Welcome to our latest episode. We sit down with Matt Faircloth, a seasoned investor and CEO of DeRosa Group, with a track record dating back to 2005. Matt’s portfolio boasts a diverse range of successful projects, from fix and flips to office buildings, single-family homes, and large apartment complexes. With control over thousands of multifamily units and partnerships involving tens of millions in passive investor equity, Matt has become a trailblazer in the real estate industry.
Join us as Matt shares his wealth of experience and dives into key strategies for navigating the ever-changing real estate landscape. Learn about the nuances of investing in multifamily properties for consistent cash flow, the benefits of long-term housing investments, and the ins and outs of creating an in-house property management company.
Matt also sheds light on his approach to investing in hard money loans, the importance of diversification, and expanding one’s network in the real estate realm. Discover valuable insights and practical advice for passive investors as Matt Faircloth shares his journey and expertise, offering a blueprint for building a successful real estate empire using other people’s money.
Don’t miss out on this episode packed with actionable tips and strategies from a true industry leader. Tune in now to elevate your understanding of real estate investment and take your ventures to new heights!
Get my new book: https://bronsonequity.com/fireyourself
See Full Transcript:
Bronson Hill: All right.
So this interview is awesome. You’re gonna love Matt Faircloth. He has been in the industry for a long time. Wrote a great book on raising capital for Real Estate Guy. Look up to they have about 2,000 units, they’re operators.
They have an in-house property management company. They do a lot of things and obviously if you’re a multifamily investor things have changed pretty dramatically over the last year and a half. So, he’s talking about what they’re doing, what they’ve done well with things. They would learn from really great interview even some things outside of real estate they’re doing. Which of course I love, you know when it comes to Fire Yourself, finding things outside of real estate.
So, let’s jump into this awesome interview with Matt Faircloth.
All right, welcome to the Mailbox Money Show. We have Matt Faircloth in the house today.
What’s up, Matt? How you doing?
Matt Faircloth: What’s going on Bronson? How are you?
Bronson Hill: I’m good, man.
Every time I look at you, you’re like doing bigger things. You’re like releasing books and Bigger Pockets. And you become Captain America in America with the shield on your back wall
Matt Faircloth: I want to hear it cuz I look at what you’re doing. I’m like look at Bronson over there in New Zealand. Look at him like living this awesome travel life, you know. But like these are both the things that happen when you create. Let’s just use the term Mailbox Money for your life, right? You’re able to go to New Zealand and probably maybe make a few work calls. Maybe run a little bit of business for over there, right?
Also, I’m able to scale and grow because I’m not trading the hours for the dollars that I’m generating. And it opens me up because I’ve got an A plus phenomenal team. Then it opens me up to grow and scale and let out my inner little boy a little bit by putting Captain America on my microphone as well. But that’s what mailbox money really does. And I’m very grateful for the circle that you and I are in that teaches people how to create that.
Bronson Hill: Yeah, my dad actually I saw him yesterday, this weekend. He asked me he said nice because he’s not a big traveler and I’ve been to 43 countries. And I love it.
I’ve got three more for big trips plan next year. He’s just like where did this come from? What is it?
What is he’s like? What is this? What does this do for you?
Whatever I say, well, it just it refreshes me. It’s a reward. I love I’m kind of an adventurer and explorer. And then it also is consistent with the brand too It’s like when you travel, it really wasn’t working while I was gone. I’ve got a team like you that I can travel and I can do it. And I just think for a lot of people at least in the US we work way too much.
The average American takes 13 days off a year versus in Italy. It is in Italy and with the average person in Italy takes how many days, two days a year. That’s eight and a half work weeks like working weeks
Matt Faircloth: I’m going to work days that doesn’t count that not weekends on top of that.
Bronson Hill: That’s the eight and a half like work weeks. So anyway, I love it, man. But I love what you’re doing. Let’s jump into it, man. Well, let’s talk about the new rules of multifamily investing.
I think we had you on a year ago. We did a panel a little while ago too, things have changed a bit, right? So we’re seeing some of our deals. We’ve had a capital call situation or two. We’ve had some issues especially with bridge debt. We’re seeing it across the industry What are you seeing really has changed over the last six to twelve months especially.
Matt Faircloth: I mean, it’s been a very interesting space and I think that, it’s to say the least. You know that old Confucius curse that it’s actually a curse. But people will say it all the time. It’s may you live in interesting times, you know, we sure do we live in interesting times now. I mean just what like history lesson here is that like. With the Fed deciding that we printed a ginormous amount of money. And all that money in the system like throwing out four trillion dollars in short order. Maybe threw too much rocket fuel into the end of the economy and it’s making everything go way up and about. Way up in cost right?
So that’s created inflation and so the Fed to try and keep up with that, has been raising rates very aggressively and that obviously back door effects the multifamily space. The problem is that the only way to make like further history lesson. The only way to make multifamily work up until you know 2020 and even 2021 was to use these really phenomenal vehicles called bridge loans, right?
And it was pretty much what a lot of people were using because you could buy these buildings at Laying like, you know 15 maybe 20% down on your purchase price if you’re buying a property for 10 million bucks. You’re laying 2 million down plus closing costs and whatnot and the bank is going to lend you all your construction costs on top. So, you’re getting in 80 maybe 85 percent loan to purchase price plus all your construction. And everybody’s so I mean It’s just too good to be true Bronson, right?
Well, yes, please. What what could go wrong? Well, the problem was is those are floating rate interest rate deals and you buy any it’s only three and a half percent 4%. That interest rates tied to this thing called so far. Used to be live or but outside of so far and back then, so far was trading at like 15 bips like 0.15 0.2 0.3, you know? So whatever you want to add on top of that was your interest rate. Unfortunately with rates going up so quickly. So for one up drastically and that pushed up, you know.
What everybody your personal friends of mine and yours have had in our in our portfolio, too. Had the borrowing weight effectively go from three and a half or maybe four and a half percent up to like nine percent, overnight. And then there’s rate caps and things like that have come in. But I don’t have history less. And what I’ve seen happen is that it’s really caught a lot of folks provably with their pants down. That we’re going in on deals banking on appreciation. And appreciation has worked.
Let’s just face it. Appreciation has been a lot of people rich. And multifamily in the last five ten years. And it’s been the game, but we’ve never been a appreciation focused company. I’m not saying I’m better than anybody else I’m just saying that our company’s been focused on cash flow. Since we started the company because I got started in multifamily Before appreciation was cool.
I got invested. I was investing in multifamily in 2008, 9, 10 and there. When the market would appreciation investing also got kicked in the teeth. And the only thing that worked them was cash flow. And so that’s what I’ve built our brand on is cash flow. And so through cash flow based investing that’s been a really good place. It’s been a good cash flow has been a good safe harbor the last couple of years. And the last one before I Before I let you hop in here is being willing to get honest with investors. The worst thing I’ve seen syndicators do is everything’s fine investor.
Here’s your preferred return and then all sudden hey, we’re out of money. And so we need to do a cash call because our rates have gone way up and everything like that. At the very onset of this kind of stuff happening. The first thing we did was communicate with investors that our rates are going way up. Our cost to purchase these things called rate caps has also gone way up. We’re starting to see things tighten a little bit. We’re going to stop distributions.
So we stopped distributions a while ago on a lot of our syndications, many of the syndicators didn’t do that because they didn’t want the questioning. They didn’t want to upset the apple cart so to speak. And so, they didn’t stop distributions. We did very early in the game and I think that that’s something that the wiser operator did. And they’re willing to have those difficult conversations with investors. Now, we’ve actually been able to turn this big it back on, on most of our funds. Because we stopped in some funds Bronson a year and a half ago. We stopped distributions.
Bronson Hill: Yeah, and that’s a sign of conservative operator. I think even during covid there were some of that where it was like a lot of groups and ourself included stop distributions. Just to have we don’t know what this is gonna look like and then it then it was like, oh, okay it looks fine. Whatever, but like just it’s better to be a conservative.
You said a couple things I want to touch on, we have a strong preference for cash flow as well. If we’ve gone to a lot of the nice people what’s better cash flow or appreciation? I’m like, you know making a lot of money someday is great. But it doesn’t allow you to fire yourself, right? It’s like that actually my but it allows you to be able to cover expenses. Like cover your housing, your car, your insurance or travel whatever.
And that’s the amazing about cash flow and that’s even Robert Kiyosaki reset port 80 talks of you know, it’s his game cash flow 101 and all these things are like cash flow is amazing. So if you can just generate cash flow. And then also about valuations and we’ve seen a major issue for a lot of these deals, particularly bridge loan. That is not necessarily just the operations of a deal. It’s that, I gave one example. We renovated, a 60 million dollar property and after renovating almost 70% of the units and rents have gone 25% across the portfolio at 80% occupied. The new valuation is 37 million, right.
So it’s just brutal, right? And one of those issues is there’s not as many buyers out there. And then secondly buyers that come in and buying a property at less than 90% occupancy. They’re having to use bridge debt. So then you’re at 9 to 12 percent debt, right? So it’s kind of not a complete bloodbath, but we’re starting to see major cracks appear. And a lot of deals kind of all over you’re seeing articles about it. Whatever.
What are some things you think? I mean, obviously I know you we’re gonna get in this a little bit. You’ve done some other things outside of real estate as we have as well. But what are some things that you think just kind of average retail investors should know, now?
Especially when they’re invested and again, there’s this thing of like I’m invested. Maybe I’ve had some issues here and maybe multifamily is bad now because of these other things. But it could be that it’s actually a great time to get into multifamily.
Matt Faircloth: It is well, it’s always a good time to get into multifamily if it’s a right business plan, right? I mean, this is why we don’t do other stuff like self-storage and those kinds of things. Because I’ve in my research and in my layman brain over here. I have found that other asset classes just don’t hold up to the longevity the recession proofness that housing does. I mean, it’s just a basic it’s a core needs it’s and until we figure out how to live out in the woods full-time, you know?
We’re gonna need housing and roofs over our head, right? So that’s why I think housing under the right deal is still the right investment for people. They talking to retail investors that are getting into deals today. I think it’s important that the operator is seasoned. It’s important that the operator has a plan that goes beyond one to two years.
That it’s not, hey we’re gonna get in here. I mean the business plan a couple of years ago could have simply been hey, we’re gonna get in. We’re gonna push rents 30, 40 bucks through a mild value add program. Dropping some amenities, dropping some fit out for the tenants. Had the tenants to a, of course, I’ll pay an extra 30 to 40 bucks because I get a playground and a new kitchen and everything like that. And then I’m gonna sell the property for her 40% more than what I paid for it that’s the business plan.
That plan no longer works, you know. A more longer term business plan on how you’re going to stabilize. How you gonna maintain cash flow. Will this property make money once this wonderful interest only period that we’re in right now burns off. Once the debt starts amortizing and getting getting paid down. Will the property make money?
These are all questions that a retail investor in LP should be asking. Meaning like if I like what if we can’t sell in the next couple of years. What if we cash flow but selling doesn’t make sense? Will this property make me money and will my money be safe for ten years, if I hold it? Those are I think that for the deals that we’re in and my wife and I do make some passive investments as well. I’m investing for the long term not short term and I think that will get you through any type of weirdness or downturn or issue that the economy could have over the next couple of years.
Bronson Hill: Yeah, it’s interesting. My talked to investors have been doing this for years and years. And my cousin got me started in investing and they’ve got 1,500 units. They all make a couple partners and just done very well. It only does fixed rate debt like he only does and so they just in the lot of supplement on there. Maybe if they need to but for the most part it’s all it’s all just you know. And to keep it as boring and watching paint dry and brass as you can right make it less exciting.
But let’s talk a little bit about your some of the changes that you’ve had. You’ve actually you were saying earlier I mean how many you guys have what four or five thousand units your manager or several thousand?
Matt Faircloth: Yeah, you’re projecting into the future.
Bronson Hill: I’m just speaking life over you. This is where you’re headed.
Matt Faircloth: That’s it. It’s ongoing. That’s it. Thank you for speaking into reality.
Bronson Hill: I mean 15,000 units. I just keep that.
Matt Faircloth: Right, there you go. Thank you for we’re just under 2,000 doors. And we’re very regionally focused. So we’re in we’re in the Piedmont triad in North Carolina and we’re in Lexington, Kentucky our two asset clad. That’s where our two major pockets are.
Just because of cash flow because we wanted to have cash flow. Because I’ve always seen there’s certain things the syndications can’t do. We decided to build up a fund that allows people to compound their returns. Because you can’t compound in a syndication. You just can’t you know, there’s only but so many shares in syndication go around. So you can’t sell new shares to people with their distributions. You can’t print me.
I can’t like make new units of my multifamily. But people apply interest in as their distributions go out. So we started a fund that allows people to compound their returns and it’s also liquid so get their money back whenever they want. It is very hard to do something like that with multifamily unless you’re at large scale. So we decided to build something like that out over just short-term bridge debt just on doing hard money loans in and out. And now that allows people that want to invest in multifamily with us. They can and if they also want to put their money in a place specifically a self-directed IRA Into that vehicle and we’ve got that as well. And that’s been going really well, just as an alternative asset class That fund to be something for people to invest in as well.
Bronson Hill: Yeah, that’s great. No, I love that you’re doing that and you have found different things to do. And you mentioned you just touched on this doing in-house property management. How is that process been for you? Because again a lot of groups like what we’ve done is we’ve had property managers and their third party. We’ve kind of worked with them and the other ones have been more. Like there are groups that do in-house and usually I find groups that are over five or ten thousand are considered. But to be a group of a couple thousand and say we’re gonna bring this in house. What was some of the thinking that went into that? Is it more cash flow just having more control over it? And what’s that process kind of been like to actually watch that?
Matt Faircloth: It sounds like a ton of work, but it’s a lot of work and you got the right team. So we hired some folks away from a property management company that was that’s a plus p.m. company. We worked with in North Carolina. Hired a few of their key staff away and a mutually amicable relationship. I’m still good friends with the owner of that p.m. company.
He was aware, it was a happy departure or anything like that. But those hires were able to help us build a p.m. company in-house that enabled us to. Then go and build the inroads to start our own management company. The reason why we did it was mainly for control. It’s obviously it’s not a loss leader. So something we’re gonna lose money on, we’ll make a little bit of cash flow on it. But the amount of effort we put in it to the profit we’re gonna make on it is there’s not it. There’s a major disparity between the two. And that’s because the main reason we’re doing it is to control investor upside, control investor cash flow, control asset quality, asset condition.
I think that in the changing economy we’re going into being best in class of the assets you have. Whether that’s you know, see class workforce housing. That’s what we have. I got most of our stuffs built in the 70s, built in the 80s. But that still doesn’t mean I can’t be best in class in that mark. In that type of property in the markets that we’re in and that’s what we’re gonna be creating for our in-house p.m. company. And we’re gonna create, it’s just to have us the market for rents. We’re going to establish the market for tenant standards and things like that because we’ve got enough assets.
Well, I got one property that we own There’s like a half dozen multifamily was that we own within like a couple of mile radius because we’ve been very focused on where we buy that. We only buy in certain regions of a city. And so we kind of control that one part of Lexington Kentucky and that enables us to really drill in and be a major player in that marketplace. And in that which is really exciting that’ll help back investor returns. It’ll also helps us make sure that the capex the construction improvements get done properly because of them now get done in-house by our in-house team.
So that’s great. It’s really a quality man. It’s a quality issue. Yeah, you’ve been around long enough to understand that there’s mediocrity is actually a pretty good thing to expect in the property management world. You’re not gonna you can’t expect excellence and that’s what we what we want to have is an excellent p.m. Experience
Bronson Hill: In property management my experience has been lost five years. You’ll have a property manager is great and then like suddenly they’re terrible, right? Go like I think what happens and we saw this happen a year ago with one of our property managers where they’re great. And I think they just take on too many clients in a certain region. They’re spread thin staff wise so they move people and it’s just the quality suffers. And so then you quickly have to find okay we’re gonna replace them and then of course replacing property managers. It’s a lot of work because you got it. Yeah, you get everything closed out and finished up who’s coming in the farm multiple Yeah, it’s a lot of work.
Matt Faircloth: Yeah, the reason why. Then let me give you like the reason that is, right? And that’s because there is not an alignment of interest, right? A p.m. company has different goals than an owner does right? They might be some overlap in that like yeah. Well, the more rent you make the more p.m. fee they get to get and it is those that are proud of their brands. And proud of what they put out there on the market. Have a branding concern just as you do.
Meaning like they want to get perceived as a good p.m. company to market. But the more assets they have under control, the more assets that they manage, the more p.m. they get to make, the more money they make. The more they’re able to the more like liability. They’re able to differ over to the ownership. The more money they make and so it is not a direct alignment of interest.
And so the more bottom line profit the asset makes doesn’t really put that much more money in their pocket. Like the longer tenants stay the better experience a tenant has does not increase their profit line by May incrementally, maybe there’s some bonus structures in there a little bit. But it’s not going to really move the needle from zero to sixty. So to speak as it would for an owner if I’ve got tenants that are super happy paying the rent on time. That love where they live and are willing to tell their friends about how great where they live is and are willing to pay at or above market rent for where they live. That puts money in our pocket that makes us profitable and that is in line with our mission.
Yeah, that’s your real estate. That’s our mission PM company doesn’t necessarily along with that. And that’s why it’s yeah mediocrity is something you have to accept. If you’re gonna hire a third-party PM company, will you guys like take on other clients outside of your own?
Bronson Hill: So will you build that property management above just your own stuff or will it be just a day?
Matt Faircloth: But we our next move will be to get ourselves licensed ever as a receiver. For properties that are in distress and stuff like that. So we want to take on receivership for assets like that so we can help bring them around. Maybe have your first red refusal to buy them maybe. But but that’ll be our next move, but then I mean I’m over here bad-mouthing PM companies. So if we were to go and roll something out to the market that somebody like, you know. Like yourself could hire us I would want to make sure that I create some sort of an alignment that I don’t become yet another statistic and become yet another mediocre PM company. That you could hire I want to become different. I want to be different I want to be able to be excellent for our customers, too. So probably not in the first iteration, but you know, you know how this goes I’m not gonna I’m not gonna write it off. It’s a no-never but not not day one.
Bronson Hill: Yeah. No, that makes sense That’s awesome. Well, I know you as we have actually shifted a little bit from multifamily only, you know, 2000 multifamily units is kind of what we’ve done. And then we’ve shifted quite a bit to do ATM machines, car washes, oil and gas, VC deal. We’re doing we’ve got a senior housing development. We’re looking at like even we’re looking at different things outside of there’s no multifamily. You guys have found something that has really worked for your investors. Can you just talk about what that is and kind of how it’s structured?
Matt Faircloth: Yeah, that’s our private fund. Because I find that it’s a good Investors really want a good place. They can park their money and make a great return on it, right? And so we created this fund that generates cash flow day one. As ATM investments do as other things like that do right?
And so it’s just an alternative to that. So we just take investor capital put it onto the street into a hard money loan. That’s generating a high single-digit low double-digit, you know cash on cash returns for investors the second they get into it. They can compound the returns because I make a check from the borrower, right? We give the money to a borrower and they take their money and put it into some project that they’re working on. That passes our muster passes our underwriting guidelines, which we have in place and everything like that. And that in that borrower writes us a monthly check well, we could just take that monthly check and put it back into the fund. And buy more shares for our investors if they want us to or they could take that distribution. So that’s what’s great about it is they can just buy more shares of the fund and I can take that money and lend it out again to somebody else. That literally the money that this borrower is paying me I then legally take that and originate another loan with it. Think about that.
That’s a way to grow exponentially. And that’s just the power of compounding returns. So that’s been exciting. And we also because a hard money loan typically only lasts between like three to six months. We’re able to offer liquidity to our investors when they get their money back. We can give it to them because the loans don’t stay for years and years and years. These loans are kind of like a hot potato when people get a hold of these things. They don’t want to pay you low teen interest rates forever. They want to they want to finish what they’re doing. Refinance it to lower debt and give you your money back. And so that’s what’s great about them as well as there is there’s an alignment with you and the borrower around time. You want to get your money back so you can originate a little another loan. They want to give you your money back so they can get into cheaper debt.
Bronson Hill: So this is a private. It’s like a private lending for real estate assets and other things?
Matt Faircloth: Well, I just and you get to do cool stuff with this kind of thing, right? So I got a one of our borrowers owns a four-unit and he good for him owns it free and clear. Okay he also is starting a beer brewery of all fun things, right? You know good for him because the cost overruns and because of all the weirdness in the world. Because you know he built his budget for this much to finish the beer brewery. But cost overruns have driven his budget up more right so he had a cost overrun of two hundred thousand dollars.
So what we did was we took his for unit multifamily that had an appraisal in hand for 450,000 we give him a 200,000 all alone on that on that multifamily. He took that 200k and he’s finishing his beer brewery with it. And then he’s gonna recapitalize the beer brewery once it’s open, pay us back and he’ll be off to the races. You know, I love that kind of thing because what I’m doing is we’re taking real estate and we’re helping contribute to the changing economy.
I mean this guy that beer brewery not like and it’s not me that’s doing it. It’s him, but we’re just giving him the vehicle He’s gonna provide jobs. He’s gonna provide economic contributions all those things I could, I mean the biggest shame in the world would be if the beer brewery got 80% there and he wasn’t able to get it across the finish line and he had to stop or bankrupt it or whatever. We’re able to help him get across the goal line and get his brewery open so he can hire people and hopefully sell good beer
Bronson Hill: Yeah, and then help you get free beer for life, right? You got it .You know what you really do put that in the loan agreement. Yeah, I know seriously Deliver beer to my doorstep every Tuesday.
Yeah, that’s it. Right funny. So let’s let’s talk for a few minutes on. Kind of just other things that you’re seeing out there that maybe I know you said you passively invest. I just love talking about stuff beyond the multifamily and beyond the stuff we’re doing but just personally like what are some things?
You know that you and your wife are looking passively they’re just interesting to you these days.
Matt Faircloth: Sure. Well, I mean just briefly we died started this hard money fund because my wife and I were doing so many hard money loans. That we were like, this is so interesting so much fun. We’re having doing this we put a HELOC a home equity line of credit on our house years ago. And we started out doing hard money loans a couple years ago by bridging that HELOC, which was you know. For goodness back in the day costing me three percent, not anymore. But it’s still costing me what like seven, eight percent and I can still put it on the street at 12. So we bridge our HELOC into hard money plus a lot of our cash that we have we bridge no hard money. But we’ve also invested, I mean I invest with operators that I like and trust just as I’m sure you do too. I mean just people that you and I that I know run a good operation. I invest with people I care a little bit less with the cash on cash returns are gonna be and everything like that it’s like do I try it again?
I’ve been around long enough, Ron said to know that the best laid plans. Just gets blown over by a changing economy, right? So I invest with someone who I think can navigate that deal through a changing economy. We’ve got some investments with other operators that you know I’m not gonna name-drop with you and I would both know personally, right? So I’m invested there and other multifamily assets.
It’s just a diversifying just because I’m not, we’re not in every market. I can’t be so I want to get exposed to other markets by investing with other operators that invest where I don’t that’s number one. We’ve also interestingly, Bronson gotten into some flex industrial space investments because I find that to be really interesting especially a deal like that is all about who that tenant is. Yeah, because the tenant the deal that we’re in is triple net lease, you know meaning like just the tenant pays everything maybe the real estate taxes.
They pay insurance. They pay all of it, right? So it’s really about it’s not gonna be in business in the next flash. So that’s really the vetting that you got to do there it matters a lot less. Specifically where the real estate is it matters that the tenants able to run their business from that location. So be that like a Chick-fil-A or a manufacturing plant doesn’t matter as much as their sustainability. We are also looking at believe it. I mean, this is like this son crazy.
We’re involved in two sites like this already is capital razors. And those are resorts you wouldn’t think that but it’s true. We’re involved in a couple of resort assets and we’re looking at a third one with a different operator that that’s with one operator. We’re looking at another resort like a boutique hotel with another operator because I think that as things change in the economy. There’s going to be continued need for niches and boutiques and things like that and just folks that are able to catch a unique angle. Which is exactly what this is is a unique angle a unique way that people may want to stay overnight and do like resort investment. Resort staying and things like that it’s not a branded not a name brand thing.
This is like a I think a 50 key investment is what it would be. So we’re looking at that and it’s around the corner from where we live. That’s another reason. Okay.
Bronson Hill: That’s great Yeah, it’s nice when you have access to things and you know, it’s funny the more you’re in, I mean you have a lot of your network through Bigger Pockets and all the things that you’re doing and people that you and I know. It’s just amazing this stuff that you come across that’s interesting, right?
Matt Faircloth: Some of it’s like, oh, that’s really interesting. Is that like guys good listeners. I don’t care for the LP or if you’re a rising LP investor a GP investor find a way to go to conferences, right? I mean I get to hang out with Bronson regularly when I see him at places like Best Ever Con or dealmaker live or whatever. Go to conferences and get to meet other operators, but you’re a passive or inactive or not. You never know the the cool stuff that other people are working on, you know.
And this is how you meet people like that that are working on like an I’m doing an ATM deal, ATMs you can own ATMs? Yes sure can. Let me tell you about it. Let me know. Like this is how you end up expanding your network and either from a personal investing standpoint or from a brand alignment standpoint. How you get to meet people that are doing stuff that you’d have to open up a whole new armor your company to do if you did yourself or you could do strategic partnerships. Either as a passive investor or as a bolt-on, you know, let’s help each other out, you know mutually mutual benefit things.
So I love the idea that’s where I get to meet a lot of these folks that I’ve taught that I’ve mentioned. You know these investments have come through going to conferences just go just networking, you know
Bronson Hill: It’s really, it may really is getting out there and meeting people and especially even as a passive investor. That’s how you increase your deal. That’s how you find out a great relationship for people is meeting other passive investors because you and I you know. We have deals. We’re doing it we want everybody to do our deals, which is great.
But passive investors. They’re not really as biased right there. They don’t have anything to sell. They’re just out there trying to right so and I think it’s a really powerful relationship. You get a lot of great tips man.
A lot of great things that you’ve done, you know, even go into. It’s a conference is what can you give? You know a piece of advice or a resource or something that’s helped you that just can kind of maybe help folks that are in investing either, you know, especially passive investors in real estate or other things
Matt Faircloth: You know an organization that I’ll throw a quick plug out to an organization that I know you’ve done some that. That you’re you’re friends with as I am right and that’s just to plug them is left field investors. In that so, if you’re a passive and you want to meet other passives you can read their forums. It’s literally a couple hundred blocks to be a member. There’s no Bronson and I as operators don’t get a free toaster from them or anything like that. But they’ll gladly look at any opportunity that you want to put in front of them in front of their investor base.
But they’re really made to be like the consumer reports the passive investing and that’s where you’re going to hear about. They’re not just a multifamily. Of course, you’re going to hear about, the way, which Self-storage operator is the best out there those kinds of things and it’s again It’s not sponsored by a self-storage operator.
These are real passive investors that are sharing ideas. So that’s an organization that I’ve become friends with lately. And I recommend that you guys just get into passive circles like that to get into conversations with people. Just know what they’re doing, what they’re seeing. You don’t have to do this thing all by yourself. Networking and getting and getting your interests out there to others are the great are a great way to get to just get help from people.
Bronson Hill: Yeah, no, that’s awesome. I love that. I mean thought is it is so true. We get better because the people are around and really, you know luck field investors. I mean it really is it’s networking in education, right?
That’s what we did our first conference in the fall and we’re gonna do it again next year. It’s just like you get in the room and it’s just something that takes a lot of work to put that together. But when you actually get in the room, it’s amazing what you can create and the deals the partners the opportunities all the stuff that just shows up for that reason.
Well, I appreciate you want to honor just the way that you’ve just made yourself available to so many people and also with Bigger Pockets and all the stuff. You’re creating your YouTube channel your book Raising Private Capital. Thanks for just being a great guy, man.
You’re really right.
Matt Faircloth: You’re welcome. Appreciate it.
Bronson Hill: Yeah, how can people get in touch with you and follow what you’re doing?
Matt Faircloth: And thank you for the validation. I’m glad that it’s showing through because really it’s going to be transparent and I just help people to learn a better way to do with it. Whatever it is.
They’re trying to do they can get ahold of us at derosagroup.com. D-e-r-o-s-a group.com, derosagroup.com is a way to hear about everything from picking up a copy of my book to we do have a student offering for those that are looking to be a rising GP a general partner. And you want to build a multi-family, a class a multi-family apartment building or even like a whatever you’re looking to build multi-family. We can help you get there through our website. And we also of course have passive investment options including the fund that I talked about today is all at dorosa group.com
Bronson Hill: Awesome. Thanks so much, man. I really appreciate it.
Matt Faircloth: No, thank you.
Bronson Hill: All right. So I love Matt Faircloth. Check out his stuff at the derosa group. You can find him online Again, one thing I really got from that is just really making sure that you are in a position where you’re networking with other people a big goal. We have is we want to create passive cash flow. We want to create cash flow for deals.
We want to get into more deals. We want to learn, we want to do all these things, which is great. But a lot of times it’s really from the people that we meet, right? There’s that quote you’re the same five years from now except for the books you read and the people that you meet right? It’s a famous quote. And I think it’s so true that just by the think about look back on your life jobs that you’ve had people that you’ve met me, you met your spouse. It’s all because you met somebody you went somewhere and you got introduced and all of a sudden you figured out a way to really to grow by that.
So anyway, I hope you’re doing that you’re taking those actions. And thanks for taking the time to educate yourself on this episode of the Mailbox Money Show. We’ll look forward to the next one and I’d love to hear your comments and feedback and anything that you want to add. Or anybody you want me to interview we can go after them and get them on the show
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