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True MultifamilyAuthor: Justin Fraser
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E97: He bought $20 million worth of real estate in 100 days!
Episode 97
Thursday, 31 March, 2022
John Casmon joins True Multifamily to talk about the power of creating a business plan and constantly evaluating it to make sure you are making decisions based on, not just what you see at the property, but also what you see in the market. John also discusses the importance of forming strategic partnerships as you’re trying to scale your business. Coming from corporate America, John spent 15 years in advertising and marketing for large brands like Nike, Coors Light, Mountain Dew, and General Motors. He then slowly started building up his own personal multifamily portfolio. Eventually, he began working with other investors, scaling into real estate full-time. Last year, John did about $20 million worth of real estate in just 100 days – and he continues to grow and look for his next opportunity! Here are some power takeaways from today’s conversation: John’s thought process around his decision to exit some of their assets The power of partnerships and what the transition looks like Dividing up roles and responsibilities Forming strategic partnerships that play specific roles on the team Building a business plan The two layers of rental comps Leveraging the feedback loop Asset management from an operational perspective Episode Highlights: [05:14] The Power of Partnerships If you don't have a lot of experience coming into real estate, it makes sense to align yourself with other people who are more experienced than you. Be open to becoming a part of the team instead of being the one in the driver’s seat. Additionally, it’s crucial to be able to develop those relationships and understand who you're partnering with initially. It’s crucial to do deeper due diligence on the property, your business plan, and your partners. There are a lot of different ways you can structure things. Maybe you need to raise some capital for the deal or play some other roles in marketing or investor relations. Whatever that looks like, make sure you can deliver on those roles and tasks and that you're delivering for the overall deal. [15:33] Building and Executing a Business Plan An essential step in creating your business plan is to continually evaluate your interest rates, the current demand, or rent growth. Always be looking at these different factors and adjust accordingly. Look at what opportunities are there, your current rents, and your current occupancy. Look at what vacancies looked like over the last year. Based on all that information, you can then start to figure out where there might be an opportunity and then from there formulate your business plan. It's all hypothesis until you go out and do it. You’ve got to go execute it and once the market responds, get some of that feedback and continue to adjust your business plan accordingly. Resources Mentioned: Casmon Capital Podcast: Multifamily Insights
