SEP BEKAM TALKS ABOUT SINGLE-FAMILY RENTALS AND NET LEASES
In this special episode, co-hosts Adam Carswell and Michael Flight bring on Sepehr Bekam, Founder & Principal of Bekam Investment group, to discuss how single-family investments differ from Triple Net (NNN) investments. Michael, Adam and Sepehr trade stories that emphasize just how important it is to know you, as an investor, have a strong investor philosophy, team, specific marketplace knowledge and then property deal before entering into a lease agreement with a tenant. Sepehr also shares his experiences investing in different single-family houses and portfolios, which took him through an interesting learning curve to realize the necessity of understanding a property’s demographics and location nuances. The men also enlighten us on how property management differs between not only single-family and net lease buildings but multifamily, as well. Closing the show, they touch on how the tax advantages, income and appreciation work compared to net lease investments, as well as point out the property types have some similarities with Section 8 housing.
Michael and Adam would like to give a huge thanks to Sepehr for coming on the show and sharing his knowledge and experience with the Nothing But Net community.
Sepehr Bekam,
Bekam Investment Group
Sepehr Bekan, Founder & CEO of Bekam Investment Group, started his career in real estate investing over a decade ago while working as an electrical engineer before leaving his job in 2014 to focus on building his real estate company. He and his partners own a multi-million dollar portfolio of rental houses nationwide. Sepehr has been a recognized expert on successful
Bekam Investment Group is focused on solving the affordable rental home shortage (7 million) by elevating the standard of living of the communities that they invest in. Their secret to fixing the low-income housing situation is consistency and a tightly-run system in place to make communities cleaner, safer and more desirable while still keeping costs affordable, improving hundreds of challenging slumlord rental units and entire neighborhoods.
Contact Sepehr Bekam:
http://www.bekaminvestmentgroup.com/contact.html
http://www.bekaminvestmentgroup.com/
Timestamped Shownotes:
01:40 – Host Adam Carswell and co-host Michael Flight, CEO and co-founder of Liberty Real Estate LLC (Liberty), introduce special guest Sepehr Bekam, Founder and Principal of Bekam Investment Group
05:27 – What are some common misconceptions that investors often talk about with single-family real estate?
06:40 – Why is it crucial to scale your real estate investments and treat them like a business?
07:31 – Why did Sepehr switch from multifamily to single-family investments?
09:00 – Why has the single-family asset class gained so much liquidity, approaching institutional-grade investments, over the past few years?
10:44 – What lesson did Michael Flight, CEO of Liberty, learn earlier in his career when structuring retail portfolios like Triple Net leases?
11:26 – What is an institutional “work out”?
12:58 – Why are net leases advantageous for investors from the maintenance side of owning this type of real estate?
13:41 – How does a tenant’s income affect the investor’s management of single-family real estate?
14:33 – What is the hardest asset class in America to manage?
15:17 – Why is it crucial that investors educate themselves on their specific real estate space?
16:03 – How do investors avoid falling for schemes when buying real estate?
17:58 – Sepehr shares an extreme example of why you need to know your market, demographics and property area before making real estate deals?
22:02 – Why is finding good property management so important to the success of properties?
23:28 – What are some of the markets that Sepehr thinks are good investments right now for single-family real estate?
24:42 – How do you evaluate a single-family portfolio?
25:11 – Why was Sepehr attracted to single-family investments over multifamily properties?
26:53 – What was the size of Sepehr’s first single-family portfolio deal?
27:16 – What are some benefits of buying and managing single-family houses versus multifamily?
29:07 – Are single-family properties more resilient to bad tenant occupancy?
29:52 – What factors do net lease investors vet tenants for?
30:15 – Why are single-family and multifamily more management-intensive than net lease deals?
32:14 – What tax benefits do single-family properties offer?
33:44 – What does Sepehr recommend for new investors looking to invest in real estate
36:04 – What income can investors expect to gain from single-family deals?
37:06 – How does Sepehr account for appreciation in single-family properties?
41:15 – How are Triple Net properties similar to single-family from Section 8 Real Estate?
Key Points:
1. As an investor, you must have a strong philosophy, team, knowledge of your specific market and carefully chosen property deals.
2. The differences in tax advantages, appreciation and income stream between Triple Net (NNN) and Single-Family real estate.
3. The benefits of working with Net Leases from a maintenance and cash-flow standpoint.
4. The importance of choosing quality tenants and having great property management for real estate buildings.
For more information contact us here and mention Nothing But Net or simply NNN:
For more information contact us here and mention Nothing But Net or simply NNN:
Liberty Real Estate Fund LLC (https://libertyfund.io/)
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