Trust is important in doing business such as real estate as you will have to deal with a lot of people – brokers, operators, sponsors, etc. It is important to find people in businesses that are trustworthy, especially when you are investing money in the deals. In this episode, we pick the brain of Lance Pederson of Verivest, an end-to-end real estate investment platform designed to bring transparency to middle-market investing.
How to Start Investing in Multifamily Real Estate
If you’re interested in multifamily real estate but don’t know where to begin, our guide “How to Start Investing in Multifamily Real Estate” breaks down everything you need to know about identifying good investments plus real world examples. Download your copy in the show notes or visit lifebridgecapital.com/startnow to start your journey in multifamily real estate.
Watch the episode here:
Listen to the podcast here:
Lance shares first how he started in the real estate industry and how he began Verivest. Lance emphasizes the importance of learning the business fast, finding the right people, and making it happen. Lance puts in the spotlight why having an entrepreneurial mindset will be to your advantage. He also helps us understand the friction between LPs and GPs and how to minimize that. Lance also discusses institutional money – its pros and cons. Lance’s prediction in the real estate market over the next six to twelve months is – we are becoming a nation of renters. Tune in and learn the shortcut to trust for passive investors!
Key Points From This Episode:
- Lance shares how he got into the real estate business.
- Lance talks about bookkeeping and accounting for GPs.
- Lance tips on being a successful entrepreneur – learn it fast, find the right people, and make it happen.
- How to build a good level of trust from investors?
- The thing that an investor needs to think through before investing with a sponsor – get references.
- What kind of reporting should be seen from a sponsor?
- What are the steps to become ready for institutional money?
- How do investors prepare for a downturn? How do you know when your sponsors are prepared for a downturn?
- Lance’s predictions in the real estate market over the next six to twelve months.
- The daily habits that help Lance achieve success.
- Lance’s best source for meeting new investors right now.
- The number one thing that contributed to Lance’s success – don’t give up.
- How does Lance like to give back?
“There are a lot of really good operators and managers out there that no one has ever heard of. And we just feel like whatever we do from this day forward, let’s do things to help them get access to capital more easily.” [0:05:19]
“This is what stops people from investing quickly because they don’t know. They don’t know their counterparts and they don’t have a great process for determining whether or not they should trust them (sponsor).” [0:11:28]
“That’s how you prepare for downturns – it’s acknowledging that a downturn could occur and that this thing is cyclical.” [0:22:15]
“We’re becoming a nation of renters. It’s just, no matter what, I mean, that’s just the trend.” [0:22:20]
Links Mentioned in Today’s Episode:
About Lance Pederson
Lance Pederson has worked in the middle-market real estate space for more than 13 years and has helped over 180 entrepreneurs architect pooled investment funds. He’s passionate about the power of transparency in building trust between sponsors and investors. Among the multiple hats he wears on a given day:
- Founder and Managing Partner of Verivest, an end-to-end real estate investment platform designed to bring transparency to middle-market investing.
- Principal of Fairway America, a private equity real estate equity firm in Portland, Oregon.
- Host of the podcast ‘The Real Estate Risk Report,’ featuring conversations with real estate sponsors around the topic of risk mitigation
Love the show? Subscribe, rate, review, and share!
Join the Real Estate Syndication Show Community: