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Global Investors Podcast
GI132: Raising Over $15 Million From Passive Investors with Bronson Hill
December 30, 2021
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GI132: Raising Over $15 Million From Passive Investors with Bronson Hill

We have to agree that the road to financial freedom is not easily traveled. Real estate investing is one promising path to follow but with its share of ups and downs.

In this episode, we talk to Bronson Hill, who has over ten years of experience in real estate investing. He began with single family homes and has since successfully transitioned into apartment buildings. With a company that controls more than 800 units and over $60 million of real estate, he is undoubtedly the right man to share his experiences in real estate investing.

The amount of work that goes into real estate investment comes down to money and, most importantly, time. As our guest reveals, we often undervalue our time, and at times we get lost in the effort that goes into investing, consequently leaving the time spent unaccounted for. Ironically, real estate investors are expected to be patient and open-minded. Still, instead of just having it as a side hustle, it can indeed blossom into a full-time job- as long as you are willing to be involved at every level of detail.

Our guest emphasizes the importance of building a network more than anything else and being in an era where information is handed to you on a silver plate, from conferences to podcasts, etc. The main challenge is having the right partners on board. Additionally, we explore the benefits that come with managing larger types of assets, as in this case, moving from single-family to multi-family. It is a safer space to be in and a well scalable business model. Following that trajectory of smaller to larger is not easy; almost impossible to accomplish single-handedly, and that’s where partnering with others is a blessing. In a nutshell, be prepared to get an accurate picture of how things go down, the success stories, and the disappointments in between, but ultimately find success; all these tips from a man who did it and raised over $15 million from passive investors.

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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 Bronson Hill. Bronson started investing in single family homes 10+ years ago and has since transitioned to apartment buildings. His company currently controls over 800 units and over $60 million of real estate. So thank you so much for being on the show

Bronson:
Awesome, Charles, real excited to be with you and your listeners. Love talking about real estate and just learning more. So it’s exciting, really excited to be here.

Charles:
Awesome. Let’s learn a little bit more about yourself and kind of how you got into real estate, both personally and professionally before you started investing.

Bronson:
Yeah, so I’ve done a number of different things. My background in nonprofit, as well as in sales in the medical field, and I’ve been doing single family, I’ve been doing single family for about 10 or 15 years. And as I look back, I realized, you know, that single family house that I had that I’d lived in and then I moved to another state held onto and became an of state landlord actually performed really well for me. It wasn’t a ton of work and it was actually a pretty good investment. So I thought, oh, this is great. I should do war these. So I ended up buying single family houses in Cleveland with my dad and, you know, the numbers looked phenomenal as we looked into it. And then we did, and it, it was good. It turned out really well. We made some good investments, but it was really a lot of work.

Bronson:
I mean, for amount of work that I was putting in. And I think that’s one thing that a lot of people don’t really account for, especially with single family, is that we don’t value our time or we undervalue our time when looking at single family investing. And so I had a my a grand plan Charles to basically get 30 houses and retire from my, my J O B with passive income. And I thought, this is gonna be great. I’m gonna retire. It’s gonna be awesome. I’m gonna be doing whatever I wanna do. And then I had this cousin that I hadn’t seen in years, who was a multi-family guy who’s, you know, really successful, been doing it for years and years. And he said, you know, like I told him my plan and he said, you know, that sounds like a lot of work.

Bronson:
He said, why don’t you do multi-family? And I said, well, I’d love to, but I don’t have the money. And he said, well, you can raise the money. So he gave me some tips, kind of, you know, introduced me to some different people and some conferences and podcasts and different things like this. And I was able to just basically learn how you do multifamily. And so over the, over the last four years, I actually raised almost 20 million for a multifamily real estate. Had individual phone calls with over 1200 passive investors, high net worth individuals are interested in investing. And so so it’s been quite a journey and yeah, I was doing this consulting job, you know, about 20, 30 hours a week. And I just recently kind of wrapped that up. So I could fully focus on doing what I love, which is really multifamily investing as well as helping educate people about wealth. So, yeah.

Charles:
Nice, nice. So what were some of the obstacles you you mentioned that there was a lot of time that was involved with the single family. What were some of the specific obstacles that you faced as a single family home investor? Yeah,

Bronson:
So with a single family homes, I mean, a lot of people really think, you know, oh, that’s how I become financially free as I invest in real estate. And everybody thinks single family real estate, but it really does not lead to financial freedom because even though houses tend to appreciate, and I had this first house, I had it for years and years. You know, actually about 15 years before I ended up selling it just earlier this year. But you know, basically the cash flow really wasn’t that great. Maybe I was making a hundred to $300 per house and, you know, things kind of, you know, went up over time, but it’s kind of this very slow, drawn out type of investing that it just doesn’t really add up to it. Didn’t really add up to what I wanted it to. And then when I really counted the, the amount of time that it took, and again, being somebody who was a high pay professional making, you know, high end of the six figures, it’s like, you know, your time is really valuable.

Bronson:
So every time your property management colleges here sends you fake pictures that, Hey, this tenant did this, or what do we do here? What happens here? And, and sometimes it wasn’t bad, but sometimes it was sometimes there was like, there was a lot of information, a lot of things they needed. There was things that I needed to do, whether it was with insurance or with just a, for information, as far as, you know, little research on what I wanted to do cause they weren’t the property managers typically, they really don’t make, they make some management decisions, but they really look to you for guidance. And so so I think in general you know, there are people that do it and it takes, it can take a very long time to actually become financially free. But what really, you know, again kind of helped me was to see beyond that and realize that, you know, for me to quit my great corporate job where, you know, in a way there, you have the golden handcuffs, right.

Bronson:
Cause you get paid so well that it’s just hard to leave, but to be able to do that, to go manage 30 houses out of state I kind of realize that would be a lot of work and it wouldn’t be just as, as turn key, key and as easy as I like so that people use this term turnkey and like nothing’s really turnkey. I think we talk nothing truly is passive. Right? Charles there’s yeah, true. You have to be involved. And, and I find single family you know, primarily you really have to be involved on a very detailed level. A lot of times versus multifamily. You have people that do that for you, people that really manage to assets something. So I started to kind of see that and realize, man, I just, I don’t wanna do anymore. Single family. I wanna get pretty much all into

Charles:
Multifamily. Yeah. I think I know one person out of all my years of networking and investing, that’s made a substantial amount of money in single family rentals and they had fulltime employment on their end to manage it. But it’s very difficult and especially geographic works against you as well. You know what I mean? So it’s one thing you’re like, oh yeah, great. I’ll just buy all these houses on these streets. Yeah. Well, I mean, but what happens when there’s one, that’s a great deal. That’s 30 minutes away and this one there, and then now you’ve got someone that’s just driving back and forth all day long. Whereas if you can kinda geographically center it, but definitely multifamily is a much easier and scalable business model, I think. And it’s much easier to manage as well because like you said, the insurance, cause I always laugh when you’re saying that because if find out with my smaller rentals that it’s, you know, insurance policy changes every year or something like this changes or you’re looking for something and if you only have three units, that’s under the policy. I mean, it’s not the best use of your time, but if you start getting 20, 25 units or 50 or a hundred, whatever I mean now it’s not really in hassle because you have so many units that are bringing in cashflow.

Bronson:
Yeah. I really see it as a much you know, much safer being in larger types of assets. I mean, mm-hmm, <affirmative>, you know, in, in the 2009, the worst point of the great recession 4%, a little over 4% of single family houses nationally were in delinquency, which means they were 60 days behind on their payments or more. And in the same time, large multifamily, meaning 60 units were more it was instead of 4% delinquency, it was 0.4%. So instead of 21, 20, every 25 houses is one out every 250 apartments. And so it’s just a much more stable asset. And, and it is more efficient on the management as well, because let’s say you have 10 houses and you got one maintenance guy who’s going from place to place and they’re paying so much, you’re paying him so much per hour and they go to one house and they go to home Depot and then they come back, it takes a half a day or a day just to kind of do one little thing versus you have a full-time person, who’s at one building, there’s a lot of similar type of products, right.

Bronson:
You kind of mix and match and they’re full time. So you get a discounted rate on them. And so there’s just so many efficiencies that come to multifamily that we just don’t think about. And I think that’s the challenge when newer investors look at turnkey or single family think, oh, the numbers look amazing. Well, the numbers usually never turn out the way you want and usually they’re way lower. And if you talk to a broker, they’ll, they’ll make the returns sound way better than they really are. And of course they don’t account for your

Charles:
Time. So yeah. And then that smaller properties too, they miss so many expenses. Whereas when you get into larger and they’re larger and you get into commercial properties, not that every expense is always there gotta normalize those. But it’s something that you’re like, there’s so many things here that are missing and someone’s telling me what they’re gonna make. And I’m like, you’re hopefully, but I mean like what who’s, what’s this and what’s that, and what happens if this person leaves and that’s always, usually the killer is yeah. When someone leaves and you’re like, now you’ve, you know, that goes your whole year of profit. And so it’s like, like you’re working just to pay some equity to the bank. So that’s a, that’s a tough, tough investment strategy. So tell us right now, like what your, what your firm’s current strategy and investment criteria is.

Bronson:
Yeah. So we, like you mentioned, we have over a hundred million in real estate assets and you know, all in multifamily, we’re, we’re in the south, we’re in the Sunbelt mm-hmm <affirmative>, which basically Texas to Florida. I live in California. I don’t own anything in California. All my stuff is outside of California. And I think for reasons, I mean, there’s so many reasons for that. There’s, you know, we invest in the south because you know, political reasons, you know, businesses are open things, you know, you get more landlord rights versus not being able to evict tenants. There’s a lot of migration happening and I think it will happen in times of, of where things are going well in the economy and times of recession. So when things are not doing well, like in 2009, a lot of people moved, a lot of companies moved to Texas, right.

Bronson:
Or floor because there were, you know, opportunities to pay, you know, the more attractive, you know, more like smaller salaries, but people could still live well in a lot of these other markets. And then also, because of the weather, a lot of older people want to go retire there and it’s cheaper to live. So if you live in Chicago or New York, you can go live in Florida or Texas or somewhere else and, and live really well. So I think that’s only gonna continue in those areas. And so so we, yeah, we’re, we’re really strong kind of, you know, all in the south and we’re just, you know, seeing the benefit of places like Jacksonville and Dallas and Atlanta and some of these markets that are, are really doing well. So but yeah, primarily we’re focused on, we work with high net worth individuals to do passive investing. We like a value add approach where we come ’em in and we can see pretty clearly that, you know, rents for a particular property we’re looking at are below market. So we can come in and do some renovations, you know, usually put eight to $10,000 in per unit. It maybe raises around 150 to $200 when they vacate. And the goal really is, you know, typically a three to five year hold and to increase the value financially of that property and giving investors a great return while improving the neighborhood. So excited

Charles:
Eight, eight to $10,000 per unit that’s those are pretty heavy lifts. Is that usually your business model going into these properties, not the light lifts, but more of a heavy lift.

Bronson:
Well, it really varies. I mean, you can come in and you can paint and you can do stuff really basic for, for cheap. But I mean, you come then, you know, you’re doing flooring, you’re doing, sometimes you’re doing some work in the kitchen. Maybe you’re putting new countertops on, you’re doing work in the bathroom, new bathroom tops. And I mean, you come in and, and basically one example now is we have in Jacksonville, there’s 138 units. We’re working on a deal there. And you know, it’s about eight, $10,000 per unit, but you know, people wonder, well, this places 99% occupied, how do you get the turnover? Well, you know, a lot of these units just kind of turn over on their own. So when they come up for, for lease, you say, okay, well rents everywhere. We’re going up. So it’s a hundred dollars more per month if you wanna stay, but if you don’t wanna stay that’s fine.

Bronson:
Just let us know. And so about half people end up staying, half people leave. So if they stay, they end up paying the a hundred dollars increase. If they, if they leave, then we can basically come in and do those renovations. And then we’ll see more like a $200, you know, rent increase by doing the work. So, so it kind of, it works out and we see, you know, again, it just adds so much to the value. I mean, if you raise rents per unit, if you’re able to raise, ’em a couple hundred dollars a month, I mean, that can raise, you know, $3 million or more for the, the whole property. So it’s amazing how that, you know, directly correlates returns, which is amazing.

Charles:
Yeah. Cutting expenses is great, but pushing income is much more, it’s much more of a model of a, of a, of a value increasing model. You know what I mean? And yeah, it’s just kind of what I found with it too, is yeah, we can save a couple of dollars here and a couple dollars there and hopefully everything works as well, but when you start increasing rents, and if you have people that are paying rent increases, or you’re gonna be renovating, I mean, you guys can’t really lose when you’re working on those units, because maybe not month one maybe month 13. Now they loo they leave after the next renewal and now you’re are gonna renovate at that point. And now you’re still gonna probably won’t even be another a hundred dollars. You probably did 125 or something. So

Bronson:
Yeah. Then there’s really two things, you know, one is like, we try to buy in areas where we see a potential for market appreciation mm-hmm <affirmative>, which just has to do with the market generally renter rising. So an area like Jacksonville’s one of the fastest in the country just rents in general rising. So that’s one thing, but the, you don’t really have control necessarily except for the area you buy in. But you know, that could, you know, continue to grow at a, at a huge rate. It could slow down, it could whatever, but, but the idea of forced appreciation is something you really do have control over that. In general, you can see the rents either in your own building or in buildings nearby that, oh, we can see these rent bumps are, are there. And so that’s just, something gives you a little more control, which we find is really awesome.

Charles:
So you mentioned earlier on that you your firm has raised over 20 million from passive investors. Is that what your role is at the firm or what is your role? What do you, what do you really focus on day to day?

Bronson:
Yeah, so we found, you know, I’ve been doing this for a number of years now and, and what I’ve really found is that there’s really two types of main roles within groups. So typically you’ll have more of an operating type of role, you know, somebody or, or some group finds assets and they’ll basically help to get them under contract and then they’ll manage them and they’ll try to have really good performance. And it’s very, very, very important. And then there’s there’s other individuals that are really good at working with investors and helping to raise money and just are more kind of a people person and enjoy doing that. So I’m, I’m more of the latter. So I, I do like working with individuals. So again, I’ve had a lot of conversations with wealthy individuals. My background is working with a lot of physicians or physicians are not always the, the best investors.

Bronson:
So are the worst investors. There’s reasons for that. But you know, really just, you know, trying to understand what people are looking for and helping them get there. So to me, you know, kind of my role is I you know, I, I look at a lot of different deals. I’m not actually the deals that we do. We’re typically not the operator. At least at this point, we typically partner with groups mm-hmm <affirmative> that have established operating groups that really, you know, the graded operations, looking at their, their performance, you know, a couple groups I think of, you know, 20 to 35% returns per year, even though they projected in the fifteens which is amazing. So the under promise and over deliver are similar values that we have as far as being transparent with investors and things like that. And just really looking at, you know conservative, you know, right.

Bronson:
Writing conservatively. But, so, so, you know, when I’m previously worked with a group, I worked with a pretty large syndication group and I was a partner. We all worked together and it really limited the, the deal flow sometimes mm-hmm, <affirmative> because, you know, for the group, we’d only have a deal, you know, once every, typically every five to 10 months, cuz we’re just very selective on what we did. And so now I get presented deals a lot from different groups that I, you know, and I pass on almost all of them, but you know, I’ll, I’ll have some that come around and actually in the last six months we’ve had three deals that we’ve done, which is amazing. So just the ability to have more deal flow. And then I, you know, I pass will be invest. I’m involved in every level where I’m going to a pretty, I’m looking at computing properties. I’m part of the diligence team. I’m part of the asset management team though. I’m not the primary asset manager. I basically just am not the one that found the deal, but I’m working with investors before and after the deal closes. So

Charles:
Yeah, yeah, no, that’s great because the sourcing of deals is what I found is that it’s a full-time job. I mean, especially when we’re dealing with these larger assets, a hundred plus units in the multifamily space and it’s very, very competitive and you really need to have someone that’s spending literally a full-time job of building relationships with those brokers. And then also finally, when they send you a deal that it gets underwritten and it gets done very quickly. And that’s something too shows professional, but you can’t just be finding, you’ve gotta have, there’s gonna be like one group or one person that just relationships and and underwriting. And I mean, it’s very difficult to be doing all of ’em all the different parts of it. But how are you vetting some of the sponsors that you work with and the operators, because that’s something too. We always like getting new deal flow and working with other operators allows to keep consistent deal flow, going up to our investors. But how do you guys do it?

Bronson:
Yeah, it, it is really, really important. I mean they say, and you know, this came up earlier in our conversation too, that there’s really no such thing as a passive investment. Right? Really like this big buzzword, oh, pass hashtag passive investing and you know, like all this stuff and mailbox money and, and you know, and love, I love passive investing. My, my podcast is called mailbox money. So it’s, I love the idea, but to truly be diligent, you, you know, to be a passive investor, you have to do your work on the front end. So it’s more front end work and then it becomes passive. So you’re truly vetting the deal and you’re vetting the sponsoring groups. So those two things are really important. I think some things that we do you have a checklist, we go through a whole bunch of things.

Bronson:
We just look at really who is this group? What’s their reputation. As you know, it’s a pretty small industry. So if you ask around, who knows who, and what’s their reputation there. And, and I get, you know, sometimes people now have been outta the woodwork saying, Hey, can you come work with us? Can you work with us? And a lot of times, if I don’t know them, I don’t really work with ’em. I’ll say let’s establish a relationship, but I, I just, I don’t know them. So I wanna get to know them. I, I do a background check on every partner that’s involved in a deal. Basically I look at the numbers I try to see really, are they conservative? Cuz my approach is I’d much rather under promise. I’d rather say, oh, this is a 15% return. And then be able to perform at 17% than to say it’s a 22% return and be able to perform at a 17 or 18%.

Bronson:
So I, you know, it’s again, it’s just an approach that we have. So there’s some values that we really try to live by. I’m trying to say, is this really a good fit? Does this group seem like potentially this could be a good long term partner? Cause I don’t want to do just a bunch of one-off deals with different partners. Yeah. However, you don’t really know somebody until you do a deal with them, whether you’re a passive investor in looking at an operator working, you know, in a deal or you’re, or even as a partner, an operating or, or a capital partner in a deal. So you do get to know people pretty well and there’s partner group groups that I’ll worked with. And I thought, you know, I would work with these guys again and there’s other groups I’d be like, you know what, I, I wouldn’t work with these guys again.

Bronson:
So again, it’s just, it’s one of those things. I think whether you’re an investor or you are a, a, you know, a sponsor like myself, you’re just really trying to say, you know, do the values line up. Is this somebody who has really a long term approach? Are they conservative? Are they transparent? Are they, do they, you really feel like you’re getting, you know, what you see as what you get. I, I really prefer groups that kind of under sell they’re, you know, they just, they don’t really try to put a lot of flash or really sell it. They just kind of what it is and and then reputation. So those are a few things that we look for. Well, you do, you know, obviously we get on the list and try to look at each, you know, individual item and performance and things like that as well. Track record.

Charles:
Yeah. Passively investing in operator deals as something I found as well prior to bringing them to your group, cuz then I can see the communication on there and I can see what factors they’re real and like how transparent it is because they’re transparent with passive investors. I’m thinking it’s gonna be even more transparent with partners. For sure. So it’s something that I want to see you know, how rent collections are going on a new pro I mean, you know, and then if you had any kind of passive holdings during COVID, I mean, that’s, you know, you’re getting emails every week on deals compared to every quarter every month, you know what I mean? Because people are like what’s going on or what’s happening. And it’s so I think the communication’s one of the biggest things that I think a lot of operators and sponsors and GPS, they kind of fail on a lot of especially with new investors that are you to this as passive investors.

Bronson:
Yeah, exactly. Yeah. No communication really? Yeah. That’s a huge one. I’m glad you brought that up because you know, people, the worst thing is you invest in a deal and all of a sudden there’s just crickets on the other end or if you reach out and it just, somebody doesn’t get back. I mean, it can be a really frustrating experience as an investor, even if the deal performs fine. It’s just the ability to kind of have a person that you can and connect with. And that’s, what’s different about syndication and multifamily syndication than crowdfunding or other sorts of, you know, reads or other things, right? Is that you can mm-hmm, you can be in with hundreds or thousands of investors and their focus is more on raising the money versus ours. I mean, we really, our group really try to say, and I know this is probably your approach as well.

Bronson:
It’s much more relational, right? It’s you want every to have a great experience. It’s like when you go to your, your favorite restaurant or you go to Starbucks or wherever, you know, you’re gonna have a certain type of experience, you know, the, the, the coffee or the food is gonna be a certain way, you know, that the attitude or the people working there. And that’s the whole thing that we try to look at is, well, what is the experience of investing in bro and equity, or what’s the experience investing in your group and, and that, because it’s really, really important.

Charles:
So with you spending a lot of time raising money, and as you’re saying, commercial real estate is a relationship business. You run a meetup, you have a podcast, you mentioned how has this kind of helped with building your business and building your brand with other operators for deal flow and then also with passive investors for for funding those deals. Yeah.

Bronson:
I mean, I think it’s really interesting to grow your wealth. I really think there’s two things that you can do. And one of them is education. So reading books or, or, you know, learning information or whether it’s podcasts or YouTube videos, all this stuff’s really important. And the second one is networking. And I think that if somebody’s trying to raise money, if somebody’s trying to learn about deals as a Passa investor, going to live events, meetups conferences, I mean, I’ve had to go mostly, mostly outta the state cuz it’s California and we, or LA been so shut down. But so I I’ve been to Texas, I think six times this year for different conferences, I’m going to, or three more this year. So, you know, it’s one of those things that you, you just have to be willing to meet different people and ask questions and learn and, and find out, Hey, who you, who you invested with, what, what’s your best deal?

Bronson:
What’s your worst deal. And just, you know, the more you talk to people, the more you’re gonna learn about what’s really going on in the market, you know, what, how investors are actually doing. I really think if somebody’s a passive or aspires to pass from investing, you have to go to meetups and you have to go to live conferences because you’ll meet other investors. Sometimes you’ll meet full-time investors that all they do is invest passively and they’ll have all kinds of experience of here’s what, here’s how I lost money. Here’s how I made a ton. Here’s, here’s a guy I avoid. Here’s the ones I, I invest with all the time. So some of that information can be really, really, really

Charles:
For people. Yeah. Yeah. Because you’ll talk to people that are passive investors and what’s the next question? How’s that going? You know what I mean? I invested with XY Z group, how’s that going? I heard this happening. Is that true? Are you worried about that? And, and it’s, it’s funny because now there’s not like you’re, we’re like here being recorded, but it’s something that, you know, the truth comes out and people are very open when you’re meeting ’em face to face and, and you know, you’re, you’re truly interested in their experience with whatever that group is. I had a question here about what I usually ask is what are common mistakes you see real estate investors make, but I also kind of wanna combine that in with some of the reasons that you turn down deals from operators or turn down operators in general other than just not knowing them.

Bronson:
Yeah. Yeah. So some of, yeah, you mentioned if I don’t know them, that’s one thing one time, you know, the SCC is very particular on if you’re raising money for deals that you’re not paid just for raising money for deals. So when I said I’m involved on every level, I am involved in every level. And so I had one time an reader send me a thing of, Hey, we’re gonna pay you this much. If you can raise this much. And it was like all percentage, it was like in an email and I’m like, oh my gosh, like that’s a big, no, no. So there’s things that like, just from a compliance standpoint and I was able to connect with the guy later and just, Hey, you know, it’s probably good that, you know, you Don send out emails like that for various reasons, you know, because you don’t want to be on the radar for the SCC.

Bronson:
Cause I know that that’s important to them. It’s just that we’re not, you know, we have all this money here and we’re putting it into deals, different places, unless you’re actually a licensed broker dealer, which people do. But to me that makes people a little more of a financial person that invests, or, you know, gets people into real estate versus a real estate person. Mm-Hmm, <affirmative>, that’s going to properties and doing all this. And in the past I was an investment advisor for several years. So I sold some alternative asset stuff, stocks, bonds, all that stuff. So I, I, I would rather much, much rather be a non-licensed person because it gives you some flexibility to create educational stuff and do other things. But so yeah, I mean, I would say that that’s one reason. I mean, you know, reputation, sometimes the deal itself I’ll look at the deal and I’ll, I’ll look at the underwriting that, you know, if it’s really high returns, you know, sometimes I, I try to think from my investor standpoint, like, is it, is it, does the deal look too good?

Bronson:
Is there something here that I’m missing? Are they counting on 5% rent growth in Dallas? Because it’s always grown percent the last 10 years and say, well, no, maybe conservative is more like two to 3%. So really kind of knocking those, those numbers down. So I think it just comes down to those real values decisions that for us, I mean, we have three real core values, as one is conservative underwriting. Second is transparent communication. The third is really a partnership approach with investors. And so if it, if something doesn’t fit with one of, or there’s some character issues that come up or that just something that I see that doesn’t make sense. And that’s whether somebody’s a passive investor or they want to be an operator, it’s just, you have to look at a lot of deals. You gotta analyze deal. Mm-Hmm you gotta see the wording.

Bronson:
You gotta look at the, the assumptions as far as the rent growth and other ones, the exit cap rate, if they’re being aggressive on those numbers, mm-hmm <affirmative> you just have to kind of wonder about other things. So, so I think those are really important. The track record to me is also one of the thing I wanted to mention that, you know, some people have no experience where they have one or two deals or very little experience. Some people have, you know, 20 plus years of experience, and they’ve usually the groups have 20 plus years of experience. They have all the money that they’ll need, but it doesn’t mean as an investor, you want to invest with them. Cause typically the returns are lower cause they can’t find value add. They can’t find certain types of things. So it’s really that sweet spot of people that typically have five to 10 years of, of experience. They’ve had multiple deals with some exits, just so you can kind of see how they operate and see some track record. To me that’s really important.

Charles:
Yeah. Do you ever kind of look at past returns or track or track records and if it’s a real hot market, let’s say Dallas, Atlanta Tampa, Jacksonville, and kind of peel away what crazy growth we’ve had and kind of see where the real, is there a real operator under this or do they just really buy in good areas? You

Bronson:
Know? Yeah. And, and that’s, that’s really that, that’s a great point, you know, so as you, if you’re just in the right area, you just pick the right area is you’re gonna do just fine. That’s again, why we typically pick areas where we see population growth, job growth, income growth, all that stuff. So, so it’s better to be, you know, lucky than good sometimes for some operators than just that you get in the right place. But no, I mean, I think you wanna look at all that. I think that’s all stuff that you wanna see. You just wanna see that the person you’re talking with has enough experience that if something starts going, you know, know not as well, how do they, you know, propose to change that or also who is the property manager they’re gonna work with and have they worked with that property manager in that market and what’s the performance been and you know, just, those are all things that, cuz that, that typically is, is one of the biggest indicators of a particular property, how it performs is really having good man property management in that particular

Charles:
Market. Yeah. Very good. Yeah. Property management. That’s a, that’s a great point because they are actually the people that are talking to our clients, right. Our tenants. And I think that’s another overlook thing. That’s great that you brought that up. Awesome. so you’ve added like 600 plus units to your to your portfolio this year. What do you think are the main factors that have contributed to your success?

Bronson:
Yeah. I mean, I think the biggest thing is just continuing to, to, to network, continuing to find the right deals. You know, I guess, you know, you put in the work and you’ll, you’ll, you’ll find the right opportunities. So I think it’s, you know, the more kind of my brand or network has grown, the more it’s led to just people saying, Hey, I, I, if I’m interested in this or would you wanna become, be a part of this? And again, I’m very selective on the deals that I do on the people I work with. I don’t want to be, I wanna also have some sort of exclusivity where it’s not like I’m one of 10 people raising money for a deal. You know, that’s like everywhere, you know, it’s all over and we’ve done some of the five, six C accredited only ones, and we’ve done some that are 5 0 6 B, which are, you know, for sophisticated or, or accredited with a relationship.

Bronson:
So but yeah, I think just really you know, continuing to just do the work, continue to look at the deals, continuing to really consider, you know, who I’m working with and, and also the experience of investors, the process that we have continuing to get better with those things. And we have a lot of repeat investors that mm-hmm best in every deal we do or they, you know, invest as much as they can. So, or they tell friends and family. So I think, you know, that’s definitely a good sign for us and things that we like to continue, we wanna continue to see. So

Charles:
Yeah, that’s great. I I’ve seen before I get messages from people and they’ve told me I wanna invest with someone like a 5 0 6 C person they’ve never met or anything. I’m like go to some events, you’ll meet some people, talk to people, build a personal relationship with them, get on all these deal, flow lists, review stuff, and that’s how you’re into it. And that’s perfect and required if you’re 5 0 6 B, but it’s also a, I think it’s a great strategy for 5 0 6 C. I’m not just gonna wire someone money that I’ve never met. You know what I mean? I want to have some sort of rapport with them and I kind see how they talk and how it deals and kind of you know, you see their whole experience. It’s much different than when you’re just watching YouTube or getting information from other people. So

Bronson:
Yeah, absolutely. And, and, and it is, you know, it’s, it’s hard. I mean, I did a, a YouTube channel and we talked, one of the videos is how can I invest with someone I’ve never met or is, you know, in another state or so, you know, how, like how can I invest in property, out of area? And I think it’s just amazing now with, you know, podcasts and mm-hmm <affirmative> and YouTube and Google and bigger pockets and all these different, you know, you can, you can have a property, you can basically do a Google street. Yeah. You know, tour walking tour, even though you’re not there, you’re across the country and you can, you know, you can do background checks on people. There’s all thing kind of things you can do. Or, you know, if you, you can actually get on a plane and go visit the property as well.

Bronson:
So it’s just, you it’s really all available to us if we’re willing to do the work. And it doesn’t mean I always tell people too, the question that, you know, it’s hard to, to tell people or at least give them, you can’t really give ’em advice on what sort of allocation they should put into a deal. Right. So if they have mm-hmm, <affirmative> a $2 million net worth and they’ve got, you know, 400,000, they wanna have allocated, typically I’d say you don’t put it in one deal. Right. You put it in three or four different deals. So you have some diversification because some deals do perform better than others. I mean, you know, the worst, the lower end that we’ve seen, at least for our deals, 13 deals have been involved with, it’s like, you know, eight to 12 percents come of the low end.

Bronson:
And then we’ve seen some that are 30 plus percent per year. So yeah. You know, it’s usually within a range, which is, which is nice. And again every deal is different, but I think just being able to, you know, look at the deal, look at the operator and then just really kind of, you know, I think for people that have not invested some of it’s just, it’s just taking the plunge and investing the minimum with somebody, cuz you’re gonna limit it ton while you do that. Just getting started and then just sitting on the sidelines forever.

Charles:
Yeah. It’s a great way. If you passively invest and someone that’s, you feel is gonna be open with you as much as you want them to be open with it, because like you said, I mean, there’s some passive investors that go to properties that we do and will meet us there. There’s some that never go and just respond back to the email and say wanna invest or whatever it is and that wanna come out late and stuff. So everybody has their own kind of not sweet spot, but like comfort, comfort zone right. Of how they want to invest. And if they’ve met you once or they’ve spoken to you once and they’re just looking for a deal and who knows people liquidating asset, you didn’t know, and two weeks later now they wanna invest. So it’s it really, really changes. But how can our listeners learn more about you and your business?

Bronson:
Yeah. So I really appreciate having me on today. Charles has been great and yeah, I’d love to connect with any listeners, whether it’s active or passive. I have this report that I wrote. That’s it’s like 24 color pages, the single best investing strategy during and after pandemic. So you can go to my website nice. Which is Broon equity.com. And then you’ll just see it there. You can, you can download it, but but yeah, I, I do monthly events. We do. We talk about precious metals. We talk about inflation. We talk about real estate. We talk basically about wealth building and wealth preservation. So I try to really not just look at real estate, but look at the whole you know, the whole sphere of being wealthy, continuing to keep your wealth, grow your wealth and protect it from different harmful things. So connect with anybody.

Charles:
Nice. All, all different a altern assets. So I will put links to everything in the show notes. Thank you so much for coming on and looking forward to connecting with you in the near future.

Bronson:
Thanks so much, Charles. Me too.

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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Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

Links and Contact Information Mentioned In The Episode:

About Bronson Hill

Bronson Hill is the founder and CEO of Bronson Equity and has raised over $15M for real estate investment.  He is a general partner in over $60M worth of real estate around the US.

Bronson is an authority on apartment investing and is continually putting out new content to help educate investors and help them achieve financial freedom.  He spent his earlier years as a sales consultant for several large and startup medical device companies.

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