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Global Investors Podcast
GI65: Running a Multifamily Brokerage While Investing in Apartments with David Childers
September 16, 2020
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Mr. Childers is a Managing Member of Cedar Rock Capital based in Nashville TN. Mr. Childers has over 15 years of experience in real estate investing in Middle TN. He was 25 years old the first time he partnered and purchased his first rental property.  At 27, he formed another partnership and secured University Lofts, a 114-unit property in Murfreesboro TN, which allowed David to learn the business in all aspects. His most recent purchase was Hilburn Apartments, an 86-unit complex located in Pensacola, FL.

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Transcript:

Announcer:
Welcome to the Global Investors Podcast, a show that focuses on helping foreign investors enter the lucrative US real estate market. Host, Charles Carillo, combined decades of real estate investing experience with a professional background in international banking to interview experts in all areas of US real estate investing. Now here’s your host, Charles Carillo.

Charles:
Welcome to another episode of the Global Investors Podcast; I’m your host Charles Carillo. Today we have Dave Childers. Dave is a multifamily broker based in Tennessee and he has brokered over 450 multifamily properties. Additionally, Dave has been investing in real estate for over 15 years and his most recent acquisition was an 86-unit apartment complex in Pensacola, Florida. So thanks so much for being on the show, Dave.

Dave:
Yeah. Thank you so much for having me. I appreciate you having me on as a guest.

Charles:
No, for sure. Thank you. What was your background prior to starting to invest in real estate?

Dave:
I’m a college dropout. I pretty much went from being a college dropout to doing this. I did move to Nashville, Tennessee and 2003, I believe to work in the music business as a, as a road manager for some bands and did that for about a year and a half. And then you know, just decide that bus life and, and being on the road was not the life I wanted. And so started buying flip houses in 2003- 4.

Charles:
Okay. And then why did you choose real estate as an investment vehicle going from your background prior?

Dave:
Yeah, you know, I was a finance major. I’ve always enjoyed learning about money and I always wanted to be an entrepreneur. And then growing up I had just some, some family, friends who are, you know, pretty well off that either did construction or real estate sales. And you know, again had a high school education where, you know, they didn’t have MBAs, they weren’t, you know, Harvard grads by any means. And they did very well financially and they had freedom and that’s really what I saw. You know, growing up, I had my best friend’s mom. I think she attended more of my basketball game. She was a residential agent, had some, a couple rental properties. She would take me to basketball practice. And then I had my father, you know, and this kind of rich dad, poor dad story. Right. his, you know, he had a great pharmaceutical job, you know, pharmaceutical sales rep you know, I guess what everybody’s shoots to have. But you know, just, this was, you know, busy all the time had really no time, no freedom, no flexibility. And I really wanted the freedom and flexibility.

Charles:
Yeah, for sure. The older I get, I feel the time freedom is more important than the financial benefits at some point. Cause it’s not something you can get back.

Dave:
Oh, absolutely. I mean, I think that’s, that’s key, you know, I mean, I always said I don’t care. You know, it really wasn’t a dollar amount. What I made, I want to do something that I enjoyed and then I had that freedom and flexibility to do it. So, you know, real estate just fit that it, you know, it’s not for everybody. I’ve learned that over the years, you really have to have the kind of the right personality and the right mindset to be a self employed and then do real estate as well. So it’s not cut out for everybody.

Charles:
Yeah. If you have a 9-5 mentality, it’s not going to it’s not going to work. My dad was telling me years back and he was self employed as a real estate investor. And he was saying that you know, if you want to work and stop at five, like real estate being self employed is not your thing. It’s something that, especially with real estate where you have tenants clients, 24 hours active in properties, you own, you have to be there unless you have some system in place,

Dave:
Right. And so I guess the freedom is you, I can be vacationing in Florida or vacationing up at my farmhouse or whatever, and still work and be able to take those calls. So that’s, you know, my, my family’s had to learn that my kids know, Hey, dad’s gotta take a business call. You know, they’re in the back of the car, be quiet you know, let him take this call because him taking these calls allows us to not, you know, how have this trip that we’re on, but then not be in the office. So they, they know that and they w they’ve learned to you know, work with me on that kind of stuff. So.

Charles:
Nice. So can you tell us about your first couple investments? What they were, what went right and what went wrong?

Dave:
Yeah, I mean, I, you know, I, I started off like a lot of people just buying duplexes, you know, I kinda, that was the, I think that’s most people’s like logical step was, is buy some duplexes and you know, build a little portfolio and, you know, pay it off, have it all paid for eventually in a couple years or 20 years. And so that’s really where it started. I started teaming up with people, partnering with people. It was before the word syndication, you know, was really popular or res you know, all, all that stuff. I’d say it’s sophisticated, right. A guy came to me and said, I’ll buy it with you. You manage it. You know, we traded kind of our skill set. I was going to manage the property. He was putting the down payment and we were you know we partner, you know, 50 50 on those. And so we did that a few times, and that’s really where it started was duplexes, small duplexes here, here in the middle Tennessee Nashville area. And, and some of them, I was kind of getting out of the flipping and moving into the more of the multifamily or buy and hold strategy. So some of these wrecks and wholesale deals that I wholesale to our group and then we ended up holding them for, you know, five, six years since we’ve sold them. So that’s really where I got my start.

Charles:
So currently, what do you look for when you’re underwriting and analyzing properties, your strategy?

Dave:
Yeah, I, you know what I’ve learned after selling hundreds of multifamily properties? So, you know, I was an investor first and then a broker friend here in Nashville said, Dave, you need to start a firm that just specializes in selling the smaller to midsize multifamily. And so we’ve kind of carved out a niche over the last 10 years here in Nashville to sell, you know, we’ve sold. I don’t even know what the number is. It’s probably 500 or more you know, 50, 50 a year you know, five, 10, 15, 20 unit complexes. And so what I’ve learned doing that is everybody kind of has their different, you know, criteria of what they’re looking for. I meet people who are very, very high net worth. They don’t want fixer uppers, right? They want something that’s turnkey. They don’t have time to manage it. Then. I mean, I have this friend ed and I always used to say, ed would buy the house that has the tree growing through it. Right. And he did, he’d buy the $12,000 house that had a tree growing through it. He liked that kind of project where I have doctors and attorneys and business owners are like, man, I don’t have time for that. Right. so my criteria and I had to get over this as a sales agent, right. My criteria of what I buy and what I’m selling are probably two different things. You know, I’m, I’m a value add guy. If I can find it, I like kind of the, what I call like a micro value add. I don’t want to do these big renovation projects anymore. You know, I want to tweak little things and create value that way. I’m still that 50 to a hundred unit. I like those size deals. We know how to run them now. You know, something that’s still has meat on the bone you know, where there’s some mom and pop type operations going that we can come in there and fix and cure those things.

Charles:
So you spoke a little bit about your brokerage and how the niche you have, and that’s great. Cause I have I have a friend of mine that has a similar sized brokerage here in Florida, that with the focus, the niche of what they’re focusing on, cause normally you’ll find with multifamily, let’s say in particular, the brokerages will be all over the board. You’ll get an email for a seven unit and you’ll get an email for an you know, a 700 units. So can you expand on that business and why you started other than having the niche? What were the other reasons when you were out in the marketplace beforehand?

Dave:
Yeah, so I mean, I, I, I tell people we’re a hybrid, right? We’re commercial and residential and we’re kind of in this middle I tell people, residential agents kind of need to stay out of our space cause they don’t have a clue. Most of them let me just disclaimer, most of them, some of them do, but most of them have no idea. You know, you’ll see the terminology cash cow, or, you know, they’ll throw all these cliche terms around and you’re like, you don’t even know you have no vacancy rate in there. You have no reserved. You have, you know, you’re running out a hundred percent occupied and they don’t know how to run a cap rate. They’re running on a gross number. So again, I, I, you know, it frustrates me a lot, you know, these residential agents. Cause I think, you know, they don’t, you know, they’re gonna, they’re gonna screw with some people’s life, right? If they sell them a multifamily property, you know, thinking you’re hiring an agent who knows what they’re doing, I’m sorry, there’s ambulances going by my office. You know, you sell a, sell a property and you’ve got a client who’s trusting you too, that you’re providing professional knowledge and you’re really don’t know what you’re talking about. And then you’ve got commercial agents that, Hey, are like, man, I sell 50 million. I’m actually my buddy said, I’ve got billionaires on my email list. I cannot sell them or put out a 10 unit complex. Right. So we’ve just kind of created a great referral business. You know, a lot of those guys, they get the call from the 10 unit operator and you know, they ended up referring it to me. And I, again, now I’ve kind of, after doing this so many years really figured out the differences, how you finance, how you manage a 10 unit versus a hundred unit. And so the bigger brokers and operators will call me sometimes and, or, and say, how would you underwrite this? Or how would you look at it? How would you manage it and start kind of picking my brain and asking us those questions. So there was a lot of differences though. I mean, you buy eight, $900,000 apartment building. You’re going to have to probably get a bank loan, right. Where you go to a million, five or a million, two apartment building. And now you’re getting you’re qualifying for Freddy or Fannie SBL. So, you know, financing’s different managing some different, you know, you can’t have a property manager sitting on site on a 20 unit complex. So you’ve got to get a little bit more creative when you’re doing it. So that’s, that’s what we’ve carved out. You know, I had a real estate license. I was a residential agent when I first started buying multifamily and I hated that. I hated taking people, you know, sorry, but I just, I’m not a warm and fuzzy type person. I like numbers. I like returns. I like making money. Right. And so I, I didn’t like when I walked somebody in a fixer upper house, I knew they’re walking into 50, $60,000 in equity and they didn’t want it cause they didn’t like the paint color. Right. I just want to pull my hair out. So you kind of find where I asked what I love about real estate kind of find what you enjoy doing. I enjoy numbers. I enjoy showing people how to increase the value, how to increase the NOI, you know, how to kind of play around with cap rates and all that. So it’s, it’s kind of, you know, kind of found me, I guess, in a way.

Charles:
Yeah, no, no, no. I can side with your friend Ed there. I once bought a property with a hole. You can look right into the trees through the roof. And before I closed it, I had one of my contractors come over and draped the whole house with a blue tarp. Cause I was like, Oh, we’re buying this thing. We’re putting above asking all this kind of stuff. And a lot of people don’t want to, you know, they don’t they don’t want to deal with it. They don’t know what they’re dealing with and especially higher net worth people that are looking more for a stabilized property. It’s going to be a whole different whole different asset they’re looking for. But so you work with a lot of new and seasoned investors within your brokerage. What mistakes do you see investors commonly make.

Dave:
That’s a hard one. You know, we, we pride ourselves on coaching people. Really, I mean, that’s kind of this residential investment advisors come in, you know, we don’t help people buy property and say, well, good luck. You know, we’ll see you in a couple of years, we really hold their hand. So I’ve had a really good success rate with our clients is, you know, being very successful in this business. Cause again, we’re providing them with all these resources and I’m always just a phone call away. Right. to answer questions for them. You know, if they’re self managing, I see mistakes when they’re self managing, you know, maybe sticking with a management company longer than they should. Cutting ties with them. I, again, I, well, let me, I do have one, the biggest one I see is not raising rents. Right. And leaving a lot of money on the table when it comes to cashflow not charging additional fees, right. It’s kind of your classic mom and pop, right. You’re going to go and you find a mom and pop operation and they’ve got the property a hundred percent occupied mistake, number one. And then B they’re, you know, way off the market rents. Right. And they’ve, they’ve become friends or, you know, with the tenants and they don’t really want to push rent. So that’s probably the most common mistake I see among people. You know, is that, that, that, those kind of two, two things.

Charles:
Yeah, no, I see that. It’s when they’re, when you’re penciling it out and you can see it, the road, the rents are below and you can see how they’ve been managing it. It’s not really managing it, but just not, I’m just not raising rents and just keeping it very people aren’t gonna leave. Right. So if you keep the burdens really low and they go, Oh, I always have a hundred percent occupancy and everything so easy. Everybody’s nice. Well, if you’re paying 25% below market value for your rent, you’d be, you’d be really nice too. And you would never call them when, when something broke, but that’s not how you maximize a, you know, a property.

Dave:
Well, there, there was one time we were some, a small complex and, and the owners, you know, I said, look, you’re, you’re like $200 off market on these, these one bedroom units. And, and you know, we kind of went back, well, I don’t know. I said, you, you really you’re exactly right. You don’t know, you don’t know what the market rent is. I said, it could be a thousand dollars more. You really have no clue cause you’ve never tested the waters to figure out where that market rent is. So sure enough, we sold the property. There was four of those tenants that were $200 to 50 off market ramp. You know, they send them all for notices saying, we’re taking your rent up to market. Three of them out of the four decide to stay. Right. You know, so just a quick calculation, 200 times, three tenants, times, 12 months, and then apply up five or six cap rate. You know, it’s probably a hundred thousand dollars in value that owner lost. You know that again, where we deal in this kind of space of small multifamily, we deal with a lot of mom and pops. We’re not dealing with, you know, the syndicator or the big large firms that own thousands of doors. So I’ve met people that don’t have P and L’s, they don’t have a separate bank account. They don’t have leases, they have leases, but they’re out of date and they got verbal agreements with tenants on what they pay. So again, we’ve actually got a buyer’s guide. If anybody wants to eat our a seller’s guide, if anybody wants to email me, I’ll sell the house, send this just a seller’s guide, just kind of a top 10 things that I think you need to have when you’re getting ready to sell. And some of it’s simple and some of it, you’re going to think what you’ve, you’ve seen that. And I have and it ends up costing the sellers sometimes millions of dollars in value by not having bank statements or PNLs or rent rolls. I mean, that’s some of the most simple stuff. And so we, we try to, you know, if somebody is thinking about selling, we are, we’re kind of work with them to make sure they have all these ducks in a row to get ready to list it.

Charles:
Right. Because if you’re buying that, you’re going to have to recreate those documents. So we were underwriting the property years back and their accounting was done on the side of their business bank statements. And you’re like, you gotta be kidding me. So I’m going to get a deal on it. We’ll go through and we’ll, we’ll put this into a spreadsheet, but it’s just, it just goes to show you that they didn’t even put it. They wouldn’t even open up, you know, your free Excel spreadsheet and pop some numbers in there, just working out who owed what on a on a bank statement, which is normal. If you don’t have to account anyone in you, it’s your property, you own a hundred percent and you just need to pay taxes, insurance and your mortgage. No one else is looking over your shoulder if those are paid. So so if a, if a new investor let’s say reached out to your brokerage, interested in investing in properties, what could they do to show you that there were serious investor that you know, would warrant your time showing them properties, sending them properties, everything you do with your clients?

Dave:
Yeah. I mean, I think it’s a lot about, you know, effort, right? Are they just going to call us and, you know, expect us to send them, you know, the, the best deal right away, right. When I’ve got a huge buyer’s list and you know, seasoned people that I’ve worked with for years we are just on a zoom call a couple of nights ago with Julie, Holly and other a lady. I know. And she, we were talking about the same thing. How do you get into brokers? You know make a point to go visit them, you know, get in the car. Like if you’re in a different market, you really need to go there and spend time. So we have people from California, you know, they’ll fly to Nashville and spend the weekend with us. We’ll show them properties. We might not have the property that they’re gonna end up buying, but we’ll show them something that would fit into kind of their criteria. Right. You know, this is our price range. You know, this is the kind of, you know, we want to see or be property. We like, you know, newer construction versus old and we’ll spend that time with them. But again, they’re showing us the effort. I’m actually, I’ve got a coaching student right now and you know, we’re looking at other markets, I’m kind of teaching him these things. You got to go there, you gotta meet with brokers, go, go look at properties. You know, give them feedback on what, what you’re seeing and what, why you can’t pay, you know, a four and a half cap for that property. Give them that back. And they’ll start seeing that you actually know what you’re talking about. And you’re responsive and that you’re serious, but again, it’s follow up with the brokers. You know, we have people that call us one time and then they think that they’re just, you know, on our list. I mean, I’ve gotten value. We can’t keep up with, you know, when I’m buying, when you’re buying all, I don’t have the money I’m telling, you know, like you, you’ve got to keep following up, not bug them, not call them every day, but you know, maybe, you know, every other week, three weeks, if you’re serious, you know, don’t waste their time. You’re not really gonna be ready to move on things. So I’d say those are, you know, don’t call them, say, I’m looking for owner finance deals, right. I mean, those are, you know, I went to a seminar last night and don’t be SS that’s I hate that. Right. I mean, I’ve been doing this long enough. You know, I’ve got a large, a pretty decent portfolio, my own, I can sniff you out so quick if you don’t know what the hell you’re talking about. Right. So I’d rather have you call me and say, I don’t know anything I’m getting into this. Will you help me versus you know, somebody that’s going to spout out all these that they think they know what they mean, but they don’t. And, and, and I think the real, genuine people in this business that I’ve met, if you have that attitude, they will take the time with you and teach you and lead you in the right direction.

Charles:
Right. For sure. Yeah. I agree. The, with commercial brokers, you can use a good commercial broker for finding all the other parts of your team, really with all the referrals and everything with it. And when people ask me about speaking to new brokers, I would always say, well, figure out be very exact in what you want. I like this city, I like these neighborhoods. I want six to 18 units. I want this. And I remember, like you said, going and meeting them. I went one time to meet a broker and I left. And I left with an 18 unit off market deal that they were giving me before went up and they listed it. But so it’s very, very powerful. And I asked him, you want me to sign something? He said, you know, no, don’t worry about it. And it was like the amount of trust you had with just having coffee with someone is amazing. And I mean, it’s a little bit more difficult today where we are, but it’s something that you know, you can do it in other ways, but kind of being exactly what you want because someone says, I want to buy multifamily. Well, is that 60 units? Is that 60 minutes? Is that 600 unit portfolio? I mean, it doesn’t, you know, it can, that doesn’t mean that,

Dave:
Yeah. Yeah. I mean, as a student housing is a class D is it Lytec has a low income, is it class a, you know, urban, I mean, what, what is it? Right. You know? And so, yeah, I think that’s very, very good, very good information, right there be, be as specific as you can on what you’re looking for. And then, yeah, I, you know, if you’re serious, then you should be able to be serious enough to come down here and meet with me and put the effort don’t, you know, well, I’ve got a nine to five, well, I’m sorry. Like, if you’re talking about buying a couple million dollar asset, you should be able to find the time to come meet with me and my team. And then yet resources. That’s a great thing. You know, we try to, you know, when we’re getting ready to list a property, we’re doing it right now. You know, we’ll go to our insurance agent that does mostly multifamily, you know, we’ll go to our Freddie and Fannie lenders, we’ll get the property manager on board and really try to, you know, almost have all these resources. So, you know, we’re really lists looking for someone who, you know, brings a down payment and qualifies and you know, really create a whole business or help them, you know, do as much as we can on the front end.

Charles:
Yeah. That’s awesome. And speaking about having other resources it’s one thing that we don’t hear too much of with we were talking a little bit beforehand in regards to asset management and how important is asset management or, or managing your property manager when I say asset managing when investing in real estate.

Dave:
Yeah. I mean, I think this is one of the things that maybe is lacking in education right now. And I’ve been trying to do some asset management and just, just basic classes here in Nashville is because I think you can go to a seminar and you can hear about financing and meeting with brokers, but, you know, meeting property managers and the maintenance guy and understanding what their day looks like, and, you know, the expectations that you can put on them, they’re, they’re great. I mean, they can be your team or breaks you, but they’re not Superman superwoman. Right. They can only, you know, there’s only certain things they can do. So you know, get in there, I take people through our shop and show them, you know, what kind of extra things we have in their tools, you know, w when somebody walks in the office, how are they greeted? Where’s our make-ready board, all those kinds of things. I think if you can understand this business kind of, and that’s why I tell people, I learned it from the inside out. So my first large asset, I was the property manager, the maintenance guy, the lawnmower, the pool guy. I knew how to snake outlines for years. And so I was a leasing agent. I mean, all of those different roles I’ve played. So I kind of ha I mean, I’m not an expert, but I know enough now to you know, give direction and know what I’m asking for. So again, get to know how the business works on a day to day operation is key because it’s, you know, it’s going to protect you in the long run if you actually know what’s happening onsite.

Charles:
Yeah, no, I agree with you. I self-managed my properties for many years before having property management, a third party property management come in and I was staking the lines. I was you know, everything with bleeding out furnaces, you know, oil furnaces, the whole nine yards of all that stuff. Getting a call on Christmas Eve and all these kinds of things I think with people today, or I see it a lot with a lot of the training programs is that there’s not much emphasis on self managing or learning the business from the inside. You know, you might know about what it says in the book, but you don’t know when you’re looking face to face with a tenant and they’re signing a lease and you’re showing them the parts of the lease and what they should do. You’ve never collected rent. That’s late. I mean, yes, you have the property manager do that, but knowing it isn’t, it is a very important part of the business when, when you’re investing in the real estate or have someone on your team that has that experience.

Dave:
And it makes you appreciate a good manager that much more. Right. I mean, you’re like, I don’t, I don’t I’ll pay you more. Right. Cause you’re just so good. And I know how valuable you are because I’ve sat in that seat. I know getting those calls at midnight are not fun, so let’s figure out how to not get those calls and, you know, so it makes you really appreciate the people onsite that work for you. And, you know, I, I’m a, it’s funny, I’ve become like a tenant advocate, right? Like I believe in taking very, very good care of our tenants because they’re the ones that pay our bills. And so, you know, with the firm I’ve, I’ve fired clients who I find out after the fact are slumlords and not fixing things. I don’t want my name on that. Right. These are the people that pay our mortgages, pay the salaries, pay the taxes for us. And so we, we, I’m a big fan of, of taking care of a good, good care of your tenant and a good manager. Again, if they’re doing that, you know, you, you definitely need to show them appreciation for that.

Charles:
Yeah, exactly. So what recurring traits do you see in your most successful property owners that you guys work with? Whether through the brokerage and or outside of it?

Dave:
Yeah, so I, I don’t know if I should share this, but we actually kind of have an internal grading of people because I’ve been doing this so long. We kind of just know personality traits. I’m not gonna share them all, but you know, there, there are a lot of them, you know, somebody that’s an entrepreneur already, right. That has a business, started, a business is running a business. They’re, they’re a very easy person to say, Hey, you know, here, because essentially what we tell people when we sell even a duplex, right. We’re selling a small business. And so, you know, we’re a ton 10 unit or a hundred units. Every property is a small business. So people that have already started businesses and kind of know how to set up LLCs and talk to insurance agent and kind of knock task out like that. You know, honestly they move up to the top of our list, right. We have people that I’m not going to name them, but have certain types of jobs that are kind of risk adverse. And they, they can never, they’re just, they’re, they overanalyze things. Right. And rod, and I’ve talked about this at the mastermind, they’re, they’re compounding problems onto each other. So, you know, they’re sending us offers at 50 cents on the dollar. And they’ll never get past that. And so you know you know, our best clients, again, our, I’d say our business owners and entrepreneurial type of people. And then there’s these people that you just, I mean, they’re just never going to get over some of these, these concerns they have.

Charles:
Yeah. The analysis paralysis or where I see it too, when I speak to new investors is the they get really cheap on setting up stuff. So they don’t want to set up, like, I’m like, you guys have another LLC for this or that. And they go, wow, why can’t use this and that. And the amount of time I just spent with you explaining this $200 that you’re spending, I mean, this is all the whole process of what you’re working on. You know what I mean? And people, some people just don’t see that they don’t see value in certain things that I think small business owners and, or real estate investors see, because they’ve they experienced it before they know people that experienced issues and they know what has to be done to you know, to provide against that.

Dave:
So, so two things, when, when you come to meet with us here in Nashville, we’re going to sit down with you and we’re going to have probably an hour conversation and we’ll dig down to see if, you know, it’s a good fit. Right. You know, what your risk tolerance is. Right. I tell people I’ve got, you know, hundreds of thousands of dollars in mortgage payments and you know, that I, I sleep great at night, right? There’s a lot of people that could not take on that risk. Right. So, Hey, we want to sell you something that, you know, you’re gonna be able to lay your head down at night, fall asleep. Aren’t gonna worry, be a worry wart about this asset, right? The last thing I want to sell you, something that, you know, your life is a miserable because you, you can’t stop worrying about it. So we’re going to spend that kind of time with you. And that kinda goes back into what kind of asset you’re going to buy. Is it, you know, this nice, clean, perfect, you know, maybe a higher end B property, or, you know, you can lay your head at night owning a D property. I mean, it really is. And we’ll just show you options. And then secondly, what I’ve kind of created here in Nashville, you know, if, if you want to buy something small on your own great. But if you just want to place money, then I, then I have Cedar rock capital, and that’s kind of what we’re doing. More capital raising for larger assets. So you’re like, I understand the concept. I want to be in multifamily, but I don’t want to be active, like owning the duplex through RIA. Well, we’ve got kind of alternatives for you.

Charles:
Yeah. And that’s usually the right way for a lot of investors that have a very demanding nine to five. And their W2’s taking up a lot of time where they have a successful business where it doesn’t make sense for you to come out and have the meetings with you and analyze the properties and put together the rest of the people to you know, complete the deal, complete the puzzle and kind of get a running how it’s supposed to with no experience where it’d be easier, just building out your current business and your current job.

Dave:
Right. Yeah. Right. Exactly. You know, I’ve got a guy I know, and he’s got a great successful business. I’m like, man, you just need to keep producing income and then use, you know, multifamily, you got the concepts, you understand, you’ve seen what I’ve done, you know, but use that as your investment tool, your passive investment tool. Right. but your moneymaker, your income producing is a small business and business that you’re starting to grow. So, you know, keep focusing on that.

Charles:
So what do you think are the main factors that have contributed to your success?

Dave:
Oh, man. I, listen, I have a lot of mentors, so like I would not be here without, you know, people who have, you know, those guys, that first partner with me, right. They, they were house flippers out in Northern California. And they said, Dave, you know, probably one of the best things that we can say about you is that we taught you a skill and then you actually went out and did it. They said, the reason we charge people 10, 15, $20,000 to teach them this is because most people don’t take us serious and they’ll never do anything with it. So we make them pay us to, to, to show how serious they are. And so, you know, they taught me about house flipping. And the next thing I did is I came back here to Nashville after, you know, out there a couple of weeks with them and found a Lake house that we ended up selling for $650,000, which was our first flip when I was 24, 25. So you know, I think that I just get shit done. I’ll I shouldn’t say that. But I just, I don’t wait around. Right. I, I know time is of the essence. Let’s do it, let’s knock it out, problem solve. You know, that, I’d say that’s one of the things that I contribute to some of my success, so.

Charles:
Okay, awesome. So how can our listeners learn more about you and your companies?

Dave:
Yeah, so I always do this. I was on Rod’s podcast. Like I was episode number four, like four years ago now, so I can give out my cell phone number. It’s six one five four seven, nine 87 37. I’ll assume you’ll put that somewhere. You can email me Dave at RIA-inc com. So you can check out residential investment advisors, we’re working on your site. Find me on Facebook. Dave Childers Cedar rock capital, Cedarrockcap.com. So the capital raising company. So but again, if you just want text me, call me, find me on Facebook, message me through Facebook. I’d love to connect.

Charles:
Awesome. Well, thank you so much, Dave, for being on the show today and I will put all those links in the bottom. So looking forward to connect with you in the future.

Dave:
Thanks again for you know, putting on this podcast and having guests like us.

Charles:
Thank you. Have a great day.

Charles:
Hi guys! It’s Charles from the Global Investors Podcast. I hope you enjoyed the show. If you’re interested in get involved with real estate, but you don’t know where to begin, set up a free 30 minute strategy call with me at schedulecharles.com. That’s schedulecharles.com. Thank you.

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Links and Contact Information Mentioned In The Episode:

About Dave Childers

Mr. Childers is a Managing Member of Cedar Rock Capital based in Nashville TN.  Mr. Childers has over 15 years of experience in real estate investing in Middle TN. He was 25 years old the first time he partnered and purchased his first rental property.  At 27, he formed another partnership and secured University Lofts, a 114-unit property in Murfreesboro TN, which allowed David to learn the business in all aspects. His most recent purchase was Hilburn Apartments, an 86-unit complex located in Pensacola, FL.

Eight (8) years ago David saw a need for a brokerage firm that focused on small multi-family properties and investors.  Over these years David has built Residential Investment Advisors into a successful brokerage firm.  David has brokered over a 450+ MF properties in Middle TN, Northern Alabama, and Southern KY

A recent partnership with Volunteer Properties, a Middle TN based property Management Company, has added more involvement with the located apartment industry as well. Over the past year, Dave has been advising them and helped them almost to double in size, they are now managing close to 2500 units locally.

Dave also serves as the managing broker for Millennia Housing TN which currently holds over 2500 units from Memphis to Johnson City TN.

Dave is frequently called upon to speak at various investment meetings around the Middle TN area. He has recently become a board member of the local real estate investment club.

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