EP 212: From Craigslist Roommates to $2.7B in AUM in Multifamily - Joe Fairless

The Gentle Art of Crushing It!

Joe Fairless is the Co-founder of Ashcroft Capital which has over $2,700,000,000 of assets under management. In addition to his work with Ashcroft Capital, Joe created the podcast Best Real Estate Investing Advice Ever Show, which is the longest running daily real estate podcast in the worldJoe is a proud Member of the Texas Tech Alumni Advisor Board for the College of Media and Communication. He has also been recognized as Outstanding Alumni at Texas Tech University where he served as an Adjunct Professor. Joe is currently a Junior Achievement Board Member and Volunteer for the Cincinnati chapter where he was recognized by the Junior Achievement’s Free Enterprise Society for his dedication. Joe also volunteers at Crossroads Hospice and in 2018 he was recognized as Multifamily Investor of the Year by Think Realty Magazine.

Summary

Joe Fairless, co-founder of Ashcroft Capital, shares his journey from single-family homes to multifamily syndication. He discusses the challenges he faced, including a 168-unit property that lost money, and the lessons he learned along the way. Joe emphasizes the importance of having a plan and believing in the operator's ability to execute that plan when considering a capital call. He also provides insights into the current multifamily market, highlighting the upcoming under supply of apartments and the potential for increased demand and valuations in the future.

Keywords

multifamily syndication, capital call, under supply of apartments, demand dynamics, due diligence, personal development

Takeaways

• Having a plan and believing in the operator's ability to execute the plan are crucial when considering a capital call.
• The multifamily market is expected to experience an under supply of apartments in the future, leading to increased demand and valuations.
• When conducting due diligence, it is important to focus on NOI growth to isolate cap compression from the execution of the business plan.
• Investing in personal development can provide long-term benefits and pay bigger dividends than one-off investments.
• Taking action and making the decision to make a passive investment can lead to great satisfaction and the desire to start sooner.
  

Titles

• Taking Action and Making the Decision to Invest Passively
• The Importance of Having a Plan and Believing in the Operator
  

Sound Bites

• "Having a plan and believing in the operator's ability to execute the plan."
• "We're about to have more demand than supply. So in theory, prices will go up, which will help the valuations for any apartment community."
• "Focus on development of myself and then that will pay bigger dividends than any one-off investment would."
  

Chapters

00:00 - Introduction to Joe Fairless and Ashcroft Capital

06:35 - Transition from Single-Family Homes to Multifamily Syndication

09:02 - Lessons Learned from a Challenging 168-Unit Property

17:01 - Current Portfolio and Capital Calls

25:46 - The Future of the Multifamily Market

32:19 - Navigating Capital Calls and Pause Distributions

35:15 - Due Diligence and Personal Development

37:23 - Investing in Personal Development

Connect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestor