When you are thinking about becoming a limited partner on a deal, the best thing you can do for yourself is to learn how to underwrite properly. Our guest for today, Luc D’Abreau has some great tips in that department and he joins us today to share some of them as well as talk about how he is breaking into the general partner side of the game too. Luc is a limited partner in 445 units across two assets in Texas, totaling $36.8 million, has a Master’s degree in Engineering from UCLA. and his skillsets include project management, business development, and strategic initiatives.
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For Luc, the capital preservation aspect of real estate is what drew him to this investment type and we kick things off hearing how he approached the Texas deals before investing in them. As somebody relatively new to the game, Luc’s methods were incredibly rigorous compared to most, and he talks about traveling to the sites to do ‘secret shopping’, using spreadsheets to do sensitivity analysis and more. Next up, we talk to Luc about why he is aspiring toward the role of syndicator, and he shares about his methods for building out his team and how he is starting to add value and attract investors through his podcast, Make It Rain. Other big takeaways for today are the benefits of investing in Texas, top tips for transitioning out of your W2, and Luc’s strategy for preparing for downturns. For all this and more on how to break into the game of real estate from somebody who hasn’t set a foot wrong yet, be sure to tune in!
Key Points From This Episode:
- Luc’s road into real estate and why he chose deals rather than other investments.
- How Luc vetted the general partners of the syndications he invested in.
- Luc’s method of researching a property management company for syndications.
- How Luc checks the sensitivity of deals to see if they will meet his capital preservation goals.
- Underwriting a deal by its market: Factors about Texas that make it desirable to invest in.
- Growing wealth more quickly for his family and why Luc is transitioning from LP to GP.
- How Luc is educating himself about being a syndicator through meetups and more.
- The risk of going from having a job to being a syndicator and how Luc thinks about it.
- ‘Not knowing what you don’t’ and the hardest part of Luc’s syndication journey yet.
- Preparing for a downturn by underwriting the market and a deal’s sensitivity.
- Luc’s thoughts on the next few years and why now is a good time to get into the game.
- Why Luc would have asked more questions to his GPs if he could start over again.
- A favorite tool of Luc’s and his best source for meeting new investors
- The number one thing that’s contributed to Luc’s success: His parents!
- Why Luc’s favorite way of giving back is talking and teaching those younger than him.
[bctt tweet=”It is a simple business. You buy a property, people rent it out, you get the money, but there’s more to it than that of course. — Luc D’Abreau” username=”whitney_sewell”]
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About Luc D’Abreau
Luc’s educational and professional experience is in the Architecture, Engineering, & the Construction industry. His varied and in-depth experiences range from project management to business development, to strategic initiatives. His inherent systems thinking strengths, coupled with forming customer relationships and business strategy experience enables him to identify opportunities and layout tactics to leverage solutions. He has been involved with projects valued at over $750MM over the last 9 years. He is a limited partner in 445 units across two assets in Texas (totaling $36.8MM in value) and is part of the National Black MBA Association and African American Real Estate Professionals. His goal in real estate is to create generational wealth, leave a legacy, and provide a better life for his family. He holds a bachelor of science in architectural engineering from California Polytechnic State University, San Luis Obispo, a master of science in civil engineering from the University of California, Los Angeles, and soon a master of business administration from the University of Illinois, Urbana-Champaign.
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