Description

In this episode of Private Capital Perspectives, John Pugh sits down with Ken Gee, founder of KRI Partners, who shares his extensive experience in multifamily real estate investing. With over 26 years in the industry and involvement in transactions exceeding $2 billion, Ken discusses the current state of the multifamily market amidst rising interest rates. He emphasizes that now is an opportune time to invest, as fewer buyers are competing for properties, and distressed sellers are more willing to negotiate. Ken advocates for a disciplined approach to investing, highlighting the importance of understanding market cycles and maintaining a conservative leverage strategy to protect investor capital.

Ken also delves into the educational aspect of real estate investing, outlining four essential rules for passive investors to vet deals and sponsors effectively. He stresses the significance of experience, transparency, and alignment of interests between investors and sponsors. Throughout the conversation, Ken shares valuable insights on risk management, the importance of thorough underwriting, and the long-term wealth-building potential of multifamily real estate. This episode is a treasure trove of knowledge for both seasoned investors and those new to the multifamily space.

Key Takeaways

• The best time to buy is when there are fewer buyers.

• Real estate is not get rich quick; it is a wealth-building tool over time.

• Ask the hard questions before you invest.
• You need to be patient; it works over time.
• If you keep doing that over and over, how do you not get wealthy?

• You cannot run a property by committee.

Chapters

00:00 Introduction to Ken Gee and Multifamily Investing
04:21 Current Market Dynamics and Opportunities
07:22 Investor Behavior and Market Changes
10:27 Raising Capital in a Challenging Environment
13:29 Underwriting Strategies and Exit Cap Rates
16:23 Four Rules for Passive Investors
22:17 Understanding Profit Sharing and Investor Communication
25:56 Overcoming Investor Hesitations and Mental Barriers
27:05 The Importance of Underwriting in Real Estate
29:30 Defining Your Market and Business Plan
32:08 The Role of Partnerships in Real Estate
34:02 The Necessity of Active Management in Real Estate
37:16 Navigating Market Cycles and Investment Timing
40:06 Long-Term Wealth Building Through Real Estate

Show Notes

Guest: Ken Gee, founder of KRI Partners

Website: KRI Partners

LinkedIn: Ken Gee on LinkedIn