Ritter on Real Estate Multifamily Value Investing in Buffett’s Backyard with Chris Pomerleau and Collin Schwartz
In today’s episode, we’re going to be addressing value investing, working with a team that you trust and you’re comfortable with, and the importance of coaching. It’s the first time we’ve had two guests on the show, so we’re excited to welcome Collin Shwartz and Chris Pomerleau. Together, they run Park Ave Capital, which focuses on acquiring properties in the Omaha area. They collectively own 600 units, and in addition to that, they both serve as coaches for newer investors. Collin additionally runs his own property management firm called Brick Town Management and is head of the largest Meetup in Nebraska with about 1000 members. In this episode, we discuss why they chose Omaha, investing within the path of progress, and making sure that you’re comfortable with the operator when evaluating a deal. We also talk about the importance of understanding risk, doing due diligence, and the revenue and cash flow increases you can create by utility bill backs and charging common area maintenance fees. Chris and Collin talk about coaching, giving back, and what they’re most proud of, as well as their number one goals for 2020, and the books we should all be reading.
Key Points From This Episode:
- Why Collin decided to invest in Omaha, after seeing no dip during the last recession.
- Chris explains how he grew up just outside of Omaha, which made it easy to invest there.
- High appreciation and high volatility at the coast versus forced appreciation in the Midwest.
- Collin talks about looking in the path of progress – investing in areas that may be considered fringe now, but where there will be development opportunities in a few years.
- Chris shares why he thinks the most important part is feeling comfortable with the operator when evaluating a deal or vetting a syndicator.
- Collin highlights the importance of aligning with your partners and understanding the risks.
- Why Chris and Collin do their due diligence and look for partners with experience in every aspect of a project – from contracts and insurance to managing and roofing.
- What to look at when assessing a deal, including rental and expenses.
- Utility bill backs and common area maintenance – how they can help you increase revenue.
- Collin and Chris talk about their experience of coaching and becoming coaches themselves.
- Some of the barriers Collin has encountered in coaching others, such as networking.
- What’s next for Chris and Collin and how they like to give back to the community.
- Collin and Chris share what they’re most proud of, especially their relationships with tenants and team members and their ability to spend more time with family.
- Number one goals this year include quadrupling their investor base and being present.
- The books that everyone should be reading: The Miracle Morning and The Compound Effect.
- The one question Chris would ask a deal sponsor – how did you handle a negative effect, and how did you make it right by your investors?
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