Inflation, recession, and the current economic climate are just a few of the things that businesses, including real estate, are facing now. So, is it time to buy, sell, or even hold? This #techandtacticstuesday episode, listen to part two of our three-part series with Dave Codrea of Greenleaf as he talks about the risks the asset class is facing and the strategies that they have to weather it.
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Dave also details how you can prepare for a possible downturn, the pros and cons of multifamily, and the importance of having the best team. He then shares whether they are buying, selling, or holding their properties now, their deal criteria, and the importance of transparency whether to your team, residents, or team.
Key Points From This Episode:
- Dave elaborates on their key considerations in investing in multifamily assets.
- Dave gives an example of a deal that they did.
- How does Dave’s team find the deals that they should be buying?
- What data should be considered in buying multifamily?
- Dave talks about the pros and cons of investing in multifamily.
- Dave’s expectations of the multifamily sector for the year.
- Why does Greenleaf prefer not to have floating-rate debt?
- Will Dave continually buy, sell, or just hold this year?
- How many reserves do you need?
- Dave talks about the different asset classes that they have.
- Dave shares that Greenleaf has two teams, they are the commercial team and the residential team.
- Dave emphasizes the importance of transparency whether to your team, residents, or team.
“When we’re looking at buying multifamily, or any of the deals that we’ve bought in that space, there’s a lot of talk of just, right now, there’s a shortage of supply.”
“When we’re making investment decisions, we want to see exactly what’s happening in the surrounding area.”
“We have individual team members, they’ll come to us and say, ‘Hey, I found a deal that looks like this is what we would buy, everything else we’re operating.’ And we’ve been able to secure deals that way too. It’s not just one acquisition guy going out there looking for something. It’s a whole team of people out there, keeping their eyes open to see what looks like something we would operate.”
“If you have a growing population area and you have an affordable product, there’s going to be demand.”
“So as long as you’re in the game, there are always opportunities out there.”
“We think about our strategy with our businesses really like a triangle of relationships. So we have our investors. On one side, we have our tenants and residents, and then we have our team. And the more things we can do that really bring those three pieces together on a piece of real estate, the more comfortable everyone can be with it.”
About Dave Codrea
Dave is co-founder of Greenleaf, an Atlanta-based real estate investment firm. From the very beginning, Dave built Greenleaf to be a provider of quality affordable housing that offers unique compassion and partnership with residents. Since its inception as a two-man venture, Greenleaf has grown its geographic footprint to encompass several states in the Southeastern US. The growing portfolio currently includes Apartments, Mobile Homes, and Commercial properties. Our investment, management, and construction platforms work in sync providing top-level customer experience, impressive investment returns, and a culture of innovation and goal setting.
Dave is an avid adventurer and loves all things outdoors including remote rafting expeditions, overland trips, and the local running scene. If there is a break, Dave will be outside. He has a traveling pack of 3 kids whose favorite words are “outside”. His wife, Sarah, is a physician that can fix any bump or bruise along the way on their journeys together.
Dave co‐founded Greenleaf in 2008 and heads all operational activities of the company. Dave oversees investment management, capital projects oversight, financial reporting and budgeting, and operational execution with a focus on leading with innovation and goal focus. Dave built Greenleaf to be a provider of quality affordable housing that offers unique compassion and partnership with residents. In addition to real estate experience, he has a background in financial consulting with Deloitte.
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