Creating Big Value in Small Multifamily with Dave Childers
- Author
- Kent Ritter
- Published
- Mon 29 Jun 2020
- Episode Link
- None
Our guest on the show today, Dave Childers, has a refreshing perspective on investing in small multifamily rather than going after the larger syndication deals, highlighting specifically the cash-flow benefits of smaller properties. With more than 15 years of experience in real estate investing and multifamily housing, Dave has worn all the hats, from property and asset manager to broker, coach, and speaker. Dave is the managing member of Cedar Rock Capital and, after identifying the need for a brokerage firm that focused on small multifamily properties, he established Residential Investment Advisors through which he has brokered over 400+ small multifamily properties in Middle Tennessee, Northern Alabama, and Southern Kentucky. In this episode, Dave starts at the grassroots of passive investing, advising listeners on evaluating deals and vetting sponsors to ensure that their investment goals line up with the other parties’. He discusses the three paths of investing, outlining the advantages and disadvantages of each and explaining why it all depends on what the investor hopes to get out of the deal. Of course, that is not to say that investors should stick to one route. On the contrary, Dave talks about the benefits of investing in various asset classes and locations and having different goals, thereby ensuring that your portfolio is well-diversified. It’s all about knowing what kind of investor you are and being upfront about your expectations. Be sure to tune in to learn a great deal more from Dave Childers!
Key Points From This Episode:
- An introduction to our guest, his brokerage firm, and his involvement in Cedar Rock Capital.
- Advice for getting started and evaluating deals as a passive investor in multifamily real estate.
- How investors should go about vetting sponsors and how sponsors can build up credibility.
- The deals that produce the best returns and why it all depends on the investor’s goals.
- The pros and cons of each of the three paths of investing from the perspective of the investor.
- How the risk profile changes for the investor depending on the size of the deal.
- Hear how Dave thinks about educating passive investors who want to learn the business.
- Get a sense of what Dave focuses on when starting to educate investors.
- Dave talks about the cash-flow benefits with smaller properties versus the larger deals.
- The importance of finding like-minded sponsors who aim for the same type of returns as you.
- Understanding that you do not need to follow the same path with every investment you make.
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Want to get more investing resources?
Visit kentritter.com for more free passive real estate investing resources including videos, blogs, and tools visit
Interested in Investing alongside my firm?
Contact me at [email protected].
My company Birge and Held Asset Management have a twelve-year track record creating sustainable wealth for over 2,000 investors through high-quality multifamily investments.
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