Multifamily Legacy Podcast 079: Where Do You Want Your Money When Recession Hits?
Would you like fries with that? At a young age, Mike Flaherty was busy getting projects approved for McDonald’s, Taco Bell, Home Depot, Walgreens, and other businesses. He may have started in commercial real estate, but his goal was always to move to the residential side.
Mike has done more than $525 million worth of apartment deals. He’s the founder and president of L5 Real Estate Investments, which focuses on well-located, yield-driven assets with physical and operational repositioning value place.
Topics on Today’s Episode:
- Mike’s First, Real Job: Managing real estate, design, and entitlements
- Always on the move, figuring out what he wanted to do: Why living at the beach, working less, and having more fun didn’t work out
- Making big companies big money, so why not do that for himself?
- Painful Process: Mike’s move from the corporate world to partner with investment bankers went to pieces due to the recession
- Starting from Scratch: What’s next? Buy when there’s blood in the streets
- Fortune 500 Education: With knowledge and experience, take the leap, and land on your feet
- Finding the Right, Risk-inverse Spot: Apartments are #1 risk-adjusted cash flow stream of investment in history
- What type of investments did well despite the recession? Apartments
- Is it harder to find deals now? Hard work isn’t easy, and good deals are always hard to find
- Raising funds is easy because banks love apartments; private capital is still challenging, so create trust and track record
- #1 To Do: Manage people’s money, and make sure to deliver what you promised
- Jobs, Retail, and Mass Transit: Three things that protect multifamily investing
- Sage Advice: Start small, find data, talk to right source, create good team
Links and Resources Mentioned:
- L5 Real Estate Investments
- Mike Flaherty’s Email
- Mike Flaherty’s Phone: 310-991-3091
- Toll Brothers
- Bovis Lend Lease
- Lehman Brothers
- Warren Buffett
- David Lindahl
- Multifamily Legacy Podcast 021: Becoming a Real Estate Investor – Bob Bowman
- Multifamily Legacy Podcast on Facebook
- Cashflow HQ
Quotes:
“I’ve been making everyone else a lot of money doing this business. How do I do this on my own?” Mike Flaherty
“I jumped from the corporate world and partnered with some investment bankers out of Los Angeles. The recession kicked in and all of the pieces fell apart.” Mike Flaherty
“You don’t have to be in real estate to go through that pain. It didn’t matter how good you were, or how bad you were, how smart you were.” Mike Flaherty
“Many of the success stories come from someone that had a niche or took someone else’s idea and made it better and prospered from it.” Mike Flaherty
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