Connected Investors Interviews Jan Brzeski
In this episode, Jan Brzeski shows Connected Investors a case study on a recent project they funded in California. Plus, what Arixa looks for in a great borrower, and the great benefits of a private lending partner you might not expect.
Jan Brzeski shares a copy of his white paper on The Urban Renaissance in Gateway Cities. It’s all about new real estate trends and where the opportunities are in real estate now.
Principles by Ray Dalio. The author is a very successful investment industry leader and he outlines the principles that have allowed him to generate good results, focusing on being honest with oneself about one’s strengths and weaknesses.
Urban Land Institute. (they offer partnership forums, which are mentoring for a group of younger professionals by an experienced group leader).
Information about Arixa’s funds for investors who have interest in those funds: contact jbrzeski@arixacapital.com
Plus recommends Patrick Lencioni’s book: The Advantage: Why Organizational Health Trumps Everything Else In Business. As well as Ray Dalio’s app Principles in Action.
HOW DOES PRIVATE EQUITY WORK IN REAL ESTATE?
A new parallel lending universe has popped up since 2008. Banks just can’t make the loans investors need any more. Now private lenders are the connection for tens of billions of dollars in real estate private equity and commercial mortgage debt.
Individual accredited investors give their money to private lending companies like Jan’s. They get strong single digit returns from passive investments. The lender underwrites the deals and funds the active investors on the front lines. They bring together all the parties for sustainable investment gains.
HOW DO I FIND MONEY TO INVEST IN REAL ESTATE?
Step 1 – Specialize
Private lenders like investors who specialize. Those that really know their neighborhood, what the local market wants, and how to give them a great product. The more specialized you are, the lower the risk for the lender. They better terms they can give you.
Step 2 – Build a Strong Team
No individual investor is a master of everything. You may need a strong Realtor, property manager, contractor, and private equity conduit to excel on all fronts.
Step 3 – Communicate Well
Communicate with your lender. Treat them well, and like a valued partner. These are not your big banks. It is about personal relationships. They can only help if you share the challenges too. You might be surprised at how much they can help if you ask. According to Jan, this can include introductions to private equity partners to fill in gaps debt doesn’t cover. It can even mean changing your loan terms to help you make the project a success.
Summary
Listen into this episode to hear Jan’s case study. He breaks down a recently funded deal in Venice, CA. You’ll hear how their borrower has become one of their friends and ideal partners. You learn a lot about how to attract millions in capital and have private money eager to fund your deals.
Action Steps for Attracting Money to Invest in Real Estate
Start building strong relationships with private lenders
Demonstrate that you can follow through on what you say well
Be transparent when there are challenges, you might find your private lending partner more helpful than you imagine
Host: Ross Hamilton, CEO Connected Investors
Subscribe to their YOUTUBE channel & Podcast
About Connected Investors
Real estate investing professionals from around the world turn to Connected Investors for innovative resources and timely local information about the business. Known for its cutting-edge technology, social network and in-depth educational opportunities Connected Investors is the industry’s leading source of real estate investing information. Learn more at ConnectedInvestors.com