In today’s episode Whitney Sewell sits down with David Lilley, the founder and CEO of REAP Capital. With a portfolio of over 785 units and assets valued at over 100 million, David shares his expertise on real estate syndication and how he scaled his business. As a military veteran and former firefighter, David’s unique background adds depth to the conversation.
One of the key topics discussed is the decision to sell a project in the current market. David explains that while their average internal rate of return (IRR) is over 40% for their exits, the particular project they are selling will have a lower IRR of around 10-12%. However, David emphasizes that in the current market, making any profit within two years of ownership is a significant win. He believes in hedging risk and taking advantage of opportunities when they arise.
Throughout the episode, David shares valuable insights for both active and passive investors. He highlights the importance of evaluating the sponsor and building trust before investing. David also discusses the challenges of hiring, particularly in the property management sector. He emphasizes the need to find individuals with the right character and work ethic, even if they may lack experience.
This episode offers valuable insights into real estate syndication, scaling a business, and making strategic decisions in the current market. Whether you’re an active investor looking to grow your portfolio or a passive investor seeking opportunities, this episode provides valuable information to help you navigate the world of real estate syndication.
If you want to learn more about David Lilley and connect with him on LinkedIn, visit his website at reapcap.com. You can schedule a call with him or fill out the contact form. Don’t miss out on the opportunity to connect with David and explore potential real estate opportunities.
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About David Lilley:
David Lilley is the Founder and CEO of Reap Capital, a real estate investment firm that currently manages 785 units with over $100 million in assets under management. Since its inception, Reap Capital has expanded to include Reap Management and Reap Construction. David’s journey in real estate began in 2013 with the purchase of his first single-family home, and in 2018, he made the leap into multifamily properties with the acquisition of a six-unit property. Prior to his real estate career, David served in the military as an infantryman in the US Marine Corps, with a combat deployment to Afghanistan. He also worked as a firefighter/paramedic and was trained in various technical rescue disciplines. Additionally, David provided close protection to Department of State officials, including the Secretary of Defense, and was deployed multiple times to Baghdad, Iraq, and the southern Philippines as a search and rescue paramedic.
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