A few weeks ago, Texas suffered unexpected cold weather which brought several issues such as power, water, and a lot more. As for one real estate investor, he faced one of the worst scenarios a real investor could ever face – 300 out of his 6,000 units had frozen pipes.
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In part two of our conversation with Michael Becker, an industry powerhouse, he talks about overcoming downturns such as frozen pipes and the pandemic. Michael also details why having a proper management team plays a role in solving the issues he faced. Michael then talks about why having fixed-rate mortgages turned out to be a bad decision. He also shares that to be prepared for a downturn, one needs to make sure a proper working capital is in place and that a massive reserve budget is there from day one. Today, we learn from Michael’s firsthand experience of facing challenges in real estate. Listen in!
Key Points From This Episode:
- Michael talks about preparing for any possible downturns in real estate.
- Michael shares his non-negotiable things when doing the business in real estate.
- The difference between a proper working capital and an emergency fund.
- Michael’s predictions about the state of the real estate market in 6-12 months.
- The daily habits that helped Michael achieved success.
- Michael shares his best source for meeting new investors.
- Michael talks about the number one thing that’s contributed to his success.
“Make sure you get the proper amount of debt, don’t over-leverage the deal.” [0:13:33]
“People do business with people I know I can trust. So if you could get that trust and these brokers will like you, ’cause the brokers control the deals, that’s kind of really what you find your edge and trying to get in.” [0:14:08]
“We gotta do a lot of stuff, but at the end of the day, if you do what I do and what you do for a living, the way you make money is you gonna find deals. You gotta find capitals, find money, find deals.” [0:15:09]
“You gotta get out, you gotta meet people. You gotta network for people – going to conferences, speaking out of that, those are just things that you’ve gotta do.” [0:17:15]
“I think some combination of hard work and just being dumb enough to not give up and just kinda sticking with it, I think that goes a long way in this business.” [0:19:16]
“Find your one thing, work hard, focus on it, and make sure it’s a simple, understandable business, and I think you could be pretty successful.” [0:20:06]
Links Mentioned in Today’s Episode:
About Michael Becker
Michael Becker is a Principal at SPI Advisory LLC and heads SPI’s Dallas, Texas office. SPI Advisory specializes in repositioning multi-family assets. Through professional asset management and a high level of integrity, SPI Advisory increases the value of properties while improving the quality of life for its residents. SPI Advisory derives stakeholder value through hands-on asset management and construction oversight. Our exclusive multi-family focus enables better pricing of value and risk to identify projects with superior risk-adjusted returns.
Before forming SPI Advisory, Michael was a 15-year veteran Commercial Real Estate Banker and has originated and managed numerous portfolios of permanent and bridge loans in all major asset classes. Over the last 5 years of his banking tenure, Michael focused exclusively on multi-family properties, where he was the number one loan producer for his division at a Top 3 National lender for his last 3 consecutive years.
Michael is a lifelong resident of North Texas and a graduate of The University of North Texas with a BBA in Finance. Under Michael’s leadership, over the past 5 years, SPI Advisory has acquired approximately 6,000 units in the DFW & Austin markets.
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