Cap Rates & Interest Rates in the Current Election Year Market w/Todd Dexheimer
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Episode Description
Welcome to the Freedom Point Real Estate podcast! In today's episode, Jeremy Dyer is joined by friend and fellow investor Todd Dexheimer to talk value-add opportunities, successful syndications, the market in 2024, and much more.
Todd Dexheimer is the co founder and principal of Endurus Capital and started his real estate investment journey in 2008. Today his companies have bought and sold over $500 million of multifamily, senior housing, and commercial real estate. Todd has completed over 100 house flips, including a 20-unit mobile home park and a ski resort, while using those profits to build his rental portfolio. Today his focus is on operating value-add commercial real estate in the Midwest. Todd is also the host of the podcast Pillars of Wealth Creation and is passionate about teaching others how to create a business and how to take control of their finances.Todd lives in St. Paul, Minnesota with his wife and 2 kids. Todd is into downhill and water skiing, hunting, camping, hiking, hockey, and running. He volunteer coaches for his sons hockey teams and is on his church board, as well as enjoying various volunteering opportunities throughout the year. Todd’s passion is to teach underserved youth and adults how to create financial independence and security.
CONNECT WITH TODD DEXHEIMER!
Website: https://www.enduruscapital.com/
LinkedIn: https://www.linkedin.com/in/dexproperties/
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Conservative Underwriting
"Conservative underwriting is crucial in real estate investing. It involves looking at historical data to gauge future performance rather than overly optimistic projections." Todd emphasizes the significance of basing investment decisions on solid historical metrics rather than current market exuberance.
Tip #2: Good Debt Management
"Good debt, especially long-term fixed debt, can significantly enhance a property's financial stability and investor returns." Todd stresses the importance of securing favorable debt terms to mitigate risks associated with interest rate fluctuations.
Tip #3: Strong Asset Management
"Effective asset management is the backbone of successful real estate investments, ensuring proper property operations and execution of value-add strategies." Todd highlights the critical role of proactive asset management in maximizing property performance and investor returns.
Tip #4: Transparent Investor Communication
"Transparent and honest communication with investors is paramount, especially during challenging times or unforeseen circumstances." Todd emphasizes the importance of keeping investors informed about the progress, challenges, and potential risks associated with their investments.
Tip #5: Understanding Investment Risks
"Investors should have a clear understanding of the potential risks associated with their investment, including market fluctuations, operational challenges, and unforeseen events." Todd advises investors to assess their risk tolerance and align their expectations accordingly.
Tip #6: Investor Qualification
"Before allowing investors to participate, sponsors should ensure that they understand the investment risks and have the financial capacity to withstand potential losses." Todd emphasizes the importance of qualifying investors based on their financial stability and investment objectives.
Tip #7: Focus on Sponsor Track Record
"Investors should prioritize investing with sponsors who have a proven track record of successfully executing real estate investment strategies." Todd underscores the significance of assessing the sponsor's experience, expertise, and past performance.
Tip #8: Due Diligence Process
"Thorough due diligence is essential before making any investment decision, including evaluating market conditions, property fundamentals, and sponsor capabilities." Todd advises investors to conduct comprehensive due diligence to mitigate investment risks and make informed decisions.
Tip #9: Diversification Strategy
"Diversifying investments across different asset classes, markets, and sponsors can help mitigate risks and enhance overall investment returns." Todd encourages investors to adopt a diversified investment strategy to minimize exposure to market fluctuations and potential losses.
Tip #10: Long-Term Investment Horizon
"Real estate investing requires a long-term perspective, focusing on sustainable growth and wealth accumulation over time." Todd emphasizes the importance of maintaining a long-term investment horizon and avoiding short-term market fluctuations for optimal investment outcomes.
