Podcasts about elevate capital

Forging Great Companies With Venture Capital! Join me and my guest Nitin Rai, Founder and Managing Partner of Elevate Capital (elevate.vc). Launched in 2016, it is one of the first institutional inclusive venture funds in the US that invests in diverse and underserved entrepreneurs nationwide. More than 62% of Elevate Capital's investments are in women, 52% in African Americans (the majority are women), 67% in founders of color, 10% LGBTQ+, 10% veterans, and 5% Latinx founder/CEO-led startups. Since 2016, Elevate Capital has invested over $45 Million in 58 startups, of which 95% are led by diverse founders. Learn more about your ad choices. Visit megaphone.fm/adchoices

On this episode of Investor Connect, Hall welcomes Nitin Rai, Founder and Managing Partner at Elevate Capital.  Located in Hillsboro, OR, USA, Elevate Capital is a Diversity, Equity, and Inclusion focused fund that invests in US-based early-stage startups led by underrepresented entrepreneurs, including women, BIPOC, LGBTQ+, and veterans. Launched in 2016, it is one of the US's first institutional inclusive venture funds. It includes three funds: Capital Fund I and II, and an Inclusive Fund, a pre-seed and seed-stage fund that invests in diverse and underserved entrepreneurs nationwide.  Since 2016, Elevate Capital has invested nearly $45 million in 57 startups of which 95% are led by diverse founders. These companies have raised follow-on funding of over $280 Million, with a market cap of more than $1.2 Billion and created more than 1,000 jobs. These companies also report 50% of their employees as diverse. Nitin is a highly successful software technology leader and entrepreneur turned Venture Capitalist. Nitin is the Founder and Managing Partner of Elevate Capital. Nitin serves as a board member on many of Elevate Capital's portfolio companies.  Nitin is also a successful entrepreneur. He started his career in Silicon Valley as an engineer at two startups. In 1994, he founded First Insight Corporation, a highly successful electronic health records (EHR), practice management, and ophthalmic image management software company, and a revenue cycle management service (Fast Pay Health) for eye care professionals based in Hillsboro, Oregon, and Pune, India. First Insight is a leader in the optometry, ophthalmology, and optical software industry with its flagship store, MaximEyes.   Nitin shares his background as an immigrant from India and his journey as an entrepreneur before starting Elevate Capital. Nitin highlighted the challenges of starting a VC fund in the current economic climate and the limited availability of institutional capital. He also talked about the opportunity to start a VC fund and Elevate Capital's hands-on approach in supporting portfolio companies through board seats, advisory roles, fundraising assistance, and strategic guidance in strategy and go-to-market plans. Visit Elevate Capital at or follow Elevate Capital on , , and . Reach out to Nitin at , , and on _______________________________________________________ For more episodes from Investor Connect, please visit the site at:    Check out our other podcasts here:   For Investors check out:   For Startups check out:   For eGuides check out:   For upcoming Events, check out    For Feedback please contact info@tencapital.group    Please , share, and leave a review. Music courtesy of .

The state prefers selling stakes in state-owned companies to strategic investors over public share sales, Prime Minister said. He added that the government has a clear plan for securing US dollars for a year. He declared that Egypt can sell stakes in companies outside the list of 32 announced earlier.Egypt is expanding the number of ways to acquire citizenship.Ministers approved the latest round of social support measures aimed at mitigating the impact of inflation. The program will raise public-sector wages and pensions and provide tax relief by raising the income tax exemption threshold starting April 2023.Bread and food subsidies are costing the government an extra EGP54 billion, and it will pay out EGP45 billion in fuel subsidies, the Prime Minister said.China Energy could start working on a USD5.1 billion green hydrogen facility in Egypt in May.Balance of payments surplus reached USD523.5 million during 1Q22/23 supported by a 20% decline in current accounts. Trade deficit declined by 18% to USD9 billion due to a 5.1% increase in non-petroleum exports coupled with a 9.9% decline in imports. Goods exports increased by 12.6% to USD10 billion. External debt declined by 0.05% to USD155 billion at the end of September 2022. Foreign investments in T-bills increased by 24% MoM to USD8.04 billion in December.The CBE did not introduce new ATM withdrawal fees, putting an end to rumors that it raised withdrawal fees to EGP20-50. CBE has issued new regulations allowing contactless card payments via mobile apps. Banks are expected to roll out the services to support these payments soon.Brent crude futures shed 3.4% to settle at USD83.29/bbl.EGX head announced a plan to list a new oil services company on the EGX during the coming month.We remind you that EGTS's next court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is, if not further postponed, on 11 March 2023.Elevate Capital's healthcare investment platform is looking to acquire a 70-80% stake (not 100% as reported yesterday) in Nile Scan & Labs.Scope, Oxide Chemicals, and Vacsera will set up a JV to build, manage, and operate a factory for biodegradable syringes and other medical supplies. The factory will be built at a cost of USD10 million at Vacsera's industrial complex.PerkinElmer and HVD Life Sciences Egypt will partner with the government to build a beta thalassemia screening lab.Infiniti Company for Vehicles Manufacturing intends to manufacture cars locally by investing around EGP1 billion, with the aim of starting production in 3Q23.

Have you ever wondered what it's like to take on property management in its entirety? Jorge Abreu of Elevate Capital shares his journey from single-family deals to multi-million dollar multi-family properties while building his own efficient business ecosystem. Jorge is a multi-faceted businessman with extensive experience in single-family, multi-family, and ground construction. With over 16 years of experience behind him, Jorge is now the Managing Partner at Elevate Commercial Investment Group and the CEO of JNT Construction. Jorge walks us through how Elevate finds and manages optimum deals, minimizes market risks, and works with the people involved in every step of the process. We also dabble into Jorge and his team's specific challenges regarding property management, particularly the multiple approval processes involved. KEY TAKEAWAYS 1. Some developers are not good operators. 2. Focus on the things you can control. 3. You might not realize you are paying for certain expenses when you have a third-party manager. 4. Hiring people with the right experience to take on the load can help smoothen the transition to full property management. 5. As an entrepreneur, you have to learn when and how to pivot when things aren't working out. LINKS https://www.linkedin.com/in/jorgelabreu https://www.elevatecig.com/ INVESTMENT OPPORTUNITIES Want to invest alongside Reed? All investments are 100% PASSIVE. Historical returns to accredited investors have ranged 18-31% annualized! To find out more, head on over to… www.reedgoossens.com

Bill Fairman 00:00:00 Oh, see that. Hey, welcome back. We are going to talk about scaling responsibly. One of the things that we run into is, should you scale in a coming downturn? Absolutely. You have to scale responsibly. We're gonna talk about that right after this.   Bill Fairman 00:00:37 Welcome. We're back here with our take two or question 2.0 with Hunter Big to elevate capital. We're gonna talk about scaling responsible respons. Sorry guys, I'm actually out of town right now, so I'm a little sluggish. Let's get started off with a little bit of housekeeping. Thank you so much for joining us on the Real Estate Investor channel, Hard Money for Real Estate Investors. We are Carolina Capital private lenders in the southeast for real estate professionals. If you have a a project you want us to take a look at, go to carolina hard money.com and click on the Apply Now tab. If you are a accredited investor and you're looking for passive returns, click on the accredited investor tab. Don't forget to like, share, subscribe, Hit the bell and don't forget about Wednesdays with Wendy. Wait. Oh wow. That was quick. That was a nice one. Yeah. Yeah. Wendy, excuse me, gives 30 minutes of her time per person on Wednesday afternoons to talk about real estate. There's the link. It will be in the chat side to the right side of the page or underneath, depending on the pro, excuse me, platform you're viewing us from.   Jonathan Davis 00:02:03 You good there? Yeah, you got all about It's   Bill Fairman 00:02:06 Alright. It's a lot of loans.   Jonathan Davis 00:02:07 It's alright. But yeah, no, Wednesdays Wendy's a great thing. If you want to join on the calendar link, you can do that. You will get something from it. I guarantee you. She has a lot of experience and she will tell you she's made a lot of mistakes. So learn from her mistakes.   Bill Fairman 00:02:24 And before we get started, I wanted to mention the Quest Expo was awesome. If you, you guys didn't get a chance to go, I think you can still purchase the videos from all the speakers that were there. It was excellent event. I think there were over almost 900 people, I   Jonathan Davis 00:02:44 Think 857?   Bill Fairman 00:02:45 Yeah. Yeah. Okay. Well that's close enough to nine. Yeah. Thanks for being so exact.   Jonathan Davis 00:02:49 It's my job. It's his job. Yeah.   Bill Fairman 00:02:52 But there was great information. Excuse me, If you have a self-directed ira or if you don't know what a self-directed IRA is, then there's plenty of implication for that. If you want to go to quest trust.com, all the information is free, so check it out.   Jonathan Davis 00:03:11 Excellent. So we wanna talk about scaling or responsibly. Yes. And what the heck does that even mean?   Bill Fairman 00:03:19 Well, it means getting either bigger or we're Okay. I promise I wouldn't say this, but it's about cleaning your fish.   Jonathan Davis 00:03:28 No bad joke. Yeah, yeah, yeah. But no. So we have Hunter on here with Elevate Capital and since February of 2018, him and his partners have been investing into multifamily in primarily North Carolina.   Hunter Bick 00:03:44 Oh, actually all North Carolina. All   Jonathan Davis 00:03:46 North Carolina. Okay.   Hunter Bick 00:03:46 We looked elsewhere, but   Jonathan Davis 00:03:47 Yeah, you like North Carolina. So they have went from zero doors to several hundred in that time, you know, timeframe.   Hunter Bick 00:03:57 500 ish.   Jonathan Davis 00:03:58 500 ish. It was more, But you just sold 120, didn't you? We did, yeah. Yeah. So they were over 600. So they have scaled in that time period from Jan, from February of 2018 to now on several hundred doors. And to kind of wanna just pick your brain on, what was your thought process like? You know, when you were looking at this, what, like, did, did it feel too much, too little or kind of how, how did you look at adding to your portfolio?   Hunter Bick 00:04:30 Yeah, that's a good question. You know, we kind of, we, we, we've always kind of taken the approach where if this deal makes a lot of sense and we think the upside is large, it's our job to figure out how to get it done. Sometimes that meant buying four things at once. Like there was a day we actually closed 200 doors in one day. Wow. There are other times where maybe we go several months without putting anything under contract. But the va, we knew the value was the value and we were always really confident when we thought we had a really great deal under contract, we had to figure it out. Our approach has typically been, you know, we found so many great deals off market that our approach has typically been how do we keep as much equity as possible? And that often meant hard money, hard money, maybe a debt stack, maybe some investor capital, whatever it was that we needed, we were going to do it.   Hunter Bick 00:05:27 But the first choice was always keep all the equity with a, with high leverage because we knew we were gonna add the value so quickly that we could refinance into permanent debt in six to 18 months, depending on the deal. And, and so the higher leverage was not for us was, was not risky or not scary because we knew it was gonna be very short term and we knew the value was gonna be there. Yeah. And so that's how we've done a lot of our deals. You know, you get to a certain size and, you know, you see more opportunities. And so we are, we are looking, we are kind of getting to the point where we're gonna be taking more passive investor capital to do some of those, some more deals. You know, we do think we're gonna see some really good opportunities here in the next 12, 18 months. I agree. We're getting positioned for that and create a little more, you know, a predictable type of, you know, capital process. Yeah. You know, and with higher interest rates, it's a little trickier these days to count on low interest on a per, on a per loan 12 months from now, which   Jonathan Davis 00:06:31 Is more reason why Yeah. You win when you purchase it. Right?   Hunter Bick 00:06:34 Absolutely. Yeah, absolutely. You know, and so obviously the, the lower the basis, the, the more money you're gonna make and it really is that simple.   Jonathan Davis 00:06:44 Yeah. I wanted to go back, you mentioned debt stack. So for everyone that doesn't know what debt stack is, you have your primary, like first lean position loan, which would be, you know, just your, your, what you would normally get. And then on top of that, you can get mezzanine debt, which can be secured by a second lean or it could be unsecured. And then on top of that you can give up. You, you have equity and then there's multiple levels of equity that you can give up and that just gets, you know, higher and higher. So that's, that's what a debt debt stack is.   Bill Fairman 00:07:17 I I call that a wallet full of credit cards. That's my   Jonathan Davis 00:07:21 Well, and that's how a lot of people   Hunter Bick 00:07:22 Use a lot of those on the way too.   Jonathan Davis 00:07:23 Yeah. That's how a lot of people do this. I mean, like, when you're buying five, 10, 20 million properties, like no one's really using their own money to do that typically. Now they might use some of their money, but typically people don't have $5 million to just say, Hey, let me put it here. And because that, you know, even if they have $5 million, you wouldn't do that. So you want to stack your debt with, you know, mezzanine or, you know, whatever the case may be. A as Hunter said, like their, their whole goal has been to try to avoid giving up equity and you know, why? Well, that's allowed them to capitalize on the back end, on the exit at a higher return, which then, like he said in the previous show, he took the earnings from Applewood and 10 31 them into another project. So it allowed them to buy more assets. It allowed them to scale.   Bill Fairman 00:08:22 And, and as markets change, we, we are in a higher rate environment as well as an environment where credit's gonna be a little tighter for the institutional type blenders. So you have to take on a few more equity partners in order to get these same deals done, because the fact that they're going to be a little tighter on the credit means that they're gonna lend less money on it. Yep. If you do go the mezzanine route with a larger gap or a larger percentage of that, those rates are typically a lot higher. Correct. You're almost better off having an equity partner to fill in that gap than the, than the mezzanine financing am I   Hunter Bick 00:09:04 Agree. Well, it, well, well, depends on a couple. I, I would agree or disagree depending. Right. Every deal is different. Absolutely.   Bill Fairman 00:09:12 Every situation   Hunter Bick 00:09:13 Is different. Absolutely. How long, how long do you need the Mezz debt? Right? Yeah. And or you know, if it's a longer term for construction project on a bigger asset and you're gonna, and you wanna, and your options are take some equity partners versus loaded up with 10% debt, but it's an 18 month project that 10% debt's gonna be expensive for 18 months. Right? Yeah.   Jonathan Davis 00:09:32 And so how long can you negative carry?   Hunter Bick 00:09:33 Exactly. And so you gotta, you gotta factor the negative carry in and all of that. And so equity partnerships become, they become less risk if something goes wrong, you can bring others in to profit along with you, you know, it's important to align incentives at all points, by the way. Yep. That's a huge thing for us. But yeah, so the, and the other thing too, in to your point Bill, and today, today's debt markets, even a year ago, nine months ago, you could get bridge debt for, in the fives five and a quarter, five and a half for 80% of the purchase and a hundred percent of the construction today, that quote is 75% of the purchase, 75% of the construction, and it starts with a nine, right? Like it might be nine and a half. So different types of debt are appropriate depending on the market. Hard money at what, 11, 12? Where are you guys right now? Yeah, something like that. Between   Jonathan Davis 01:10:23 10 and 12.   Hunter Bick 01:10:24 Yeah. Okay. Hard money is now all of a sudden really, really cheap because there's no alter. Well if you're gonna go 75% on bridge at nine and a half, why would you not go a hundred at 11? Like that's a no-brainer. Right. And so, not to mention you don't have the breach debt org structure and all the crap that comes with it. Yeah. So that's, you know, that's a tool that has become more attractive right now For sure.   Jonathan Davis 01:10:50 Well, yeah. When, when you break it down, I mean, someone's gonna do 75 and 75, so 75 of the purchase, 75 with a re that means you have to bring 25% of the costs of the total cost. So typically you're not gonna have that. You're gonna have to either get mezzanine debt or equity, and typically you're gonna give up equity and what is that equity gonna cost you? So when you're factoring this, you're factoring, okay, I'm paying nine for 75% of the cost and then this equity's gonna cost me X amount. And if you can get 95 or 90% loan to cost on, on hard money or private lending at 12 or 10 or whatever the case may be, when you run those side by side, a lot of times the private lending is the cheaper option in the long run. But again, it comes down to the carry. Can you, you know, is there a negative carry? Is there a lease that period? Do you have to get out all the units, you know, flushed out and then rent them all? Can you rent em them as you go? So each one is different, but I will say it debt is always cheaper than equity.   Bill Fairman 01:11:58 Well, yes, I, I totally agree with that. That's what we talk, we talk to people about that all the time. Why do you get a, a money partner who's gonna take half of your equity when you can get a hard money loan and spend, you know, five, 10 grand worst case scenario on your financing on a, on a home Yeah. Scaling. You have to have good systems and processes in place. Do you wanna absolutely. Talk about any, how you guys are doing it?   Hunter Bick 01:12:28 Sure. You know, so I mean, for us, everything starts with, you know, a goodbye. Right. And so, you know, we probably model a hundred deals for every one or two that we buy. I mean, we're super, and, and everything's off market too, so it's not like we're, you know, modeling deals that are on LoopNet or Right. Publicly listed. Like we don't bother   Jonathan Davis 01:12:47 Except that first one.   Hunter Bick 01:12:49 Well, yes, except that first one. But, you know, so, you know, so, so has to start there and like, you ha you just have to be, you have to stick your guns and you have to be super selective because it's very easy to like go through your spreadsheet model and say, Okay, well I think I can whittle the, I think I can get this rental done for 10% less and oh yeah, I think I can get 10% better on my takeout loan or a little bit better leverage. And before you know it, you've just, you know, inch your way, you talked yourself into doing a deal that maybe you shouldn't be doing. Right.   Jonathan Davis 01:13:19 You've modeled a unicorn situation that probably won't   Hunter Bick 01:13:22 Happen. Exactly. Yeah. So we try to, we always, I always try to say, I mean, everything be is a probability again, you know, so what's a range of probabilities for each piece of the process? What's the average, what's the worst case? What's the best case? And if you know, kind of that between average and worst case, if something like that still works, then it, it's, it's gonna be a great deal. If things can go wrong and you still make money, it's gonna be a really good deal.   Jonathan Davis 01:13:47 Do you, when, when you're modeling this, do you stress test them at higher cap rates on the exit? Do you, you know, like let's say like, you know, Charlotte's trading on a B level asset, I don't know, a six cap, do you stress test them at a, at a different cap rate? Or kind of what do you do to to stress test those, those models?   Hunter Bick 01:14:07 Yeah. So the way we kind of look at it, we're less worried about the cap rate because the, the, the, the end result, because we're not doing, we're not doing a new construction, right? We're, we're doing B and C value add and so on, on the takeout. If it's, if, if it's a sell, the NOI is really what's gonna matter, right? That's gonna drive it. And you know sure. If, if, if we have to have a five cap on the finished NOI in order to make any money, like no. Right? Like, I mean, come on. But, so if we're gonna make money at selling it at a seven, it's probably a great deal, right? Yeah. For us, we always wanna see what can we refinance at that? Can we do a cash out or would a refi require cash in? That's what we never want to do. Always. You always wanna cash out or cash neutral worst, you know, worst case for us. And, but the cap rate's not the constraining factor there. The, the cash flow is especially in a low cap rate market like Charlotte, right? So, you know, so yeah, we definitely look at different exit scenarios, like what happens if there's some, if the expenses are actually higher than we're projecting, what does that do to each scenario? But we always wanna have multiple exits. We don't wanna be locked into a one path.   Jonathan Davis 01:15:20 Yeah. And we, you know, for the people out there, if you're working with syndicators or other people who are doing this, you know, that's what you want to be savvy about is understanding the net operating income, understanding that there's a difference between the acquisition capital capitalization rate and the operating capitalization rate and the exit capitalization rate.   Hunter Bick 01:15:40 Yeah. Lemme talk about that real quick. Yeah, go for it. So the acquisition cap rate is I think, a huge misnomer, right? That matters a lot if you're buying a stabilized asset. Like if you're buying an A and you're buying this thing for the cash flow and you're buying it for, you know, market appreciation, call it the going in cap rate does matter. Anything else, like value add, the cap rate means nothing because the whole point is you're buying something that's already distressed. Yeah. So we've bought zero caps, like a, an empty property is a zero cap, right? Yeah. We've bought one caps because the financials were so bad, right? Yeah. That, that means nothing because all we care about is what's the cap rate after we renovate, stabilize, you know, improve the operations, What's that cap rate? Exactly. Because that's what, that's what matters. Yeah. All, all in on, all in on cost. So those   Bill Fairman 01:16:29 Of you in the single family fix and flip business, it's basically what's the place gonna be worth after the repairs your thing? Same, You're not buying a, a property because it's, it's valued at what, what it's the sales price is. That's not why you're doing   Jonathan Davis 01:16:44 Yeah. Yeah. And, you know, just to, to beat the dead horse here, I mean, we've, we've, you know, Hunter and I've had, I don't know how many hours of conversations about cap rates, but   Bill Fairman 01:16:54 I got feeling there were adult beverages involved   Jonathan Davis 01:16:57 Maybe on some of them. Yeah. Yeah. But yeah, it's like people don't understand like what's the most important, is the most important or two things, and Yeah. Excluding if you're buying like an A level asset, which, you know, like that's not what we're talking about here. It is your operational cap, right? What, what is your yield, what is your cash flow? And then what can you, what multiple can you sell that asset for? Those are the only things that matter. Not, it's like, well, I can't buy it, it's a four cap. It's like, that doesn't matter. I mean, if, if you're gonna be putting in $600,000 and raising the rents 200 per unit four cap doesn't matter.   Hunter Bick 01:17:38 Exactly. No, exactly. And that's the key thing a lot of people get tripped up on.   Bill Fairman 01:17:41 Now, as Jonathan was saying, if you're involved in a syndication, you're a passive investor in this syndication, what is it you would like more the sale of the property and get a big chunk of change at the end, or a refinance at the end of the out, and you get a big chunk of change. What's more beneficial   Jonathan Davis 01:17:59 Depends on where you are   Bill Fairman 01:18:00 To the investor.   Jonathan Davis 01:18:01 Well, it depends on what you are. So if you,   Hunter Bick 01:18:03 How good was the buy? Yeah.   Jonathan Davis 01:18:04 How good was the buy? Like, am I willing to pay the, the capital gains on the, on the sale if the buy was good, or would I rather take the no capital gains on a refinance cash out? So it depends   Bill Fairman 01:18:18 That, that was my point. If you get the same amount of money on either end, and if it's a refinance, it's tax free.   Jonathan Davis 01:18:24 Yeah. So yeah, that is true. So if you were an equity member on this property, that's, that, that refinances that is a cash or a tax free transaction that you get. But again, as Hunter, you know, pointed out as someone who does this, what am I selling it for? What did I buy it for? Right. You know, I, I might not mind to pay the taxes if it's   Bill Fairman 01:18:44 At, at the same time, if you're getting a capital gain during the process, you're probably also have some passive losses that you can also add Dang. To them.   Jonathan Davis 01:18:53 Exactly.   Hunter Bick 01:18:53 And the cash out refi for us, I mean that's, that's how we, that's along with, you know, high leverage on great deals. The cash out refi is how we got here. I mean, the cash out refi is the best thing ever. It's non-taxable. You get all this cash back as long as the property can support the new debt. And if it can't, then you haven't done your job. Right. But it's tax free dollars to go do, do go do more deals. And that's, it's, I don't know how many great cashout we're gonna see for the next 18 months, but thankfully we got most them done. But Yeah, prior to now,   Jonathan Davis 01:19:27 Not on the ones that bought Yeah. You know, Yeah. Two years and less ago. I mean, that's, that's gonna be tough.   Bill Fairman 01:19:32 I don't think the cash out's gonna be the issue. Is it, will it support the loan? New loan?   Hunter Bick 01:19:37 Yeah. Well it's, yeah. I mean, the ca you can, the cash out still exists. It's just not gonna be as good.   Jonathan Davis 01:19:41 Yeah. The, the debt service coverage ratio is gonna be a big issue for, you know, and that's just how much does gross does the property make? And then how much does it spend on interest principle taxes, insurance, and any HOA fees.   Bill Fairman 01:19:55 But it's not the end of the world either cycles or just that they're cycles. Would   Jonathan Davis 02:20:00 You say that cycles are cyclical? Yeah. Yes. Okay.   Bill Fairman 02:20:04 The lower rates will come back around at some point.   Jonathan Davis 02:20:07 Yeah. Yeah. I mean, yeah. I mean, like I said, you know, talking with different people, I mean there, there's some people who think that, you know, it's all over. It's, yeah, it's all over. And for the next 20 years it's just gonna be, you know, a blood bath. And then there's some people who think, Oh, you know, January of next year fresh start, we're gonna be great. And you know, I think neither one of those are right. I think we're between those two where exactly. You know, that's the question. But, but yeah. I mean, when we talk about scaling, like right now, in the next 18 months, are you excited about scaling or are you nervous? What's your thought process for the next 18 months? We're   Hunter Bick 02:20:47 Always excited. Yeah. You know, I think for, for different reasons, depending on, you know, what the market gives you. I mean, you have to be able to adapt to what the market gives you. Right. No one's smarter than the market, and I don't try to pretend that I am, but I do try to be prepared for different eventualities. And so, you know, right now it's harder, debt is more expensive, it's harder to get that huge cash out after the value add period. Yep. Okay. No problem. So the, the move there is probably more equity, a little less debt on, on, on the buy simply because you don't know when you're gonna be able to get to, you know, 4% per debt again. Yep. That could, that could be a while. So bringing in equity investors to participate is, is, is, is, is, it's a good way to handle that.   Hunter Bick 02:21:35 Staying, staying sticking to our guns on good buys is more important than ever. Yep. And maximizing the value of the properties. You do have, I mean, we're still an 11% rentre renting Charlotte's environment and Charlotte, even Fayetteville, seeing huge fayville, seeing huge ones. So as owners of multifamily real estate, you know, that for properties are already in low interest debt that is going to benefit us if more cash flow from those, it allows you more, you know, buffer, you can deploy that toward new deals. You just have to, you can't assume that what you did before is gonna work forever in any business. Yep. Especially this one. But you   Jonathan Davis 02:22:12 Just, you just adapt the dumbest sentence in the English language is that's how we always have done it. Isn't,   Hunter Bick 02:22:18 I think that's Oh, it's terrible. Yeah. Yeah. Like, you know, you have to, you just have to be realistic about, well,   Jonathan Davis 02:22:23 We talk about pivot, and you have to be able to be nimble and pivot. I mean, so to back up on the equity piece that Hunter was talking about, why is that so beneficial and how can that help you scale? Well, equity, true equity, if, if you're giving up equity as like a, an lp, which is a limited partnership, so you have a general, general partner, and then you have a limited partner. When people invest into multi-family as an equity member, they've become a limited partner. And the general partner is the operator would be, you know, Hunter in this case. How does that help you scale? Well, the debt is a fixed monthly or quarterly or however it's, you know, amortized, it's a fixed payment and that payment is the payment, and it is every month or every quarter with the equity, you can set a lower preferred rate of return with your equity members.   Jonathan Davis 02:23:13 Like maybe they're okay getting 4% cash flow over the life of the, the project because they're going to get depreciation and maybe that depreciation equates to an 8% return on top of the four, and that gets 'em to 12. And then there's a, you know, a backend equity piece that they get and it jumps into 20, like a 20% irr. So, you know, like there's, that's the way to do it. It, it helps you on the cash flow, it helps you manage that asset while you're working on it and while you have it in your portfolio. And it gives them a benefit, you know, they get some money, they also get a tax benefit, and then they get a back end benefit.   Hunter Bick 02:23:52 And it also allows you too, to, you know, one thing we always do, incentives are super important. You know, you want s to be a hundred percent aligned. What we typically do is, you know, we waterfall the equity, in other words, so like outta the gate, our investor would have, like, we did one where our investor had 99% of the equity until we performed. We have no problem with that because we knew we were gonna perform and then they're protected in case something goes wrong. And I think that makes a lot of sense, and we're more than happy to do that. Of course, once a threshold is met, well then the equity changes. But everyone's made their money at that point.   Jonathan Davis 02:24:23 And so, and anyone out there syndicating deals right now where you're an lp, is your GP willing to give you 99% of the, the equity until they perform? If they don't, maybe you should visit elevate capital group.com. Appreciate,   Bill Fairman 02:24:40 And keep in mind too, multifamily is vet as recession resistant as you can find. It's residential in any economy. Again, you need two things, food and shelter and   Hunter Bick 02:24:51 The foreclosure rate for B and c multifamily in peak financial prices, 2009 was less than 1%. I mean, yeah, that's, yeah, that's about as good as it   Bill Fairman 02:24:59 Peak need a place to live.   Hunter Bick 02:25:00 Nothing is bull, nothing is perfect. But yeah, multifamily, real estate's pretty   Jonathan Davis 02:25:04 Resilient. 1%. And you'll, you'll play those all the time,   Hunter Bick 02:25:06 All   Bill Fairman 02:25:07 Day long, just like the base.   Hunter Bick 02:25:08 Exactly.   Jonathan Davis 02:25:09 Yeah.   Bill Fairman 02:25:10 All right folks, thank you for joining us on the Real Estate Investor Show. We are Carolina Capital Management lenders in the Southeast for professional real estate people's. If you have a pr, if you have a project you'd like us to take a look at, go to carolina hard mini.com, click on the plan out tab. If you are a passive investor looking for passive returns, go to the Accredited Investor tab. This is a great show. Thanks again, Hunter, for being our guest today. And we guys, we, we will see you next week. Thanks.

https://youtu.be/YmfjzV0YiwI Bill Fairman 00:00:01 Not this time. Oh, we're on now. What a surprise. So there's been a lot of discussion about how to get into markets that are not overpriced. So we're gonna do a show today about finding emerging markets, and you will get that information right after this.   Bill Fairman 00:00:44 Good afternoon everyone. It's Bill and Jonathan and or special guest hunter. But we were, we were gonna tease him in, but too bad he's already here. Thank you again for, well, not again, but thank you this time for joining us on the Real Estate Investor, Show Hard Money for Real Estate Investors. We are Carolina Capital Management. We are a private lender for real estate professionals in the Southeast. If you have a project you'd like us to take a look at, please go to carolina hard money.com and click on the apply Now tab. If you're a passive investor looking for passive returns, click on the accredited investor tab. Don't forget to like, share, subscribe, hit the bell, all that good stuff. Excellent. And don't forget, Hey, Brian. What? Oh, Wendy. Wendy. Don't forget about Wednesdays with Wendy. She, and yes, I will talk right through the graphics. Anyway, Wendy devotes 30 minutes per person on Wednesdays that wants to talk anything about real estate. So there's her link. It will also be on the comments and chat section on the right side or underneath, depending on the platform that you are viewing us from. She usually gets booked out about two months in advance. So book your spot now   Jonathan Davis 00:02:16 For everyone out there wondering. I'm six foot two hunter's, just seven foot.   Bill Fairman 00:02:24 Yeah, I'm   Jonathan Davis 00:02:25 Just sure. I'm trying to keep my head in the   Bill Fairman 00:02:26 Frame for you. I can go ahead and admit that I'm vertically challenged. Oh, that I don't have an issue with that. No. So yes, we have our, our guest Hunter B he is with Elevate Capital. We have what about a three year history? Guess? 4, 4, 4   Jonathan Davis 00:02:45 And a half. Four and a half year history.   Bill Fairman 00:02:47 It's a great story. We're gonna let him tell it instead of me or Jonathan tell   Jonathan Davis 00:02:52 It. Yeah. And before he tells that, I just wanna get some quick information in for everyone. Just want, this was some data that we have that will kind of lead into what Hunter's gonna talk about, but also about the emerging markets. We are, this is what, the third month in a row where we've seen rents slow, but they are still rising. Charlotte is kind of, I think in the top seven on still rent increases, which is 11.5% year over year. The median rent in Charlotte right now is almost $1,800. And if you've followed the show, you also know that the median house payment for a mortgage is 18, 18 50. So they're, they're right there with each other, which is, you   Bill Fairman 00:03:49 Know, that means there's room to grow.   Jonathan Davis 00:03:50 I suppose so. I suppose so. So we're also seeing, give me a second.   Bill Fairman 00:03:57 No issues.   Jonathan Davis 00:03:58 We're also seeing a slow down and starts on single families and a slow down and starts on multifamily. However, construction that is in process is up on multifamily by 27% and up on single family still by 4%. So we're still seeing, you know, there's still growth, but we're next, you know, Hunter and I were talking a little offline a little earlier, and you know, as the next month and, and two months comes in, we're gonna see that decline and that slowing down hit even harder and boasted because of the interest rates. Supply chains, picking up lumber, you know, as we were talking about earlier, as, you know, back to pre pandemic levels, which is good. So also if the, if you're in the way of the hurricane, we're very sorry. I think, Bill, did you lose a home?   Bill Fairman 00:04:51 Well, yeah, that's what I was gonna jump in into before we got too, too far into this that you guys pray for the folks in Florida, we have some short-term rentals down there, but we don't live there full time. So it's not affecting us like it would the people that live down there full time. And there are people that are missing as well. So keep 'em in your prayers. It's gonna be a while to recover where it hit the hardest. Yeah. That said, starts almost always do this when there's a coming recession.   Jonathan Davis 00:05:24 Exactly.   Bill Fairman 00:05:25 People are being a little bit more cautious. Banks are kind of holding off on commercial and residential development because through every downturn, or we'll just call it a crash. Yeah. What's the first thing that goes under? And it's the start of a development. Exactly. So it, it, here's the problem though. We're still 5 million homes behind where we need to be based on the population growth. So all it's gonna do is increase demand for what's out there. Yeah. Right. Yeah.   Jonathan Davis 00:05:57 Well, talking about increasing demand, want, you know, get Hunter talking here. We wanna know kind of, you demanded each stop by we demand. So wanting to know kind of how you all got started, What was the first project, and then just kind of take us through and, you know, I'm sure Bill and I will interrupt and jump in from time to   Hunter Bick 00:06:17 Time. Okay. So like the three to five minute version, not the 20. Hey, you   Jonathan Davis 00:06:21 Take all the time you need. We're on your time, man. Yeah.   Hunter Bick 00:06:23 All right, cool. So we kind, we, our, our partnership Elevate Cowboy Group got started really, we started 2017 ish, mid 2017. And one of our partners, it was high school, buddy of mine, his name's Matt. And then we met our third partner, Shannon, pretty shortly thereafter. And we just really clicked really well. And you know, we at the time, even, even now, but like the, the whole idea is effectively we do is value add multifamily, where we can go in, find something that's underpriced because of distress or a bad rent roll or whatever it is. We can go in, renovate, improve the quality of life, improve the asset. And   Jonathan Davis 00:07:06 You pulling those off with mls, right?   Hunter Bick 00:07:08 No. Now the very first one had been on LoopNet, believe it or not, our very first deal was in an emerging market. So good segue. Yeah. In Fayetteville, North Carolina. And it had been on loop net, we made an offer, didn't get it, came back to us a few months later, fell out a contract and it was $2 million for 56 doors in Fayetteville, which in today's world would be Absolut absolutely unheard of. That was, and that was in   Jonathan Davis 00:07:33 2018.   Hunter Bick 00:07:34 It was 2018. And at the time, everyone told us we were idiots for wanting to buy anything in Fayetteville, and we'll get into that in a minute, but they were wrong. And so we had an appraisal for this property and we had like a hundred grand to buy an apartment building. And we had an appraisal, said it was worth two and a half million. And Shannon and I were talking about it, We were like, Well, why don't we put hard money on it? So we came down here to Carolina Hard Money, aka Carolina Capital Management now, Excuse me. Yes. Yep. And showed you guys what we had and you guys got it. And that's what helped launch us. We wouldn't be here today without, without that first deal and all the other ones we've done together and, and you guys gave us a hundred percent of the purchase and some rental money five months later, that thing appraised for 3.3. Yep. And we did a cash out. I think our new loan on it was two and a half, maybe paid you guys back, took some cash out to put towards future renovations. And that's kind of how we found our model. It's basically like a leveraged buyout private equity type model. Yeah, we've done that. We've done what, 20 deals now? We've done most of them in some similar structure. I was gonna say on this first deal. Yeah.   Bill Fairman 00:08:55 It was based on market conditions. It was pretty much fully occupant, right?   Hunter Bick 00:09:00 Yeah. It was like 85 something.   Bill Fairman 00:09:02 Yeah. And while it, there might have been some updates that could be made. It wasn't that it was in bad shape, it was just outdated. Right? It   Hunter Bick 00:09:13 Was, it was compared to some of the stuff we've seen, it was not in bad shape. Yeah. It, it definitely needed some deferred maintenance. It had some issues. The that one though, the, the income statement was where lot of the value add was, right? Like the expenses were off the charts. Like the previous owner was, this is not, this is no joke. He was spending $400 a month to lease a copy machine. Why on earth does an apartment comp? First off, you could buy one for half of that. Second of all, what is an apartment comp? Like what is it like, why would that be on an apartment complex as   Bill Fairman 00:09:45 Books? Right? It was installed in a new car. That's the difference.   Hunter Bick 00:09:48 It must have been. Right. And so, you know, we knew enough to say, okay, 400 times 12 is $4,800 a month, $4,000 a year to divide that by, at the time it was like a seven cap. I mean, the math on that is big money on the valuation. And so we, we, we fixed a lot of stuff like that.   Jonathan Davis 01:10:09 And that's, you know, just, just to jump in. I mean, when you're looking at these that it's not what you can increase. Everyone thinks what can, you know, what's the rents that I can increase, You know, and under market rents. That's, that's, you know, a great way to look at it. However, this particular asset that when I was underwriting it, it was actually the, you know, when I joined with Wendy Bill, this was the first multifamily that I under underwrote for them. We could see immediately there was exorbitant amount of expenses on there that shouldn't have been there, that created hundreds of thousands of dollars of value once they just removed them.   Bill Fairman 01:10:44 No. Now on, I was gonna say on the reverse side of that, if your brother-in-law is gonna be able to do stuff a lot cheaper than the market Yeah. That's not gonna count than the valuation. So something to keep an eye on when you're looking   Jonathan Davis 01:10:57 At these things. Yeah. You can't say like, you know, well my expense ratio is gonna be 20 when market's 35. Right. You can't say that.   Hunter Bick 01:11:04 No. I mean, you can, but no one's gonna believe you.   Bill Fairman 01:11:06 No   Jonathan Davis 01:11:06 One no, no price's   Hunter Bick 01:11:07 Gonna use that. Yeah, no, no. Good lender will buy it. Yeah. Yeah. And so, you know, the commercial real estate is valued on the operating income, the, the, the net operating income, the noi, and that's the game. And depending on the deal, it could be that could be through, you know, buying an empty property and fixing it and, and leasing it to market. It could be cutting expenses from mismanagement. It can come in many different ways. Yep. And you know, a lot of 'em, the CapEx, some of them need so much CapEx that doesn't generate revenue. Like we looked at one where capital   Jonathan Davis 01:11:40 Expenditures, things that you have to do to the property is what CapEx is. Yeah.   Hunter Bick 01:11:45 Thank you. Yes. And so, but there's different types like roofs, structures,   Jonathan Davis 01:11:52 Hvac,   Hunter Bick 01:11:52 H H V C   Jonathan Davis 01:11:53 Sales things don't add value because people expect a roof and they expect, you know,   Hunter Bick 01:11:57 Exactly. A lease is a two-way document and these things are supposed to work per your side of the leasing, the lease contract. And so you don't get bonus, you don't get anything for that. But if all of the, all of the CapEx that a property needs is unit upgrades or improving the landscaping or the curb appeal or things like that, those things drive value immediately. And that, and so you ideally you want properties that have new roofs and new parking lots and don't need structural work. Yep. And you can just go renovate doors. Now all your CapEx money is going to where it makes the biggest difference. Yep. And so you can see any combination of that. Some, you know, some deals work, some people don't. But you know, that's definitely something to, to look for.   Bill Fairman 01:12:41 And and your typical business model is essentially whatever the, the best deal is. Right. It's not just about buying hold, it could be buy or renovate and sell at the same time, depending on the high   Jonathan Davis 01:12:55 Best use for the   Bill Fairman 01:12:56 Property. Cause there could be some great offers that are coming in. Yeah,   Hunter Bick 01:12:58 It could be. Yeah. You know, when we go in, we, we don't want to be married to a particular exit strategy. Sure. You know, and so if, if the deal only works, if we can turn around and sell it in a year, 18 months, probably not gonna do it. Right. There have been a couple, there would, I can think of a couple exceptions to that, depending on markets and different types of assets. But in general, like, you don't wanna be locked in to one path because if that one path doesn't work and you're gonna, if if it doesn't work and you're gonna lose money, that's tough. That's not a situation you wanna be in because real estate's illiquid, it's expensive to sell. You don't wanna be in a situation where path A you lose X and path B you lose X times two. That is not a situation. Our job, my job is to keep us outta that situation. Right. So everything we do, we wanna be able to have the option to refinance it. Yeah. We   Jonathan Davis 01:13:48 Sell it. Absolutely. Yeah. That's, we talked about multiple exits always. So why, why is Hunter here on this show for emerging markets? That's because when I talk with him and his partners, what's really important and what they're really good at is sourcing deals and underwriting deals. So much so that like, you know, in 2018 they were, you know, in Fayetteville before a lot of people got into Fayetteville. And what we want to talk about is, Hunter, what are some of the metrics that you look at when you're underwriting a, a project or a property and maybe it's in a, you know, a market that you're not familiar with or you're thinking about getting there, or it seems like it's a great deal, but, you know, what are the metrics you look at for those particular markets?   Hunter Bick 01:14:38 Sure. Yeah. So the first thing we, the first thing I wanna look at for any deal is the rent roll, right? Is I wanna know where are these rents compared to the average or median in that market, right? You look at some markets where maybe the rent roll 600 bucks, it's like, okay, well that, that could be high, that could be low. It depends on the rest of the market, right? Yeah. And so then the, you know, the, the second thing, if it's a new market, we wanna see rent to median income. Yep. Where, how low are the rents compared to the median income? And if you look at, But that only matters if you look at a bunch of other cities too, right? Everything's relative. So when we were looking at Fayetteville, for example, in 2018, Fayetteville's rent media income at that time it was like 18%. If you, Charlotte was like 32, all these other cities were like high twenties, like Raleigh times 20,   Jonathan Davis 01:15:24 They're 25 and up.   Hunter Bick 01:15:25 Yeah. Yeah. They're all 25 up. And then here's Fayville, like all the way at the bottom, like way below like every other, you know, 30 other cities. And we're like, okay, clearly the media income in Fayetteville can support higher rents, you know, in the near   Jonathan Davis 01:15:38 Future. And, and in rents to median income, it's, it's just a, a hunter's way or someone who's buying multifamily or lender. It's the same way as looking at like your debt to income. That's, it's it's the exact same thing. So kind   Hunter Bick 01:15:52 Of at scale it's   Jonathan Davis 01:15:53 Yeah, yeah, exactly. At scale. So it's instead of an individualized debt income, it's a generalized debt to income for what are the average people making and what are the average rents. Right?   Hunter Bick 01:16:02 Exactly. And so, and, and so then, so you wanna have an idea of not only where, where are rents at this particular asset, relative to this particular market, but what higher risks can this market in general support? Yeah. So that's kind of the by far away when you,   Jonathan Davis 01:16:17 When you 18% you think could   Hunter Bick 01:16:20 Rise. Yeah. Yeah, it could rise. Absolutely. Yeah. When plenty of other cities are sustaining at 30, right?   Jonathan Davis 01:16:25 Yeah. But when you see something at, at 28, you're like, hm. You know, Yeah. It might rise a little bit, but there's not a lot of potentially a lot of meat   Hunter Bick 01:16:32 There. And it may not disqualify it either because even, let's say, let's say it's a 28 or 30 for the market, but this particular asset is still $200 below the average in that market. Still a great deal. Right?   Jonathan Davis 01:16:43 Exactly. Yeah.   Hunter Bick 01:16:44 So, you know, so you wanna, you just wanna have the perspective of all that together. The other, the other big one of course is what kind of employers, what's the job base? How stable are these jobs? The case with Fayetteville and you know, we tell the story a lot, but so many people told us we were crazy to be buying in Fayetteville because obviously Fort Bragg is in Fayetteville. That is the biggest military base on the planet by far.   Jonathan Davis 01:17:10 By personnel. Yeah.   Hunter Bick 01:17:11 Yeah. By, by by count is 45,000 active duty soldiers. It is the home of the US special forces and, but then there's another like 30 or 35,000 civilian contractors that work on that base every day. So obviously that's a key economic driver of Fayetteville. No question. They also have a lot of healthcare, higher education. They have other job, the other industries that are doing well and growing. Yeah.   Jonathan Davis 01:17:37 This their support systems all around for for that.   Hunter Bick 01:17:40 Yeah, exactly. So people were like, Well, you're crazy mother, what if Fort Bragg goes away? It's like, okay. It's like, can we talk in probabilities please? Because okay, sure that might happen. But what is the probability of the US government moving the biggest military base on the planet out of fort away from Fayetteville? Why would they do that? That will probably never happen. So, I mean, I'm a former poker player, everything's a probability to me. Let's put a probability on this point. Oh oh 1% maybe? Sure. Maybe oh oh two, maybe oh two. Perfect. I can model that. Yeah. Great. I'm willing to take that chance to buy something that is half off. Yeah. That is half, literally half of what this asset is worth all day long. Yep. No problem. I'm happy with that risk.   Bill Fairman 01:18:25 Now do you still have that asset?   Hunter Bick 01:18:27 We actually did sell that one. Okay. That one we 10 31 into try house. Oh   Bill Fairman 01:18:32 Nice. Now let's start at the beginning. What'd you pay for it   Hunter Bick 01:18:37 For? For Apple Applewood. AK metal metal 0.2 million. Right. 2 million. And then   Bill Fairman 01:18:43 And you sold it, You exited for what?   Hunter Bick 01:18:45 Four three. Four four. And   Bill Fairman 01:18:47 You did that and how many years   Hunter Bick 01:18:50 Was it two years? Yeah, it was 18 months. 1818 months was 18 months was 18 months. I think it was 18   Bill Fairman 01:18:55 Months. So not a bad roi.   Hunter Bick 01:18:58 No, that's going, That's going. Yeah. I wish, you know, I wish all of them were as easy to underwrite as that one and that one, you know, our thing with FA too is like the cash on cash yield for buying doors at 40 grand a door in Fayetteville when the rents were like 700 average, the cash on cash was ridiculous. It was like almost double digits, right? Yeah. And so we were like, it is only a matter of time until bigger institutions who already love North Carolina noticed this. Yep. And these properties are gonna bid up like crazy cuz the cash yield is so good. And so we, everything we could find under, I think under 50 a door, like we bought a couple hundred doors under 50 a door and we didn't say no, whatever it was, we just, we said we had figure out to own this and that's what we did. And just a couple years later, man, I mean a hundred a door on average, I've seen things straight for 1 25 a door in Fayetteville. Like Yep. Decent bs not even a's or anything. The A is over 180. Yeah. You know? Exactly. So that did end up happening. So we were fortunate there, but trust your analysis, you stick your guns   Bill Fairman 02:20:00 As these larger markets and, and even Charlotte is not exactly a major market. It's approaching one, but it's the largest market between Atlanta and say DC Yeah, right. So we'll, we'll   Hunter Bick 02:20:13 Call it And multi in multifamily is a major market though.   Bill Fairman 02:20:15 Yeah. Well, we'll call it a major market. That said, how do you, how do you find or how are you marketing to get properties in these smaller tertiary markets?   Hunter Bick 02:20:28 Yeah, I mean really just building relationships. You know, one of our partners, you don't know Margaret, do you, We don't only do much, you know, one of our partners, his, his primary focus is, is our deal sourcing. And without, you know, we talk about this a lot, but without a deal that has a lot of money, you know, money made on the buy basically like built in equity off market has a lot of upside. Once you fix the problems, you can, you can come up with the most brilliant financial strategy in the world and you can be the best operator once you own it. You can be the best operator in the world and you can have the best construction crew in the world, but none of that's gonna matter if you overpay for a deal. Sure. Like you can't engineer your way into a great return if you're overpaying at, at the beginning. And so, but do we always   Bill Fairman 02:21:16 Say you make your money on the bank?   Hunter Bick 02:21:17 Hundred percent. Absolutely. Even   Jonathan Davis 02:21:19 In multi-family money. Even in   Hunter Bick 02:21:20 Multi-family or you   Jonathan Davis 02:21:21 Have forced appreciation because you can only force that appreciation based off of the cap rate, the capitalization rate in that area. And you can only force it to market rents and maybe slightly above. So it's, there's, there are limitations even there.   Hunter Bick 02:21:37 Absolutely. And, and so, you know, we realized pretty early we're like, look, we have to have, we have to be able to find off market deals that need a ton of work and have a lot of upside. And and that's really, that's really where it starts and makes   Jonathan Davis 02:21:52 Me think of what's, was it that one off of Arrowwood   Hunter Bick 02:21:56 Victory aka Greenwood Village Town Homes.   Jonathan Davis 02:21:59 That's okay. Greenwood. Yeah. So this was in Charlotte and what was it, 24 units, is that right? 24   Hunter Bick 02:22:07 Doors, Yeah, 24 doors. Town   Jonathan Davis 02:22:08 Homes. And   Bill Fairman 02:22:09 They were big units too. They   Jonathan Davis 02:22:11 Were, they were   Hunter Bick 02:22:11 Beautiful. It's a cool property.   Jonathan Davis 02:22:13 I'm, I'm, I'm going off here, but didn't you like, wasn't that the highest per door sale for a B asset in Charlotte?   Hunter Bick 02:22:21 I believe it was. That's what the broker said. Yeah. And that was a good exit and I think those guys did, did well on the purchase. I mean it was just a rapidly improving part of town, so they hoped they did well with it. Yeah. But yeah, then we sold that in the one 30 s for   Jonathan Davis 02:22:38 One 30 a   Hunter Bick 02:22:39 Door ish. Yeah. Something   Jonathan Davis 02:22:40 Like that. And what'd you buy it for a door? Do you remember?   Hunter Bick 02:22:43 I need a lot of work. I mean we, we put in Yeah. 30 a road.   Bill Fairman 02:22:49 Yeah. You you did a lot of work on   Hunter Bick 02:22:51 That place. Yeah. Yeah. It was a total redo that   Bill Fairman 02:22:54 This place was located off the nations for road, but you had the south end was kind of creeping up towards that area and it, it was a neighborhood that was turning around   Hunter Bick 02:23:05 And that big cpcc campus right   Bill Fairman 02:23:07 Across the street from CPCC campus down there. And you guys did a nice job going in and rehabbing that place too. Well thanks. It had great large apartments. It had three bedrooms in some of 'em,   Hunter Bick 02:23:21 Didn't it? Yeah, I think two thirds of 'em were three beds.   Bill Fairman 02:23:23 Yeah. So it's, it may have been a B property to start with. When you get a lot of room like that there are, you know, larger families that are moving temporarily because they couldn't find a home in Charlotte buy because it was so hard to find inventory. And it's, that's the perfect place for people to move in to have larger families too.   Jonathan Davis 02:23:43 And when we say like, you know, A is, you know, new construction, then you have B, C, and even like D properties. So you have the, the c and D level assets, but you also have the c d level locations. So picking up a D level asset in a B location is what Hunter looks for   Hunter Bick 02:24:04 For an a   Jonathan Davis 02:24:04 Location or an a location   Hunter Bick 02:24:05 Motor landings an a location. Yeah. Dset and an A and you know, so that's, that's the best possible. The dset in the A location is like assuming the price reflects the dset, you know? Right. Yeah. That's, that's really the nice, the dream deal. And they're going Fayetteville like that where, you know, they were c minuses in an A minus location and Yeah. You know, you, you just, they'd been ignored for   Jonathan Davis 02:24:31 40 years. I mean cuz think about it. I mean we're talking about Fayetteville cuz that, you know, again, they, they got in there in 20 17, 20 18, which you know, was, you know, a couple years before I think really? I didn't see a lot of activity there until 2019 from other guys.   Hunter Bick 02:24:43 Everybody started noticing   Jonathan Davis 02:24:44 It. Yeah. But I mean you realized quickly it was like anything near and supportive to a base that has 70 plus thousand personnel on it is probably an a minus location.   Hunter Bick 02:24:57 Unless the base goes away.   Jonathan Davis 02:24:58 Unless the base goes away. Which is a, we, you know, we can see at 0.002. So,   Bill Fairman 02:25:03 And what was unique as well about his apartment complex, there was, so there was a certain number of unit units that were kind of like an Airbnb. Right. They had short term, you talking about   Jonathan Davis 02:25:12 Victory or are   Bill Fairman 02:25:13 You talking about the one in Fayetteville? Were, weren't there any furnish   Hunter Bick 02:25:16 Yeah, there furnished to bunch   Bill Fairman 02:25:17 If you had contractors that would come in and wanna stay and, and that's a perfect thing to do in some of these. Yeah,   Hunter Bick 02:25:23 Yeah. And that's not a, depending on we, our system is a lot better. We learned and we learned a ton since a couple of these man, I would love to go back and do 'em again. Yeah. Just cuz like we always learned. I know right. What we do for some of our properties now that are in decent proximity to Fort Bragg, what we do is our property manager has like a, like a furniture rental place and we actually rent the furniture for whatever it is and then charge, you know, upcharge on that to the tenant. That way we don't have to be in the furniture storage, furniture maintenance business. That's a nightmare. So anything, we always look for ways to like smooth out the logistics. You make a little bit less money, but it's more worth Yeah. You make it back in the time.   Bill Fairman 02:26:01 Nice. Absolutely   Hunter Bick 02:26:02 Damage.   Bill Fairman 02:26:04 Get   Jonathan Davis 02:26:04 A question real quick.   Bill Fairman 02:26:05 Yeah, go ahead.   Jonathan Davis 02:26:06 Yeah, let's throw up the question of the week guys if we could. It's got it. All right. So the question of the week is, we want to know what metrics do you look at to identify emerging markets? I know we, we talked about, you know, the, the average rents, the median income. We also look at, you know, migratory patterns. We're looking at, you know, what are some other metrics that you all   Hunter Bick 02:26:38 Look at Who, who the employers are, the employers state, How stable are those jobs? Yep.   Jonathan Davis 02:26:42 Yeah. Is it, is it a medical or a base or is it, you know, a telecom service? You know those, those have different weights to them. Education's good. Yeah. A lot of people work there. It's stable. Yep. Yeah. So what metrics do you all look at to identify emerging markets that we didn't list or maybe something we did list? And you have a better explanation than we do.   Bill Fairman 02:27:05 I will say that North and South Carolina, both are a bunch of medium size cities or are a little smaller than medium size city. We have large populations in both states, but they're not, it's not like Atlanta where Atlanta covers most of the states.   Jonathan Davis 02:27:21 It is Georgia. Exactly.   Bill Fairman 02:27:24 So there's a lot of opportunities spread out all, all throughout the southeast really. Yeah. So yeah. Answer that question. Put it in our, our chat. We'll keep up with and we'll talk about it next week. I hate to do this. We're running out of time before   Jonathan Davis 02:27:40 We run outta time. I have one more thing. It surprised me. It was a metric that I read this morning that surprised me. One like in multifamily starts, the northeast has seen an increase year over year that I did not I, and in a 4.6% increase in multifamily starts Wow. In the northeast. It's only beat out by the south, which is at 5.6, which, you know, every other region is actually declining but the northeast is increasing. I and but we expected the south to, but I didn't expect the northeast,   Bill Fairman 02:28:13 I, I'm wondering if you dig deeper, are those areas that are further outside the larger cities? Cuz people wanted to be a little bit more into the suburbs and there wasn't enough single family housing to support those people have   Jonathan Davis 02:28:25 Remote work, they want more space nexts. They can maybe.   Bill Fairman 02:28:27 Absolutely. All right. So folks, I know we had a great time and but it ran out quickly. So thank you so much for joining us. And Hunter, thanks for being a guest. Thanks for having me. We are Carolina Capital Management. We are lenders in the southeast for professional real estate individuals. If you want us to take a look at one of your deals, please go to carolina hard money.com. Click on the apply now tab. If you are a passive investor looking for passive returns, go to our accredited investor tab. Don't forget to like, share, subscribe, hit the bell. And don't forget about Wednesdays with Wendy. We'll see you next week.

In this episode, we sat down with Cindy Adam, Co-Founder & CEO of Choix and a nurse practitioner. Choix is a telehealth clinic offering abortion care and sexual and reproductive health care to patients in their homes. Choix recently raised $1M in seed funding in a round led by Elevate Capital. We discussed: The recent history of abortion care in the U.S. and the legal implications of the Dobbs v. Jackson decision eliminating the federal constitutional right to abortion. The clinical background of medicated abortion care and how permanent FDA authorization for providers to mail mifepristone, the pill used in medicated abortions, enabled abortion care to be practiced through telehealth. The importance of the November midterms and potential regulatory shifts after voters express their views on abortion at the polls.

SJ Barakony is an American small business champion with a boundless appreciation for people, entrepreneurship, liberty, & lifelong learning.   He started his journey as the Education Sherpa in late 2011; over the next 9+ years, he's been offered a number of opportunities to partner with others, inc. the H7 Network; Founders Live; Economic Impact Catalyst; The Entrepreneurial Leap; Elevate Capital; BeeKonnected, & Web Strategy+   Join us for this conversation about the skills needed for the future of work, how schooling should evolve to develop these skills, and why learning needs to be customized individually.   IN THIS EPISODE, WE COVER: The skills needed for future of work are and how schools are preparing learners for it How schooling should evolve to meet the connection with entrepreneurship Why teaching to test, grade levels, siloing of information need to go away Customizing learning based on locality and decentralization The dangers of expertism/credentialism and what the alternative could be The kind of leadership, autonomy, and customization needed for the future of “school”   RESOURCES AND LINKS MENTIONED IN THIS EPISODE:   Connect with SJ on LinkedIn and Instagram Send SJ an email at sj.barakony@h7network.com or give him a call at 740-206-8844 Visit www.delawareentrepreneurialcenteratowu.com/expert-corner/ and www.everythingdisc.com/sbsl-education to learn more about SJ and his work Learn more about Rebel Educator, explore our professional development opportunities for educators and students, sign up for a webinar and check out our project library Visit us at UP Academy to learn more about our personalized and inclusive learning environment Connect with Tanya and UP Academy on LinkedIn, Facebook, and Instagram and learn more about her journey here   We'd love it if you could take a few minutes to fill out this survey to let us know how we can bring you the best possible content:  https://forms.gle/JcKHf9DHTZnYUmQr6    Enjoying the show? Leave us a rating and review and help more people find us! https://bit.ly/RebelEducatorApplePodcasts    Interested in being on the Rebel Educator podcast? Fill out this form and we'll reach out to you if we think you'd be a great fit for an upcoming episode. https://forms.gle/zXR2KGPK3WEmbrRZ6    Want to learn more about opening your own UP Academy? Check out the Rebel Educator Accelerator: https://www.rebeleducator.com/courses/the-accelerator   MORE ABOUT THE REBEL EDUCATOR PODCAST: In each episode of the Rebel Educator podcast, I deconstruct world-class educators, students, and thought leaders in education to extract the tactics, tools, and routines that you can use as teachers and parents. Join me as we discuss how to shift the classroom, the learning environment, the mindset, and the pedagogy, to resist tradition, reignite wonder, and re-imagine the future of education. This podcast is dedicated to all of the educators who work thankless hours to make our next generation the best it can be.  It was designed to begin conversations on how we can redesign education for the future of work and the success of our students.  It is meant for teachers, students, administrators, homeschoolers and anyone who interacts with and teaches youth.

How was your week? Have you taken any steps to help yourself grow? Have you made any daily habits that have helped you progress? This week has been quite eventful! However, landings can only propel us back up and further. It's just a matter of HOW you're going to do just that. In this episode of the Compression Podcast, we acknowledge the losses, celebrate the triumph over adversity, and discuss the practical lessons learned. Lastly, if all that wasn't enough progress, we've hit $68.2 Million! One intentional day at a time, that's how we're doing it. This is not one you want to miss, so make sure you tune in! Let's elevate, let's overcome, let's compress. Topics talked about in the episode: Intro (0:00) Podcast starts (1:05) Does the weather affect how the day is going to be? (1:18) This week's agenda (5:06) This week's achievements (7:31) Replacing Netflix with a meaningful conversation (9:17) New marketing director is crushing it! (11:06) Investor Relations Assistant for hire (12:46) Weight loss update: back on track! (13:57) Insperity for employees (15:08) ‘Read and level up' (17:58) Mentoring with Ryan Smith of Elevate Capital (19:59) FTW's first sale! | New office space (23:16) This week's losses (24:33) Lack of preparation | What could've been done (24:35) Property management can be challenging (26:29) The importance of contingency plans (29:08) This week's learnings (31:12) The market is changing (32:29) What can I do to rise even higher? (37:24) Developing new habits for growth (39:40) Taking the time to expand your network (42:06) What your target audience needs (49:56) The Secret Sauce (52:11) New fitness habits (54:32) Conclusion (1:00:11) Outro (1:04:13) We are calling you to action! Share with a Friend Compression Facebook - https://www.facebook.com/Compression-103252431648084/ Compression Instagram - https://www.instagram.com/compressionpodcast/ Compression YouTube - https://www.youtube.com/channel/UCjdZZ8qoHxK7XEeO-rM8NtQ Compression LinkedIn - https://www.linkedin.com/company/73890810/ Compression Website - https://www.compressionpodcast.com/ Compression Twitter - Coming Soon Podcast Platforms: Spotify - https://open.spotify.com/show/5ZDGMuvHrw1mSdlGu2YQ2F iTunes - https://podcasts.apple.com/ph/podcast/compression-podcast/id1547029302 Quote - “Nothing in life is promised except for death.” – Kanye West

Invest In Her host Catherine Gray talks with Anu Shukla, who has over 25 years of experience in angel investing. She personally supports and invests in women and minority lead enterprises as well as serves as a Venture Partner at Elevate Capital, whose mission is to support underserved women and minority founders in their entrepreneurial ventures ⁠ Join us on Facebook LIVE every Wednesday at NOON PT @SheAngelInvestors. Subscribe on Apple Podcast https://apple.co/3citN1I, Spotify https://spoti.fi/2ZUrFZc, or wherever podcasts are available!

Produced by Foundersuite (https://foundersuite.com/), "How I Raised It" goes behind the scenes with startup founders who have raised capital. This episode is with John Fazio of Nerd Street Gamers (https://nerdstgamers.com/), a startup creating a national network of eSports facilities, events and content. Joining John is Wayne Kimmel of 76 Capital, an early financial backer of the Company. In this episode, John and Wayne talk about the dramatic growth of eSports, his previous attempts at building a digital video network and how that evolved into NSG, how a business with multiple physical locations pivoted to a digital platform, how he landed premier investor Founders Fund, and much more. The Company recently raised $11.5 million in funding led by Founders Fund, captained by Brian Singerman, bringing the company’s total funding to approximately $25 million. Previously, the Company raised a $12 million Series A from Five Below, Comcast Spectacor, SeventySix Capital, Elevate Capital and angel investor George Miller. How I Raised It is produced by Foundersuite, makers of software to raise capital and manage investor relations. Foundersuite's customers have raised over $2.5 Billion since 2016. Create a free account at https://foundersuite.com/

2:00 - Nitin’s Purpose/Mission5:00 - Living the “Silicon Valley” lifestyle9:00 - Entering the startup space 15:00 - Becoming an angel investor 21:00 - Breaking the “very very rich” stereotype of Angel Investing24:30 - Creating a relationship with the entrepreneur 27:00 - Democratized investments, rather than family investments34:00 - Learning to not become the “bottleneck” 36:00 - Unconscious biases in corporate America 40:00 - Reckoning intentional bias in the workplace43:00 - What Nitin is most proud of LINKSNitin Rai on LinkedInElevate CapitalTiE Oregon CREDITSProduced by Kai HellbergMusic by Isaac Chambers – ‘Change’

Nitin Rai is the Founder & Managing Director or Elevate Capital, a Portland based inclusive venture capital fund.

From the Simplr studios in San Francisco, this is your daily briefing.  IntroductionWith your E-Commerce Retail Briefing for today, Monday, October 21st, I'm Vincent Phamvan.The future of Barneys still remains unclear, but a bid from Authentic Brands Group could see the luxury retailer end up in Saks Fifth Avenue stores. The plan would entail licensing the brand to Saks Fifth Avenue. Saks would install Barneys departments in some of its stores, as well as run its website.  First, here are some retail headlines.Venmo Partnering with Synchrony to Launch Credit Card  Mobile payment service, Venmo, is partnering with Synchrony Financial to launch a credit card in 2020. Venmo’s parent company, Paypal, announced the new partnership in a press release. The deal deepens PayPayl’s 15-year relationship with Synchrony and allows the bank to diversify outside the retail space. Synchrony has also co-branded credit cards with Amazon, Lowe’s, Banana Republic, and JCPenney.b8ta Announces New Conceptb8ta announced a new concept called Forum that pushes its focus beyond electronics and devices and into fashion and lifestyle. Its first Forum location opens November 15th on Melrose Avenue in Los Angeles according to a company press release. The company, which calls itself a retail as a service platform, is letting each brand partner design its own space and curate its brand experience, including product launches, community, and VIP events. b8ta leverages store design and data to showcase goods, many from little-known makers, in its own stores and in other retailers' spaces, notably at Macy’s which invested in the company last year. b8ta said it chose its Forum partners based on their focus on ethical and sustainable production, including Just Human, Tact & Stone, Poplinen, and PROCLAIM.Five Below Led Series A Funding Round for Nerd Street GamersFive Below led a Series A funding round for esports infrastructure company, Nerd Street Gamers. Five Below, along with Comcast, SeventySix Capital, Elevate Capital, and George Miller, invested $12 million in the company. As part of the deal, Five Below and Nerd Street Gamers will build 3,000 square foot Localhost spaces connected to Five Below stores and will host live, in-person events with professional-level equipment. For Five Below, the move appears to be about attracting more younger customers. The retailer’s funding of Nerd Street Gamers isn’t the only investment the company has made recently. Earlier this year, Five Below worked with BRP on revamping its in-store tech capabilities. The retailer is performing well and in the second quarter, CEO and President, Joel Anderson, said the company could open as many as 150 new stores this year.Authentic Brands Group Bids On BarneysAuthentic Brands Group, the licensing company that owns Aeropostale and Juicy Couture, has put in a $271 million bid to buy Barneys out of bankruptcy, according to court filings. The plan would entail licensing the brand to Saks Fifth Avenue. Saks would install Barneys departments in some of its stores, as well as run its website.  In bankruptcy, Barneys has whittled down its size from more than ten namesake stores to five. While experts have said Barneys’ brand in the luxury space remains strong, the future of its remaining stores has been in question. Authentic Brands would still try to renegotiate the leases for some of its best properties as part of the deal, including staying in Madison Avenue but downsize its presence. Barneys filed for Chapter 11 protection in August and a bankruptcy auction is scheduled for later this month.  Putting Barneys inside Saks would echo a move it and other department stores, including Macy’s, have taken to add variety to their shopping experiences. Saks experiments with its stores in recent years include creating wellness centers. The brand is one of the brighter spots within parent Hudson’s Bay Company’s portfolio.  ClosingWant to stand out? Simplr can help you deliver wow moments for your customers through unparalleled customer service support. Visit simplr.ai to learn more. That’s S-I-M-P-L-R.ai.Thanks for listening to the latest episode of the Retail E-Commerce Briefing. See you tomorrow. 

Shane Fleury, RICP® Chief Investment Officer at Elevate Capital Advisors is interviewed in this episode. Follow Adam on Instagram at Ask Adam Torres for up to date information on book releases and tour schedule. Apply to become a featured co-author in one of Adam's upcoming books: https://www.moneymatterstoptips.com/coauthor --- Support this podcast: https://anchor.fm/moneymatters/support

Produced by Foundersuite.com, "How I Raised It" goes behind the scenes with startup founders who have raised capital. This episode is with Allie Magyar of Hubb.me. Hubb makes an online platform for event and conference management. The Company recently raised a $6.3 million Series B led by Five Elms Capital. Oregon Venture Fund and Elevate Capital participated. In this episode, Allie talks about the Seattle, Portland, and Vancouver WA funding scenes, the difference between raising private equity vs. venture capital, build-vs.-buy decisions and when to acquire competitors, the Elevate Inclusion Summit, and much more. For more info about the Elevate Summit and venture capital for female entrepreneurs, visit https://blog.hubb.me/allie-talks-venture-capital-for-female-entrepreneurs and catch Allie's talk at https://hubb-1.wistia.com/medias/yuhk64n7ft

Dr. Walt Thompson is back! Previously a guest from podcast #63 and also the past president of the ACSM, Dr. Thompson has taken on a new role as Chairman of the ACSM Capital Campaign and shares with us the mission and impact of this project, their four pillars, and more! 

Nitin Rai, Managing Director at Elevate Capital, made a compelling case for investing in niche businesses with the upfront goal of scoring early exits. Excellent discussion!

Stephen Green is a Portland native, an organizer within the Portland startup community, former banker, economic development officer, community consultant with Elevate Capital and entrepreneur. He is also the community manager for Townsquared.com, a great new website that is devoted to and works with small businesses in communities such as Portland. The network is free and aims to help small business owners connect with their peers to share news, ask questions and be part of a larger community. PDXISH is pleased that Stephen could join us for a lively conversation about business in Portland.