In this episode of the LSCRE Podcast, Craig McGrouther and I break down how the best real estate deals are actually found - not by chasing hype, but by understanding when the market overreacts.

We discuss why disciplined investors position themselves to act when others pull back, and how reading sentiment shifts can uncover opportunities that most overlook. I also share why staying grounded in fundamentals matters more than ever, even when the noise in the market gets loud.

We wrap up with a candid conversation on investor psychology, market cycles, and what separates those who react emotionally from those who capitalize intelligently.

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In this episode of the LSCRE Podcast, Craig McGrouther sits down with Ray Hightower to discuss why entrepreneurs are betting on Arizona.

They explore the factors driving Arizona’s growth, from population inflows and business migration to a thriving innovation ecosystem that continues to attract investors and operators. Ray shares his perspective on what makes Arizona a standout market, highlighting the opportunities emerging across technology, real estate, and entrepreneurship.

The conversation also covers how the state’s business-friendly environment and long-term fundamentals are fueling sustained growth and why Arizona represents the next frontier for forward-thinking investors.

Learn more about LSCRE:
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In this episode of the LSCRE Podcast, Craig McGrouther and I unpack the real story behind rent growth in today’s market.

We break down how new supply, wage trends, and inflation are influencing multifamily performance, and why headline rent growth figures don’t always reflect what’s happening on the ground. I share insights on how investors can separate short-term volatility from sustainable demand and what data points matter most when evaluating a market’s true fundamentals.

The discussion also covers how shifting migration patterns and market saturation are shaping returns across different regions.

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In this episode of the LSCRE Podcast, Craig McGrouther and Sam Morris uncover how one simple debt decision can completely wipe out investor returns.

They discuss how leverage, loan structure, and interest rate exposure can quickly turn a profitable deal into a loss – and what disciplined operators do differently to protect downside risk. Craig and Sam share insights on aligning financing strategy with investment goals, stress-testing capital stacks, and navigating the current lending environment with precision.

The conversation dives into the real cost of aggressive debt, the trade-offs between flexibility and yield, and how to make smarter financing choices that preserve returns over the long term.

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In this episode of the LSCRE Podcast, Craig McGrouther and I dive into how investors can stay competitive and build sustainable portfolios in today’s market environment.

We discuss why many investors are being forced to rethink their capital structures, how to protect returns without taking on excessive leverage, and the principles of disciplined underwriting that separate strong operators from overextended ones. I share insights from institutional investors on navigating higher interest rates, preserving liquidity, and maintaining flexibility while still pursuing growth.

The conversation also explores current trends in capital markets, the balance between risk and reward, and how to identify opportunities that perform even when leverage works against you. Craig and I outline the playbook for thriving through smart, steady execution rather than chasing aggressive leverage.

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In this episode, Craig McGrouther sits down with Sam Silverman to discuss the critical challenge facing fund managers today in building sustainable revenue while waiting years for equity deals to pay out.

Sam introduces KUDO Capital's private credit fund, which targets 16% annual returns through business funding investments that fully amortize in 4 to 12 months. With a fully aligned fee structure where the GP takes zero unless investors hit their full return, the fund provides both current pay and liquidity after a one year lockup. Craig and Sam also explore current multifamily market conditions, discussing recession indicators, the widening rent versus own gap, and why building a balanced portfolio is essential for long term success in today's challenging environment.

Learn more about LSCRE:
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In this episode of the LSCRE Podcast, Craig McGrouther and I tackle whether alpha is dead in multifamily real estate.

I explain how institutionalization has compressed returns across the board, but opportunities still exist through vertical integration, market expertise, and innovative strategies. We break down what true vertical integration actually means and how these "one percenters" create the actual value add that generates alpha in today's competitive market.

The discussion also covers the disconnect between official job reports and economic reality, with persistent data revisions revealing a weaker labor market than reported. Craig and I explore the three critical components of real estate value, including land, structure, and finishes, explaining why location is the only appreciating asset and should be the primary focus for long-term investors seeking stable returns and strong exit liquidity.

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In this episode, Craig McGrouther sits down with Joe Downs, CEO of Belrose Group, who shares his journey from financial advisor to bar owner to self-storage operator. After multiple career reinventions, Joe discovered that 80% of self-storage facilities are owned by mom & pop operators – creating a massive opportunity for professional operators who can bring modern technology, dynamic pricing, and professional management to an outdated industry.

Joe explains his investment thesis for self-storage, including why he focuses on the Southeast, and the surprising data showing millennials use storage 3x more than Gen X. He breaks down how to evaluate markets using supply-per-capita metrics, why median household income matters, and how to avoid oversupplied markets. Whether you're looking to diversify beyond multifamily or curious about alternative commercial real estate, this episode reveals the opportunities in an often-overlooked asset class.

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In this episode, Craig McGrouther sits down with Gino Barbaro of Jake and Gino, who shares his 20-year journey from running a restaurant to owning 1,800+ multifamily units. After spending 18 months finding their first 25-unit deal for $675K (now worth $2.5M), Gino explains how he worked full-time while building his portfolio – dedicating 15-20 hours weekly to real estate until 2015.

He emphasizes the importance of limiting downside risk and following foundational principles: "buy right, manage right, finance right." Gino warns against rosy rent projections in today's market, noting that properties advertising $1,500 rents with concessions really rent for $1,400. His key insight: in periods of stagnant rent growth and rising expenses, investors need 5-7 year horizons, not the 24-36 month exits that spoiled the market during 2020-2022's "sugar high."

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In this episode, Craig McGrouther sits down with Casey Stratton, who shares his journey from corporate layoffs during the GFC to building a real estate portfolio using the 1% rule – buying duplexes for $100K that rented for $1K/month. Now focused on Eastern Washington's Tri-Cities (one of the top 20 fastest-growing MSAs), Casey discusses how they're navigating today's 0.75% reality by pursuing true off-market deals and pivoting to development.

After securing a 33-unit property from an 86-year-old seller below market rents, they're launching their first ground-up development of 140 units. Casey reveals how Washington's new rent control (7% + CPI cap) changes the value-add playbook, requiring 2+ years just to reach market rents.

His key insight: sub-50 unit deals remain inefficient enough for arbitrage opportunities while institutional capital chases larger assets.

Learn more about LSCRE:
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In this episode, Craig Mcgrouther sits down with Axel Ragnarsson of Aligned Real Estate Partners, who's carved out a unique niche buying 5-20 unit properties direct from sellers in Southern New Hampshire. Since 2016, Axel has built a 525-unit portfolio by maintaining long-term follow-up with sellers, often nurturing relationships for 12-18 months before closing. 

He explains how 75% of his deals bypass brokers entirely, capturing inefficiencies in the $1-5M deal range where 15-20% discounts are still possible. With New Hampshire being the only Northeast state with positive population growth and minimal new supply, Axel's market has avoided the operational distress plaguing sunbelt markets. 

Learn more about LSCRE:
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In this post-LSC Summit episode recorded in NYC, Craig McGrouther and I reflect on another successful investor event and dive deep into current market opportunities. We share behind-the-scenes insight on why our summit is designed to break even, the power of curated in-person networking, and the culture of accessibility that sets our events apart.

We break down why 1970s-80s vintage multifamily is becoming the sweet spot – institutional capital is chasing 2000s and newer assets while retail syndicators who dominated older stock have retreated after losses.

I explain how concessions persist in Class A despite predictions they'd burn off, while the "Goldilocks" 2005-vintage market is now overpriced.

The key insight: older assets in prime locations offer the best risk-adjusted returns if you have the operational expertise to handle deferred maintenance. We also dissect why traditional value-add strategies often fail when brokers pitch replacing perfectly good countertops.

Our contrarian view: the best time to spend CapEx is when nobody else wants to.

Learn more about LSCRE:
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In this episode, Craig McGrouther sits down with Andrew McNair, founder of SWAN Capital, who shares his remarkable journey from saving $62K working at McDonald's and Denny's as a teenager to losing it all in the stock market at 19. After reading Rich Dad Poor Dad at 14, Andrew worked for free at a wealth management firm while maintaining jobs, eventually building a portfolio of 54 rental properties by age 30.

The stress of hands-on management led him to pivot toward syndications through Cygnet, targeting geographic diversification across multifamily, storage, medical office, and flex industrial. Now managing $20M+ annually for retirees, Andrew emphasizes the importance of having "skin in the game". All SWAN employees invest 100% of their retirement funds in their own portfolios.

His key insight: business owners need both active and passive real estate exposure to truly understand what they're solving for.

Learn more about LSCRE:
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In this episode of the LSCRE podcast, Craig McGrouther, Sam Morris, and I tackle the "hackneyed" concept of value-add investing and why it's been reduced to a one-trick pony of kitchen renovations. We explain how value-add became overused to the point of losing meaning, with sponsors pitching newer construction as "value-add opportunities".

We explore alternative value-add strategies: operational improvements, financial restructuring, and amenity additions like in-unit washers that can generate $50/month on a $1,200 investment. Rob shares his contrarian view that many value-add success stories from 2015-2022 were simply riding a bull market, not brilliant execution. 

Learn more about LSCRE:
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In this episode, Craig McGrouther sits down with Marcin Drozdz of M1 Capital, who shares his 20-year journey from buying his first property at 19 to raising $300M for Ken McElroy during the 2008 crisis. Marcin reveals how he bought medical amd dental plazas for 20-30 cents on the dollar during the GFC, targeting insurance-backed tenants that remained recession-proof.

He breaks down the "3 P's" of fund raising: People, Process, then Property – inverting the typical syndication approach. Recently closing a Houston deal at $77K/door with discretionary capital, Marcin explains why having "money in the bank" creates massive negotiating leverage.

Looking ahead, he warns of potential credit tightening that could force a pure equity environment, fundamentally changing how deals get done. His contrarian take: we may be heading into stagflation where assets collapse in real value while appearing to rise on paper.

Learn more about LSCRE:
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In this episode, Craig McGrouther and I dive deep into the nuances of "above the line" and "below the line" expenses in multifamily underwriting. We explain how the "line" is Net Operating Income (NOI), with operating expenses like payroll and insurance sitting above, while CapEx and debt service fall below. I reveal the art behind these classifications and how a unit renovation could be coded as either R&M (above) or CapEx (below) depending on interpretation, affecting the property's apparent NOI and cap rate.

Using their current deal as an example, they show why contract services dropped from $127K to $57K and how they're handling bulk WiFi implementation.

The key insight: every sponsor underwrites differently, and sophisticated buyers/lenders understand these financials are normalized to each party's standards. This is essential knowledge for anyone evaluating multifamily investments.

Learn more about LSCRE:
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In this episode, Craig McGrouther sits down with Bernard Pierson, co-founder of EHP Capital, who's been LP investing since 2012 and now focuses on value-add multifamily in Kansas City. Bernard reveals a counterintuitive insight from his 50+ LP investments: deals projecting 15-17% IRRs often outperformed those advertising 30%+ returns.

He shares how Kansas City has consistently ranked in the top 5 U.S. markets for rent growth over the past 3 years while avoiding the supply issues plaguing gateway markets. Bernard breaks down their operational value-add approach, including discovering 200 unchecked voicemails on a property's leasing line that no one was monitoring. With family office investors from Latin America, EHP targets 17-18% IRRs, 5-7% cash-on-cash, and 2x equity multiples using conservative 60% LTV agency debt. His key lesson: the boring, down-the-fairway deals often deliver the best risk-adjusted returns.

Learn more about LSCRE:
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In this episode, Craig McGrouther and I tackle two of the most frequently asked questions from investors: bonus depreciation and 1031 exchanges. With 100% bonus depreciation returning, they explain why this doesn't automatically mean 1:1 depreciation for investors, breaking down how leverage, CapEx, and land allocation affect your actual depreciation ratio. Using our current deal as an example, we can show why conservative 65% leverage yields ~45% depreciation rather than the 90% you'd get at 80% leverage, but creates a much safer investment.

We also demystify 1031 exchanges, clarifying the crucial difference between exchanging INTO a deal (minimum $1M via tenancy-in-common) versus exchanging OUT at the partnership level after exit. I emphasizes the "magic" of syndications: allowing everyday investors to compound wealth tax-free through partnership-level 1031 exchanges without needing millions upfront.

Learn more about LSCRE:
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In this episode, Craig McGrouther sits down with Bryan Morris, co-founder of Seven Peak Capital, who shares his journey from earning $50K at Pepsi to building a successful fund management firm serving tech sales professionals. Bryan reveals how Rich Dad Poor Dad at age 22 changed his trajectory, leading him to buy his first rental property for $88K with just $17K saved. After relocating to NYC and completing Wharton's real estate certificate, he discovered the power of syndications for high-earning tech professionals stuck in expensive markets. 

He breaks down Seven Peak Capital's dual strategy: multifamily equity plays and private credit opportunities, focusing on 2000+ vintage properties with 5%+ year-one cash flow. 

His key insight: tech professionals need diversification beyond company stock and market exposure.

Learn more about LSCRE:
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In this episode, Craig McGrouther sits down with Joey Mure from Wealth Without Wall Street, who shares his transformation from earning $300K+ in the mortgage business to building $50K/month in passive income. Joey reveals why traditional financial advice kept him trapped in the "never enough syndrome" despite high earnings, and how a beach vacation where he missed family time for work calls became his wake-up call.

He challenges conventional wisdom by explaining why 401(k)s and home equity are "money traps" that don't create financial freedom today. His formula for freedom: passive income must exceed monthly expenses TODAY, not in 40 years. This is a masterclass in rethinking wealth building from someone who learned the hard way that high income doesn't equal freedom.

Learn more about LSCRE:
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In this episode, Craig McGrouther and I discuss the upcoming Lone Star Capital Summit and why this curated event stands apart from typical real estate conferences.

We then shift to market analysis, discussing why Class C properties and 1970s vintage assets are facing extreme pessimism, creating potential contrarian opportunities where capital isn't flowing.We also touch on the dramatic market reaction to weak jobs data on August 1st, which flipped the probability of a September Fed rate cut from 50% to 80% in a single day.

Learn more about LSCRE:
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In this episode, Craig McGrouther sits down with Derek Dombeck, host of Generations of Wealth podcast and veteran real estate entrepreneur with 23 years of experience. Derek shares his story of losing everything in the 2007-2009 crash. Instead of playing victim, he learned to negotiate his own short sales and transformed his approach to real estate, swearing off institutional financing in favor of creative deal structuring.

Derek breaks down recent deals including a subject-to purchase at 3.15% interest with seller financing at 0%, and explains how he structures participating notes with IRA investors to create win-win scenarios. His philosophy: "You don't find creative deals, you build them through conversations." This is a masterclass in resilience and creative financing from someone who turned disaster into opportunity.

Learn more about LSCRE:
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In this episode, Craig McGrouther, Sam Morris and I break down Trump's "Big Beautiful Bill" and its massive implications for real estate investors. The return of 100% bonus depreciation is a game-changer, allowing investors to front-load tax benefits in year one of ownership. We discuss how wage growth has outpaced rent growth for 31 consecutive months (per Jay Parsons), creating a healthier rent-to-income ratio and setting up potential for future rent increases as new supply dwindles.

We also address recent Houston foreclosure headlines, explaining how their focus on workforce housing in desirable locations differs fundamentally from distressed investment strategies. Key tax updates include no tax on tips (first $25K), overtime tax deductions, increased standard deductions, and permanent QBI benefits. For investors, these changes make cash-flowing real estate even more compelling versus taxable debt investments.

Learn more about LSCRE:
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In this episode of Fund Friday, Craig McGrouther sits down with David Thompson, founder of Thompson Investing, who shares his journey from corporate executive to full-time real estate investor and capital raiser. David reveals how he pivoted into real estate syndication, what he learned from investing across economic cycles, and why diversification is critical in today’s environment.

He discusses timing the market, the role of alternative investments like dental funds, and the importance of building strong relationships with operators. You’ll also learn why patience, education, and long-term thinking are key to navigating real estate and private investments especially in uncertain times.

Learn more about LSCRE:
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In this episode, Craig and I tackle the controversial topic of promote structures and fund manager compensation. We break down the double waterfall structure for fund managers and why projected compensation is never guaranteed.

I share the framework for evaluating deal quality across four key factors: location, vintage, leverage, and business plan. We explain why chasing deals with sky-high projected returns often leads to disappointed fund managers earning zero when aggressive underwriting meets reality. We also emphasize that sustainable success comes from serving tenants and investors first, not chasing the highest projected compensation.

Learn more about LSCRE:
www.lscre.com