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Whitney Sewell is a seasoned real estate investor, podcast host, philanthropist and founder of Life Bridge Capital. Whitney has acquired 900 doors and $150 million in assets under management, and interviewed over 1000 experts on The Real Estate Syndication Show. Whitney was able to scale his business at a groundbreaking pace - starting from nothing in 2017 to now consistently raising over $10 million in a few hours.
Episode Highlights:
- Networking is key when starting out so that you can connect with people that are running the right programming and can bring you to the next level you’re trying to get to.
- Always have an advisor / mentor on your first few deals (especially your first deal) to help identify risk factors that you may be blind to such as overly trusting the seller, broker, or anyone else during your due diligence stage.
- As you scale your business by adding more properties to your portfolio, you also need to scale your team.
- Although acquisition fees and asset management fees can range from 2% to 4%, these fees are important in covering a large amount of costs that go into setting up legal entities.
- Every property that Whitney invests in has an expense cash reserve of at least 6 to 9 months.
- As a passive investor considering investing in a deal, one of the first things that’s extremely important to ask is when the first distributions will be made. It is crucial to understand the general partner’s business model for the deal. If the sponsor can’t clearly answer questions on this topic, then the business plan may not hold water and you might need to consider investing in a different deal with a different sponsor.
- Dual class structures split limited partner shares into class A and class B, where class A get a preferred 10% return for example, but no upside in the equity when the asset is sold, while class B receives a 7% to 8% preferred return, and receives 70% of the equity upside at the end of the deal.
- One way to increase the value of a multifamily property beyond increasing rents and decreasing expenses is being creative like charging for pet fees, covered parking, and dedicated parking spots.
Helpful Links:
https://lifebridgecapital.com/
Best Way to Contact Whitney:
whitney@lifebridgecapital.com
Text Whitney at the number he gives out toward the end of the episode or email him or Mason asking for it.