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Notes of the Episode
Today, we sit with someone who has made it big in the multifamily industry, Andrew Cushman. We pick his brain on how to successfully invest in real estate even in the midst of rising interest rates and a lot of uncertainties in the market.
Learn how to vet a sponsor, get genuine referrals, and know when to do a deal. You’ll get tons of value and investing strategies in this episode so be sure to tune in!
Key Points from This Episode:
- Andrew’s background as a chemical engineer.
- Andrew’s transition from leaving his job into full-time house flipping.
- Andrew’s transition from house flipping into apartment units.
- Andrew explains what a real estate syndication, limited partner, and general partner are.
- How to vet a sponsor.
- How to get a genuine referral.
- The value of detailed, complete and transparent communication with investors.
- A good strategy for syndicators to know when to do a deal.
- Have the patience to wait for the right opportunity and timing to do a deal.
- Andrew explains the big difference in the multifamily space from when the financial crisis hit in 2008 to the recession and financial crisis happening now.
- What opportunities does Andrew see in the multifamily market in the midst of rising interest rates?
- Andrew’s advice for people who are unsure if it’s a good time to invest because of the uncertainties in the market.
- Andrew shares the lessons he learned from past mistakes as an investor.
- Andrew shares what he is working on right now and what he is excited about for the next couple of months.
“A bad sponsor can take an amazing deal and run it into the ground. And a really good sponsor can take us so-so deal and make it turn out well.” [00:09:49]
“You are investing more in that sponsor than you are in any particular deal.” [00:10:04]
“You cannot time the market, you have to buy the right assets in the right place and structure them properly. And then make sure that you have plenty of flexibility on the exit.” [00:22:13]
“It’s not, ‘Don’t invest,’ it’s ‘Change the strategy’ to fit the market that we’re in so that you can still make successful investments.” [00:33:02]
About Andrew Cushman
Andrew Cushman is a former chemical engineer who found his entrepreneurial calling in real estate. In 2007, Andrew left his corporate position to start a business in real estate investment, starting off flipping single-family properties in Southern California. Sensing a shift in the market, in 2011 Andrew transitioned to multifamily acquisitions and has successfully syndicated and repositioned over 2,600 multifamily units. He is a frequent guest and panelist on Real Estate podcasts and educational forums. Outside of the business world, Andrew has been a certified alpine ski instructor and when not working in real estate enjoys surfing, backcountry skiing, and trying to not be outwitted by his two young children.
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