Elevate with Tyler Chesser - The Real Estate Podcast for Investing, Mindset and Personal Development E268 Eric Silverman - Generating Creative Solutions and Discovering Opportunities In Today’s Volatile Real Estate Markets
Understanding key factors that impact the real estate market is crucial when investing. Knowing how economic factors and government policies affect real estate investment potentials will instruct you on how, when, where, and what to invest in. Furthermore, learning how these forces work for or against each other will help you generate creative solutions and even discover unique opportunities amidst the complex and volatile markets that we’re experiencing today.
Join us in our episode today as we bring in real estate expert Eric Silverman of Eastham Capital. We explore the impact that economic factors have on the multifamily market cycles and how investors should respond with creative solutions because opportunities are waiting even in a downturn phase. Find out his real estate outlook for the next 3 to 5 years as we also zero in on the value of strategic partnerships in growing a real estate business. Listen until the end and you’ll hear how Eastham Capital’s funds have evolved in the last 15 years. Lots of insight and lessons to learn so tune in now!
Key Points from This Episode:
- Eric’s analysis of the impact of economic factors (interest rate, inflation rate, consumer price index, capital markets, supply and demand) on the multifamily real estate market conditions (debt cost, mortgage cost, debt service, rent growth, occupancy rate, etc.)
- What’s the buying condition as Eric anticipated a volatile market?
- What are Eric’s predictions on price corrections in the regions where they operate?
- What creative solutions does Eric’s company utilize to buy deals and why do others resort to mezzanine debt?
- What’s the impediment to capital raising in the current market condition?
- Why rent growth, considered an inflation hedge by investors but actually pushes inflation up as housing costs go up, may drive more rent control legislation.
- Eric’s predictions on deal pricing, rental demand, house buying in the next three to five years, and why he’s bullish on the multifamily market
- What will be the most compelling opportunities and the biggest risks in the next 3 to 5 years?
- Eric’s advice to his younger self about forming valuable and lasting strategic partnerships
- The evolution of Eastham Capital’s funds
- What role does mindset play in navigating the complex economic environment and multifamily real estate market?
- Eric’s parting thoughts or words of wisdom
- Eric’s contact details
Tweetables:
"Every effort that we can put into talking to up-and-coming and potential partners and trying to find ways to work with people to get those relationships going, that has really generated our best values over time." - Eric Silverman
“We need to be creative. We want to be in the market, we want to buy deals, but we don't want to overpay for deals.” - Eric Silverman
“The impediment to fundraising at the moment is uncertainty, uncertainty about where inflation is going to land.” - Eric Silverman
“When I project out a little bit further, I think that the tailwind of demand for rentals is super strong in the United States in pretty much every market.” - Eric Silverman
“From a multifamily perspective, it's not recession-proof but it can be recession-resilient because everybody needs a place to live.” —Tyler Chesser
“Investors need to be patient and find their spots. But stay in the business, keep working deals, keep looking for opportunities.” - Eric Silverman
“Complex problems require creative solutions which create opportunities.” - Tyler Chesser
Links Mentioned
About Eric Silverman
Eric Silverman is a founder and managing director of Eastham Capital. Along with Matt Rosenthal, Eric is responsible for overseeing all operations of the company. He is also a founder of St. James Capital, LLC, an FHA-approved lender specializing in multifamily residential housing financial services.
From 1995-2010, Eric was President and then Chairman of RentGrow, Inc., until it was sold in 2010 to Yardi Systems. Before joining RentGrow, Eric was a founder and principal in St. James Mortgage Company, a Fannie Mae-approved residential mortgage banker. From 1991 to 1994, he directed and implemented the company’s retail expansion into Massachusetts and New Hampshire and managed operations in those states. Eric learned the real estate industry through Holtzman and Silverman Construction and Realty, his family-owned business based in Michigan. H & S is a developer and manager of apartment and retail properties.
Eric graduated from Bowdoin College in 1985 with an AB in Mathematics. In 1991, he earned the degree of Master of Science in Management, with a concentration in Finance, from the MIT Sloan School of Management. He is an active alumnus of MIT, where he served as a judge in the $100K entrepreneurship competition for seven years. He is a founding director of Leader Bank in Arlington, MA. Eric is also on the Board of The Spaulding Rehabilitation Hospital Network – Partners Continuing Care, and he is a Friend of the McGovern Institute for Brain Research at MIT.
---------------
Are you a real estate investor looking to elevate your income, freedom & lifestyle? If so, optimize your daily performance by downloading our free guide, Raising the Bar - 5 Steps to Elevate Your Habits, at elevatepod.com.
In this guide, created by your host Tyler Chesser, you’ll learn why you do what you do, how to easily institute cues in your environment to trigger desired behavior, directly applicable steps to create a fulfilling future and much more. Get your free copy at elevatepod.com and kick-start your new habits today. Your future self will thank you!
This episode of Elevate is brought to you by CF Capital, a national real estate investment firm. CF Capital’s mission is to provide property investment and asset management solutions to help investors like you maximize their returns by investing in high-value multifamily communities.
If you are looking for risk-adjusted alternative investments in quality apartment communities, and are seeking tax optimized cash flow with appreciation upside without all the hassle of management, you might benefit from learning more about investing alongside our team. You’re invited to reach out and learn how you can invest with us by visiting cfcapllc.com.
We’re also currently offering a free ebook called The Bottom Line - 10 Ways to Increase Cash Flow in an Apartment Complex. Whether you’re a new or an experienced investor, we’re confident you’ll find massive value in this resource. Get your free copy today at cfcapllc.com.