Prosperity Through Multifamily Real Estate Investing

Understanding the Capital Stack with Randy Langenderfer

September 23, 2020 Cody Laughlin Episode 35
Prosperity Through Multifamily Real Estate Investing
Understanding the Capital Stack with Randy Langenderfer
Chapters
Prosperity Through Multifamily Real Estate Investing
Understanding the Capital Stack with Randy Langenderfer
Sep 23, 2020 Episode 35
Cody Laughlin

Real estate transactions require a considerable amount of capital to complete, in particular in the commercial real estate space. Generally speaking, millions of dollars are common figures and sums when transacting a commercial real estate deal. But where does all that capital come from? 

On today’s episode, our special guest is Randy Langenderfer, Founder of Invest-Ark Properties LLC. Randy invests in multifamily assets as both a general partner (GP) and limited partner (LP) with over 2500 units collectively invested in. Randy’s investing thesis is based on simplicity. “A confused mind always says no.” Randy has a great understanding and way of explaining the capital stack and various equity splits frequently used in an apartment syndication offering. 

Randy is a Chief Compliance and Audit Officer for a large academic institution in Houston, Texas with over 25 years of various corporate leadership experience in multiple industries, primarily in the risk and governance areas. He is a CPA and holds an MBA in finance . He has been featured on several podcasts and is part of Rod Khleif’s real estate mastermind. Randy has been investing in real estate since his first primary residence purchase of a duplex. Previously, he was a private money lender in the remodeling of single family homes in Florida, Ohio and Texas with a combined market value in excess of $2.5M. His investing focus is exclusively focused on multifamily assets.  

In this episode, we cover:

How Randy found his start in real estate investing.

What is the capital stack?

What are the components of the Capital Stack?

Importance of reading the PPM and Operating Agreement.

Common equity structures that are used by many investors.

Sponsorship Friendly vs. Passive Investor-Friendly Structures

Tune in today to learn more about these very important topics and so many more on this information packed episode. 

 The Final Four:

1.    What do you like to do for your continuing education to further your investing?

Randy: “I plugged into Rod Klief's mastermind about a year and a half ago, I find that extremely beneficial. I tell people to go to church to hang around fellow believers and be around like-minded people. So when you get into the real estate business, you need to get out of this office, and there's never going to be a deal in this office come to me, I have to go find it.”

 2.    What have been some of the most lasting lessons that you've learned along your journey?

Randy: “I'll start with education. So education is all the things we talked about. But learning you know, somebody told me a long time ago, don't learn the tricks of the trade, learn to trade. I would say the second big-ticket to point out is when I got my first sponsorship partners. It's not a no-money down. But those hurdles can be overcome with partnerships like yourself and these different groups.”

 3.    What advice would you give to the listeners to help them grow their businesses?

Randy: “I would summarize persistence. I tell people I'm a complete failure because I set out goals five years ago to do things that I haven't accomplished. But those goals have been diverted into other very productive financially rewarding goals. And the secret or the formula for success in real estate is not new. It's been around for generations. But what differentiates it is persistence and sticking to it. Even if you don't have cash today, educate yourself. There's a lot of opportunities, persistence would be my word of encouragement for everybody.

 4.    How can the listeners get connected with and learn more about you?

Randy:
Website: www.invest-ark.com

Linkedin: https://www.linkedin.com/in/randy-langenderfer

Show Notes

Real estate transactions require a considerable amount of capital to complete, in particular in the commercial real estate space. Generally speaking, millions of dollars are common figures and sums when transacting a commercial real estate deal. But where does all that capital come from? 

On today’s episode, our special guest is Randy Langenderfer, Founder of Invest-Ark Properties LLC. Randy invests in multifamily assets as both a general partner (GP) and limited partner (LP) with over 2500 units collectively invested in. Randy’s investing thesis is based on simplicity. “A confused mind always says no.” Randy has a great understanding and way of explaining the capital stack and various equity splits frequently used in an apartment syndication offering. 

Randy is a Chief Compliance and Audit Officer for a large academic institution in Houston, Texas with over 25 years of various corporate leadership experience in multiple industries, primarily in the risk and governance areas. He is a CPA and holds an MBA in finance . He has been featured on several podcasts and is part of Rod Khleif’s real estate mastermind. Randy has been investing in real estate since his first primary residence purchase of a duplex. Previously, he was a private money lender in the remodeling of single family homes in Florida, Ohio and Texas with a combined market value in excess of $2.5M. His investing focus is exclusively focused on multifamily assets.  

In this episode, we cover:

How Randy found his start in real estate investing.

What is the capital stack?

What are the components of the Capital Stack?

Importance of reading the PPM and Operating Agreement.

Common equity structures that are used by many investors.

Sponsorship Friendly vs. Passive Investor-Friendly Structures

Tune in today to learn more about these very important topics and so many more on this information packed episode. 

 The Final Four:

1.    What do you like to do for your continuing education to further your investing?

Randy: “I plugged into Rod Klief's mastermind about a year and a half ago, I find that extremely beneficial. I tell people to go to church to hang around fellow believers and be around like-minded people. So when you get into the real estate business, you need to get out of this office, and there's never going to be a deal in this office come to me, I have to go find it.”

 2.    What have been some of the most lasting lessons that you've learned along your journey?

Randy: “I'll start with education. So education is all the things we talked about. But learning you know, somebody told me a long time ago, don't learn the tricks of the trade, learn to trade. I would say the second big-ticket to point out is when I got my first sponsorship partners. It's not a no-money down. But those hurdles can be overcome with partnerships like yourself and these different groups.”

 3.    What advice would you give to the listeners to help them grow their businesses?

Randy: “I would summarize persistence. I tell people I'm a complete failure because I set out goals five years ago to do things that I haven't accomplished. But those goals have been diverted into other very productive financially rewarding goals. And the secret or the formula for success in real estate is not new. It's been around for generations. But what differentiates it is persistence and sticking to it. Even if you don't have cash today, educate yourself. There's a lot of opportunities, persistence would be my word of encouragement for everybody.

 4.    How can the listeners get connected with and learn more about you?

Randy:
Website: www.invest-ark.com

Linkedin: https://www.linkedin.com/in/randy-langenderfer