The Best Ever CRE Show JF 3953: Minimizing Risk, Scaling Cash Flow, and Investing with Purpose ft. Troy Zimmerman
Jul 1, 2025
Troy Zimmerman, a general partner at Missional Capital Group, has over 20 years of experience in real estate, specializing in low-leverage, cash-flow-focused multifamily investments. He shares his journey from managing inherited properties to evolving into multifamily ventures. Troy discusses the importance of controlling net operating income and mitigating risks. He emphasizes a values-based investing approach, prioritizing tenant relationships and community impact, all while navigating the economic landscape of Northwest Alabama's real estate market.
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Shift to Active Multifamily Investing
- Troy transitioned from passive triple net management to active multifamily to control property value.
- Single family and triple net offer less influence on value compared to multifamily cash flow control.
Value Control via NOI
- Troy emphasizes controlling net operating income (NOI) as key for value creation in multifamily and multi-tenant retail.
- He contrasts this with triple net properties where value mostly depends on cap rates and market timing.
Challenges of Lower-Class Multifamily
- Troy bought 20-unit multifamily in 2018 as a lower-class property with significant capital expenditure demands.
- Management challenges and unexpected costs made such properties less desirable long term.