With recent rate volatility, we’ve pivoted to a creative financing strategy to keep things flexible and cost-effective. Instead of a bridge loan, we’re now combining a lower leverage senior loan with a preferred equity tranche. This means we get the same amount of debt but with a more attractive, fixed interest rate.
This new debt structure is less risky with the 5-year term and also improves the numbers through a lower all-in interest rate while retaining flexibility to sell or refi in 24-36 months.
Welcome back to the Lone Star Capital podcast! Join me and Craig McGrouther as we unpack the latest in commercial real estate. Learn about our newest deal, Grand Riviera, which is now live, offering a prime 506C opportunity for accredited investors only.
Mark your calendars for our flagship conference at One World Trade Center this September. With a condensed format and a lineup of industry luminaries, this event promises unparalleled insights and networking opportunities.
Throughout the episode, we explore cap rates and the complexities of loan assumptions, while also dissecting recent industry moves, including Blackstone's significant multifamily acquisition. Drawing from our own experience with the Cortland Copperleaf acquisition, we shed light on the challenges posed by REIT structures, the value of streamlining transactions and more!
Don't miss out on valuable insights—tune in now!
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Join us for another exciting episode of Fund Friday! Tory Sheffer, the founder of Sheffer Capital, takes us through his fascinating journey into the real estate world. Discover the massive deal that kickstarted his multifamily investment career!
In this episode, we also dives into his acquisition process, which involves cold calling, direct mail, and working with brokers. Tory also shares insights on returning capital to investors and maximizing capital velocity in his business model.
Tune in now to learn more and catch Tory's perspective on the current market conditions and hottest real estate take!
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Taking the time to focus on strategic planning and team alignment is essential for any growing business! It’s about looking at the big picture and setting long-term goals.
Our quarterly off-site meetings allow us to step back, reflect on wins and challenges, and chart our course forward.
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In our latest episode of the Lone Star Capital Podcast, Craig McGrouther and I dive into our newest acquisition, Grand Riviera, highlighting its strategic location, unique features, and the value-add potential. We also chat about our upcoming LSC Summit — a highly curated real estate conference aimed at fostering connections and business opportunities!
We pivot to discussing the ins and outs of underwriting cap rate compression and expansion. From market dynamics to risk assessment and investment strategies, we stress the importance of factors like yield on cost and cash flow analysis when evaluating opportunities.
Throughout the episode, we offer insights on navigating economic cycles in the real estate market, particularly in the multifamily sector. Our advice? Embrace a contrarian mindset, grab hold of value-adding chances, and maintain a careful, thorough approach to analysis.
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Join me and Francis Mangubat in today's Fund Friday episode! Francis, a top-selling realtor in Philadelphia, brings relentless drive, creative strategy, and a proven track record of success. He graduated from the University of Delaware with a degree in finance. Discover how he turned inspiration from "Million Dollar Listing" into a thriving career.
In our chat, we explore Francis's immigrant story, his rise in real estate, and his impressive value-add deal—turning $400,000 into $830,000!
Stay tuned to learn more about strategies for sourcing development deals, conveying the value proposition to investors, and more!
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Join me for a Q1 2024 recap and insights into our latest acquisition, Aspire Apartments in San Antonio. Learn how we secured a sweet deal for our investors with a partial property tax exemption and a lower-than-expected fixed-rate loan!
While the first quarter saw limited activity, we remain steadfast in our approach. Rather than rushing into deals for short-term gains, we prioritize quality over quantity. Patiently waiting for the right opportunities ensures that investments align with long-term objectives, safeguarding investor trust and reputation.
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In this episode, we'll kick things off with a roundup of recent events, including announcements about an upcoming 506C deal in Dallas and our can't-miss LSC summit event on September 15th and 16th. From there, we'll take a trip down memory lane as we recap the whirlwind of conferences and networking events that defined Q1, sharing key takeaways from industry gatherings like NMHC in San Diego and the Best Ever Conference.
We'll also explore the broader market landscape, discussing Treasury rate volatility, potential rate cuts, and their implications for deal underwriting. Plus, we'll dive into the concept of rate parity and its impact on floating rate loans.
Tune in now to get the inside scoop on Lone Star Capital's latest deal activity, from successfully closing the Aspire Apartments deal to exploring innovative deal structures and more!
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Welcome back to another episode of Fund Friday with a special guest, Jonathan Livi, principal and founder of Livi Kapital. He has spent over 15 years as an equity broker, connecting sponsors with institutional equity groups and family offices. In this episode, learn the criteria Jonathan looks for in evaluating potential sponsors, including track record, asset management capabilities, and institutional experience.
Stay tuned for more informative content on real estate investing and equity partnerships! Share your thoughts and experiences in the comments below.
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In this Founder's Insights, I explore how the macro market and stock market relate to real estate investing. There's a lot of uncertainty surrounding the market, with questions about whether we're in a recession, if the Fed has raised rates too much or not enough, and overall volatility.
Let's uncover the advantages of real estate investing over the stock market for individual investors. Learn how savvy investors can potentially outperform comparable stock market investments on a post-tax basis by leveraging these advantages.
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Join us for an insightful episode of the Lone Star Capital podcast with Zach Haptonstall and Bikran Sandhu, co-founders of Rise48, a leading multifamily real estate investment firm. During our conversation, we will dive into their acquisition strategy, equity raising process, and the infrastructure they have built to scale responsibly. You will learn about their unique approach to identifying target markets, as well as the benefits of vertical integration and how they have brought construction management, supply chain, and property management in-house.
We will also discuss their vision for scaling into an institutional platform and raising funds from endowments and pension funds. This candid discussion is not to be missed as Zach and Bikran share their experiences, lessons learned, and ambitious plans for the future!
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John Casmon, the founder of Casmon Capital Group, brings a wealth of experience from his transition from corporate America to becoming a powerhouse in real estate. With a background in advertising and marketing, John's pivot to real estate was fueled by the desire for financial independence and security. His real estate venture began with a two-unit building and quickly escalated to larger multifamily properties, including a pivotal 192-unit deal in Texas that set his trajectory towards success in commercial multifamily investing.
In our conversation, we dissect the strategies and insights that have propelled John's success in the multifamily real estate sector.
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In today's Founders Insights, I discuss the tricky financing landscape, focusing on the challenges of fixed and floating rate loans, debt service coverage ratios (DSCR), and bridge loans. Here are the key points:
Loans are impacted by volatile Treasury rates, making it difficult for buyers and sellers to agree on pricing.
Floating rate loans are sized based on SOFR, often resulting in lower leverage.
DSCR is a crucial metric for lenders, determining the loan amount based on the property's ability to service the debt.
Bridge loans offer more flexibility but come at a higher cost, often requiring a compelling business plan to justify the expense.
Navigating this puzzle requires a thoughtful, deal-by-deal approach to create value for investors. Stay tuned for more insights on this evolving financing landscape.
To learn more about investing with Lone Star Capital, please visit our website.
Learn more at www.lscre.com
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Welcome to a special episode of the Lone Star Capital Podcast! Today marks a milestone as we welcome a very special guest to the show for the first time - Kent Piotrkowski, co-founder and principal of Lone Star Capital. Join us as we discuss the challenges and successes of building a multifamily real estate investment firm. Kent and I recount the initial struggles of starting Lone Star Capital, including the daunting task of raising capital for our first few deals.
We also touch on Kent's background as a tax attorney and how it has benefited the firm. Kent's legal acumen shines as he explains the intricate process of acquiring a private REIT, leveraging his network and understanding of complex structures to navigate the nuances and make informed business decisions.
Learn about the strategic decisions we made early on, such as bringing property management and construction management in-house, which played a pivotal role in our growth. Moreover, discover our approach to hiring top talent and fostering a culture that embraces failure as a learning opportunity.
Don't miss this conversation with one of the key figures behind Lone Star Capital's success!
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Welcome back to another episode of Fund Friday! Today, we're excited to have Axel Ragnarsson, founder of Aligned Real Estate Partners and host of Multifamily Weatlh Podcast. Axel's unique approach to real estate investment, focusing on tertiary markets and smaller multifamily properties has propelled him to success.
We discussed the importance of having an informational edge in less competitive markets and how it can lead to better deal acquisition. Additionally, we touch on how Axel vets potential investors and partners to ensure alignment of interests and a smooth operational process.
Tune in now to learn more and catch Axel's hot take on why emerging investors should consider starting with smaller properties to build their portfolio and experience!
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Today, I want to talk about the benefits of 1031 exchanges for real estate investors and how we at Lone Star Capital can make the process seamless for you.
Tenancy in common structures can be a bit complex, but understanding their nuances and tax implications is crucial for 1031 exchange investors. Our experienced team, including my business parter who is a former a tax attorney, are here to offer insights into the tax and legal considerations of these exchanges. If you're interested in learning more or have any questions, feel free to reach out.
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This week, we're thrilled to have Alan Steinberg, the president and CEO of Park Row Equity Partners join us. Alan, a pivotal partner to Lone Star Capital, brings decades of experience in real estate investments. With a career that spans over 40 years, Alan has navigated the shifting landscapes of real estate from commercial office spaces in New York to multifamily properties across the United States. His strategic pivots and market insights have not only grown his family's legacy but also enriched the lives of his investors.
In our conversation, we uncover Alan's approach to selecting investment partners and deals, emphasizing reputation, transparency, and mutual respect. Additionally, we explore the fascinating story behind "The Pearl on the Park" and the future plans for Park Row Equity Partners.
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Welcome back to another exciting episode of Fund Friday! Today, we have a very special guest, Jeremy Dyer. In this episode, Jeremy shares his remarkable journey from being a top-performing sales rep to a seasoned real estate investor and capital raiser. We'll delve into Jeremy's background, his sales strategies, and how he leveraged his network and passion for investing to carve out a successful second career.
Join us as Jeremy takes us through his inspiring journey and imparts invaluable insights into sales, investing, and capital raising. Whether you're an experienced investor or just starting out, this episode is packed with wisdom and practical advice to help you achieve your financial goals.
Don't miss out on this enlightening conversation!
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Welcome to Founder's Insights. Join me as I explore sponsor co-investments and discuss why rigid demands for co-investments may not always make sense!
As investors become more experienced in joint ventures or passive investments, they often ask about the sponsor's co-investment. This means they want to know how much of their own money the sponsor is putting into the deal. While it may sound simple, it can get complicated due to the varying factors and circumstances surrounding each sponsor.
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In this episode, Nate Lowy, the founder of Juniper Capital Group, brings a wealth of experience and insight into the ever-evolving world of real estate and debt. With a deep understanding of the multifamily space, office conversions, and the impact of current economic conditions on real estate investments, Nate shares his expertise on how to successfully secure financing in today's volatile market.
In our conversation, we dissect the nuances of debt structuring, the benefits of loan assumptions, and the future of office space conversions.
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In this episode, join our host Craig McGrouther as he sits down with special guest Ken Manesse, a seasoned entrepreneur shares his tips on learning how to cultivate a vibrant and positive company culture that fosters innovation, navigating business challenges and more. Ken also shared his expertise on effective sales strategies, providing actionable insights that can transform your approach to selling and enhance your business.
To never miss this opportunity to learn from industry experts, tune in now!
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Today, I would like to show you our underwriting process using the underwriting model we use day in and day out to analyze thousands of opportunities. I'll be discussing some factors that are different in today's environment compared to our basic standard underwriting process. One of the biggest differences is the exit cap rate – a contentious topic.
Underwriting in the current market can be challenging, especially when buying at negative leverage. However, when you're confident in the soundness of your basis and an appealing going-in cap rate, things tend to work out for the long haul.
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Welcome back to the Lone Star Capital Podcast featuring Christopher Mendez, the managing director at Pearlmark, who brings over 5 years of experience overseeing the equity business at the firm. With a rich background that spans from a budding interest in the culinary arts to a pivotal role in real estate investment banking at Morgan Stanley, Christopher's career trajectory is as diverse as it is impressive.
Today, we sit down with Christopher to dissect the current state of real estate market and Pearlmark's strategic approach.
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Join us in this episode of Fund Friday as we explore an inspiring journey of resilience and financial empowerment. Madhavi Nade Jain recounts her remarkable story, from immigrating to the United States with just two suitcases to achieving success as an investor and educator.
Through her insightful reflections, she opens up about the trials and triumphs she faced along the way, including navigating the corporate world, overcoming health challenges, and venturing into real estate syndication.
Join us as we explore the importance of education, due diligence, and perseverance in achieving financial success.
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In the dynamic world of real estate acquisitions, balancing investor expectations with deal flow challenges is an art form.
Learn why deal flow might be lighter than usual and how we navigate these challenges to ensure every deal serves the long-term interests of our investors.
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Founder's Insights E11: Grand Riviera Debt Structures
6:31
E48: The True Value of Loan Assumptions and Market Realities
1:00:43
Fund Friday E27: From Decks to Apartments, The Journey to Success in Multifamily with Tory Sheffer
1:08:13
Founder's Insights E10: Strategies for Sustainable Growth and Efficiency
7:57
E47: Why Now is the Time to Invest in Value-Add Deals
1:00:02
Fund Friday E26: Crafting the American Dream with Real Estate with Francis Mangubat
1:04:23
Founder's Insights E9: Q1 Market Recap and Future Outlook
6:14
E46: Adapting Bridge Loans to Market Dynamics
1:03:53
Fund Friday E25: A Deep Dive to Sponsorship Strategies for Institutional Investors with Jonathan Livi
54:34
Founder's Insights E8: Real Estate vs. Stock Market
8:49
E45: Strategies for Engaging Investors with Rise48 Equity
55:14
Fund Friday E24: Navigating Market Shifts and Seizing Opportunities with John Casmon
50:21
Founder's Insights E7: Understanding Fixed Rates, Floating Rates, and Bridge Loans
13:19
E44: The Lone Star Founders’ Story with Kent Piotrkowski
1:11:56
Fund Friday E23: Unlocking the Potential of Tertiary Markets with Axel Ragnarsson
1:17:28
Founder's Insights E6: Mastering 1031 Exchanges
8:25
E43: Finding and Fostering Investment Partnerships: Alan Steinberg's Approach
1:20:05
Fund Friday E22: Mastering Sales, Real Estate, and Capital Raising with Jeremy Dyer
1:02:43
Founder's Insights E5: Deciphering Co-Investments, A Guide for Real Estate Savvy Investors
6:43
E42: Real Estate Financing in Today's Market with Nate Lowy
1:04:20
Fund Friday E21: Revolutionizing Business Financing with Ken Manesse
1:01:28
Founder's Insights E4: The Art of Cap Rate Compression
13:32
E41: Strategic Partnerships in Real Estate: The Power of Aligned Interests with Christopher Mendez
1:32:08
Fund Friday E20: From Immigrant to Financial Freedom, A Journey of Overcoming Challenges with Madhavi Nade Jain
1:06:31
Founder's Insights E3: Investor Demands vs. Deal Flow Challenges
13:54