If you look at real estate investing, there are many asset classes that you can choose from. Today, we speak to Steve Olson of Fourplex Investment Group and he tells us about a unique business model that focuses on fourplexes.
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Steve explains the business model they have and why they are so focused on the fourplex-style communities. He also talks about the benefit of niching down and focussing on this particular type of multifamily. Moreover, Steve shares his thoughts about construction, relationship, and transparency. Click the play button now and find out new ideas that you might hear for the first time here!
Key Points From This Episode:
- Steve details what his niche is — fourplexes.
- What is Steve’s master plan for the fourplex community?
- What makes the fourplex project a great deal: it offers the client some risks by getting a construction loan, going through a construction process, stabilization, and leasing process.
- Why is investing in fourplexes a good idea?
- What are the pros and cons of niching down or focussing on fourplexes?
- Steve differentiates single-type communities from apartment complexes.
- Steve talks about the current market prices on construction.
- How to determine the right cost of construction supply?
- Steve discusses lumber prices and shortages for development.
- In times of a downturn, tenants and their ability to pay are the lifeblood of a real estate business.
- Steve gives tips on how you can improve your commercial real estate business.
- Steve’s best source for meeting new investors is successful relationships with old ones.
- The daily habits that helped Steve to achieve success.
- Having a positive mental attitude contributed to Steve’s success.
- How does Steve like to give back?
“If you’re going to make a deal work, I heard somebody say a couple of months ago, great deals aren’t found they’re created right? You have to engineer that deal. You have to make it a great deal.” [0:05:23]
“If you’re a real estate professional and you need tax breaks, the cost segregation and bonus depreciation benefits are astronomical on a new build fourplex.” [0:08:24]
“Real estate’s a good business to be in if you just stay in, and solve. And, some days it seems like you’re not going to solve it, just stay and keep working at it.” [0:15:28]
“We know that in a downturn, the lifeblood is your tenants and their ability to pay.” [0:22:54]
Links Mentioned in Today’s Episode:
About Steve Olson
Steve Olson has been in the real estate game since 2002. He completed his first real estate deal while still in college and decided to pursue investing as a full-time career at that point. Throughout the ups and downs of the market since the early 2000s, Steve has completed a wide range of real estate transactions including the sale of raw land, bulk foreclosure packages, single-family flips, and single-family/small multifamily rentals.
Steve is currently the Director of Sales for the Fourplex Investment Group (FIG), which develops fourplex projects in the Salt Lake City, Houston, Phoenix, and Boise metropolitan areas. These projects typically range between 200 and 350 units and are built like townhomes, but are platted as fourplexes.
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