MB 134: From Zero to 112 Multifamily Units in 9 Months – With Kyle Collins

When you know, you know.

Once Kyle Collins fell in love with multifamily as an asset class, he didn’t waste any time. In 9 months, he went from zero to 112 units and quit his job to pursue real estate investing full time.

Kyle is the Principal at Beechwood Holdings, a multifamily acquisition firm focused on stabilized, income-producing properties. Prior to founding Beechwood, he served as a sales rep for Martech Medical and the Director of Business Development for his family’s business, Five Rivers Conservation Group. Kyle earned a bachelor’s in finance from Georgia Southern and an MBA from Emory University.

Today, Kyle sits down with me to discuss his transition to full-time real estate investor, sharing the challenges he faced finding deals early on. He explains how to build a network of brokers and potential investors as well as what questions to ask to be taken seriously. Kyle also offers advice on leveraging an experienced property manager, raising capital and investing in your own deal. Listen in for insight around setting realistic expectations and learn how to divide your time among raising money, prospecting deals and running the operations of your portfolio!

Key Takeaways

Kyle’s background and education

• Medical device sales
• MBA from Emory
• Raise capital for family business

Kyle’s transition to real estate

• Familiar with network of potential investors
• Experience with syndicated land transactions

The challenges Kyle faced early on

• Finding deals, getting in front of brokers
• Courage and trust in ability to underwrite

Kyle’s advice around building a network

• Leverage personal network for introductions
• Call brokers to look at deals

Kyle’s advice on being taken seriously

• Educate self before pursuing leads
• Build multifamily skill set (50+ deals)
• Learn to speak the language

The questions to ask when you see a property

• Realistic rent bump on planned renovations
• Why rents lower than rest of market

How Kyle leveraged his property management firm

• Brought on early in negotiations, underwriting
• Objective opinion of realistic cost projections

Kyle’s guidance around raising capital

• Ask potential investors to lunch, coffee
• Explain what you’re doing but don’t push
• Put in substantial amount of own money

The importance of being excited about a deal

• Approach each deal with skeptical lens
• Confident in pitch, personal investment
• Under-promise and overdeliver

How to reconcile desire with prudence

• Invest in own deal
• Err on conservative side

Kyle’s first 112-unit deal

• Broker introduced to off-market deal
• Unnamed property, rents $150 below market
• $3K per door on renovations
• Already hit year-two rent assumptions

The value of a quality property manager

• Help set realistic expectations
• Handle renovations

What’s next for Kyle

• Another deal by end of year (1K units by 2020)
• Raise capital, prospect deals + run operations

Kyle’s insight on the level of effort necessary

• Look at deals daily, practice underwriting
• Network to meet brokers and investors
• Put together marketing materials

Kyle’s top tips for aspiring multifamily investors

• Need to believe in self through highs and lows
• Do one thing each day to further your cause

Connect with Kyle

Beechwood Holdings

Email kcollins@beechwoodholdings.com

Kyle on LinkedIn

Resources

LoopNet

Syndicated Deal Analyzer

Apartments.com

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

The Michael Blank Coaching Program

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