilities,a fully development capable tier
where we get to a point wherewhich community is multifamily
and stuff like that'll take afew years probably until we have
enough reps under our belt.
Once that's going successfully,we'll follow.
(22:01):
That's more like from a companyperspective right At a personal
level.
To me, is combined with thepurpose I mentioned earlier is
just understanding that everysituation in life, whether it's
good or bad, it's temporary.
So just making sure that you'reenjoying what you're doing.
To me, this is my passion, notonly real estate, but just the
(22:23):
fact being able to thingstogether, building teams,
working with people, working asa team and just making sure we
can be or add value to everyone,even at a personal level.
To me, that's success.
Awesome, love that.
Ed Mathews (22:38):
All right, sir, when you're not talking about real
estate with geeks like me, whatdo you like to do for fun?
Daniel Angel Mejia (22:45):
I like to ride my bike.
I used to run until my kneedecided not to Biking.
I always enjoy a nicerestaurant, also spending some
time with my wife and friends,and I love traveling too.
Ed Mathews (22:58):
Fantastic, Daniel.
I've really enjoyed thisconversation.
If folks want to learn moreabout you or Apex, what's the
best?
Daniel Angel Mejia (23:04):
way to get in touch.
I think our website is a prettygood route.
apexinvestments.
us Email is always a great routeto us.
Dangel@ apexinvestments.
us and in LinkedIn.
I'm pretty active there, DanielAngel Mejia, which I think
would be the best three ways toreach out, and happy to have
many conversations this morningas possible.
(23:25):
I really really love it.
Ed Mathews (23:26):
Daniel, thank you again for joining us and it's a
pleasure to see you.
And continued good success.
Thank you so much.
Daniel Angel Mejia (23:33):
Pleasure to meet you, pleasure to be here.
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