Transforming Lives Through Real Estate With Matt Faircloth

Matt Faircloth has been an active real estate agent since 2002. He founded The DeRosa Group in 2006. A real estate investment company that specializes in buying and renovating residential and commercial properties. The vision is to do just that to help you to get transformational life through real estate and is focused on maximizing investor returns while providing high-quality spaces for sale and for lease, and they are a perfect, perfect company committed to making money or making a difference.

He’s been investing full time for 15 years, involved in a lot of different real estate ventures from fixing flips, and single-family homes and tax liens, and all kinds of other fun stuff. His primary focus is multifamily. But we also get involved in some other alternative assets too. He also owns an office building that is cut up into a Regis-style office complex, but his primary passion is providing amazing above-bar housing for people.

Watch the episode here

Brett:

I’m excited about our next guest. We’re gonna be talking about all things of how to transform your life through real estate. In fact, this next guest has been an active real estate since 2002. He founded The DeRosa Group in 2006. The vision is to do just that help you to be to get transformational life through real estate and is focused on maximizing investor returns while providing high-quality spaces for sale and for lease, and they are a perfect, perfect company committed to making money or making a difference. By the way, we’re also streaming on?expertcresecrets.com. If you’re finding us there, would you like to bring on guests that kind of crossover to both podcasts, especially commercial real estate experts, such as our next guest? Please welcome the show with me,?Matt Faircloth. Matt, how are you doing?

Matt:

I’m awesome, Brett. Good to be with you. Thanks for having me.

Brett:

Like the dance this morning. Like the energy, I’m excited to dance. It’s Friday. We’re recording in mid-August, and let’s talk real estate. Let’s talk marketplace. Let’s talk about your story though first. For our listeners to get to know you for the first time would you give us a little bit more about your story and your current focus?

Matt:

Thank you, and an honor to be here. Love the model your show looking forward to getting into some conversations. My name is Matt Faircloth, my company’s called The DeRosa Group. We are a real estate company dedicated to transforming lives through real estate. That means is we provide awesome housing for people that they can say they’re proud to live in. We provide great investments for people that want to diversify outside of Wall Street. Then we provide exciting work environments for those that work at properties that we own. We also support operators that are doing the same thing through our initiatives there. Been investing full time for 15 years, have been involved in a lot of different real estate ventures from fixing flips, and single-family homes and tax liens, and all kinds of other fun stuff. My primary focus is multifamily. But we also get involved in some other alternative assets too. We also own an office building that is cut up into a Regis-style office complex than that, but my primary passion is providing amazing above-bar housing for people. That’s us.

Brett:

Amazing. Where are you located?

Matt:

I currently live in I live in Pennsylvania. Our office we have an office in the office building I mentioned is in downtown Trenton and we have assets in North Carolina, Kentucky, Virginia, and no not Virginia yet. We hopefully have a deal on Virginia, but North Carolina, Kentucky, and Pennsylvania, New Jersey.

Brett:

I don’t think one other step back to where I want to go back to maybe your university days, your high school days, when you were younger, perhaps. I believe we have all been given certain gifts in this life. These gifts I believe are given to us to be a blessing and help to others. Some people call them a superpower. Some people call them strengths. I think their God-given gifts, and I think they’ve been given to us to be a blessing to others. I’m curious, what are those one or two gifts that you believe you’ve been given, and how does that help how you help and bless people today?

Matt:

Sure, I would use the same language myself. But, the way that I would say it is that I’m blessed with the ability to explain complex things in a simple fashion in another life. But I wanted to be a teacher. Because I know I can do that I can explain things that I’m passionate about to people and help them understand those complex things. Those things are real estate investments for me. But I can also explain to my seven-year-old how an automobile works in ways that he’ll get it. I think that that’s one of my god-given talents. I’m also good at good. I’m good at it for things that I am excited about. I’m good at conveying that passion to others. if I’m excited about it, I’ll likely get you excited about it. Those are two things that I bring to the table.

Brett:

Those are great gifts, making complex simple being a teacher at heart and then helping to inspire get people excited about things that you’re passionate about. Is that a fair summary? Let’s jump right into the number one secret of transforming lives through real estate First of all, how cool is that? That you have a trademark I believe that’s the name for the right for this transforming lives through real estate, touch on that. Then second, what’s the number one secret to doing just that?

Matt:

I think that the concept of trademarking something is that, if it’s if you come up with a concept that’s so special to your brand, and so special to what it is you’re creating, it’s good to protect it because other people might say, that’s a good idea, I’m gonna use it for my company too. But if you want your company to be known for a phrase, or for a brand, or for a name, or for a logo, or whatever it is, it’s just good to protect it legally, so that other people can’t run out there and put their stuff, that’s fine, too, I’ll put my stamp on it as well. The concept of transforming lives through real estate, something that we came up with years ago, upwards of 10 years ago, and that we were certainly the first ones to use it.it makes sense to just protect it in that because it’s something that I wanted our company, whenever a company known for. It is our vision, longer-term, Brett to start supporting, not-for-profit initiatives and give back and helping people. Having like, consciously based investing and things like that, that I want to add something lives to scale beyond just buying apartment buildings and doing good things with other wood go and doing good things with money in real estate. But also, doing good in the world, with the returns that we make as a company, not that I make for investors, but with returns that I make, to taking those things and pushing them through other real estate benefits and things like that. I think we get to transform people’s lives through the profit that we make do so love it.

Brett:

I think it’s fantastic. I think it’s wise to. Not only have a vision statement, have a set something that’s a slogan, but that’s also a brand, all of those things, and then to try to actually go do that right what you’re doing right now. Let’s dive right into that. What’s the biggest deal that you’re finding our biggest opportunity or biggest challenge, however, you want to take this right now for the deals that you’re looking at, or even the investment you’re making? You mentioned hard money lending. Walk us through kind of what your I guess, your 2021 strategy is and what it’s how it’s all coming to.

Matt:

I’ll comment on a few things. We’re launching a blended fund, and that blended fund is going to invest in hard money loans and distressed mortgage assets and operators that we believe in and want to take your business to the next level. That’s what our fund is going to get itself into. It’s new. I can’t talk a lot about what 2020 has been like for that fun because the fund just got launched, believe it or not, Brett two weeks ago. But what I will comment on is our experience in finding multifamily in today’s markets, because that’s been a journey, it’s been the secret’s out, multifamily is a good place to invest, and so there’s a lot of new operators and people that want to make a name for themselves in this space, or existing seasoned operators that are looking to expand and grow because new investment capital has discovered that this is a great place to go a to park money but also to make great tax leverages as your company brands as well, to make tax leverages and real estate investment. The multifamily space has got a little more competitive. We have underwritten happy to say bright 150 deals this year, and we’ve made we put one under contract and closed on one and we’ve made best and final and a few didn’t quite make it. We’ve got a few that I think we’re about to hit one in the next week or so, and but I think that our strategy has been Brett to look at more deals to do some of the market solicitations for people that are looking to sell that aren’t on the market right now. It also considers expanding one-two markets that we’re in, in the US. That’s been how we mitigating how competitive multifamily investing has been these days.

Brett:

It’s wild. I couldn’t agree with you more, and it’s especially I’m here in California, and it’s just like these cap rates, I’m selling a deal right now, it’s gonna be $175,000 per unit to attend to do an exchange buyer representing my client is going to be doing a Deferred Sales Trust, and it’s going to be a record-breaking price for the units. Now the units have a substantial amount of loss to lease the ability to just if all this rent control is in place. Now a lot of people aren’t moving, if they move out, which we have. Two tenants have moved in check it out. Two tenants have moved out in the past three months alone, and that’s kind of when they listed we started three months ago, and so we were on this pro forma, and the idea was, well, we want it to six, but the market was like two-three to two four-ish, but it was counting on the ability to move out but we didn’t know it could be a year or two or three. But all of a sudden we got to move out boom price fall above asking price at two six and then contract now. But the point of all that is its hyper-competitive. Because multifamily is the basis of the foundational living of housing, and you’re right it’s also financeable, very financeable and there’s a lot of money chasing fewer deals, especially those that are value add. Let’s dive into that one deal that you found (a) How did you find it? (b) What is the deal I get? Give us the specs, and what’s the outcome on the pro format?

READ AND LISTEN TO OUR FULL EPISODE

CLICK HERE