Spencer Gray is the founder and president of Gray Capital, LLC, and Gray Properties, LLC. He has developed, leads, and executes investment strategy, performs underwriting and due diligence of all assets in the Gray Capital portfolio, and interfaces with investors.
Let’s jump into Spencer’s story and get expert advice from a real estate pro!
Things you will learn in this episode:
[00:01 - 03:11] Opening Segment
- How to get in touch with Spencer
- Spencer talks about his background and current focus
- Grew up in an entrepreneurial family
- Started his first real estate investment in highschool
- Sold his business in 2015
- Focus on multi-family housing
[03:12 - 11:59] 50% of the Equity
- Spencer talks about the solid B-class deal that he purchased
- Joint venture project
- 314 units located in Carmel, Indiana
- Create the momentum to start the project and add values
- Fix some issue and calculation from the previous owner
- Spencer talks about the finding the Funders to get to the deal
- Reaching out to the institutional funding equity groups that specialize in real estate
- If you are interested in getting into multifamily or scaling your current business;
- hop over to our website myersmethod.com to grab your free four-step guide on how to get the ball rolling!
- Spencer talks about how he got the 340 unit deal
- It was off the market from a broker
- All about relationships, building the network, and being active
[12:00 - 18:19] Preventing Collateral Damage from Miss Steps
- Spencer talks about the financial implications and collateral damage after the rent bump
- Significant drop off in renewal
- Occupancy went from 100% to 83% at one time and majorly affected annual cash flow
- Still able to hit the target return just because of the underwriting
- Resolving the Rent Bump process
- Mostly happen on the 1st year of operation
- How to prevent Rent Bump
- Communication and community engagement
[18:20 - 19:54] Closing Segment
- What are your words of wisdom to our listeners?
- “Don’t just focus on the problem but start to focus on the ray of a different solution to open multiple doors.
- “Never assume anything, but communicate the problem, because communication is the key.”
- Final words from me
Tweetable Quotes:
“When the deal gets bigger, it’s all about putting the right team together, getting the right people to the table to get the deal done .” - Spencer Gray
“Don’t just focus on the problem but start to focus on the ray of a different solution to open multiple doors” - Spencer Gray
You can connect with Spencer on LinkedIn and Facebook. Check his website at www.graycapitalllc.com/ or email him at spencer@graycapitalllc.com
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Are you feeling overwhelmed with Multifamily deal analysis? Are you uncertain about the right investment? Christy is an expert underwriter and mentor and wants help you on your journey! Visit her website at www.ChristyKeeton.com to book a discovery call now.
