EP 258: Joe Rinderknecht on Passive Investing & the Sub-100-Unit Advantage

Joe Rinderknecht is the founder of Upgrade Partners Capital (Fund of Funds) and Cowboy Capital (GP Sponsor), a real estate investment firm specializing in acquiring and operating value-add apartment buildings under 100 units. He focuses on deals within a four-hour drive of his home, ensuring hands-on management and strong market expertise. His latest acquisition, a 54-unit property built in 1998, has seen a $2.5 million value increase in just six months through strategic improvements and operational efficiencies.With nearly a decade of experience in commercial real estate, Joe has owned and invested in approximately 600 apartment units across Montana, Idaho, Utah, Texas, and Ohio. His background includes property management, constructions management, asset management for large portfolios, and capital raising for various deals.Joe earned his BS in Finance with a minor in Real Estate and Entrepreneurship from Utah State University in 2018. He also runs Tiny's Tribe, a 506(c) nonprofit dedicated to supporting families affected by life-changing accidents.When he's not working on real estate deals, Joe enjoys fishing, traveling, and enjoying the outdoors with his wife and three children.

Summary

In this episode, Randy Smith interviews Joe Rinderknecht, co-founder of Upgrade Partners Capital and Cowboy, discussing the current state of the multifamily real estate market, challenges faced by passive investors, and Joe's personal journey from ranching to real estate. Joe shares insights on building a multifamily portfolio, focusing on sub-100 unit investments, and strategic approaches to deal sourcing. He emphasizes the importance of construction management and personal connections in real estate transactions, while also providing educational resources for aspiring investors.

Chapters

00:00 Market Dynamics and Passive Investment Challenges

06:20 Joe Rinderknecht's Journey and Background

12:56 Real Estate Ventures and Lessons Learned

18:52 Navigating Construction Challenges and Fund Strategies

21:19 Exploring Fund Structures and Deal Flow

23:21 Market Focus and Asset Selection

26:54 Navigating Tertiary Markets and Local Resources

27:37 The Niche of Sub-100 Unit Properties

32:43 Educational Resources and Learning Opportunities

37:47 Due Diligence in Construction Management

40:48 Personal Growth and Investment Strategies

42:39 outro 

RANDY SMITH

Connect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestor

Keywords

real estate, passive investing, multifamily, market trends, investment strategies, construction management, deal sourcing, education, investment portfolio, financial growth