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Nick and Eric are full-time real estate investors, developers, and founders of Winterspring Capital, a private equity firm based out of Boston, MA. Since starting their company, Nick and Eric have owned or

developed over $56 million of multifamily assets, with an additional $40 million of currently ongoing

developments in the pipeline. Nick and Eric focus on several different types of multifamily investments:

from value add 100+ unit complexes in the Southeast that they syndicate alongside their investor base, to

affordable housing development, to luxury multifamily condominium developments.

Episode Highlights:

- Affordable housing can mean a variety of things depending on what market you're in. In this episode, Nick and Eric discuss an affordable housing project in which the City of Boston requested proposals to construct homes that were specific to their requirements. To keep the homes affordable for buyers, Boston mandates a certain lower than market price for buyers, and Nick and Eric make their fee from the development fee they charge the city. Boston also has rules in place that prevent buyers from turning around and flipping the homes at higher prices. Affordable housing differs from Section 8 housing in that Section 8 housing is a rent program in which the government subsidizes a portion of the rent so that the total rent is at market rates. Conversely, the project Nick and Eric did was selling the entire home (not renting) and also selling them at below-market rates.

- The key to running a successful real estate development business that operates on a sustainable business model is to have the right architect, engineer, and other team members in place. The developer also needs to be very familiar with the zoning of the local area, floor area ratios, and other particularities in each specific market.

- Never underwrite for rent or capital appreciation. Dial-in rent growth of 0% so that any realized rent growth is icing on the cake. If the deal still looks good using this conservative approach, then chances are that it will turn out better than expected when executed.

- Nick and Eric's returns on development deals are usually in the 20% to 30% range, which is a major differentiator compared to plain vanilla multifamily value-add syndication deals. Winterspring Capital utilizes a mix of development deals (somewhat analogous to house flipping) and buys and holds multifamily assets with indefinite hold periods.

- To choose your market, you must confirm that there's been steady population growth of at least 5% or more.

Helpful Links:

https://winterspringcapital.com/

Best Way to Contact Nick and Eric:

Instagram:

@winterspringcapital

Linkedin:

https://www.linkedin.com/in/eric-dinicola-2408897a

https://www.linkedin.com/in/nicholas-earls