Today I was joined by Arian Lewis, founder of Kiln, discussing the evolution of coworking spaces and the importance of creating a high-quality, engaging environment for employees. He explains how Kiln focuses on building a lifestyle brand that elevates the quality of people's lives while they're working, and emphasizes the value of flexibility and choice in the workspace, allowing for different work styles and fostering creativity. He also discusses the challenges and opportunities in the coworking industry, including the need for strong executive teams and patient capital.

In this conversation, Kyle O'Hehir teaches me how to start a credit fund. Kyle's journey from buying crack houses to starting a credit fund. We also touch on the types of assets Kyle invests in, the hurdles and due diligence process involved in buying non-performing loans, his approach to evaluating distressed real estate deals and the factors he considers when deciding to invest.

Kyle on Twitter: @financeguy725
Tanner on Twitter: @twallyweb

Summary

Andrew Schaper started his career in the oil and gas industry as a petroleum engineer before transitioning into investment banking. In 2018, he started his own oil and gas consulting business. However, he became interested in commercial real estate, specifically boat and RV storage, and started a development project in 2020. The first phase of the project involved acquiring land, obtaining permits, and constructing the storage facility. Financing was a challenge, but they were able to secure construction loans from a bank. The project is being phased, with each phase being financed separately. Andrew spends more time on the real estate business now and sees it as a long-term investment strategy. In this conversation, Andrew Schaper and Tanner discuss financing options for real estate development projects. They explore the importance of having a sufficient spread between long-term financing costs and the desired yield on cost. They also discuss the challenges of using the Small Business Administration (SBA) for financing and the benefits of working with community banks. Andrew shares his approach to finding deals, conducting due diligence, and managing environmental risks. He emphasizes the need for an outside source of income to support the development business and discusses his plans for the future.

Chapters

00:00
From Oil and Gas to Real Estate

06:10
Understanding the Oil and Gas Industry

09:59
Potential for Direct Oil and Gas Investments

12:31
Venturing into Boat and RV Storage

22:03
Phasing the Development and Financing

25:28
Stacking Construction Loans and Long-Term Strategy

27:17
Balancing Real Estate Development and Other Ventures

28:12
Financing Options and Building Relationships with Community Banks

32:04
Land Due Diligence and Dealing with Environmental Issues

34:00
The Importance of an Outside Source of Income for Development Projects

36:11
Supporting Investments Through the Full Cycle

50:50
Balancing Multiple Businesses: Oil and Gas Consulting and Commercial Real Estate

Summary

Origin Exchange is a platform that allows investors to participate in 1031 exchanges through Delaware Statutory Trusts (DSTs). The DSTs are a way to invest in real estate without the transactional and fee-laden nature of traditional DSTs. The equity raise for a DST typically takes three to six months, and investors stay in the DST for about two years. After two years, there is an option to acquire the DST property through the Income Plus Fund. Origin Exchange uses a data-driven approach to identify markets with potential rent growth and focuses on multifamily properties in the Sunbelt region. The platform also offers an exit strategy where investors can be up-readed into the Income Plus Fund, providing a diversified portfolio and eliminating idiosyncratic risk. Origin is a real estate investment firm that offers a unique investment strategy called the Income Plus Fund. This fund allows investors to exchange their real estate holdings into a diversified portfolio of institutional-quality assets without incurring high fees. The fund provides liquidity through a redemption schedule, allowing investors to access their capital if needed. Origin focuses on multifamily properties, which they believe is a resilient asset class with long-term growth potential. They carefully select deals based on factors such as location, job growth, population growth, and market demand. Origin has a transparent and honest approach, and their founders have personally invested over $80 million in their deals.

Chapters

00:00 Introduction to Origin Exchange
02:11 Understanding Delaware Statutory Trusts (DSTs)
06:36 The Problem with Traditional DSTs
09:10 The Benefits of Origin Exchange for Investors
15:10 Data-Driven Approach to Identifying Markets
21:42 Exit Strategy: Up-Reading into the Income Plus Fund
23:45 Real Estate Ownership and Taxes
28:34 Transparency and Valuation
30:29 Focus on Multifamily Properties
32:16 Target Rate of Return
35:39 Transparency and Investor Care
37:31 Content Marketing and Growth
39:22 Paradigm Shift in Apartment Living
41:11 Factors in Deal Selection
43:26 Market Outlook and Interest Rates
46:37 Opportunistic Investment Strategy

Daniel discuss the basics of LIHTC and affordable housing development. Daniel advises market rate developers to find a partner with experience in LIHTC projects. He explains that LIHTC projects are different from market rate developments in terms of economics and incentives. Daniel also discusses the sources of financing for light tech projects, including low income housing tax credits, tax-exempt debt, and subordinate debt. He highlights the importance of finding a partner familiar with the jurisdiction's rules and regulations. Daniel also explores other creative structures for affordable housing, such as tax abatements and energy-efficient retrofits. In this conversation, Daniel Warwick discusses the concept of structured funds and their role in affordable housing. He explains how structured funds can replace high-return equity with lower-cost capital, reducing the cost of housing and allowing for the preservation of existing affordable units. Warwick also highlights the importance of public funding in these funds and the challenges of navigating community engagement and local politics. He explores the future of affordable housing, including the potential of middle housing, ADUs, and increasing land availability.

Ronald Rohde, a lawyer and commercial real estate investor, discusses his experience in the industrial outdoor storage space. He shares insights on finding deals, financing properties, and the benefits of partner's equity. Ron also talks about the importance of having an attorney in commercial transactions and the value of over-consuming third-party resources. He discusses his future plans of balancing both his law practice and real estate investments.

Ron's youtube: https://www.youtube.com/@RonaldRohdeLaw

Josh Romney- CEO of Intercap lending and real estate development company The Romney Group, joined me in the studio to covering a wide range of topics from ranch land deals, buying mortgage companies, owning thousands of apartments, and joint ventures with prologis.