The Multifamily Wealth Podcast #48: Transitioning from Passive Investor to Active Investor, Grinding For That First Deal, and Current Market Outlook with Matt Picheny
In this episode with Matt Picheny, we once again dive into passive investing and how Matt transitioned into the active side of the business. Matt has a decorated track record in the marketing field, working with companies like Verizon, IBM, and Coca-Cola, and the story he tells about how he got into syndication is an interesting one! He has lived in numerous cities on the east coast and we extensively discuss how to select a good market, in terms of how the market aligns with your investing goals, its fundamentals, and much more. Matt shares how his outlook has changed as a result of Covid, low-interest rates, and how hot the market has become. If you are interested in passive investing, sponsoring your own deals, or learning how to underwrite more accurately given where we are at in the market cycle, this episode will be great for you!
Matt Picheny is an investor based out of Boston, Massachusetts. He is a managing partner at MJP Property Group, a real estate company that has invested in over 6,000 apartment units and is primarily focused on acquiring and repositioning multifamily communities.
Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.
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Show Notes:
5:14 Matt discusses how he got into the real estate business and discusses his background in the marketing business. He shares an interesting personal story when discussing how he acquired his first deal.
16:23 Matt shares the details surrounding his first deal including his initial fears, the deal itself, and how it set him on his current path.
20:53 We discuss how Matt chose a market for the type of investing he was looking to do.
26:10 Axel and Matt summarize the great takeaways from Matt’s first deal and how other investors can use the information in their own investing careers.
28:20 Axel and Matt discuss their thoughts on the key metrics and important points that need to be used when selecting an ideal market to invest in.
35:26 We discuss how new investors can begin to screen and select markets that will align with their investing goals.
38:55 Matt discusses changes he has made in his business and underwriting as a result of COVID-19 and today’s real estate market.
45:10 We discuss underwriting and how cap rates are being affected in the current market.
46:55 Matt shares why it can be a good idea to conservatively invest, doing only a few deals per year, while keeping investors satisfied.
54:02 Matt shares how his persistence is what led him to get his first deal after analyzing over 100 properties.
57:24 Matt shares the advice he would give to himself before closing his first syndication.
58:35 Matt shares one skill/trait that he attributes his success to.
59:00 Matt shares what he plans to do with his business over the next few months.
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