The Best Ever CRE Show

On this episode of The Horizon, host John Chang shares key insights from his recent workshop at the Best Ever Conference about critical market trends impacting real estate investment in 2025. Chang analyzes how the new Trump administration's potential policies on tariffs and immigration could impact economic growth, construction costs, and labor markets. He explains why multifamily fundamentals are strengthening as construction pipelines drop dramatically (with starts down 75% from peak) while demographic demand drivers remain strong. Drawing parallels to previous market cycles, Chang notes that the current cap rate expansion represents only the fourth significant instance since 1992, and historically, investments made during these periods have delivered superior returns. The episode provides a comprehensive outlook for commercial real estate investors navigating political uncertainty while positioning for long-term growth.Sponsors:Vintage CapitalCapital Gains Tax Solutions Learn more about your ad choices. Visit megaphone.fm/adchoices

On this episode of the Best Ever CRE Show, host Slocomb Reed interviews James Harhi, CEO of JFH Technologies, about his unique investment approach spanning both multifamily properties and amusement businesses. Harhi shares insights on managing a portfolio that includes 600+ apartments in Indiana alongside water parks and amusement facilities in the Northeast. He discusses the financial advantages of operating water parks (projecting 300% returns over 10 years versus 12-16% annually on apartments), his "follow the deal" investment philosophy, and how he structures management teams that allow him to scale across different business models. The conversation reveals how Harhi raises 100% private capital for his park acquisitions through sale-leaseback arrangements with REITs, avoiding traditional bank financing while providing his investors with consistent cash flow opportunities.Sponsors:Vintage CapitalCapital Gains Tax Solutions Learn more about your ad choices. Visit megaphone.fm/adchoices

Stanley Stoll, CEO of Knott Laboratories, dives into the critical world of forensic engineering and infrastructure assessment. He reveals that 99% of structural issues arise from water-related problems, making early detection vital for investors. Stoll discusses the 'rule of fives,' where small preventative investments can avert major future costs. The conversation highlights the evolution of building codes, the unique challenges of retrofitting historical buildings, and stresses that moisture management should be a top priority for real estate investments.

Marcin Drozdz, managing partner of M1 Real Capital and a savvy player in multifamily development, shares his insights from navigating the commercial real estate landscape since the 2008 crisis. He highlights his strategic shift to a fund model, enabling access to significant discounts through ready capital. The conversation dives into the importance of affordable housing, macroeconomic trends, and the evolving investor relations landscape. Drozdz emphasizes transparency and aligning interests in GP/LP structures as keys to success in today's cautious market.

Arleen Garza, founder of REEP Equity, shares her journey of managing over 4,400 multifamily units across Texas. She emphasizes the power of vertical integration for improved control and resident satisfaction. Arleen discusses cultivating a positive company culture through experienced leadership and the importance of long-term family succession planning. The conversation also touches on strategies for navigating the multifamily investment landscape and the rise of Build to Rent communities, highlighting their role in providing affordable housing.

Michael Blank, founder of Nighthawk Equity, dives into the multifamily investment arena, managing over $300 million in assets. He discusses the evolution of the market since 2022, highlighting the benefits of current risk-adjusted returns with lower leverage. Blank emphasizes the significance of geographic concentration for operational success and shares key strategies for passive investors when vetting operators. Listeners gain valuable insights on adapting to market challenges and making informed decisions in real estate syndications.

Grant Reigner, founder of Peak Three Properties, shares his journey from small residential investments to commercial multifamily success, focusing on Indiana markets. He details acquiring a 41-unit apartment in Kokomo, utilizing creative financing methods like seller financing. Grant discusses the challenges of a nine-month closing and an unexpected boiler failure. He emphasizes the importance of secondary market selection, value-add renovations, and building contingency funds to navigate uncertainties in the leasing market.

Joe Fairless, co-founder of Ashcroft Capital, oversees $2.8 billion in assets and shares his insights on navigating commercial real estate. He discusses capitalizing on opportunities amid market distress by strengthening lender relationships. With record apartment absorption rates and a decreasing construction pipeline, Joe highlights how these factors create unique buying opportunities. He emphasizes 'extreme ownership' in investor communications during tough times, revealing lessons learned from past deals and the importance of transparency in decision-making.

Casey Mericle, a savvy commercial real estate investor, joins the conversation to share his creative financing techniques. He discusses the art of seller financing, showing how to secure properties at higher prices while creating favorable terms. Mericle reveals strategies for helping 1031 exchange investors find temporary parking for their funds. He also dives into the nuances of deal structuring, emphasizing win-win negotiations and leveraging lower interest rates to boost cash flow. Get ready for a treasure trove of insights that could elevate your investment game!

Anderson Morgan, an expert in multifamily and commercial real estate development, shares his insights on a historic theater renovation in Ohio's Bridal District. He discusses the complex construction challenges faced and the crucial partnerships with local authorities for tax incentives. The conversation delves into effective market analysis for unit pricing and mix, emphasizing the importance of public-private partnerships. Listeners gain valuable strategies for navigating high construction costs and revitalizing neighborhoods through adaptive reuse.