In this episode of the Peak Profits Podcast, Bryan Morris interviews Elijah Brown, founder of Goldhawk Capital. Elijah shares his journey from a college student interested in banking to a successful entrepreneur in multifamily real estate. He discusses the challenges and lessons learned from his early investments, the differences between investing in REITs and private placements, and the strategies behind Goldhawk Capital. The conversation also delves into underwriting principles, key metrics for investment decisions, and the importance of a comprehensive due diligence process. In this conversation, Elijah Brown from GoldHawk discusses the importance of transparency in investment, the challenges of capital raising in the current market, and the outlook for multifamily investments. He emphasizes the need for a comprehensive investment checklist and shares insights on geographic diversification in real estate. Brown also outlines the future direction of GoldHawk and offers valuable advice for new operators and capital raisers.

Chapters

00:00
Elijah Brown's Journey in Real Estate

03:01
Scaling from Single Family to Multifamily Investments

06:02
Lessons Learned from Early Deals

09:02
Transitioning from REITs to Private Investments

12:07
Understanding the Differences: REITs vs. Private Placements

15:02
The Birth and Strategy of Goldhawk Capital

18:06
Underwriting Principles and Deal Flow Management

20:50
Key Metrics for Investment Decisions

24:06
Creating a Comprehensive Due Diligence Questionnaire

25:30
Investment Checklist and Transparency

31:02
Challenges in Capital Raising

34:27
Market Outlook and Investment Opportunities

40:26
Geographic Diversification in Investments

44:58
Future of GoldHawk and Strategic Growth

46:30
Advice for New Operators and Capital Raisers

Takeaways

• Elijah transitioned from banking to real estate after realizing his passion for rental property investing.
• He started investing in single-family homes while in college with friends.
• Scaling from single-family to multifamily required partnerships and a focus on strengths.
• Lessons from early deals included the importance of thorough due diligence and managing expectations.
• Working at a REIT provided valuable experience but was different from his current investment strategy.
• Investing in REITs offers less control and different tax implications compared to private placements.
• Goldhawk Capital was formalized as a brand after Elijah's initial investments.
• Elijah's team now handles underwriting, allowing him to focus on strategic decisions.
• Key metrics for investment include operator experience, purchase price, and cash flow.
• A comprehensive due diligence questionnaire helps manage risk in investment decisions. Elijah created a comprehensive investment checklist with 230 questions.
• Transparency in data rooms is crucial for investor trust.
• 95% of investors rely on the manager's judgment rather than documents.
• Raising capital has become increasingly challenging post-COVID.
• Effective LinkedIn engagement can lead to capital raising success.
• Building a strong network of operators is essential for deal flow.
• The current market presents unique opportunities for multifamily investments.
• Geographic diversification allows for better investment strategies.
• GoldHawk aims to evolve into a boutique real estate investment bank.
• New operators should partner with experienced ones to build credibility.

Connect with Elijah Brown

🔍 LinkedIn

🌐 Website

📧 Email

In this episode, Ben Weiner from CoStar discusses the pivotal role of data in commercial real estate. He explains how CoStar supports clients through the entire deal lifecycle, from acquisition to asset management and disposition. The conversation highlights the importance of strategic planning, market analysis, and the diverse applications of CoStar's data for investors and operators. Real-world success stories illustrate the platform's effectiveness, showcasing how clients leverage CoStar to identify opportunities and make informed decisions in the competitive real estate market. In this engaging conversation, Ben Weiner shares his passion for building relationships in the real estate industry and the power of data analysis through CoStar. He discusses the joy of connecting with new people, the creative use of data for insights, and the underutilized features of CoStar that can enhance investment strategies. The conversation also touches on market trends, demographics, and how to effectively utilize CoStar for real estate investments. Ben emphasizes the importance of continuous learning and gratitude towards his clients for their role in his professional growth.

Chapters

00:00
Introduction to CoStar and Its Impact

04:20
Understanding CoStar's Role in the Deal Lifecycle

10:55
Strategic Planning and Market Analysis with CoStar

13:49
Custom Analytics and Use Cases for Investors

19:18
Real-World Success Stories and Client Experiences

23:52
Diverse Asset Classes and CoStar's Comprehensive Data

26:03
The Joy of Connection: Building Relationships in Business

28:36
Data-Driven Insights: The Power of CoStar

32:20
Unlocking CoStar: Underutilized Features and Tools

34:44
Strategic Deal-Making: Utilizing CoStar for Investments

42:42
Market Trends and Demographics: Understanding Growth Patterns

45:17
Connecting with Ben: How to Reach Out

Takeaways

• CoStar is the industry leader in commercial real estate data and analytics.
• The platform supports clients through every stage of the deal lifecycle: acquisition, management, and disposition.
• CoStar provides access to both on-market and off-market properties, enhancing strategic planning.
• The platform's extensive data allows for detailed market analysis and custom analytics.
• Clients can quickly access critical information, enabling faster decision-making.
• CoStar's mobile app empowers brokers to act swiftly in the field.
• The platform is essential for identifying equity partners and market share reports.
• CoStar tracks a wide range of asset classes, including multifamily, retail, and industrial.
• The data is verified regularly, ensuring accuracy and reliability.
• Unlimited training and support are available to help clients navigate the platform. I love meeting new people and understanding who they are.
• Using data creatively can lead to exciting insights.
• CoStar has features that go beyond leasing.
• The directory feature helps find the right brokers.
• Understanding market trends is crucial for investment success.
• Continuous learning is key in the real estate industry.
• Building relationships is essential for business growth.
• CoStar can track demographic changes over time.
• Networking can lead to unexpected opportunities.
• Gratitude towards clients fosters professional development.

Connect with Ben Weiner

🔍 LinkedIn

🌐 Website

In this conversation, Eric Oliver discusses the intricacies of cost segregation and its benefits for real estate investors. He explains how cost segregation allows for accelerated depreciation, enabling property owners to maximize tax deductions. The discussion covers the timing of cost segregation studies, the relationship between depreciation and taxes, and the differences between active and passive income. Eric also highlights the significance of bonus depreciation and how it can enhance tax savings for investors. Overall, the conversation provides valuable insights into leveraging cost segregation for financial benefits in real estate investments. In this conversation, Erik Oliver discusses the intricacies of cost segregation and accelerated depreciation, explaining how these tax strategies can significantly benefit real estate investors. He addresses common misconceptions about depreciation recapture, outlines the process of conducting a cost segregation study, and shares real-world success stories, particularly highlighting unique asset classes like car washes. The discussion emphasizes the importance of understanding these financial tools to maximize tax savings and investment returns.

Chapters

00:00
Introduction to Cost Segregation

03:06
Understanding Cost Segregation

05:55
Timing for Cost Segregation Studies

08:56
Depreciation and Its Tax Benefits

12:00
Active vs Passive Income in Real Estate

17:56
Leveraging Cost Segregation for Tax Savings

20:59
Bonus Depreciation Explained

27:11
Practical Applications and Strategies

28:19
Understanding Accelerated Depreciation and Its Benefits

29:49
Demystifying Depreciation Recapture

35:40
The Cost Segregation Process Explained

41:21
Real-World Applications and Success Stories

46:40
Leveraging Cost Segregation for Past Properties

Takeaways

• Cost segregation allows for accelerated depreciation on real estate assets.
• Depreciation is a non-cash expense that reduces taxable income.
• Cost segregation studies can be performed at any point during property ownership.
• Investors can strategically choose when to utilize cost segregation deductions.
• Passive income can only be offset by passive deductions, and vice versa.
• Bonus depreciation allows for significant first-year tax deductions.
• The IRS allows carry forward of unused deductions indefinitely.
• Investors can offset capital gains with carry forward losses from cost segregation.
• Understanding tax code changes can unlock new opportunities for deductions.
• Engaging with a tax preparer is crucial for maximizing tax benefits. Accelerated depreciation allows for significant tax savings in the first year.
• Depreciation recapture is not as daunting as it seems; it can be managed effectively.
• Cost segregation studies can be done at any time, even for properties owned for years.
• The process of cost segregation involves a detailed analysis and site visit.
• Investors can save substantial amounts by understanding the value of their assets.
• Unique asset classes like car washes can yield high depreciation benefits.
• The cost of a segregation study is often outweighed by the tax savings it generates.
• A thorough benefit analysis is crucial before engaging in a cost segregation study.
• Investors should consult with tax preparers to maximize their deductions.
• The IRS allows for missed depreciation to be claimed in the current tax year without amending past returns.

Connect with Erik Oliver

🔍 LinkedIn

🌐 Website

📧 Email