Before you think of investing in real estate, it is so important to educate yourself! Today’s guest is Peter Badger and he joins us to talk about how he jumped into real estate head first, having to learn the hard way, and how he is applying all the lessons this taught him to help others now. Peter spent 18 years on Wall Street then founded a tech company in Silicon Valley.
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After his company was acquired in 2014, he turned to real estate investing to retain and grow his wealth. Realizing that real estate education was hard to come by on his investing journey, he eventually co-founded Global Investor Alliance in 2018 with his partner Karen. Peter does a great job of explaining his amazing journey in the business, stressing his mindset of perseverance as he experimented with many asset classes before landing on investing in multifamily syndications. From there, we get into some of the key factors any investor needs to analyze before jumping into a deal. Peter details these in a fantastic, granular way, working from macro factors relating to an asset’s neighborhood, all the way down to what one should look for in the deal itself on paper and by walking the actual property. Joining today’s conversation, you’ll hear many more amazing tips from Peter about how to vet operators, the value of having an alliance of investors like the one he and his partner created, and which asset classes have what it takes to stand strong through recessions like this one, so be sure to tune in!
Key Points From This Episode:
- Pitfalls of the stock market and how Peter went from Silicon Valley to real estate investing.
- How Peter made the transition from single to multifamily after hearing advice at a meetup.
- Peter’s realization that the trouble he had with single and multifamily were because he hadn’t been educated.
- Who Peter reached out to in order to get himself properly educated about real estate.
- The assets Peter invested in such as mobile home parks before landing on syndication.
- Basic rules people don’t know when it comes to investing in real estate Peter helps teach.
- Some of the MSA metrics Peter looks at to assess whether a deal is worth investing in.
- The implication of MSAs – the idea that the ‘real estate market’ is too general a term.
- How important getting an education before investing is and how Peter’s MSAs can help.
- Free tools for analyzing a prospective property from the macro to the micro-level.
- How Peter underwrites a deal as far as attributes within the property of the asset itself.
- The third piece of Peter’s underwriting process: visiting the property in person.
- How Peter turned his deal vetting process into a course.
- The advantages of Peter’s alliance group for clearing up blind spots in deals he’s in.
- How Peter helps his alliance members understand deals by recording his visits on video.
- Peter’s use of 2008’s recession as a benchmark for checking if deals are stress tested.
- Why Peter likes operators who are ultra-conservative and data-focussed.
- Going back to food and shelter-based investments in this time of the global pandemic.
- The value of investing with syndicators who have strong local connections to their deals.
- Peter’s lessons he learned after buying a badly underwritten property in Brazil.
- The value of investing in community and how Peter likes to give back.
[bctt tweet=”It just became a trial by fire and what I realized was that I didn’t get an education to start this journey. — @badgerdot” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Peter Badger
Peter Badger is an Educator, Investor, and Entrepreneur. He recently co-founded Global Investor Alliance to help people obtain the mindset, strategies, and tools to create real and lasting financial independence with recurring income from real estate and other investments. In 2008, he co-founded and led a company called Framehawk through to acquisition by Citrix Systems. Prior to co-founding Framehawk, he held leadership roles in technology strategy, enterprise architecture, and software development at Barclays Global Investors, Qwest Communications, Merrill Lynch, Credit Suisse, and Morgan Stanley. He earned his BEng (Hons) in Computer Systems and Electronics from King’s College, London University.
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