From Shop Teacher to Multifamily Syndicator with Todd Dexheimer | BP Podcast 248

TL;DR

Todd Dexheimer transitions from teaching to successful real estate investing.

Transcript

this is the BiggerPockets podcast show 248 you're listening to BiggerPockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from BiggerPockets calm your home... Read More

Key Insights

• Todd Dexheimer began real estate investing while working as a high school shop teacher, eventually transitioning to full-time investing.
• He emphasizes the importance of market analysis before deal acquisition, focusing on growth potential and economic fundamentals.
• Todd transitioned from hands-on property management to building a team as he scaled his investment portfolio.
• He invests primarily in mid-sized apartment complexes, targeting value-add opportunities in growing markets like Cincinnati and Lexington.
• Todd raises capital through syndications, leveraging relationships and educating potential investors on his business model.
• He advises new investors to remain patient, ensuring numbers work before purchasing and focusing on market fundamentals.
• Todd's approach to real estate involves creative financing solutions and building strong local teams for out-of-state investments.
• He aims to own $200 million in real estate in 10 years, with a long-term goal of reaching $1 billion by age 70.

Questions & Answers

Q: How did Todd Dexheimer start his real estate investing journey?

Todd Dexheimer began his real estate investing journey while working as a high school shop teacher. He started by reading real estate books and eventually purchased his first rental property, a foreclosure to live in, and a flip all within a short period. This initial experience set the foundation for his transition into full-time real estate investing.

Q: What is Todd's approach to analyzing real estate markets?

Todd emphasizes the importance of analyzing market fundamentals before acquiring deals. He looks for growth potential, economic factors, and population trends. Todd uses resources like brokerage reports, census data, and city web pages to evaluate markets, ensuring they align with his investment goals and offer potential for value-add opportunities.

Q: How does Todd Dexheimer raise capital for his real estate deals?

Todd raises capital through syndications, leveraging relationships and educating potential investors about his business model. He focuses on building a network of investors interested in real estate but who may not want to manage properties themselves. By showcasing successful deals and offering attractive returns, Todd secures the necessary funding for his investments.

Q: What types of properties does Todd focus on for his real estate investments?

Todd primarily focuses on mid-sized apartment complexes, typically ranging from 10 to under 100 units. He targets value-add properties in growing markets, looking for opportunities where he can improve cash flow and increase property value. Todd's strategy involves finding deals that offer a spread on market cap rates, ensuring long-term profitability.

Q: Why does Todd invest in out-of-state markets like Cincinnati and Lexington?

Todd invests in out-of-state markets like Cincinnati and Lexington due to their strong economic fundamentals, affordable rents, and growth potential. These markets offer better opportunities for value-add investments compared to his local market in Minnesota, where high property prices and low cap rates limit cash flow potential.

Q: How does Todd build a team for his out-of-state investments?

Todd builds his out-of-state investment teams by forming relationships with top local brokers and getting referrals for property managers, contractors, and lenders. He emphasizes the importance of physically visiting the market, understanding the area, and leveraging local expertise to manage properties effectively and ensure successful operations.

Q: What challenges has Todd faced in his real estate investing journey?

One of Todd's challenges has been raising capital for large deals, as he does not have a network of wealthy family members or friends. He overcomes this by consistently educating potential investors, building trust, and showcasing successful past deals to attract investment. Todd also navigates the complexities of managing out-of-state properties by establishing strong local teams.

Q: What is Todd's vision for his real estate business in the future?

Todd's vision for his real estate business includes owning $200 million in real estate within 10 years and reaching $1 billion by age 70. He is focused on scaling his portfolio through strategic acquisitions, maintaining a strong network of investors, and continuing to find value-add opportunities in growth markets. Todd's mindset is centered on achieving these ambitious goals through persistence and strategic planning.

Summary & Key Takeaways

• Todd Dexheimer transitioned from a high school shop teacher to a full-time real estate investor, focusing on flips and rental properties. He emphasizes the importance of market analysis, targeting growth potential and economic fundamentals. Todd has scaled his business by building a strong team and leveraging relationships for capital raising.

• In his real estate strategy, Todd focuses on mid-sized apartment complexes, seeking value-add opportunities in markets like Cincinnati and Lexington. He raises capital through syndications, educating potential investors and ensuring deals offer attractive returns. Todd advises patience and thorough market understanding for successful investing.

• Todd's long-term goals include owning $200 million in real estate within 10 years and reaching $1 billion by age 70. He stresses the importance of creative financing, building local teams for out-of-state investments, and maintaining a mindset focused on achieving set objectives despite challenges.