Michael Holman is a VP at Overland Group, Inc., a vertically integrated real estate firm specializing in the development, construction, and management of real estate assets. Michael’s father, Ken Holman, has also guested on our show before. You can find the link to that episode below. Ken has been his greatest mentor and played a major role in honing him for his job in development at Overland Group, Inc.
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In this episode, Michael shares with us why they chose development and what have fueled their exponential growth. He also talks about the difficulties they faced in financing their deals and what they’ve learned about the TIC structure and 1031 exchange. We’ll also hear about how they prepare for a downturn as far as real estate development is concerned. He goes into many different things that have helped them to scale fast.
Key Points From This Episode:
- Michael starts off with how he got into real estate.
- He shares that what had fueled them to go from 6 to 200 plus million growth was their partnerships with other groups.
- The first reason why they chose development syndication is the high barrier to entry.
- The second reason is value creation.
- In development, it’s important to have foresight to understand what you would need along the way so you could prepare ahead.
- What were the difficulties they faced in financing their deals?
- What is the TIC structure and 1031 exchange?
- Who is the best mentor Michael has ever had and why?
- As far as development is concerned, how do they prepare for a downturn?
- What are his expectations over the next six months?
- What has helped him achieve this level of success?
- How does Michael like to give back?
“We’ve been very strategic about forming our partnerships… we have really dialed in on who it is that we can benefit from, and they can benefit from us and let’s team up, and let’s go forward like that, and that’s really been the fuel to the fire for us.” [0:07:38]
“When we do a development, we’re putting up our homes, we’re putting up our cars, we’re putting up everything on the line to assure that the development gets done.” [0:12:56]
“We’re a lot less reliant on cash flows, and we are a lot more reliant on that value creation, building something for just less than the market value at the end of the day, and so it’s a little bit of a drug for us, we’re addicted to that value creation, and that’s what we really love..’ [0:06:03]
“I’ll just say my one piece of advice, anyone getting started or wanting to get started in real estate development, I highly, highly recommend partner with somebody who’s been through the process.” [0:16:38]
“When you go to a downturn, the most important thing is weathering the storm, and so being able to have access to capital, whether it’s through a lender, whether it’s through investors, whether it’s your own money, whatever that is, access to capital can help you weather the storm.” [0:26:46]
Links Mentioned in Today’s Episode:
About Michael Holman
Michael Holman is a VP at Overland Group, Inc., a vertically integrated real estate firm specializing in the development, construction, and management of real estate assets. Michael oversees the development and capital market efforts at Overland. He specializes in the development and financing of multifamily, mixed-use, and storage assets across the western US. He is actively overseeing the development and financing of over $160 million worth of real estate assets and has millions more in the pipeline.
Michael has managed the development of some extremely complex projects. His development experience includes rezones, re-plats, land assemblages, HOA creation and extinguishments, easement creation and abandonments, multiple TIC owners, and much more across multiple projects. His quick rise to leading developments is because of his ability to put together first-class development teams, foresee problems, and provide strong leadership.
In addition to development, Michael has a special talent for capital markets, including deal structure and financing. He has experience structuring deals through multiple sources including retail equity partners, institutional equity partners, preferred equity, mezzanine debt, and senior construction and permanent lenders. With his broad range of experience structuring deals, he is able to ensure that each deal is structured in a way that allows each deal the best ability to succeed. When it comes to capital markets, Michael’s goal has always been the same, attempt to exceed expectations. This focus has allowed him to successfully source hundreds of millions of dollars of capital into Overland’s development projects.
Lastly, Michael has always and will always credit his success to his amazing mentors and partners. His love of networking and relationship building has propelled him and his capabilities well beyond his own talents. In Michael’s own words, “our partners and relationships are the most important asset we own”.
Michael is dedicated to this mindset whether he’s dealing with development partners, investors, lenders, or consultants.
Michael graduated from Brigham Young University with both a bachelor and master’s degrees in Accounting. Immediately following his education, he worked for EY (formerly Ernest & Young) in Salt Lake City, UT, one of the big four accounting firms. While there he earned his CPA designation. He went to Overland Group following his time at EY.
While he absolutely loves what he does, Michael is a family man first. He is married with 2 kids, a 4-year old girl and 1-year-old boy who keep him extremely busy outside of real estate. He enjoys spending time with his family, exercise, golf, and time at the lake.
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