The Multifamily Real Estate Experiment Podcast

MFREE 074 Trailer # 1 with Ismael Rey Reyes: Who Holds the Power in Real Estate Investing?

Shelon Hutchinson Season 3 Episode 74

Aloha, It’s Shelon "Hutch" Hutchinson here! If you’re enjoying 'The Multifamily Real Estate Experiment' podcast, please like, comment, and share our episodes to help us reach and inspire more people. Thank you for your support!

In this episode, we explore the age-old adage, "The person with the gold makes the rules," and how it applies to real estate investing. 💡🏠

We discuss the power dynamics in syndication and fund management, highlighting how having the capital – whether it's a million or 10 million – allows investors and fund managers to negotiate better deals. This leverage benefits everyone involved:

Operators: Gain confidence in taking down larger deals with the support of a strong capital stack.

Syndicators/Fund Managers: Achieve better negotiation terms and ensure favorable economics.

Passive Investors: Enjoy returns that aren’t diluted, thanks to the favorable terms secured by the fund manager.

We emphasize the importance of being able to walk away from unfavorable terms without the fear of missing out (FOMO). When you control the capital, you also have the power to set the rules. 🌟💪

Tune in to learn how capital can shift the power dynamics in real estate investing and ensure better returns for everyone involved! Stay tuned for more insights and strategies in the world of multifamily syndication. 🎧🔑

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Email me at:
hutch@hsquaredcapital.com

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Sir Hutch:

The person with the gold make the rules, right? So if you have a fund where you can raise a million to 10 million, then you get to advocate or negotiate for better economics for your investors. And this have a couple of win situation. You win situation for the operators that the fund manager or syndicators is choosing to work with. They now have confidence in the ability to take down larger deal economy of scale. The fund manager, gives them better economy of better negotiation economics for the deals, right? So if they bring in most of the capital stack, they can advocate for better returns and this better returns can also transition into better returns for the passive investor or ensuring that a passive investor's return is not diluted. At all by the returns that was negotiated by the fund manager or the syndicator with the operators. So having the ability to walk away from unfavorable terms without fear of missing out, because when you are able to raise capital, whether you are a syndicator or if you're a passive investor and you have the capital, you also could control, you can control the gold. You get to make some of the rules as well.