Having a Long-Term Approach as a Real Estate Investor – Charles Carillo

Welcome to another episode of our podcast! Today, we’re diving deep into the world of real estate investment with our esteemed guest, Charles Carillo, founder and managing partner of Harborside Partners. With over $200 million worth of real estate transactions under his belt since 2006, Charles brings extensive knowledge and experience in renovating and repositioning multifamily and commercial real estate.

Get my new book: https://bronsonequity.com/fireyourself

See Full Transcript:

Bronson Hill: All right, so multifamily is changing. We’ve been talking about this for a while, and a lot of things that are changing are just, you know, deals are starting to become available, but yet we haven’t seen the distress that we thought we might see. And why is that?

It’s because lenders have done this extension. They’ve said, oh, we’re just going to extend and pretend that things are okay, that you’re going to be able to make this payment, and we’re going to extend to kind of make it work for you. And we’ve seen that.

We’ve seen a couple of deals that’s happened of ours. We’ve seen that’s happened with other folks’ deals, and so we’re seeing that in the industry. And so Charles is a multifamily operator, just a great guy, been doing this for quite a number of years, even comes from a family of multifamily operators, who’s got a really interesting perspective on just what’s happening right now, where we’re headed.

He’s also done some other just personal investments in the ATM space, kind of what we do on our active side, as well as other things. And so you think you’re going to enjoy this conversation about multifamily, about what’s happening, about if you’re an investor, is it a good time to invest, and what are the opportunities today? So let’s jump in.

All right. Today, we’ve got Charles Carrillo. Welcome Charles.

How are you doing today? 

Charles Carillo: I’m doing great. Thank you so much for having me on, Bronson.

Bronson Hill: Oh, excited to see you, man. I know I was on your show a while ago. You’ve got a great podcast, and you also have for some of us about 200 million in real estate, mostly multifamily, and you’ve done some different things, both as a passive and an active investor.

And I love talking with multifamily operators these days because there’s a lot to talk about. Things have changed a little bit. There have been challenges.

I feel like it’s been like a movie that it starts out real chill, and it becomes a drama, and then it kind of results. So there’s always the crisis and the opportunity, and there are things that happen both positively and negatively. So talk to us a little bit about it, and give us your background.

I know you have 200 million in multifamily. You have Harborside Partners, your company. How did you get started in real estate?

And then we’ll kind of go from there and kind of jump into some different stuff here.

Charles Carillo: Yeah. And a quick couple of minutes. So I grew up in a real estate investing family.

My dad has been a multifamily investor since 1984, so a few months after I was born. So it was a business that I grew up in, and he self-managed all of his properties. He had a partner, and they were tough properties, they were D-Class, and some CMIs were there just to be nice to my dad.

But they were very, very tough properties. And so it was, you can’t pass those types of properties off the property managers, and my dad wouldn’t want to pay them anyway, but it’s something that you deal with a lot of, it’s very management intensive. So at some point, I think like in the 90s before he started selling them off, he and his partner had about a hundred units, and they range from like, maybe like one or two, three families, but most of them are like six, 12, so he had 18 unit property.

And so they’re smaller multifamily, as we would say for syndicators, but they were like larger on that smaller scale, you know what I mean? And very cashflow-heavy properties, not so much appreciation. They were in a town about 15 minutes from where we grew up in central Connecticut.

So that was my initial entrance into learning about multifamily and I just kind of like not liking it whatsoever. It was just the issues that my dad had to deal with compared to like issues that like, um, you know, I’d hear from my friends, parents have and like their jobs as like attorneys and stuff. It was, it was a different type of thing.

Bronson Hill: So you say like, I’m never going to do this. Like I’ve never, you know, I just like, Oh, I’m never going to be a, you know, own real estate, whatever. And then laugh like here you are, you know.

Charles Carillo: It’s funny because you don’t put two and two together. And then I think when I was in, like it was getting into high school and you start picking up on things that you don’t pick up on when you’re younger than that. And it was just like we did like, we took long vacations, not like they’re the most lavish, but there were long vacations.

My dad always had the ability of time. Time was always, he’d always worked something out. He never missed one sports game.

He never missed one. Like I was in Boy Scouts. I was an Eagle Scout.

He never missed one of those things. Anything we did like that. So when you put that together with like, you know when you’re at any of these events and you see parents coming in late, stuff like that.

And it’s, you know, or not coming at all. And you start figuring out that the time is like really, and then the time, obviously, I think people start with the money as being most important and I think it switches the time, and that like happened to me too, during my whole, you know what I mean? It’s more important about, it’s like you want to build your business, but you want to have it as more of like make it.

So it’s more of a lifestyle type businesses and sense of, you know what I mean, where you’re able to, I can raise money for certain deals. I want to do, if I don’t want to do these deals, I don’t have to deal with them. I know these deals can be very management-intensive.

I don’t want to do it. This one’s going to be like a straight double-triple. You know what I mean?

It’s going to be right down the middle type of play. That’s something property I want to deal with. And you’re kind of like getting away from stuff.

That’s like, oh man, I’ve done like one like that. And that’s just going to be like, that’s going to be management intensive. I’m going to be there all the time.

And I think that’s more of like when investors get older, I think, and they’ve been around real estate investing or whatever they’re doing. And it’s like, that’s kind of the route they go to, you know what I mean? And that’s how I’ve done it.

And, you know, now my dad, um, he still has some of his, some properties, um, completely different from before, but it’s all, you know, B-class properties. And that was one thing he instilled in me. And I bought my first property in 06 and, it was a house hack, which they call now.

It was back then I was just living in one unit, renting out the other two and it was a three family. And I did another one in 08 end of 08 completely different from the end of 2006, completely different market. And, then I bought my first commercial property in 09 and kind of started from there and it was a small foreclosed mixed-use building.

And then grew that a few more years. And I moved to Florida in 2012, put a property management company in charge of that. And since being down in Florida, been focusing on larger properties and getting involved finally with syndications, 2018, something like that.

Bronson Hill: Okay. So yeah, you’ve been doing it for a while. You kind of started a little bit on your own, kind of pieced it up, and kind of different things.

And you’ve had third-party management, but you’re very involved in the operations and these are more in-house properties. So you have partners, but it’s mostly people who help support you and things like that and what you’re doing, that’s great. How is it, how’s the transition been from going to doing it yourself the last five, or six years doing syndication?

Has that been an interesting challenge? There’s been some good years in there. There’s been some years where there’s a last couple of years where you said you’ve been selling a lot of it’s, you know, a little more, it’s just changed a bit last couple of years, of course.

Charles Carillo: Yeah. So from like 06 to 2012, I self-managed my properties for the whole time. And as I got later into those years, I was bringing on more people to help out and like farming out more roles, and like the first couple of years, I didn’t know what I was doing.

I did everything myself and at the end of it, I really figured out, you can, you know, all this stuff can be like outsourced out of your hands, you know what I mean? And that saved a lot of time for what I was doing. And then over the last, for us, since we’ve been involved with syndications, obviously, you know, you were there too.

It was a wild ride. And then I had a property manager that was retiring in Connecticut. And so I sold my whole portfolio.

We listed it right around Thanksgiving 2021, right before Christmas, sold it in the first couple quarters, of 2022, and sold a couple of properties. I think we had two more properties in Tampa that we sold at that point too, and then, we sold another property just last year. So a lot of, a lot of selling on the property side of what we did.

And I really got out of number one and got rid of all C-class properties. Because C-class properties were great. We found COVID in the markets that we were in.

However, as the funds dried up they were supporting a lot of these tenants. And it didn’t dry up until really like the end of 2022, something like this, and in 2021 you know, something like this, depending on what markets you were in and, you know, as those funds dried up. It really, you know, those properties you had issues with collections on some of those properties.

Bronson Hill: It’s interesting. I’ve had, I’ve had, I’ve lived in angry thoughts on this too, um, for a while. I was very, um, loved class C kind of similar to you loved it.

Cause it, you know, there’s kind of some margin of safety built in where you can, you have upside and rents. But in reality, a lot of times these C properties, a lot of them said performance can be, can suffer. There’s more volatility in the tenants.

There’s just, it’s a tougher crowd versus A and B properties. They tend to perform as expected or even sometimes better. And so has that been your experience as well?

Like kind of like on paper, somebody’s C and D properties look amazing. And then you like, it’s like, it never works out that way. You know, it’s always like, that’s why it was on paper and not in real thing, you know, like actually in real life.

Charles Carillo: So yeah, no, that’s, that’s a hundred percent true is that I remember when I start looking for properties and if I brought something or my brother brought something to my father, he would never say no to it. In the sense of like, Hey, we’re looking at buying this. He would just say, Hey, that’s very management intensive and that’s what we’re going to require like daily, like you being on site.

You know what I mean? And that was like a way of like, Hey, that’s like he’s a crap like a war zone. You know what I mean?

Bronson Hill: I love that your dad didn’t reject you redirected, right? 

Charles Carillo: He’s like, you know, that’s a very interesting, but here’s what it’s going to require if you’re like, instead of like saying like, that’s the dumbest idea I’ve heard today or something.

You know, like you didn’t say you’re not going to be spending your weekends at the shore. Let’s just say that. You know what I mean?

You’re going to be picking up trash and trying to collect rent. So the thing is that, yeah. So, I read a stat and it was like the catalyst, that really pushes over the top for getting rid of all C classes.

It’s like most C-class renters, I saw what, the stat I saw was they have about $400 in savings. And even if you say that 600, 800, 900, it’s still less than what we’re really charging a month for rent. You know what I mean?

So it means that if any shakeup happens, like literally one or two days out of those 23 days, they’re working for the month is not how it goes. You’re getting rent paid late. You know what I mean?

And then I have to tell my investors, I’m getting, they’re going to rent paid late because they’re not going to delay the car or Netflix or anything like this. It’s going to be Bronson, you know what I mean? Hey, bud, paying the rent late.

Bronson Hill: And that’s the fifth of the month, right? And can you maybe extend longer COVID, COVID’s the reason I got to pay for a year, right? And getting where you’re in LA, we’re still like people saying, Oh, it’s COVID.

I can’t pay, you know, and crazy, crazy.

Charles Carillo: That’s yeah. I mean, that just goes to show you where you’re investing, where you should be investing. It’s it’s, some markets are very tough, difficult there.

But seeing that fact was something that, and then really getting focused into like what you were saying, be, we don’t get into an on the active side, but B you’re getting credit tenants and you know, credit tenants being people that have credit, they have jobs where they’re going to be making three X the rent, you know what I mean, or more. And, they have car loans or leases and they want to buy a house. So these people care about their credit, they signed something and they follow it.

You know what I mean? They’re following what they say. And that makes it a lot easier.

And so it was something for us. Personally, what I buy, if I went for a joint venture with someone, would I buy C class again? If it was the right thing?

Yes. Would I take passive investor money into it? No.

Right.

Bronson Hill: Yeah. Yeah, it’s interesting too. And then our journey, like kind of how things change over time, how we, what we like and even in different markets, you know, certain things now, I mean, for a while, and we can talk to this a bit with multifamily, it’s just, it’s gotten harder to get deals done because of higher rates.

And even stuff too, a lot of people don’t want to sell. So it’s a lot of times, and we’re even, we thought, you know, it was that about two years ago, there were all these people saying, oh, it is a distressed multifamily fund or whatever. And it lets people haven’t found the deals because even lenders are kind of extending terms now.

What are you seeing? I guess you can speak to kind of how that’s changed multifamily. I guess, particularly as an operator who’s looking for new deals, like what are you seeing right now if the deal has been getting better, or is it still kind of like, we’re still kind of waiting for things to get better?

Like, what are you seeing?

Charles Carillo: I hate to be on the sidelines. It’s just something I always am looking for, if we get deals sent to us, we’re reviewing them from brokers or one of our partners, you know, we will review them and we’ll see what the feedback is on them and see exactly, you know, how would a pencil for us, but there’s not been much of that. I mean, over the last, we got deal flow in like beginning of 2023 and, you know, maybe quarter one, quarter two and like, and a Q2, Q3, Q4, it slowed down.

You know what I mean? People holding off and, we’re getting stuff here and there, but we’re just, I mean, it’s like, we want to be buying. It’s, it’s, we’re, we’re bumping that up.

I used to say like 1985, 1980 and above now you’re like 1990, you know, these properties are getting older and cans are getting kicked down the road and there’s going to be some actual bones of the property, right, that are going to need some major work and with the lenders, what I’m seeing too. And this is something that happened on the residential side. And I was talking to someone about, this is that I had a couple of contractors in 2009, 2010, and they didn’t pay their home mortgages.

And I remember them bringing the paperwork to me, they brought it to my office and they’d show it like the workout that they had. And they’re like, Oh, is this a good deal or whatever? And they would owe like, you know, 80,000 on it.

And the bank was like, instead of foreclosing, foreclosing on your property, we will give you a 40-year mortgage now, a brand new mortgage for 40 years. It was like the best deal ever. And it was like three 50 a month, right?

This person to pay. And you’re like, that is just like a can kicking down the road where they’re like, okay, you know, instead of losing like all this money, you know what I mean? On this mortgage, right?

We’ll just, we’re just kicking down the road. Hopefully, you’re going to sell this in like two or three years because we’re at this low of the market, right? And instead of us foreclosing it, we’ll just like, you know, change us around and interest rates were dropping into.

So it’s, it’s a simpler thing. You know what I mean? Because everything was like, I remember, you know, got a mortgage, um, six and a half at the end of 2006, 2008, five and a half, refined stuff out, you know, four and a quarter in 2010.

And it was just like, you know what I mean?

Bronson Hill: Yeah. And so 2.25% or some crazy rates. And then, I mean, it’s interesting with single-family because these 30, 40-year mortgages at two and a half, 3%,  people can’t sell.

And so it’s caused, you know, well, some multi-families come down. I mean, there’s one area of Atlanta we own where the rates are down about 40% where they’ve started the valuations are down about 40% others, maybe 20, 30%, but because of interest rates being higher, but you know, single families have gone up two to 3% over the last, you know, two or three years, just from interest rates being high and people don’t want to sell. So it’s interesting.

We have different markets for different things. Where, where do you think we’re headed? I mean, the fed has said, you know, we’re going to drop rates a few times this year.

Uh, there’s a lot of speculation that will happen. What do you think that will do? Will prices, um, of multifamily start to go up again as rates come down?

Cause even when they announced that now interest rates are down almost a full percentage point or about there. So what, like, where, where do you foresee us heading for that?

Charles Carillo: It changes everything cause we’re in the election year, you know what I mean? And it doesn’t matter whether the party runs it or not. It’s usually the election year is, I mean, to get reelection, I mean, that’s where you might see rates coming down that really shouldn’t be coming down from where we are, you know what I mean?

It’s just that usually, rates are coming down when there’s an issue. Like we were just saying that six and a half to four and a quarter over those four years. I mean, that’s something that just shows that we are going through such major issues and to get money out of those pockets to have people buy.

They were dropping rates and that makes sense. You know what I mean? I was reading a chart the other day and it was like, you know, we’d be like eight months in if they dropped it, like in March, right?

And usually, it’s around eight to 18 months. You know what I mean? From where, you know, when it starts being cut again.

So I don’t know. I mean, I would think if it wasn’t a presidential year, I mean, there might be some, but I mean, I think if people think that the rate cut is going to save their deal, I think that’s the wrong way to be thinking it. They should be doing like, you know, they should be doing the workouts with their lender because the lender going back to the residential example, I mean, I think you’re going to see less than ideal properties, right?

Properties that we probably don’t want to buy come back on because the banks probably will cut them, you know, lenders probably, you know, cut their losses there, but I mean, we do have over a trillion dollars worth of maturities coming from 2024 to 2028 and about you know, you have more than half of that is by government-sponsored entities, which is Freddie and Fannie. And then you have just under that, you probably have like you have a little less than half that is going to be in banks. You know what I mean?

So it just shows you where these maturities are coming up. And you know, when those do come up, cause even if somebody got fixed, you know, we have one deal, it’s like 4.96 fixed and bought in 2021. And, it goes to like January 1st, 2029.

But the thing that was that if interest rates haven’t come down by the time for, that’s like one of the loans, the other one comes up in like 2027, I mean, the cap rates going to be, you know, still going to be pushed up there, you know, on the sale. So it’s like, and that’s something no one can foresee what a cap rate is going to be in eight, nine years, even interest rates, obviously, especially after what just happened. I mean over the last two years, you know what I mean?

Bronson Hill: It’s just, yeah, but we do a lot of alternative assets to any of you do. I wanted to get into that in a little bit too, but you know, we’re looking at, you know, there’s the mailbox money show. So how can we generate cashflow I look at appreciation and cashflow and see cashflow is what allows you to leave your job or what allows you to retire or pay for expenses or things like that.

And, and, but there are just so many assets out there that are doing things. And it just feels like there’s pieces on a board, like it’s like a board game, you’re playing chess, and yet the pieces are kind of getting moved around continually. And so you just, it’s kind of a new board every time you look at it.

So, what are some things, I guess, beyond multifamily and just in general for a passive investor that they should be considering right now when it comes to investing and their wealth and just kind of some opportunities that, you know, may or may not be out there or just, what are some things do you think people should be aware of?

Charles Carillo: Yeah. So if anybody is a passive investor, any real estate investors, especially like multifamily or any commercial real estate, you’re, you’re definitely seeing your, you’re seeing distributions have, you’re seeing them stopped, whatever it is. You know what I mean?

Depending on the project and we’re, we’re getting some of that too. We haven’t gone into any capital calls or anything like that. We don’t have any problem, assets that are in that area.

But what we’ve seen like on my passive investing side, um, I am an LP and a number of times in, ATM funds. And that’s something that’s like, well, we were talking about this before and, um, you know, very strong cash flow, very consistent. And, it’s something in an actual growing industry, maybe people, the, I think the disconnect is that people investing into it don’t use the product they’re investing into.

Yeah. And so it makes a little different, but also mean when we buy, you know, C class properties when we did or B class properties, I mean, how many people are living in that, that are investing in it. So it’s a different mind that you have, but I think that’s growing, that’s a class that’s growing.

And I don’t see that going away because that isn’t unbanked and it’s difficult for people to walk off the street. They don’t have a lot of money to go into a bank to ask. That’s why we’re having all these, uh, online banks come around.

You know what I mean? They are doing all this to get business and hopefully, they can lend you money, but it’s still something where a lot of people aren’t using credit. You know what I mean?

In that sense, maybe they got burnt with it before and they don’t even use a debit card, they do everything in cash. I have a, I had a contractor years back and I would help him get bank accounts. And he became like a friend.

I was helping him with stuff and he could just, he never could handle the bank count thing. You know what I mean? Like give him a check and it was like, you know, I’m like, Hey man, I got like property manager pays you in a check.

You know what I mean? Like you’re gonna do work for me. They get paid in check.

And it was always like, he did good work, but it was something that it was like, I mean, you, that’s how it works on that. You know what I mean? I don’t know.

So people have issues with banks and that’s it. So that’s a growing asset class that we’ve seen. That’s been very cashflow positive on my passive side.

Bronson Hill: Yeah. And we do ATM funds as well. And I think it’s a similar operator.

And so it’s been a great experience. Actually it’s been the most consistent cash-flowing deal that I’ve seen, which I love. And then like I’ve said, it’s the hardest part is convincing people that don’t use ATMs that there’s this 10% of the population that is unbanked that operates in cash and prepaid debit cards and things like that.

And so it’s just very interesting. Yeah, are there any other assets that you like personally that you’re invested in or that you look at or that you kind of are like, Oh, this is something that I think could be an opportunity, is either for you or just for people that consider?

Charles Carillo: I wouldn’t say this is a cashflow asset by any means, but, my brother and I, we do pass to invest into, early-stage companies like angel funds, stuff like that. And we’ve done that over the last few years and it’s, it’s very interesting. You get into a lot of different companies.

It’s not a cash flow play and it’s something where you should be, it’s like, you know, a very small percent of your net worth should be going into these, but it is something that it’s similar to syndications I’ve done them one off before, by working through a syndicate, like a group, just like we would both sponsor. And then I’ve done funds before to that sponsor as well, which gives you a little bit more diversification. But what I found there is large funds, they don’t have the best returns is really when you’re getting into smaller funds, maybe 10, $15 million, these funds, that’s where they can outperform.

And that’s where you’re getting the returns, but it’s much different from real estate in the sense that it’s very risky, but it’s also something that you’re not just looking for, like, if we get a two X in real estate, it’s like the best thing ever, right? You know what I mean? Like it, and, um, even if you’re getting like, you know, 1.8, 1.7 X, I mean, it’s fantastic. And then, but with this, it’s like, you probably, people aren’t happy if they’re not getting four X, right? Because of like, you know, but it’s over so many years, you don’t know what’s happening, you don’t have any control, just like you would kind of in the past, but at least I know if, if even if I have a property and I’m not going to pay distributions on that property, I can look at it. I see financials and I know that, okay, we’re still cashflow.

You know what I mean? Like it’s property still making money. They’re like saving up to buy another cap or whatever we’re doing or to like pat it.

So when we refinance, but like you don’t really see that on it. And you’re just like, you get updates on it. And they’re, you know, very simple.

You’re going to updates from a company with like four or five, you know, some people, you know, 15 people in it. You know what I mean? Very small companies.

So it’s a very interesting asset class that I’ve been to, but it’s not a, uh, it’s not a cash-flowing asset. The best ones I’ve seen like you have been ATMs over the years. And so it’s been like four years.

I think I’ve been investing in those and it’s very cashflow positive and it is difficult. I mean, people ask me about them. Like, are you just got to do your research, but like, you know, this is what I found in it.

And obviously you’ve done a lot more research because I’ve only done on the passive side. I haven’t done it with other people’s money. So I haven’t, I guess, done as much due diligence as you have, which is, which is great.

Bronson Hill: Yeah. And it’s interesting, you know, I’ve noticed a lot of my real estate investments, a lot of more cash flowing very well. And then like you were talking about that it’s changed a little bit to be, I still think it’s, you know, it’s some of the cashflow has gone away or it’s gotten reduced.

So there’s been some issues, but I think it’s just a weird time where, you know, interest costs or even expenses or labor or all these things are just going up. And it’s hard to like, sometimes explain to investors that aren’t as sophisticated to like, Hey, here’s what’s happening right now. Like it’s, you know, we’re doing the best we can, but it’s just, it’s kind of an interesting time.

And of course, those seasons don’t last that long. And I think we’ll look back on this season, and think, man, I wish I had bought a ton right now because interest rates are higher, whatever, what’s going to happen, interest rates come down. Well, of course, asset prices hopefully should go up and we don’t know.

But cash flow is nice. So one other thing we’ve done is oil and gas, which has been nice for cashflow as well. Certain types of wildcat drilling are a little more risky and we don’t, we’re not doing that.

But there are other things that it’s just amazing. Whatever you’re looking for, whether it’s tax breaks or it’s cashflow appreciation, or a retirement account, there are different things you can do that are out there, which I think is good. What are you I guess in your business, what are you most excited about for 2024?

Charles Carillo: I’d like to see exactly if we’re getting deals that come back on. I mean, like with a lot of workouts, like you were saying, you know what I mean? And I’m, I, you know, everybody’s telling me that there’s going to be all these deals coming up and I’ve been told this for so many years from people and I’m like, I just don’t see, I mean, it’s not happening.

Yeah. I mean, maybe if you’re going to sell me some, like some 10 units in the ghetto or something, you know what I mean? But like, no one wants that crap.

That’s why it’s going back on the market to be sold for 50 cents on the dollar, 25 cents on the dollar. But it’s like what we actually really want to buy. Everybody wants that.

And there’s apparently there’s so much money on the sidelines. I’m told this too. So it’s like, I guess the rate cut comes and everybody puts money into the stock market.

I don’t know. You know what I mean? But it’s like, even if the interest rates come down, we’ve had these other things that like change, first of all, very difficult to find good people and, you know, what you’re paying $35 an hour for someone to be on-site now, at least depending on the market you’re in, you know what I mean?

To $40 an hour for a handyman on top of the site. You know, I mean, it’s extremely hard to find good people on, on-site, insurance costs, no matter where you’re investing, that’s coming up and then you have taxes and you have a lot of these locales that have been increasing property taxes as these properties have increased. And I mean, these are things that aren’t going to be changed with interest rates.

You know what I mean, per se. And it’s just like, even if interest rates come down and people say, oh, you know, or the value of your property might have gone down, you know, when, so you can get property taxes down, but all this stuff. I mean, all these things, these costs still went up and they’re not going to come down with interest rates.

So it’s something that once we hopefully see, I would just like to see rent increases. And we’re starting to see it, especially in like markets. I was reading something on the real page and you start seeing, you know, Tampa’s at 3.9, they say for this year coming up, and some other ones where we’re invested in too. So I still see it coming and it’s going to start again. I just think last year was just, you know, we just had a, it was pretty stagnant on rent increases and has to start up again, I mean, to cover these expenses that are coming up for operators. You know what I mean?

Bronson Hill: Yeah, no, it’s, it’s true. I mean, there’s been, I’ve been this a couple of different, you brought up a lot of things like the money on the sidelines. There’s like $6 trillion on the sidelines that people waiting like I said, there’s multifamily funds that are like distress funds, whatever, but we’re seeing most lenders and the things I’ve heard about or seen, you know, a couple of deals we’ve had that have struggled like lenders are extending terms.

Like there’s kind of the extended pretend like, Hey, well, what can you afford? Kind of thing is just kind of make it work. And because they realize, you know, like in 2008, what happened is they don’t want to take over properties that, you know, lender, whatever they tell you, they do not want it.

So if you’re, you know, you’re managing at 80, 90% or whatever doing it, they’re going to be like, Hey, let’s just try to work this out rather than because, you know, like this is, this is a challenging time for everybody. And so I think if lenders do foreclose, it can be disastrous for them as well because then they’ll end up with a 60, 50, 60% occupied place, have to do a fire cell and they don’t want to do that. They just want to figure, Hey, how can we have, you know, and think it’s the same kind of what folks are doing with multifamily operations.

Well, Charles, I appreciate you coming on today. I know you’re always adding value to the conversation. You’ve got a great podcast.

Can you share the name of your podcast as well as how can people get in touch with you and follow what you’re doing?

Charles Carillo: Yeah, thank you so much. So a podcast is called Global Investors podcast, and people are interested in that. They can find a link, just go into any podcast platform.

My company is Harborside Partners. So you can find all the information at harborsidepartners.com. And if you go to harborsidepartners.com, the podcast, I have a YouTube channel. I do an interview base like this where I had Bronson on, and then I also do another podcast on Saturday called Strategy Saturday, which is a very short form where we just work through one strategy or something that’s happening in our business, something that we’re working through or something that I’ve realized over the years, and I’d like to share it with people. So that’s the best way to get in touch with us.

Bronson Hill: Awesome, brother. Well, I appreciate you being here today. We’ll have to connect again soon.

And thanks so much for coming on the show.

Charles Carillo: Thanks a lot.

Bronson Hill: All right, Charles Carillo, a good guy.

He really knows what he’s talking about. And again, I think for you as an investor, it’s just so important that you pay attention to what’s happening in different industries, and we pay attention to a lot of things, but we’re paying attention to the macro, which is kind of the higher level. This is what’s happening in the economy.

This is what’s happening with the Fed. They’re relying on rates. And then what impact does that have at the next year down?

What happened was it happens in real estate? What happens in businesses? What happens in ATMs, car washes, or oil and gas?

And just be thinking through those implications when it comes to your portfolio or even your goals, even if you’re looking to invest, you know, rates are projected now to come down. Well, how is that going to affect the things that you’re invested in or the things you’re getting involved in? Those are all factors that are important to consider.

If you haven’t joined our investment club, I highly encourage you to join our club. We have some just amazing things that are coming out or have recently come out that we’re excited about and you really can’t find them anywhere else. So check it out at brownstoneequity.com and click the join button. We’ll start a relationship with you and set up a call and get to know some of your investment goals and see if we can make sense to work together. So thanks for taking the time to educate yourself. We look forward to seeing you on the next episode of the Mailbox Money Show.

Outro: You’ve been listening to the Mailbox Money podcast.

For more free resources, articles, and videos, go to bronsonequity.com. There you can download your copy of the special report, the single best investment strategy during and after a pandemic.

None of the information shared here is an offer to buy a specific investment, and this is for educational purposes only.

Consult your financial, legal, and tax professionals, and use your own common sense before making any investment decisions.

Thanks for joining us and be sure to tune in next time for more Mailbox Money.