Raj Tut is joined by Tom Milford, Managing Partner and a founder of Scout Capital Group. Scout is a privately owned real estate investment firm based in St. Louis, MO. Tom, along with his partners, has a collective 70+ years of experience in commercial real estate acquisition, leasing, management, and development. The primary product type they acquire is existing unanchored retail centers, although they are opportunistic and flexible in evaluating opportunities.
Tom has a unique real estate background. He previously spent 15+ years in the corporate world, including 9 years as Director of Real Estate for Drury Development Corporation, overseeing over $200M in transactions across the country. Listen to him share his vision for Scout and why they do what they do.
On this episode, Raj and Tom discuss:
⚫ His experience getting started in real estate in a corporate setting
⚫ Coming up with the strategy of buying unanchored retail centers without debt
⚫ How he evaluates a potential deal
⚫ How he adds value to deals
⚫ The types of sellers they prefer to buy from
⚫ Starting a fund to take advantage of current opportunities in retail real estate
⚫ Why they operate as a lean team and outsource management
Topics:
00:00 Intro
01:20 What Scout Capital Group is
02:10 His last corporate job
04:21 What the real estate side of Drury looks like
08:03 The catalyst for starting Scout
12:12 Tom's upbringing and exposure to business
18:45 Scout's current fund and why they are looking to buy retail real estate centers without any debt
22:11 One difference between apartments and retail real estate
22:52 Why adding debt doesn't make sense today
26:51 What he thinks a good location for retail centers looks like
29:30 Strong retail demand?
31:59 What he looks for in a retail center
38:14 Why he would rather buy from a mom-and-pop
41:14 How they can add value through professionalizing leases
44:08 Staying below replacement value when buying
46:11 How they manage their properties
48:22 Their hold period for properties
50:11 The type of retail real estate they buy
50:51 Side projects that don't fit their main buying criteria
52:04 How they work through a client-driven real estate development
57:25 The markets they focus on (and why)
1:04:43 Hole In One - Tom's advice for you to improve your life and business
Support our Sponsors:
Storyboard Living - If you are looking to sell a multifamily property in the St. Louis region or Southern IL/MO please email deals@storyboardliving.com
Follow Storyboard Living on LinkedIn - https://www.linkedin.com/company/storyboard-living/
Raj Tut on Social Media:
Twitter: twitter.com/ItsRajTut
LinkedIn: https://www.linkedin.com/in/rajtut/
Instagram: instagram.com/ItsRajTut
TikTok: https://www.tiktok.com/@itsrajtut
YouTube: https://www.youtube.com/ @ItsRajTut
Learn More about Tom Milford:
https://scoutinvests.com/
Leave a review on Apple: https://podcasts.apple.com/us/podcast/country-club-conversations/id1709895268
Leave a review on Spotify: https://open.spotify.com/show/4ovakj2lJMS7GLqgBdt766
#business #businessideas #multifamilyindustry #realestate #motivation #multifamily #entrepreneur #entrepreneurship #rajtut #raj-tut #commercialrealestate #multifamilyrealestate #retailrealestate #businesspodcast
