July 26, 2019

MB 173: Real Estate Investing Across Asset Classes – With Adam the Brit

MB 173: Real Estate Investing Across Asset Classes – With Adam the Brit

A jack of all trades is the master of none, right? We’ve been taught that it’s best to drill down on investment strategy and beware of shiny objects. But Adam the Brit has a slightly different philosophy. He believes that it’s important to...

A jack of all trades is the master of none, right? We’ve been taught that it’s best to drill down on investment strategy and beware of shiny objects. But Adam the Brit has a slightly different philosophy. He believes that it’s important to establish multiple income streams across several different asset classes, taking advantage of opportunities to trade real estate and generate lump sums of cash quickly—that he can then use to expand his buy-and-hold portfolio and increase his flow of passive income.

Adam the Brit is a season real estate investor with experience in nearly every asset class, including single- and multifamily flips, value-add multifamily syndications, multifamily buy-and-holds, ground-up construction, and triple net lease retail deals. He has invested all over the world, from Asia to Europe to the US, and his current focus in on syndicating shopping centers and doing multifamily flips in low cap markets.

Today, Adam the Brit joins me to discuss why he got into (and out of!) multifamily buy-and-holds. He explains why he transitioned to retail and weighs in on the benefits of the triple net lease option. Adam the Brit also shares how he fared in the recession, describing how he came upon the buy in bulk, short-term hold and flip strategy he leveraged between 2009 and 2014. Listen in for insight around what differentiates the US real estate market and learn how Adam the Brit complements his primary investment strategy with a variety of opportunities!

Key Takeaways

How Adam the Brit got into real estate

  • Excess capital from business in Netherlands
  • House flipping, invest in office warehouse

When Adam the Brit got into multifamily

  • Move to US in 2001, love idea of passive income
  • Self-funded 8 multifamily buildings in Houston

Why Adam the Brit chose to invest in multifamily

  • Looking for scalability
  • Small, affordable deals available

How the US market differs from others around the world

  • Find real estate to suit any budget
  • Low barriers to entry, favorable tax treatment

Why Adam the Brit got out of multifamily

  • Focus on more passive investments (travel)
  • Retail more reliable than class C market

The benefit of the triple net lease option

  • Pass taxes, insurance and maintenance to tenant

How Adam the Brit fared during the recession

  • Retail located in strong market, performed well
  • Ground up construction went dark
  • Bought 50 houses in AZ for 10¢ on dollar (turn $1M into $3M in 3 mo.)
  • Buy in bulk, short-term hold + flip from 2009 to 2014

What Adam the Brit would do differently

  • Set goals higher (didn’t push hard enough)
  • More aggressive + take more risks

Adam the Brit’s primary strategy today

  • Return to triple net lease retail long-term holds
  • Focus on syndicating Hispanic shopping centers

Adam the Brit’s multifamily flip strategy

  • 4% cap rate doesn’t work for long-term holds
  • Create $40K of value to earn $1M profit

Adam the Brit’s advice for aspiring real estate investors

  • Look for opportunities to trade real estate
  • Use quick money to build passive portfolio
  • Go where you know

Connect with Adam the Brit

Email adam@adamthebrit.com

Resources

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki

Odell Barnes

The Art of the Deal by Donald J. Trump with Tony Schwartz

Michael’s Ultimate Guide Course

Michael’s Mentorship Program

Nighthawk Equity

Deal Maker Live

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

Podcast Show Notes

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Michael’s Website

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Apartment Investor Network Facebook Group