Scaling your multifamily operation can feel very daunting, so it’s important to have the right mindset and understand that the larger deals do not always mean more work. This is a lesson today’s guest, Tony Castronovo, has learned during his time in real estate, and it’s one he hopes to pass on to anyone who believes they can’t grow their business. In today’s episode, we find out what Tony learned by getting his start in single-family investing.
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Although it did not have the scalability he wanted, he discovered all of the ins and outs of real estate and he has carried this valuable knowledge with him into new endeavors. We hear about the hands-on approach he takes to multifamily and how this has helped him build better systems and processes. Tony also expands on the intricacies of his 20-unit deal and what he learned about building a community. It’s not enough to fix the exteriors when doing a value-add; you have to make sure there is a spirit of togetherness and unity at your apartments. We learn more about how Tony created this sense of community through simple but effective tweaks. Along with this, we also discuss the importance of mindset and the unique way Tony gives back. Tune in today!
Key Points From This Episode:
- The story of Tony’s time in single-family real estate and the lessons he learned from this.
- The turning point where Tony realized he needed systems and processes.
- Why Tony was drawn to multifamily and the ability it gave him to scale.
- Working on your business versus working in your business.
- Tony’s partnership approach to working with others.
- How Tony views his hand-on method and how it will change as he scales.
- Unpacking the details of Tony’s 20-unit and his biggest takeaways from this.
- Some of the ways that Tony went about building community at his 20-unit.
- How being well-capitalized and having good reserves helped during the value-add.
- The hardest part of syndication for Tony and how he worked to change his mindset.
- A recent business improvement, meeting new investors, and the biggest contributor to Tony’s success.
- The incredible way that Tony likes to give back.
[bctt tweet=”I’m a process guy. I can fix things if I know what the problems are and I can’t really know what the problems are unless I see them firsthand. — Tony Castronovo” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Tony Castronovo
Tony Castronovo is the Founder and Managing Partner of Novo Multifamily Group, and Novo Investments, real estate investment companies established in 2019 and 2014, respectively. Mr. Castronovo is a buy & hold investor and syndicator with over six years focused real estate experience in both multifamily and single-family, including acquisition, construction, operations, and property management. Mr. Castronovo currently owns and operates 80 units, split between two multifamily properties in Bryan / College Station, Texas (home to Texas A&M University). Each of these properties was major repositioning projects with significant value-add driven by strategic capital improvements and tenant lease-up strategies. Prior to his multifamily experience, Mr. Castronovo owned and operated a portfolio of single-family rental properties yielding double-digit returns and equity growth. With his background in construction, he had acquired properties through wholesale transactions and pocket listings, leveraging hard & private money lenders, developing repair estimates, managing contractors to drive property values, then refinancing into long-term notes. He has a track record of driving appreciation through strategic renovations and leading class asset management. Mr. Castronovo is also a Senior Manager with Ernst & Young, utilizing over 24 years of experience advising clients on project portfolio investment management. He holds higher education degrees in Engineering and Construction Management. Mr. Castronovo is revered across numerous investor communities as a mentor and coach for investors, sharing leading practices and experience. His passion, skills, and drive for multifamily real estate investing and improving local communities is testimony to both his own success and those he mentors.
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