Preparing for the Multifamily Real Estate Disruption with Glenn Gonzales

In this episode of The Passive Wealth Strategy Show, Glenn Gonzales explores the multifamily real estate industry and how to prepare for upcoming disruptions. He shares key strategies for successful real estate investing, including understanding the markets, analyzing deals, and diversifying investments. Listen in to learn how to stay ahead of the curve and maximize your real estate investments in this rapidly changing market.

Glenn C. Gonzales, CPM is CEO, partner, and co-founder of Obsidian Capital Co. Glenn is an entrepreneurial individual with over 30 years of real estate experience. Since 1994, Glenn has been an instructor for multiple apartment associations including: Utah, Washington and San Antonio. Glenn served as Treasurer on the Board of Directors for the Washington Multi-Family Housing Association, and was elected as President of the Association in 2006.

He also served a two-year term as the chairman of the Public Relations Committee and a one-year term as the Secretary Treasurer for the Institute of Real Estate Management (IREM). Glenn also owned and grew Place 10 Residential, a Dallas based Property Management firm with 6,500 units under management, which he has since sold as of late 2018. Prior to owning Place 10, Glenn spent many years working in multi-family and commercial property management with companies such as Equity Residential, Evergreen Management Group, Glacier Management, and gained a great deal of experience at Pacific Property Company, a value-add investment firm.

He is also a licensed real estate broker in multiple states and received the CPM (certified property manager) designation from IREM. Glenn’s many years of industry experience coupled with his ability to motivate and lead has enabled him to build an effective management operation and assemble a strong team of professionals. ​ Over Glenn's time in the business, he has acquired and sold many multifamily properties on the ownership side, primarily in Texas and is continuing to aggressively and profitably expand Obsidian Capital's portfolio. Glenn has owned over 5,000 apartments throughout his investment career. ​

Tune in to learn more!

Key Takeaways:

[00:01 – 06:41] Glenn Gonzalez: From Maintenance Man to Multimillionaire Real Estate Investor
- Glenn Gonzalez is the maintenance man who became a millionaire through multi-family real estate investing
- He started in the industry 25 years ago as a maintenance man while he was going to college
- He transitioned to a part-time manager and part-time maintenance at a 60-unit apartment complex
- He worked for equity Residential, Pacific Property Company, and Marcus Mill chap

[06:42 – 15:30] Navigating Difficult Market Conditions: How One Investor is Positioning for Success
- Deals were picked over and cap rates were 3-3.25%
- Cash on cash return of 9% from day one
- Cap rates have not adjusted with interest rates
- Looking for deals with bridge loans that can’t refinance
- Structuring deals where investors can cash out their shares

[15:31 – 23:44] Obsidian Capital’s Strategies for Conservative Underwriting and Securing Construction Financing
- Looking for deals where current owners had shorter-term financing at lower interest rates
- Structuring deals to buy out existing partnerships, cover the debt, or make a deal work
- The strategy of bringing investors together to pay cash for a property
- Underwriting conservatively with no rent increases and significant reserves
- Building properties from the ground up in the Austin area
- Taking advantage of other people’s failed exit strategies
- Building new properties from the ground up for less than open market prices
- Holding investments for 10 years to ride out any market disruptions

[23:45 – 30:22] Closing Segment
- Favorite book: The Bible and Maintenance Man to Millionaire
- Essential tool/team member: Transaction Manager Vivi, who is now a partner in the deals

🎧 Listen to the episode on your favorite podcast platform:
iTunes: https://podcasts.apple.com/ph/podcast/passive-wealth-strategy-show-real-estate-for-busy-pros/id1461341464
Spotify: https://open.spotify.com/show/0RM665D2tV6hIHUjHIoY4J

Connect with Glenn Gonzales:
https://www.obsidiancapitalco.com/team

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👉 Apple Podcasts: https://podcasts.apple.com/us/podcast/passive-wealth-strategy-show/id1461341464
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