Building a Real Estate Portfolio in Your Own Backyard with Tyler Brummett – EP 281

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When COVID hit, many businesses realized that they had to change their strategy, and we were definitely one of them. So, we decided to shift our focus to concentrate on the Cleveland area, where we could control construction, property management, and much more from our own backyard. With our key players located in the Cleveland area, it just made sense.

Throughout this transition, one of our key players was Tyler Brummett. Tyler is our Chief Operating Officer at Freeland Ventures and head of our acquisitions and asset management team. We’ve been business partners for about two years, during which time we’ve acquired over 2,000 new units. 

So today, I figured I’d bring Tyler on the show to walk us through how we procured our latest acquisition called Stewart House. We’ll break down how we were able to take a property from 80% vacant to 99% occupied and the difference between a vanilla apartment complex and one that attracts great tenants willing to pay a premium. We’ll also discuss the unique benefits of doing this in a market just minutes away from your doorstep.

Key Takeaways with Tyler Brummett

  • How Tyler and I got access to the Stewart House deal, what we did to close over a company that manages over 20,000 units, and how we plan to create a phenomenal community and better housing for its residents.
  • How to budget both time and money for improvements, ensure you’re making the right renovations, and find great tenants who will occupy your units for years to come.
  • What Tyler’s day-to-day as our asset manager looks like.
  • The difference between “kicking out” a tenant and simply not renewing their lease.

Tyler Brummett Tweetables

“Everybody's communicating on a day-to-day basis and there's obviously challenges and growing pains but it comes down to the property managers and the CapEx team having to be aligned and they're totally separate.” – Tyler Brummett

“When we take over a property, we've learned that you have to impact the property exterior so everybody that's living in the property feels the new ownership.” – Tyler Brummett

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Josh Cantwell: So, hey guys, welcome back to Accelerated Investor. Hey, I’m your host, Josh, and I’m super excited. I’ve got my business partner, Tyler Brummett, with me and we literally minutes ago just got the notice from Ben, our title agent, that says, “Yes, Stewart House has been funded, the filings have gone through the auditor, and you are the new owner online.”

 

Tyler Brummett: We are so excited. Heck, yeah.

 

Josh Cantwell: Pretty amazing, huh?

 

Tyler Brummett: Yeah. That’s awesome, man. I mean, especially from where we came and then buying in our own backyard. I mean, it’s phenomenal. I think I was telling you earlier, I couldn’t sleep last night. I was at the parking lot at 7 a.m., just kind of walking around, just really absorbing it all in. I’m extremely excited about this project.

 

Josh Cantwell: Yeah. So, let me introduce things real quick. So, you’re online with Tyler Brummett. Tyler is our Chief Operating Officer at Freeland Ventures. He’s also the head of our acquisitions and also sits on top of all of our property managers. So, he’s basically our asset manager if you will. Tyler and I have been business partners now for about two years. We met about four years ago when we brought Tyler in to head up our lending department of our private equity fund. And when COVID hit in March of 2020, we decided to stop lending and just pivot everything we were doing into our apartments. We already owned about 2,700 units of apartments at that time with joint venture partners and we just decided to say, “You know what, let’s stop lending and being a private lender, a hard money lender, let’s just focus on our apartment portfolio.” In the last two years since COVID, we’ve added 1,200 units roughly to our portfolio, 1,200 units all in the Cleveland area. Well, we’ve got some other investments and stuff we’ve done out in Houston as well. So, we’ve actually added probably 2,500 units total, 2,200 units total.

 

But we really decided to focus, when COVID hit, to really focus on Cleveland and our backyard and controlling the construction, controlling the property management, controlling things in our backyard. And so, me, Tyler, and our other partner, Glenn Lytle, all live and were born and raised in the greater Cleveland area. And I think that’s really served us well. So, Tyler, why don’t we first start with just let’s talk about Stewart House. It literally just closed a few months ago so it’s a $6.3 million purchase. Tyler, again, stands up our acquisition department. So, T, why don’t you just talk about the deal high-level numbers as well as kind of when you were first notified? So, as an acquisitions person for our audience that does acquisitions or was looking for acquisitions, how was this deal kind of procured?

 

Tyler Brummett: Yeah. So, the deal came from relationships, right? So, we closed out the last quarter of 2021 super strong. We’ve closed in 170 units, then 220 back-to-back. And that came from relationships that we have with some of our brokers local. You know, Marcus & Millichap guys are awesome. They brought the deal to us and said, “Hey, listen, we’re going to be bringing a deal to market.” And then instantly when Josh and I hear market we’re like, “Here we go. Long drawn-out process.” And they’re challenging because you’re competing with institutional buyers, right, big companies that have been doing this for 30-plus years. So, they brought us the deal. We toured it. Josh and I toured it. I remember we’re probably there about 10 minutes and we’re like, “This is the deal we want.” So, it’s located in Cleveland in a great area, very close to Lakewood, very big property as far as just the overall plot of land, very good community on a busy street close to the RTA. A lot of things are happening over there. Yeah. It was brought to us first. The whisper price was I think, 15 and up. Whisper price is, “Hey, this is what we think is going to sell for 15 mil.” We’ve learned our lessons in the past, so we came in pretty heavy.

 

We actually transact at $16.3 million of 55 a door. So, yeah, our plan is we closed, I don’t know, 45 minutes ago and we’re ready to rock and roll. Our plan is to improve the units, make a phenomenal community for the residents, bring in more residents to the area, and better housing because right now about 40 units are vacant there that are actually completely, you know, and a handful of those are completely down. They’re not even rentable. So, planning to put about $3 million into the property. That’s interior, that’s exterior, that’s parking lots, that’s possible dog parks, amenities for our residents. And we’re going to turn the full property but about 50% are going to be full turns. We consider that as everything. And then the other half is it’s going to be what we call half terms, and that’s where I’ll be really heavily involved, deciding on what we do. So, yeah, that’s a little bit about the deal. It did go on. I think we started negotiating this thing towards the end of last year. We won this deal. This deal means a lot to us because we are competing with a very large company that owns probably 20,000 units. So, for us, it was a little check off of the box of winning a deal at a great price.

 

Josh Cantwell: Yeah. I think we lost. Last we counted, I think we lost seven or eight deals and about $70 million worth of deal flow last year. Competitors, primarily one big competitor which we’ll keep nameless just out of respect for them and for everybody involved. But they’re a big player, man, and they’re a big buyer. They got really deep pockets, institutional type buyer. And we know that they’re the 800-pound gorilla in the Cleveland area. And we have a good plan and I think ultimately we got awarded the deal because the seller saw the type of construction that we do, the type of renovations that we do. So, when Tyler said full turn, some people say full turn, and they’re like, “Oh, yeah, you do new carpet, paint, and kind of paint the cabinets.” No. For us, a full turn is literally $8,000 to $10,000 worth of everything new. I mean, cabinets, hardware, flooring, paint, trim, shoe mold, brand new bathroom, all new appliances. The whole thing looks literally brand new. But in doing that, we’ve proven that we can raise rents on average about $300 taking rents from, let’s say, 750 to 1,050 or rents from 850.

 

Like at 52 Lake, we took the rents from 850 to 1,275, doing a hard full turn. And so, what happens is, is that we look at the model. We’d normally on all of our other buildings and me and Tyler and our partner, Glenn, we look at this all the time but our model is to turn half of the building as a full hard turn, improve all the commons, and then we get that rent up and we turn over half of the community. Then the second half we kind of do as make-readies or half turns and we’re putting about $3,000 to $4,000 in per unit and then we’re actually able to bump those rents on those pretty hard because we have improved the experience and we’ve improved the entire community. So, Tyler, talk a little bit about that. You’ve obviously been instrumental in finding deals but also on this turn process. And you know, some of these properties have gone to a fairly high vacancy like 80 Maple. We dropped down well below 80% vacancy but in order to bring that thing back up to 99% occupied now and sometimes you just kind of put that in the underwriting, right, and then just manage that really hard.

 

Tyler Brummett: Yeah. So, one thing that I think we have learned a lot with buying real estate is you plan for the acquisition, you plan for the rehab, and you plan for the exit, right? Well, there are a lot of little things that can change within that process, this thing that’s called cash burn. So, one thing that we’ve prepared very well on this deal is the property is not making money that well right now, as it stands. It’s making money but it can do better. On top of that, when we improve the property, there’s going to be vacancy. Right now, it’s about 86%. I expect it’s probably going to drop down to 70, maybe even a little bit more than that. And that’s what we call cash burn. So, that just basically means, “Hey, we got our expenses. They are what they are. Tax where they are.” Those aren’t going to change. The only thing that’s changed is our income, right? So, we prepare for that. We make sure that we have the capital in our operating account to fund that. And then it’s about the construction, right, being extremely tight and fast with this type of stuff.

 

And I think that’s where over the last year we’ve done it better than anybody else. We’ve turned close to 140 units at one of our other buildings in 10, 11 months. So, our goal with this project is being safe is about a 3 to 4-year plan because we are at 86% occupied. So, the goal is to renew leases and take some of the residents, put them in new renovated units because we have a nice chunk. About 15% of the units are down right now so we can take 15% of those residents that will absolutely want to take a higher rent because they love the property and they want a repaired unit that is fully remodeled. So, we’ll start there, then we’ll take the other group and we’ll renovate those. And then organically, you’re going to see people move out, right? And that’s just the process. So, we have to be very strategic on where we start, what units we’re picking, and then what residents that we’re moving over.

 

Josh Cantwell: Yeah. And after we get through these first 40-ish renovations, about 30 of those are full hard turns, 8,000 to 10,000 a unit. The other nine or ten are, again, that make-ready quarter turn about 3,000, 4,000 a unit. We’ll obviously return those. Those will all be done within 60 to 90 days and they’ll be gorgeous. You know, you can look online at some of our other properties like Forest Ridge or Clifton Lakes or Valley Park & Plaza.

 

Tyler Brummett: Keep going. There are so many.

 

Josh Cantwell:[80 Cove I’m just encouraging our audience to go check them out online. Look them up on Apartments.com and Google. You could see the renovations that we’ve done and then, yeah, like Tyler said, we’ll fill those up. Some of the existing residents will move into those. That’ll create some new vacancy. Then we’ve identified some of the buildings that need the most work. And sometimes it’s just easier to not renew those residents, have everybody kind of in that common move out, and then just repair that whole common at one time, right? So, you got a lower floor, they’re garden style. There’s 22 or 25, I can’t even remember, 25 common entryways. And then there’s roughly 12 units in each common. So, sometimes for those of you that owned apartments, sometimes you know like each common can almost act like its own little community and sometimes that little community, they can all get along. They’re all really clean. They’re all really good to each other. They support each other like family then other commons, it’s like…

 

Tyler Brummett: At war.

 

Josh Cantwell: Going in, it’s at war, right? And people can’t stand each other. They’re loud, they’re dirty, and stuff like that. So, obviously, we want to make sure that those ones that are good residents, take care of them, and the people that are hard, move them out. And so, we’ve already identified some of the commons that are the ones that we want to keep, the people that we know that really love the place, and the people that obviously are not going to get renewed and have to go. So, that’s part of the plan. And, Tyler, like one of the things I think that’s really important here is because we have such a heavy construction budget like $2.5 million to $3 million and Dave is involved, our VP of Construction, and Glenn kind of sits on top of Dave and kind of manages that whole CapEx. Really what this comes down to is the day-to-day asset management, right? The communication between CapEx and property management. You’re right in the middle of that conversation every day. So, just help our audience understand a little bit about what does your day look like, like managing that flow of the workflow from a vacancy to a demo to a turned unit to turning it over to leasing, identifying if it’s a full turn or a half turn. Just describe for our audience what asset management is like for you.

 

Tyler Brummett: Yeah, it’s funny because I actually made a post about this today or yesterday. It’s all about like swim lanes, right? Making sure myself, Josh, Glenn, our employees know what they’re supposed to do, right? And then the processes that we put in play for them and then the systems. So, one thing that we’ve done over, I don’t know, a year-and-a-half is we changed our systems three times. So, the day-to-day operations work like this. Our CapEx guys, Dave, our VP, and Glenn work with me that also works with the property managers. So, everybody is in lockstep with how things are flowing, what units are coming available, what units are coming complete, and what units that we have potentially moving out. We meet with our CapEx guys on Tuesday and then we have our weekly meeting on Wednesday, which is great because normally we used to do our meetings on Monday but the problem is and everybody’s got the Monday scaries or Sunday scaries but more importantly, money meetings are super unproductive because nothing happened over the weekend or there’s really not an update. So, we realized that very early and said, “Hey, we’re moving this to Wednesday.”

 

So, now you have the final half of the prior week and then you have two or three days of movements on Wednesday. So, then on Wednesdays, we are meeting and take about an hour and it’s our property management partners, whichever building we’re discussing and we rotate with the management companies. But on Wednesday, we go over CapEx updates, what happens, where we at, issues, we go over them property management updates, where the KPIs are at, how our collections, how our evictions, and then special projects. So, everybody’s communicating on a day-to-day basis and there’s obviously challenges and growing pains but it comes down to the property managers and the CapEx team having to be aligned and they’re totally separate. You can’t commingle. We’ve done that. We’ve tried to use the maintenance guys for the CapEx. You’ve tried to use the CapEx guys but you can’t do it. Like Josh and I, literally, well, I lose it when I get the CapEx guys helping on the property management and when the property management guys helping on the CapEx.

 

So, we’ve learned that so everybody runs on their lanes and then we meet as a group and we talk about where we’re at. I do want to rewind a little bit about back to the CapEx on when we started building, Josh. So, renovating the units is one thing, right? But if the building was 100% occupied or 50% occupied, it doesn’t matter. This is the process that we follow. When we take over a property, we’ve learned that you got to impact the property exterior so everybody that’s living in the property feels the new ownership. People are used to buildings trading all the time. The ownership comes in, they jack the rent up, got a higher rent, and nothing changes besides, ah, maybe they’ll put a new sign out front. So, what we do, we work on the rebrand, we focus on fixing the parking lots, we do the exterior landscaping, we hit the commons so people see us on-site. They’re excited and we haven’t really asked for a higher rent at that point but now they’re starting to justify, “Hey, there’s someone in the office. There are things that are getting done. It’s cleaner here. Security doors are put on the building so now I feel safer in my property.”

 

We do all that stuff first and then we’re also working the units at the same time because that’s what you really have to do because no one’s going to have to move through a nice, renovated unit if they’re still walking through the same cruddy hall to get to their apartment. So, yeah, that’s kind of the process that we do follow but as far as our process, it’s just the CapEx and the property management team talking to each other and really working together.

 

Josh Cantwell: We learned early on a couple of years ago that most construction and even Dave, who’s been in commercial construction for 35 years, he says the normal process is you improve the units or you build the units, the interiors, and then you do the commons last. That’s the normal process. We actually do the opposite. We’ve learned with all the buildings that we’ve bought, almost 4,300 units now, that taking care of the interiors is important but everybody feels the commons. So, when we buy that, we paint all the commons. We have even a special paint color. We paint all the doors, which we call Freeland Blue. We do the gray with the white trim or sometimes black trim in the commons because it gets beat up, all the railings, then we do all the carpet squares, the treads, the exterior walk. And all of that is very important in the commons. So, everybody because everybody experiences that. And then at the same time, we’ll actually be doing the interior units. And what’s interesting is, is that we actually use two separate crews for that also. We use one paint crew to paint the common and a different paint crew to paint the interior of the units.

 

We’ve got Kevin and then we’ve got what’s called K&Z for two different paint crews. And then even the flooring on the interior units, we’ve got one group or one contractor that does the interior units in that flooring and we’ve actually got a great relationship with Lowe’s that does the common flooring. So, we can have one crew just focusing on all the commons, the paint, the carpet, the treads, all of that kind of stuff, the painting the doors, the LED lighting. We’ve got one crew that just does the commons so they can knock that out really fast because it’s all they have to worry about. And then we have a totally separate group of guys and a different crew that are going into the units. So, you’re going to see at Stewart House, we just bought it today, you’re going to find within 90 days of today, we’re going to have at least those 40 vacancies done and we’ll have probably another 10 to 15 vacancies that come up per month. It’s about 5%. It’s a 300-unit building. So, 5% would be 15 units a month. That will be also turning. So, within 90 days, you’ll probably see us have turned probably 60-ish to 70-ish units within 90 days. And you’ve got all the commons, I think it’s 25 common entries, 25 entryways. Those will all be done. LED lighting, paint, carpet treads. That’ll be finished.

 

We’ve got some boilers that have to be worked on. That’ll be done. And then we’re going to take care of the parking lots in the front mains areas as well. So, literally in 90 days from now, today we’re recording this is April 28 and the deal just closed an hour ago. April 28th, call it May 1st. So, all of May, all of June, all July. By August 1, this place will be totally different. It’ll be totally different, right? And we’ll be taking the rents, which are right now hovering around 600, 650, and our pro forma has us raising those rents on a two-bedroom all the way up to $1,000. And on the one-bedrooms all the way up to about 825 to 850. And we’re going to find out really fast if we can just go right from 600 on a classic all the way up to $1,000 on an improved unit. Even if we don’t get to 1,000, that’s okay. We’ve got to get to 1,000 three-and-a-half years from now but it wouldn’t surprise me if we start getting that pretty much right off the rent.

 

Tyler Brummett: And then one thing too about this property that I think is going to be great for our operations is there’s about a 7,500-square-foot building on there that the property management team could run, but also our corporate office and our construction team that’s on-site and our VP, Dave, our Director of operations, Jan, Roberto, our CFO will all be able to work from there on-site so we can house the material and our subs and our contractors. Everything will run a lot smoother because we’re physically on-site. So, that’s what’s also great about this property is everybody’s on-site and it’s within 7 minutes from 700 more of our units, literally, just right down the street. So, I think that’s a huge, huge benefit for us. It’ll run smoother. There’s not going to be as many containers storing our material and then we can have our actual group meetings there because we have so much space. So, on the checklist as well, it’s getting the office renovated so our staff has a nice place to work from.

 

Josh Cantwell: Yeah, absolutely. Now, are we going to displace some of the residents over time? Absolutely. Right? We’re going to try to take this tenant base from a C, C+ kind of tenant base up to a, B, B+ type of tenant base. And that’s going to take some time. There’s going to be some people that aren’t happy about it but, again, there’s plenty of apartment complexes where they can live and keep the same kind of pricing that they want to pay now, $700, $600, whatever. But we’ve proven on numerous buildings that are in good locations, this building is in a solid B, B+ location. That’s most important. But it’s being managed just like a D class or a C-  building because an owner went through some stuff and he hasn’t raised rents in four years and just kind of lost some of his staff and he’s ready to retire. I get it. Like, when I’m 70 and we have a $200 million portfolio, I’ll be less motivated too. When that thing’s paid off and there’s no debt, I won’t be as motivated either. Like, who would be motivated? I wouldn’t be motivated if I was him either. Like, no disrespect. Like, he’s done it right. He’s made it. So, he doesn’t have to do the hard work that we’re about to do, right?

 

But we’re going to displace some people. People are like, “Oh, my God, they’re going to kick people out.” No, we’re not kicking anybody out. We’re going to just simply not renew their lease. If they don’t take care of their unit, we don’t want them on site. Simple as that. If they take care of their unit, we will happily have them move to an improved unit or even keep their current unit but they’re going to have a better experience so we are going to charge a little bit more. Okay. So, before everybody riots in front of our building and says, “Oh my God, you’re kicking people out,” we are not going to do that. We’ll take care of everything. And I think that’s the difference, right? You’ve got all these out-of-town dollars coming in and telling, you know, if we didn’t win this deal and somebody else would have won it, they would have put no work into it, they would just be cash flowing it, and nothing would change.

 

Tyler Brummett: Nothing.

 

Josh Cantwell: Nothing would change.

 

Tyler Brummett: Nothing at all.

 

Josh Cantwell: Yeah. I don’t want to own buildings like that. I don’t want to be that landlord. I want to be known as that guy. Like, we’ve walked through several buildings where we’re like, “Oh, my gosh.”

 

Tyler Brummett: Oh, my gosh. How did they not know this is going on? How can you live with yourself like just knowing it? But that’s why we’re different, you know? I mean, I posted the other day about one of our properties. You have our properties got granite cabinets, nice flooring. Then you just have vanilla properties, 70s style. We’re talking yellow bathrooms, carpet clean, but 70s style for the same price. I mean, it’s unbelievable. So, that’s just not our model, right? We’re super hands-on. We have pride. We’re on site. We’re helping the property management team. And there are times where me and Josh are on-site and there’s weeds and we’re pulling like we’re super involved. We have to be involved or things just won’t get done.

 

Josh Cantwell: One other thing, Tyler, I want to touch base on before we wrap up here for today. And we’ve got to do this more often, just…

 

Tyler Brummett: Absolutely.

 

Josh Cantwell: Get out and talk about our stuff. But you, Glenn, and I have created a really, I think, special and unique relationship in that we really don’t see each other that often, right? I work from home a lot. You work from your home. You have your own office. Glenn works from home a lot. But we each have three different swim lanes, right? We each do three different things. And I think this is really serving us well, especially for the long term. I think me, you, and Glenn in the very short future will all end up in Florida somewhere. And Glenn and I were just talking about the other day that you could run this business that we’ve built now with the systems, the people, the software that we’ve built where the three of us can relocate permanently. And maybe once a month, like, you go back for a week and you check on things, you walk units. Then the next month, I go back for a week, I check out units, I meet with the staff. The next month, Glenn goes back. He checks on units. He walks units, meets with the staff.

 

And so, you really create a process now where the three of us can ultimately invest where we want to invest but also live wherever the hell we want to live. And the respect that we’ve built, the swim lanes that we’ve built, has allowed us to ultimately decide where and how and wherever the hell we want to live. And to me, that’s the most important, right? It’s lifestyle. It’s not that the lifestyle of like popping bottles and going to Vegas every weekend. I’m not talking about that. I’m talking about freedom of choice, right? So, just comment on that a little bit because I think ultimately that’s what everybody that’s listening is really trying to do. Freedom of choice, freedom of money, freedom of time, that’s what I’m really going after here. And we’ve done a lot of it strategically and some of it by accident but I think we’ve really set ourselves up to be able to come and go whenever and wherever we want, which is, for me, the most important thing. How about you?

 

Tyler Brummett: 100%. I mean, I felt that starting last winter, when I bought my house in Florida, you just came back from Naples, right? On Sunday, I’m gone. I’m in Florida. I’m coming back the first week because we just closed on this deal but I’m going to be gone the rest of the month and I can do that because of our swim lanes that we own, the employees know what they’re going to do, and more importantly, we can depend on each other like you guys know I’m going to hold my lane. I know that you’re going to hold your lane. You’re going to bring the money or you’re going to help with the deals, you’re going to underwrite the deals. Glenn’s going to help with the construction, the hiring. Like, we’re really good where us three are in the lanes that play to our strengths and I think that’s really, really the key here. And that it’s great to be able to paint that picture to other people that, “Hey, this could be possible and you don’t have to do it on your own. Like, you can own a company and a lot of real estate and you don’t have to do it on your own.”

 

I actually highly advise not to do it on your own because now we can enjoy that stuff. You weren’t stressed when you were in Florida, right? I think when we really figured it out is we all taking vacations and I’m like, “Oh, man, I’m really not on vacation.” We’re on all the time but we’re also off all the time too. So, I think that our relationships organically has worked out very, very well. COVID helped. We are forced to work from home. I would’ve never done that. I’m a very in-person type of guy. When during COVID I’d wake up, I go drive around the block because I can’t work from home. I literally couldn’t do it. So, I think COVID definitely helped us do that and it made us think a little bit more about SOPs, processes, and just making sure that we actually think about the operation of the business and implement it, and hold people accountable, “Hey, it’s not in the software. It doesn’t matter.” So, yeah, I think that’s super, super awesome and really, really impactful to our families too, to know that like for you like because, again, dad can take a vacation whenever we want. You don’t have to get stressed about that.

 

My fiancée is a lot of work from home. I just got engaged in Disney World, in Florida in February so she can work from home, took a new job as well and it’s a work-from-home job. So, there’s really nothing on a day-to-day basis why we have to be here. And believe me, if we all do move to Florida, I will be itching to come back to see where the business is at, right? I’ll probably be super annoying to everybody in my neighborhood because I’ll just be out and about walking around. So, I’m excited. There’s definitely opportunity and anybody can do this, right? It’s just about finding the right group and it will happen when you’re not trying to.

 

Josh Cantwell: Yeah. I think my last thought on that is we’ve all had different partnerships. We all have other properties we own, right, outside of our partnership. But we’ve realized that we’re not looking like I see a lot of people on social media or a lot of people are doing commercial deals in apartments that are always looking for their next partner. I would actually advise against that. I don’t think it’s healthy to just buy a building with one group and then go buy the next building with a different group and then a building with a different group because there’s so much thought and process from the softwares that we use, the systems that we use, that it’s because the three of us are in constant communication that we’ve stumbled on a new software and then we adopted it and we’re like, “Nah, we don’t like that one. Let’s start over. Let’s do something different.” Then we tried another software like, “Oh, we really like how this works. Let’s work on it together,” versus if you just go by and say, “I’m going to co-syndicate this property with this group, and then I’m going to be a loan sponsor on this deal over here. And then I’m going to raise capital for this deal over there. And then I’ll be an asset manager on this.” All with different ownership groups, that’s a recipe for disaster.

 

Tyler Brummett: I don’t think it’s possible in real life. After being in the game, I don’t think it’s possible. I really, really don’t. Well, it’s possible to a point where one or two businesses might be successful but something else is failing. I mean, you have to be involved and then like we are holding our own within our company, right? So, if you keep syndicating with other bunch of ten different partners, someone’s not going to hold their own and someone’s got to step up more then you’re going to lose leadership on the other property, other companies. So, that’s just my opinion. But yeah, I think that’s a unique situation for us.

 

Josh Cantwell: Yeah, absolutely. Great stuff today, Tyler. Super excited, man. Like, dude, virtual high five. Stewart House. 296 units. Hey, I know you’re really active on social media, especially lately. Tell our audience where they can connect with you.

 

Tyler Brummett: Sure. On Instagram and Facebook. Add me on Facebook. I’m just going to share Instagram name is tbrum23. Facebook name is my name, Tyler Brummett. And I’m just trying to share everything that we’re doing so people can see a social proof and learn and get the education on what we’re doing because that’s how I learned this. I just watched a lot of videos. So, and if you guys ever need any advice on things or they were looking for some tips, shoot me a DM, send me a message. I’m very easy to get in contact with.

 

Josh Cantwell: Fantastic stuff. Guys, well, there you have it. Another episode of Accelerated Investor on the day of the Stewart House closing, 296 units, 16.3 million with a $27 million stabilized value. Guys, thanks so much for joining us today and we’ll see you next time. Take care.

 

Tyler Brummett: See you, guys.

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