#2: Syndicating 600+ Units By the Age of 24 with David Toupin

May 19, 2020

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Unreal episode today with David Toupin of Obsidian Capital - we dive into how David was able to source and structure large multifamily deals in his early 20s (with little to no experience)! We discuss how David built his reputation early in his career, found great business partners, what his business looks like today, and what separates “middling” investors from those operating in his space.

David Toupin is a Top Millennial real estate investor and entrepreneur. David is the co-founder of Obsidian Capital, an Austin Texas-based real estate investment firm. David started investing at the age of 20 when he bought his first property while in college, a 12-unit apartment complex. By the age of 24 years old, David has built a real estate company as a key principal with over $60M in real estate holdings and has raised north of $20M in capital from investors. He is also the co-founder of SecretX, a business travel mastermind, and is the CEO of Real Estate Lab, a multifamily financial modeling software.

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Time Stamps:

03:18 – David shares how he got into real estate and discusses his first deal, two 12-unit properties in Michigan

08:18 – We discuss how David’s structured the capital stack on his first deal and what he learned from the raise

13:59 – How David progressed from his first deal to syndicating 100+ unit acquisitions

17:41 – David discusses how he actually raised the money for those initial syndications

20:49 – Why David self-managed the first couple of deals

25:03 – Initial steps David takes when building a network and lead funnel in a new market

28:26 – We discuss the checkboxes for a great off-market deal and why “the story” is so important when pitching a deal to investors

32:48 – David talks about what returns he typically offers equity investors, why he moved away from offering a preferred return, and the importance of clearly communicating your investment structure to your investors

37:25 - David shares his thoughts on how a smaller, solo investor can scale into larger acquisitions - this is killer!

44:19 – We discuss age and how being young is actually an advantage in real estate investing, regardless of what niche you’re in