Being a CPA, our guest, Denise Piazza, has gained a lot of exposure to the real estate business. She started investing both actively and passively across multiple asset classes. Then she developed a passion for multifamily space and decided to pursue a more active role as GP.
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Denise dives into details on four things that have helped accelerate her transition from passive to active. She mentioned the importance of finding the right mentor that has the complementary skill sets to hers, being disciplined and willing to sacrifice, and transparency.
Key Points From This Episode:
- One of the most important aspects that accelerated Denise’s success in playing a role as a co-GP is her mentorship.
- Why did she go from investing passively to become a part of the general partnership?
- Her passive investing experience across multiple different asset classes and developing her passion for multifamily has helped accelerate her transition from passive to active.
- The main thing that has contributed to accelerating her role as co-GP is her discipline and sacrifice.
- Being an active operator for multifamily deals is a lot of work and requires a lot of discipline in your approach.
- Another thing that has helped her is networking.
- Transparency with your investors is one of the things that would help you a lot in raising capital for your first deal.
- Make sure to explain to your investors the risks that you perceive to be associated with the deal, not just why they should invest in it.
- Tell them what you do to mitigate those risks.
- Be intimately familiar with the underwriting, the market, and the team. Feel good about it.
- What has been her biggest challenge going from LP to GP?
- Protecting your reputation is the most important aspect of this business.
- Start networking with brokers right away because it takes time to build those relationships.
- Do not wait for the right deal to start capital raising.
- Make sure you’re not banking on appreciation. Invest for cash flow.
- One of her best sources for creative ideas for meeting new investors is listening to podcasts.
- What’s the number one thing that has contributed to her success?
- How does she like to give back?
“I would say one of the most important aspects that accelerated my success in playing a role as a co-GP is my mentorship.” [0:04:22.7]
“Make sure that when you’re finding the right mentor when you’re entering the space, try to find someone whose greatest strengths are complementary skills to what you have to offer.” [0:05:12.9]
“I would say the main thing that has contributed to accelerating my role as a co-GP would be my discipline and my sacrifice, so being an active operator for multifamily deals, as you know, is a lot of work, you have to be extremely disciplined in your approach and effectively using your time” [0:11:24.2]
“Network, until you’re so exhausted that you can’t network anymore. It’s so critical because it opens up so many doors through networking with other individuals.” [0:11:30.2]
“Another aspect that I think allowed me to do so well with the first capital rate that I did is just the transparency that I have with all of my investors.” [0:13:40.2]
“This business and this industry is all about reputation, so protecting your reputation is the most important aspect of this business, and it makes it even more important not to do a deal just to do a deal. Make sure that you’re diligent in finding good deals and the right deal.” [0:18:20.2]
“I would say the number one thing that’s contributed to my success is my hustle. I think that once I get to the point where I say that I’m going to do something, there is literally nothing that can slow me down or stop me. So I think that hustle comes from my discipline and being able to be hyper-focused on things that I am incredibly passionate about, and real estate investing being obviously the number one area, so I would say my hustle. [0:25:16.5]
Links Mentioned in Today’s Episode:
About Denise Piazza
Denise Piazza is the founding partner of Main Line Capital Advisors. She began working within the real estate industry in 2004 through several tax and accounting engagements with real estate clients while employed at a CPA firm. She graduated Suma Cum Laude with a degree in Accounting, a minor in Management Information Systems, and is a certified public accountant (CPA). She has 20 years of accounting, finance, and risk management experience and has managed teams of 30+ employees. Denise has held several finance and accounting roles with top Fortune 100 companies on teams managing over $1B in acquisitions, joint ventures and disposition of assets. Denise has also served on the Women’s Leadership and Risk Management committees of Fortune 100 companies. Her experience in finance and accounting has made her highly skilled in analyzing data and developing financial models. Denise has been investing in real estate for close to ten years in a variety of asset classes as both an active and passive investor. Her experience with multiple asset classes has led to her passion for investing in multifamily assets and educating professionals on the benefits of diversifying their portfolios with assets that provide strong, predictable returns. She is now a limited partner in close to 1,200 units of multifamily assets, and within three months of becoming an active investor, she has become a general partner on 400+ units. Denise and her partner also run a monthly real estate investing meetup group in Wayne, PA.
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