Podcast appearances and mentions of hamilton zanze

After a forty-year honeymoon of plummeting interest rates, it's going to require a lot more operational skill moving forward to generate positive returns in commercial real estate. Although we're going to see increased distress over the next several quarters, operational expertise will still be required to achieve desired returns. This is especially true in multifamily because of the daily demands of the asset class. Mark Hamilton, founder of Hamilton Zanze, manages over 25,000 residential units, making him one of the top fifty multifamily operators in the country. Mark has achieved both income and growth over the past several decades for his investors while utilizing fixed rate debt and conservate underwriting.

What's next for multifamily real estate? Hamilton Zanze's CEO, Kurt Houtkooper, shares market insights, investment strategies, and the most significant opportunities for 2025 and beyond!In this episode, I sit with Kurt Houtkooper, CEO of Hamilton Zanze, to discuss the evolving multifamily investment landscape. We discuss their portfolio strategy, the impact of capital markets, and why rent-controlled markets like San Francisco may be the next big opportunity.-Hamilton Zanze's investment philosophy & market focus-How they navigate today's capital markets-The return of urban migration & its impact on multifamily-AI, PropTech, and the role of innovation in operations-The biggest opportunities for 2025 & beyond-Hamilton Zanze has been actively investing through every market cycle, and Kurt shares why NOW -is a great time to deploy capital. Whether you're an investor, operator, or multifamily enthusiast, this episode is packed with valuable insights!What's your take on the future of multifamily real estate? Drop your thoughts in the comments!Connect with Hamilton Zanze: hamiltonzanze.comDon't forget to like, subscribe, and turn on notifications for more multifamily insights!For more engaging content, explore our offerings at thehttps://www.multifamilycollective.com and the https://www.multifamilymedianetwork.comJoin us to stay informed and inspired in the multifamily industry!This episode is brought to you by ElevateOS—the only all-in-one community operating system.ElevateOS is transforming property management, combining resident engagement, reservations, rent payments, maintenance, and concierge services into a single super app. It also uniquely integrates access control, intercoms, package lockers, and thermostats, eliminating app fatigue and redefining modern apartment living. https://www.elevatedliving.com/Visit ElevateOS.com/MMN for a free demo and see how you can level up your operations, effortlessly.

Prices on most Real Estate assets have come down significantly over the past year. In multifamily, class C properties in particular have gotten crushed and prices on Class A and B properties have also contracted. Too many sponsors paid too much for properties, overleverages, and got floating rate debt. Over the next couple years, great opportunities will present themselves to invest in high quality assets at discounted prices. If interest rates come down during this period, as many predict, and cap rates follow, big profits will be earned. Mark Hamilton, Chairman of Hamilton Zanze, a multifamily operator of 25,000 units, is bullish on the next few years for what multifamily has in store as absorption, occupancy, and rents increase.

Even in deep recessions, Class B apartments are stable assets and generally withstand downward economic pressure. Class C apartments, on the other hand, pose significant risk because of unanticipated costs to repair and maintain these properties plus delinquencies that can exceed 20%. As a result of these Class C operational challenges plus higher interest rates, a lot of C Class operators are having major challenges right now that will end up as major losses for investors and operators. Mark Hamilton, Founder of Hamilton Zanze, one of the nation's top 50 multifamily operators, has been in the business almost 40 years and has seen many market trends and cycles. Mark remains bullish on multifamily and specializes in B to A- properties in secondary markets. 

  Mark Hamilton has considerable experience in partnership formations and operations, project planning and implementation, asset management and management oversight, landlord-tenant and rent-control issues, risk management, and zoning and building department matters. Prior to co-founding Hamilton Zanze in 2001, Mark owned his own commercial brokerage and investment business after starting in the San Francisco office of Marcus & Millichap in 1981. In 1988, he co-founded Property Resource Group (real estate brokerage) and Quantum Land Company (development). Mark's main focus has always been locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values.   Mark shares his insights into investors' mindsets focusing on growth and income and how one should commit to staying in power, Let's hear more from Mark in today's episode of How to Scale Commercial Real Estate.   Highlights:   [00:00 - 07:08] Opening Segment Mark Hamilton has been a player in the national commercial real estate industry for over 30 years and has accumulated $5 billion in assets under management. Risk has shifted over time, with interest rates and capital being the main drivers of change. Hamilton advises investors to sell when they believe they can get the same amount of money out at a later date, as rates of return are currently low.   [07:08 - 13:54] If You're An Investor, Your Focus Should be on Growth and Income How an investor's portfolio should serve their short-term, intermediate, and long-term interests. An investor's strategy should include a focus on growth or income, with a preference for income over growth if there is a fear of an impending recession. Since 1985, the focus of Hamilton Zanze Investors has shifted towards more of an income approach. Rates of return have gone back down in some markets and leverage has decreased, but cap rates are still moving upwards.   [13:54 - 20:52] Commercial Real Estate Investors Should Commit to Stay in Power The correlation between a B and C property that has held their value the best and suffered less capric compression. Having a growth or income strategy when investing in commercial real estate, and advises against investing in C-Class properties that are experiencing capric decompression. Mark recommends owning a C-Class property that is producing an incredible amount of income in order to be immune to market fluctuations."   [20:53 - 22:06] Closing Segment Reach out to Mark Hamilton See links below  Final words Tweetable Quote   “If you put financing on it, you're serving a master of paying off the debt. But other than that, your masters are generally a combination of growth and income.”  - Mark Hamilton   ----------------------------------------------------------------------------- Connect with Mark Hamilton by visiting their website at  www.hamiltonzanze.com     Connect with me:   I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns.     Facebook   LinkedIn   Like, subscribe, and leave us a review on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on.  Thank you for tuning in!   Email me → sam@brickeninvestmentgroup.com   Want to read the full show notes of the episode? Check it out below:   [00:00:00] Mark Hamilton: For your own sake, commit to staying power. What's your staying power strategy, right? If you're starting out, what's your income gonna be? Do you have no need of an income? Do you have an income stream? Do you have a spouse that's bought in that provides enough income, but you gotta commit to staying power and that means your. [00:00:18] Mark Hamilton: Because you will want to eat and do the thing that I did this morning, which is get out of bed. You will wanna be able to do that every day and meet the challenges, right? [00:00:27] Intro: Welcome commercial real estate show. Whether you are an active or your real estate investing business into something big. [00:00:39] Sam Wilson: Mark Hamilton has been a player in the national commercial real estate industry. For more than 30 years, his main professional focus has been locating value, add properties in changing urban neighborhoods, and then reworking them into higher quality buildings and higher incomes, improved tenant profiles and higher resale values. [00:00:56] Sam Wilson: As of today, they have about $5 billion in assets, under management solicit somebody that we should absolutely pay attention to mark. Welcome to the.  [00:01:06] Mark Hamilton: Hi, Sam, thank you for having me. And thank you for the generous introduction nobody's ever called me a player before.  [00:01:14] Sam Wilson: well, I certainly appreciate you coming on the show today, mark. [00:01:17] Sam Wilson: There are three questions. I ask every guest who comes on the show in 90 seconds or last, can you tell me, where did you start? Where are you now? And how did you get  [00:01:24] Mark Hamilton: there? Okay. So, I started by accident. We can come back to that if you want. My wife and I purchased a duplex in, a very rundown duplex in San Francisco in 1985. [00:01:35] Mark Hamilton: And despite the agony of dealing with it the property made her mother cry. It was so rough. We, we kind of got bit by the. So for a solid 15 years or almost 15 years I practiced really only in San Francisco purchased. A few dozen small buildings that needed a lot of tender, loving care and heavy lifting. [00:01:54] Mark Hamilton: Eventually we started lost the ability to find the kind of yields that I wanted in San Francisco. So moved across the bay and moved to other parts of the bay area, Oakland Alameda, Hayward and then in 2001, I met Tony Zs who had a very institutional pedigree and career. To that point in time, it was good marriage. [00:02:11] Mark Hamilton: I was good at getting my hands into the dirt and getting my arms around deals. He had a lot of really valuable institutional experience that helped us kind of work both sides of the barbell . That was 2001. Our first deal was 16 units for a million, one 50 last year we acquired about a billion, one 50 in [00:02:30] properties. [00:02:30] Mark Hamilton: And so it's been as steady as you go experience, go show up, do the work every day. Be careful. You better love the work because you're gonna do a lot of it. And if you're lucky, you'll discover you're proficient at it. Primarily through being committed about it and putting your own skin in the game and then you'll draw good people. [00:02:46] Mark Hamilton: We've been really lucky to draw a really great group of investors and a terrific staff. And we're building for the long run through that staff. But when there's treasure and you spread it around, it tends to work.  [00:02:59] Sam Wilson: That is awesome. 16 units of 2001. [00:03:02] Sam Wilson: So that's 21 years ago. Now you are at 5 billion in assets, under management. What are some things as you review the last 21 years, how has risk shifted in the marketplace and how are you guys addressing that today?  [00:03:17] Mark Hamilton: I think it's shifted. I think the single biggest component that's changed risk has been interest rate movement interest rate movement Over the last 40 years, I'll refer to it. [00:03:25] Mark Hamilton: As the bond market as a bull run in the bond market, , rates were at 20 when I started my career last year. And when I say rates, it could be anything from the fed rate to the 10 year bond. What have you, but last year, , in the pandemic, the tenure bond went below two. [00:03:40] Mark Hamilton: Right. So when interest rates go from two to 20 and rates of return follow it means there's a huge amount of capital out there. Evermore each year, chasing assets. And so you build up a lot of value. So if that's a risk you gotta be aware that it could change interest rates could go back up. [00:03:53] Mark Hamilton: I think we're probably finally at that time where interest rates are gonna start going back up long term rates, 10 years out, five years out. I think they'll probably still come back down. But rates are a risk. And then if you've held assets during the bull run and, as, and as rates of return have gone down, you have a lot of made capital. [00:04:10] Mark Hamilton: And so you have to be careful about, honoring what you want from that capital and what you expect to get in terms of preservation and returns.  [00:04:18] Sam Wilson: When you say made capital, can you define that for me?  [00:04:21] Mark Hamilton: Sure. If you have a property and you buy it in a market that expects a 10% return, that means to induce take favor investors to come in and part with their cash. [00:04:32] Mark Hamilton: To take favor and they're expecting a 10% return, which, favor return we haven't seen in ages, but it makes the illustration easy. Favor have a million dollars of net you  [00:04:42] Sam Wilson: cannot  [00:04:42] Mark Hamilton: pure whether it's in a triple net lease property  [00:04:45] Track 2: episode  [00:04:46] Sam Wilson: cannot  [00:04:47] Mark Hamilton: pure or in an apartment  [00:04:50] Sam Wilson: cannot  [00:04:51] Mark Hamilton: But at the end of the day what goes into [00:04:54] Sam Wilson: cannot  [00:04:54] Mark Hamilton: financed? It is a 10%.    [00:04:58] Mark Hamilton: bucks, 10%. If a [00:05:00] million dollars is 10%, it means the value of the asset is $10 million. Right. Right. Cap rates. Haven't been at 10 in more than 30 years. Right. However they have recently been in the range of five But in a normal world, that would be the lowest they would go, but they haven't, they went even lower than that again, which means there's lots of cash chasing assets. [00:05:20] Mark Hamilton: Good value is hard to find, so people are paying up, but again, if you have a million bucks. Of pure income INI what's available after paying all your expenses. And now it's a 5% return market that asset's worth 20 million. The income's the same, right? The property's the same, nothing has changed. The only thing that's happened is valuation and the big drivers' valuation movement have been capital. [00:05:44] Mark Hamilton: Capital is for years, if not decades has been feverishly, trying to find returns. And as there's evermore capital chasing returns go. But that means the value of the assets go up. So if you're holding a highly value asset and you think you might transact at some point in time our feeling is always, has always been it's better to sell when it's white, hot than when it's Rocky. [00:06:08] Mark Hamilton: So we, I think. Meticulously evaluate our portfolio every month. And when we think we've really completed a business plan on something, and we're not likely to do a heck of a lot better we'll generally sell that asset. And the last five years have been a good time to sell assets, but if you sit on them and hope to get the same amount of money out at a later date, if rates of return have gone. [00:06:29] Mark Hamilton: At that point, which they are right now, then your values have gone down.  [00:06:33] Sam Wilson: Right. Right. And so that's what you mean by made capital is when you're sitting on that property that is now in increased in value that do I sell it? Do I that's made capital, do I dispose this property? Do I hang on it? [00:06:46] Sam Wilson: You know the ultimate question, I guess that everybody's probably, yeah. And  [00:06:48] Mark Hamilton: It's not an error. To sit on it. If that's your strategy, if it's a family asset that you wanna hold indefinitely, then that's your as asset, that's your strategy, right? You honor the strategy, you have a piece of the rock and it produces income. [00:07:01] Mark Hamilton: Right. But if you're also trying to serve. So you're gonna serve a few masters, right? One master you have to serve is expenses. You're never gonna get away from that. If you put financing on it, you're serving a master of paying off the debt. But other than that, your masters are generally a combination of growth and income. [00:07:15] Mark Hamilton: You're gonna skew toward one side or the other, and if you're a heavily growth oriented investor and you can use the tool of a 10 31 exchange our view has been that it's better to use the 10 31 to put it back into something that you think is gonna grow again. [00:07:30]  [00:07:30] Sam Wilson: Right? Absolutely. [00:07:32] Sam Wilson: Absolutely. Do you feel like, like there should be a focus in an investor or in an investment firm's portfolio or they say, Hey, we're focusing on growth or we're focusing on income or is there a way to  [00:07:43] Mark Hamilton: have both. Yes, and yes. And yes. So your investment portfolio should serve your interest should ideally it'll serve your short term interests, but it should serve your intermediate and long term interest. [00:07:57] Mark Hamilton: Right? So you're gonna, you're gonna make choices you're gonna meet with somebody. It might be your spouse. It might be your mother or father-in-law, it might be your neighbor, right? It might be you talk it over with a CPA. Or with a wealth advisor. But I think you need to have a basic strategy. [00:08:11] Mark Hamilton: You need to be committed to it, which doesn't mean to be casting concrete. But at least that'll give you a measuring post. And then you measure accordingly in the early going our emphasis was all on growth. We were, simply finding things that we thought were undervalued to get something that's undervalued. [00:08:27] Mark Hamilton: There's gonna be some problems that come with it. Otherwise there'd be a flock of people chasing it. Right. And you have to be prepared to do the corrective, no, the corrective effort, you have to be prepared to, to put in the blood, sweat, tears of money. But you weren't even a wee lad there, then that was in 1985. [00:08:43] Mark Hamilton: So. Since then as we've succeeded and grown equity, our . Investors tend to have shifted to more of an income approach. They still want an expectation of growth. , if you don't have the expectation of growth, you might wanna buy a triple net deal, you might wanna buy a bond. [00:08:56] Mark Hamilton: But if you have some expectation of growth and tax efficiency along the way, our investors expect that, but , they're a little more centered on income right now. And some of that's about age and some of it's about having racked up big gains.  [00:09:09] Sam Wilson: Yeah. And that's, I think that's an investor sentiment that I have in my investor, conversations has been kind of shifting. [00:09:16] Sam Wilson: And even the last eight to 12 months, I hear a lot of investors who are calling me saying, you know what, I'm moving into the income side of things. I want a stabilized asset that is now producing revenue versus I'm looking for the home run. And I think that's coupled two things go into that. [00:09:31] Sam Wilson: One is the fear of an impending recession. And also, with that impending recession, also just the fear that the equity multiples aren't gonna be there. Like they, maybe they have been in the last six to eight years.  [00:09:42] Mark Hamilton: Well, that's certainly true in the stock market right now. The stock market is correcting. [00:09:45] Mark Hamilton: People are looking at it through various lenses, but you can be sure that one of 'em is price, earnings, ratios, and price earnings ratios have come down. And again, that means that the value against its net. Is not what it was, cuz people aren't bidding for it. [00:10:00] Right. To the same extent. Right. So, yeah I think there are good reasons to be looking at income at all times. [00:10:05] Mark Hamilton: And again, I would say probably. Oh boy, I would say fully 60% to two thirds of our investors at this point in time are content to collect income. And I think at this point in time, it's in part because they know there's gonna be . Growth. Right. , a lot of folks have been with us for more than 30 years. [00:10:20] Mark Hamilton: Wow. So they know there's gonna be growth. And then they can get per and because of that, they can get persnickety about income.  [00:10:28] Sam Wilson: I love it. I love it. Yeah. And I think that's a, an interesting point there where you say people aren't bidding for it. Have you guys seen any softening in the multifamily market on the acquisition side and maybe even on the disposition side? [00:10:41] Mark Hamilton: Yes. It had really within. The last two years during the pandemic with interest rates going down cap rates went down too. Cap rates are the rates of return that we look at. And again, it comes back to that ratio of net income to value, right. Cap rates went down. Just horrifyingly. [00:10:58] Mark Hamilton: There was a steep drop and that's great if you're holding, right. It makes it harder if you're buying. Right. And so we're, we are always buying what we buy a little bit can differ certainly where we buy differ. But I think we figured out that in the last 21 years of Hamilton Zs, we've been out of contract on an acquisition for precisely one week. [00:11:17] Mark Hamilton: We are always in the markets. It means you gotta be concerned about overpaying, right? I mean, we can overpay. There's no limit, there's no law against overpaying. You pay as much as you want. But we have to be careful. Our investors are friends and family and credentialed. Real estate people. [00:11:30] Mark Hamilton: They can pick apart a proforma and then we have marks, we have marks that we have to hit in part because people expect us to, they've seen it, right. So, but we are in 30 metropolitan areas. We're in 17 states and there'll be probably. Two thirds to three quarters of those markets that we can't even look in right now as buyers, because they're so fully Christ. [00:11:51] Mark Hamilton: Right. But we turn over rocks. We started out in one market. Then we were in two. Then we were in three and over the last 21 years, we've grown to 30 markets and it's just, we look for places we wanna be where there's good story. And then we start turning over rocks. And so, we'll take in three to 4,000 submissions, a. [00:12:08] Mark Hamilton: After shaking 'em down, we'll underwrite, maybe 250. We'll write offers on maybe 50 and we'll be able to get into the ring and get into the finals on 15 to 25 and come out with 15 to 18 acquisitions. Right. And it's just because we have to find the returns. But, you do it with hard work, you do it with persistence, you do it by forming [00:12:30] relationships with people. [00:12:31] Mark Hamilton: And right now in some of those markets, people are talking about transaction velocity in the second half of 2 0 2, 2 being off by fully 50% from the second half of 2 0 2 1. Wow. And so we are seeing cap rates move back. leverage has come down. We're typically a 65 to 70% borrower leverage right now is probably mainstream. [00:12:53] Mark Hamilton: Leverage is gonna be more. 50 to 60%. We can make that make sense. If we like the asset because we're investing more for long term income at this point, , not every time, but many of our partnerships have racked up big gains. And if people just get a nice, steady ride and a pretty picture to look at you're gonna make, you're gonna please a lot of people that way. [00:13:10] Mark Hamilton: But values have come back and it's market specific, rents are still white hot , in Manhattan and in Brooklyn. So I would expect rates of return. There have gone back down in some of the Rocky mountain states some of the Mid-Atlantic states cap rates have gone up broker told me the other day that in salt lake where we've seen just like brutally low capric in the low threes, that case by case. [00:13:32] Mark Hamilton: In salt lake, which is a highly desired market and a growth market that cap rates may have moved by anywhere from a hundred to 125 basis points. And what that means, nobody's sitting there watching a monitor saying, what are cap rates doing? They're behaving. Right. We're all behaving, right. [00:13:48] Mark Hamilton: And what are we doing? We're either buying or we're not. And so few fewer people are buying PE the people that are buying are being more selective. And I think generally speaking, you're gonna see a correlation between a B and C property that a properties have probably held their value the best and suffered the least capric decompression B properties are hanging in there doing okay, and have suffered a little more capric compression and C proper. [00:14:12] Mark Hamilton: Have gotten hurt the worst and have suffered a lot of capric decompression.  [00:14:17] Sam Wilson: And again, that goes back. I think the key point there is to what is your strategy? Is it growth or income? And so we don't really care. I, we are proud owners of a C-Class property that is producing an incredible. [00:14:31] Sam Wilson: And  [00:14:31] Mark Hamilton: it's like, as long as it's doing its job and it's not wobbling and you structured your financing so that you're not gonna get whipsawed by hostile movement in interest rates, then the asset's doing its job. Right.  [00:14:45] Sam Wilson: That's exactly right. That's exactly right. Yeah. And so we're not, again, it goes back to your very, the very point in the beginning, which is, what do you want out of this investment? [00:14:54] Sam Wilson: Is it growth? Is it income? What's your strategy and the honor of that strategy? So  [00:14:57] Mark Hamilton: that's I think I think for me, [00:15:00] and maybe it's just because I've gotten on in years, I'm 63, right? So you're talking to almost an official senior citizen But at this point in time, I just want it to work out. [00:15:08] Mark Hamilton: Right. I want stuff to work out and that doesn't mean I wanna move to the sidelines. I'm too fidgety to move to the sidelines. But you have a basic strategy and if it works out, it's doing its job. and so we know that we could make it work with growth and income, we knew we could make it work with growth. [00:15:21] Mark Hamilton: There wasn't much income. It was mostly about it. It was a big renovation business, but we know how to do it with growth and income. We know how to do it with income . And growth. , we took down a portfolio in bankruptcy last year of almost 60 properties. And we knew it had been mismanaged and we knew that it was out of the reach of most investors who would bid for it. [00:15:40] Mark Hamilton: Right. So we felt we were getting good pricing going in and we felt we felt, we knew we could run the portfolio. We were uniquely positioned because it was both apartments. was probably two thirds of the value of the portfolio and suburban office. And we have an affiliated company that, that does that. [00:15:55] Mark Hamilton: And the other thing too is on our home court, it's in the bay area. Right. So, nobody's ever gonna be nonchalant about a bonafide growth deal. But at the same time, those sort of things are, I guess the term of the stock market is unicorns, right? Those things are unicorns a little bit. [00:16:10] Mark Hamilton: So if we didn't catch a unicorn, we at least caught a horse with a bump on its head. And but everybody likes growth. And if it's real growth, you're not gonna have any trouble having people be interested. But at the same time, you have to look at what's sustainable. And investors want what's sustain. [00:16:24] Mark Hamilton: Yeah.  [00:16:24] Sam Wilson: That's absolutely right. Absolutely. Right. Tell me, this is your view in the market right now. , are we in a lull? Is this the eye of the storm? Where are we right now? And where are you guys positioning yourself for the future?  [00:16:39] Mark Hamilton: That's a really good question. And curiously, I think events on the global stage are gonna affect us real estate markets. [00:16:47] Mark Hamilton: More than you might expect. Certainly inflation is a worldwide phenomena right now and it's gonna affect worldwide interest rates. On the other hand, the United States is also still a Haven for investors and there's certainly inflow of. Foreign capital. We don't deal with foreign capital very much. [00:17:03] Mark Hamilton: We deal with it a little bit. And so I think, certainly the likelihood of stability it won't be perfect stability. It's gonna, we'll suffer some capric decompression just like anybody, but what's happened on the world commodities market because of. [00:17:16] Mark Hamilton: Central banks, flooding economies with money and because of the war in Ukraine in terms of the impact on energy commodities et cetera, is a big deal. Any instability in China would be a big deal and they have people [00:17:30] there that are publicly. Boycotting making interest payments on properties that they have never been delivered to them. [00:17:37] Mark Hamilton: And so, growth I think it's fair to see that China. Has made economic rising economic prosperity and rising stability and rising growth rates, a pillar of their whole form of government in terms of keeping people bought in. And so when you see growth start to slow down, which it has in China, and then when you see people boycotting mortgage payments That's a concern. [00:17:59] Mark Hamilton: It should be a concern. It would, it will affect the world market. And then domestically it's, it's interest rates. I don't think there are any newfound challenges in the tax code that are gonna drop on us. I think Fannie and Freddie are gonna be there are there for the duration in terms of cap being capital providers, being debt, capital providers. [00:18:15] Mark Hamilton: And so it comes down to operations and I won't say that we're protected from a downturn affecting working people in the United States. I don't think we're protected. I think that occupancy exposure and delinquency exposure is gonna be the lowest with a plus properties. [00:18:33] Mark Hamilton: And it's gonna be the highest with C minus properties. So you just have to be, you just have to be prepared. To be that operator, if you have a real occupancy and, or delinquency challenge. And I. I think there will be some of that, but let's be honest. I mean, unemployment right now is at three to 3.5%. [00:18:51] Mark Hamilton: And there are a lot of people who are just saying, eh, it's not good enough for me yet. I'll wait it out. I'll find a job, but I'm not in any hurry. And household formation is still on our site. We are probably 85% of our investment activity is in multi. we do have investment activity in our suburban office platform, but the vast majority of it's multi-family and what we experienced in the great recession was that if we met the market, did a good job operating the properties, kept the staff happy and kept people in their apartments. [00:19:22] Mark Hamilton: It was a refuge for us. In a rough time. Because , if you can win your occupancy, you've won a big part of the battle with multifamily.  [00:19:29] Sam Wilson: Absolutely. Absolutely. Mark, this has been fascinating. Thank you for taking the time to come on today and just kind of give us a breakdown really on the current events, how you see things through a lens of. [00:19:39] Sam Wilson: How many years is that? 15, 20, 35?  [00:19:42] Mark Hamilton: Well, the dirty secret is 40. But I didn't buy my first property until 1985. So 37. Okay. So the year I got  [00:19:49] Sam Wilson: married, that's awesome. I absolutely love it. If you could give our listeners one piece of advice that pertains to investing today, and you said, Hey, [00:20:00] this is what I recommend to anybody who's investing in commercial real estate. [00:20:03] Sam Wilson: What would it be  [00:20:04] Mark Hamilton: For your own sake, commit to staying power. What's your staying power strategy, right? If you're starting out, what's your income gonna be? Do you have no need of an income? Do you have an income stream? Do you have a spouse that's bought in that provides enough income, but you gotta commit to staying power and that means your. [00:20:23] Mark Hamilton: Because you will want to eat and do the thing that I did this morning, which is get out of bed. You will wanna be able to do that every day and meet the challenges, right? Apartments are multi-family is a very activity based business, right? It's a very demanding daily business. So you have to be prepared to, to meet that where it is. [00:20:42] Mark Hamilton: And then you have to have a strategy. That's gonna an asset strategy. That's gonna allow you to navigate it when things aren't so great and benefit from it when things aren't. So I may always say commit to staying power and satisfy yourself that you've answered those questions.  [00:20:57] Sam Wilson: I love it. [00:20:58] Sam Wilson: I love it. Mark. Thank you so much for coming on today. If our listeners want to get in touch with you or your firm, what is the best way to do that?  [00:21:05] Mark Hamilton: Well, I'll tell you, we have a pretty good website that we like. Other people have told us that as well. It's Hamilton, H a M I L T O N Z as in zebra, a N as in Nancy, Z as in zebra, E as in edward.com. [00:21:18] Mark Hamilton: We think that tells the story pretty well. And then otherwise my email address is mark M Ark. Hamilton zands.com.  [00:21:26] Sam Wilson: Wonderful. We'll make sure we put those things there in the show notes, mark. Thank you again for coming on day. Certainly  [00:21:31] Mark Hamilton: appreci. Appreciate it. You got Sam. Thanks for having me. It was fun. [00:21:34] Mark Hamilton: Good luck with your property. Thank you, sir.

Prices on quality Multifamily assets are holding firm. Although there are significant price reductions in older properties, Class B+ and A- in growth markets are holding firm because of the huge amount of capital still flowing into this stable asset class. These days you can expect a 4% annual return on your money and an IRR of 10-12% on these deals. Mark Hamilton, founder of Hamilton Zanze in San Francisco, owns over 23,000 units, and has over three decades of multifamily experience.

Mark Hamilton has been a player in the national commercial real estate industry for more than 30 years. His main professional focus has been in locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Prior to co-founding his own investment company in 2001, Hamilton Zanze, Mark personally sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area.  Tyler and Mark discussed timeless real estate wisdom, covering Mark's inspiring story of growing his real estate portfolio, how to navigate a 1031 exchange, how to evaluate opportunities and risk, and much more. Highlights include: Awareness and responsiveness over ideology Why Mark believes multifamily is a strength (and pain) in numbers  Mark's journey of growing his portfolio from a duplex to nearly 25,000 units and 65 employees at Hamilton Zanze The four critical things Mark's multifamily experience has taught him Why Mark is not a big believer in setting goals Mark's tips for navigating the market cycle  The journey being the reward  Multiple ways you can leverage a 1031 exchange How Mark's team locates 1031 exchange opportunities Mark's tips on evaluating risk to generate yield Pitfalls and opportunities in the current market  Mark's outlook on potential market corrections The willingness to read and learn things outside of real estate investing   Connect with Mark: Email: mark@hamiltonzanze.com Website: http://www.hamiltonzanze.com LinkedIn: https://www.linkedin.com/company/1627695/admin/ Twitter: https://twitter.com/hamiltonzanze?lang=en The following books and resources were mentioned in the show: The Boys in the Boat by Daniel James Brown Dispatches by Michael Herr A River Runs Through It by Norman Maclean Are you a real estate investor looking to elevate your income, freedom & lifestyle? If so, optimize your daily performance by downloading our free guide, Raising the Bar - 5 Steps to Elevate Your Habits, at elevatepod.com. In this guide, created by your host Tyler Chesser, you'll learn why you do what you do, how to easily institute cues in your environment to trigger desired behavior, directly applicable steps to create a fulfilling future and much more. Get your free copy at elevatepod.com and kick-start your new habits today. Your future self will thank you! This episode of Elevate is brought to you by CF Capital, a national real estate investment firm. CF Capital's mission is to provide property investment and asset management solutions to help investors like you maximize their returns by investing in high-value multifamily communities. If you are looking for risk-adjusted alternative investments in quality apartment communities, and are seeking tax optimized cash flow with appreciation upside without all the hassle of management, you might benefit from learning more about investing alongside our team. You're invited to reach out and learn how you can invest with us by visiting cfcapllc.com. We're also currently offering a free ebook called The Bottom Line - 10 Ways to Increase Cash Flow in an Apartment Complex. Whether you're a new or an experienced investor, we're confident you'll find massive value in this resource. Get your free copy today at cfcapllc.com.

Mark Hamilton has been a player in the national commercial real estate industry for more than 30 years. His main professional focus has been on locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Prior to co-founding his own investment company in 2001, Hamilton Zanze, Mark personally sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area.

Prior to Hamilton Zanze, Mark Hamilton sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area. Mark's main focus has always been locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Mark has considerable experience in partnership formations and operations, project planning and implementation, asset management and management oversight, landlord-tenant and rent-control issues, risk management, and zoning and building department matters. Before forming his own commercial brokerage and investment business in 1994, Mark worked in the San Francisco office of Marcus & Millichap, subsequently co-founding Property Resource Group (real estate brokerage) and Quantum Land Company (development). Mark earned a B.A. with High Honors in English Literature from San Francisco State University and an M.A. in English and American Literature from Brandeis University, which he attended as a University Scholar and Fellow.   Learn How to Get Started in Real Estate? Go to [www.Dwellynn.com/mft](http://www.dwellynn.com/mft) **SUBSCRIBE and LEAVE US A REVIEW** on iTunes: [http://getpodcast.reviews/id/1256786108](http://getpodcast.reviews/id/1256786108) Get your free book: [www.audibletrial.com/dwellynn](http://www.audibletrial.com/dwellynn) **Contact: Mark Hamilton https://hamiltonzanze.com/ Content Mentioned: Why Science Does Not Disprove God   https://www.amazon.com/Why-Science-Does-Not-Disprove/dp/0062230603/ref=sr_1_1?crid=3LDGE41PQZKF5&keywords=science+does+not+disprove+god&qid=1646872334&s=books&sprefix=science+does+not+disprove+god%2Cstripbooks%2C132&sr=1-1 Follow Ola  [[www.instagram.com/oladantis](http://www.instagram.com/oladantis)] @OlaDantis for all other social media

In today's episode, we have on special guest Mark Hamilton. Mark is a veteran real estate investing expert, and founder of Hamilton Zanze, a real estate investment firm with a portfolio of over $4.3 billion that specializes in multifamily investments. The company is one of the nation's largest privately held multi-family syndication companies with over 20,000 apartment units under management.Mark has really positioned himself as the expert who has seen ins and outs of multi-family investing and offers a wealth of information. Welcome to the podcast Mark! Key Points From The Episode:How Mark Hamilton Initially wanted to be a teacher but then got started in real estate investing.Working in a commercial real estate investing firm right out of school.Why finding the right business partner is crucial.The importance of building the right team when investing in real estate.Dealing with competition & investing outside of your comfort zone.Underwriting deals. The importance of focusing more on volume than underwriting.How to determine if the market is worth investing in. What indicators to look at.Having 24,000+ units under management.The biggest lessons Mark learned over the years. How to analyze deals.Understanding/leveraging different types of debt based on the timeframe of the deal. Mark's market prediction for 2022. Books Mentioned:Tipping Point By Malcolm GladwellHow To Reach Mark:- mark@hamiltonzanze.com Mention “Ritter On Real Estate” 

In this episode, I interview, Mark Hamilton, the CEO & Founder of Hamilton Zanze. Mark's main focus has always been locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Mark has considerable experience in partnership formations and operations, project planning and implementation, asset management and management oversight, landlord-tenant and rent-control issues, risk management, and zoning and building department matters. Tune in to the insightful conversation to know more onMarket outlook for 2022Future of 1031 ExchangesThe secret sauce for wise InvestmentsTips and Tricks to finding the Hot MarketsPractices to build a strong robust teamUp and Downsides of getting Third-Party Managers onboardPartnerships are all about the people you are going to work withResourceshttps://www.prnewswire.com/news-releases/hamilton-zanze-and-cbre-release-report-on-benefits-of-1031-exchange-tax-policy-301240670.htmlConnect with Mark HamiltonWebsite: https://hamiltonzanze.com/Email: mark@hamiltonzance.comConnect with Rama KrishnaWebsite: www.ushacapital.comEmail: infor@ushacapital.com

Hamilton-Zanze is an investment group that specializes in buying what they call "undervalued properties" and making sure they get every bit of their money's worth of them, after they buy the buildings, kick out the residents, and double the rent, which is what they're trying to do with the only affordable housing apartment complex in Tigard, Oregon.  Rally on Saturday, 2 pm at 113th and Durham in Tigard with the residents!

We're here with another real estate CEO this week, one of the biggest in the nation, to talk about bootstrapping, investing in the right areas, and building a business from the ground up. Listen as Mark Hamilton and I talk about Hamilton Zanze came to be, and the highs and lows he encountered in the process. Mark Hamilton is the CEO and Founder of Hamilton Zanze, a San Franciso-based real estate investment company with more than $4.3 billion dollars of assets under management. Throughout his career, Mark's main focus has always been locating value-add properties and changing urban neighborhoods into high-value properties across the country. In this exclusive interview, Mark touches on highly relevant topics like finding the best locations for real estate investing, investing in the right people, and re-working urban neighborhoods into higher-quality buildings. Tune in and learn more about value-add properties and multifamily investing all from one of the very best. KEY TAKEAWAYS 1. Sometimes, life is going to take you off course, which would end up the right path after all. 2. One of the key pillars to success is investing in great people, regardless of age. 3. Buying cheap is not necessarily a guarantee to success. 4. Look for places where jobs are growing. LINKS https://hamiltonzanze.com https://www.linkedin.com/company/hamilton-zanze/ https://twitter.com/hamiltonzanze?lang=en https://www.bloomberg.com/profile/person/21003230

The real estate industry has always been a male-dominated space. However, more and more women are emerging as some of the most powerful and influential individuals in the industry, and one of them is none other than Ashlee Cabeal. Ashlee Cabeal is a real estate investor, a CPA, and the CFO of Hamilton Zanze, a private equity real estate investment firm with over a billion dollars worth of assets under management. Ten years ago, Ashlee started her career at Hamilton Zanze as an intern, and now she stands as the Chief Financial Officer of the firm. How did she do it? And in such a male-dominated industry, at that? In this incredibly informative episode, listen as Ashlee shares what Hamilton does behind the scenes in terms of acquisitions, scaling, and management, as well as the concrete benefits of investing in multifamily properties. As someone who started at the company doing the nitty-gritty work, there is no one better than Ashlee to explain the full picture of what Hamilton does on the financial side of things in clear detail. Moreover, as one of the most powerful women in real estate, Ashlee also shares some valuable pieces of advice for women who are trying to make it in an industry that is inherently dominated by males. Tune in to this episode and learn about Ashlee's growth, her background, and how you can achieve the same level of success as she did. KEY TAKEAWAYS 1. Being the jack of all trades can help you understand the business on a deeper level. 2. In multi-family, you are buying an established stream of income; there is no development risk. 3. Understand the full picture first and then decide which path you want to take in your career. 4. Your experience doesn't matter—if you are interested, walk into the room. LINKS https://www.linkedin.com/in/ashlee-cabeal-7055525 https://hamiltonzanze.com https://hamiltonzanze.com/ashlee-cabeal-cpa-promoted-to-hzs-chief-financial-officer/

If you are looking to learn more about how the 1031 tax exchange works and how to use Real Estate Investing to build your personal financial savings, you're going to want to tune in and hear what Mark says on this next episode of The Real Estate Rundown. Prior to co-founding Hamilton Zanze in 2001, Mark Hamilton sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area. Mark's main focus has always been locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Mark has considerable experience in partnership formations and operations, project planning and implementation, asset management and management oversight, landlord-tenant and rent-control issues, risk management, and zoning and building department matters. Before forming his own commercial brokerage and investment business in 1994, Mark worked in the San Francisco office of Marcus & Millichap, subsequently co-founding Property Resource Group (real estate brokerage) and Quantum Land Company (development). Mark earned a B.A. with High Honors in English Literature from San Francisco State University and an M.A. in English and American Literature from Brandeis University, which he attended as a University Scholar and Fellow. Mark is a veteran real estate investing expert, and founder of Hamilton Zanze, a real estate investment firm with a portfolio of over $4.3 billion that specializes in multifamily investments. The company is one of the nation's largest privately held multi-family syndication companies with over 20,000 apartment units under management. Mark has really positioned himself as the expert who has seen ins and outs of multi-family investing. One of the things Mark is really passionate about and expert in is the 1031 Exchange tax program, which can be an interesting topic potentially for your listeners! Find Mark on LinkedIn: https://www.linkedin.com/company/hamilton-zanze To find out more about Shannon Robnett Industries and our affiliates or if you're interested in investing visit: shannonrobnett.com Or schedule a 15 Minute Meet and Greet with me to find out how you can get involved in Real Estate Investing, or if you just want to learn more: https://calendly.com/shannonrobnett/15min

If you are looking to learn more about how the 1031 tax exchange works and how to use Real Estate Investing to build your personal financial savings, you're going to want to tune in and hear what Mark says on this next episode of The Real Estate Rundown. Prior to co-founding Hamilton Zanze in 2001, Mark Hamilton sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area. Mark's main focus has always been locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Mark has considerable experience in partnership formations and operations, project planning and implementation, asset management and management oversight, landlord-tenant and rent-control issues, risk management, and zoning and building department matters. Before forming his own commercial brokerage and investment business in 1994, Mark worked in the San Francisco office of Marcus & Millichap, subsequently co-founding Property Resource Group (real estate brokerage) and Quantum Land Company (development). Mark earned a B.A. with High Honors in English Literature from San Francisco State University and an M.A. in English and American Literature from Brandeis University, which he attended as a University Scholar and Fellow. Mark is a veteran real estate investing expert, and founder of Hamilton Zanze, a real estate investment firm with a portfolio of over $4.3 billion that specializes in multifamily investments. The company is one of the nation's largest privately held multi-family syndication companies with over 20,000 apartment units under management. Mark has really positioned himself as the expert who has seen ins and outs of multi-family investing. One of the things Mark is really passionate about and expert in is the 1031 Exchange tax program, which can be an interesting topic potentially for your listeners! Find Mark on LinkedIn: https://www.linkedin.com/company/hamilton-zanze To find out more about Shannon Robnett Industries and our affiliates or if you're interested in investing visit: shannonrobnett.com Or schedule a 15 Minute Meet and Greet with me to find out how you can get involved in Real Estate Investing, or if you just want to learn more: https://calendly.com/shannonrobnett/15min

Prior to co-founding Hamilton Zanze in 2001, Mark Hamilton sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area. Mark's main focus has always been locating value-add properties in changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Mark has considerable experience in partnership formations and operations, project planning and implementation, asset management and management oversight, landlord-tenant and rent-control issues, risk management, and zoning and building department matters. Before forming his own commercial brokerage and investment business in 1994, Mark worked in the San Francisco office of Marcus & Millichap, subsequently co-founding Property Resource Group (real estate brokerage) and Quantum Land Company (development).

When it comes to someone else's underwriting, there's often a lot more than meets the eye, so buyer beware. There's often any number of items that get left out in a broker or sellers P & L's. That's where years of experience comes into play. Today's guest, Mark Hamilton, founder of Bay Area-based Hamilton Zanze, shares invaluable lessons from a 30+ year operator of over 20,000 units.

Join Blake Dailey, the Multifamily Journey Podcast host, with his guest Mark Hamilton as they talk about how to build a portfolio in real estate through value-adding properties. Mark co-founded Hamilton Zanze, where they seek opportunities to improve performance, generate distributable cash flow, protect investor principal, and achieve appreciation. His primary focus was reworking properties in urban neighborhoods into higher-quality living spaces. Hence, he sponsored the development of numerous value-add properties, even before his time at Hamilton Zanze. In this episode, you'll learn: ● How Mark got started in real estate and value-adding properties. ● The strength and pain in numbers and the value of having a team. ● How to build a foundation to grow and scale a business through insistence and patience. ● The importance of having multiple income streams and creating solid business relationships in multifamily. ● How to approach asset management to ensure your properties run most efficiently. ● And much more! About Mark Hamilton: Before co-founding Hamilton Zanze in 2001, Mark Hamilton sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area. He always focused on locating value-add properties in changing urban neighborhoods and reworking them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values. Mark has considerable experience in many fields, such as partnership formations, project planning, asset management, etc. He also worked in the San Francisco office of Marcus & Millichap, subsequently co-founding Property Resource Group and Quantum Land Company. Mark graduated with high honors at San Francisco State University with a bachelor's degree in English Literature. Later, he earned his master's degree in English and American Literature from Brandeis University, which he attended as a University Scholar and Fellow. You can find Mark Hamilton on: Website Twitter Connect with Blake Dailey and the Multifamily Journey on: LinkedIn | Facebook Account | Facebook Page | Instagram | Website | Youtube --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app Support this podcast: https://anchor.fm/multifamilyjourney/support

Literal fortunes have been make in multi-family real estate. Seasoned investors live off the monthly cash and the appreciation can be tremendous. But like anything else, you need to know what you're doing. Today's guest is a founding principal of one of the nations largest privately held multi-family syndication companies with over 20,000 apartment units under management across almost 90 properties. Mark Hamilton, founder of Hamilton Zanze, explains the ins and outs of multi-family investing.

The Real Estate CPA podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax dvice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Always consult your own tax, legal, and accounting advisors before engaging in any transaction. -- In this episode, we're joined by CEO Mark Hamilton and CFO Ashlee Cabeal of Hamilton Zanze, a company that specializes in the pursuit, acquisition, and hands-on operation of apartment communities in select target markets in the United States. Today we discuss the Hamilton Zanze approach to multifamily value-add investing, integrating property management, reducing expenses through green initiatives, performing 1031 exchanges as a syndication group, KPIs, and much more. Learn more about Mark, Ashlee, and Hamilton Zanze: https://hamiltonzanze.com/ Here's our special report summarizing the COVID-19 legislation: https://hubs.ly/H0nWXV40 We have created a Slack community for real estate investors to share ideas on how to protect their business and investments and to stay up to date on the laws and best practices as the coronavirus progresses. The community already has over 800 members and some great conversations are taking place: visit https://join.slack.com/t/cashflowcommuni…A59g~nnmkGfb58BNw to join! For more education about optimizing your tax position, use this guide as a resource for just about every topic that applies to you as a real estate investor: https://www.therealestatecpa.com/the-ultimate…te-investors To sign up for our Virtual Workshops visit: https://www.therealestatecpa.com/virtual-workshop/ Subscribe to our YouTube channel: https://www.youtube.com/c/therealestatecpa Like us on Facebook https://www.facebook.com/realestatecpa/

We're talking prosperity tonight and how money and love are linked. Our guest isreal estate developer Mark Hamilton. Prior to co-founding his own company Hamilton Zanze in 2001, Mark Hamilton sponsored the acquisition, ownership, and development of nearly 40 properties in the Bay Area. Mark's main focus has always been changing urban neighborhoods and then re-working them into higher-quality buildings with higher incomes, improved tenant profiles, and higher resale values.  Before forming his own commercial brokerage and investment business in 1994, earned a Bachelor of Arts with High Honors in English Literature from San Francisco State University and a Master of Arts in English and American Literature from Brandeis University, where he attended as a University Scholar and Fellow Mark's website is www.hamiltonzanze.com