Making Money in Multifamily Real Estate Show

177 | Strategic investor partnerships and asset class selection with Paul Hassebroek

May 04, 2022 Dave Morgia
Making Money in Multifamily Real Estate Show
177 | Strategic investor partnerships and asset class selection with Paul Hassebroek
Show Notes Transcript

Paul's Background:

  • Paul Hassebroek founded Six Four in 2019 after a successful career in the financial advisory and family office field. During the past 10 years, Paul has been through due diligence on dozens of private equity and real estate projects and successfully fundraised $25,000,000 from investors to acquire or build over $85,590,000 of projects.
  • Paul’s personal mission statement is to be a “catalyst for growth.” A natural networker and people connecter, Paul loves helping investors identify real estate investments that help them achieve their goals. He also consults with and mentors others who are getting into real estate investing full-time.
  • An accomplished and results-driven asset manager, Paul has over 16 years of experience in real estate, finance, and operations. He has strong qualifications in developing and implementing financial controls and processes in addition to productivity improvements and change management.

In this episode we cover:

  • 01:25 Paul's Personal Statement
  • 05:08 Current Team Structure
  • 09:55 Conditioning investors to invest in certain assets
  • 14:16 Onboarding new investors
  • 17:36 Focus in Florida markets
  • 22:14 Building strategic relationships
  • 26:21 Institutional investors vs retail investors
  • 31:11 5 Key Questions

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Intro:

Welcome to the Making Money in Multifamily Show, where we discuss everything to do with multifamily real estate investing. We believe it's the best way to gain financial freedom and build lasting wealth. This is where you'll find it the best information and practices to help you succeed in your real estate business, whether you're already experienced or just starting out. Here's your host, Dave Morgia.

Dave Morgia:

hello listener and welcome to the show. I'm your host, Dave Morgia. And today's guest is Paul Hassebroek. Paul is the founder of six for asset management that was founded in 2019. After a long career in the financial advisory and family office field, and over the past 10 years, Paul has done a ton out in the real estate space, a lot of due diligence, across PE and real estate projects totaling over $85,000,000.20 $5 million raised for those deals. His background in entrepreneurship has been started at a young age, worked in his family owned repair shop in Iowa. And they also had some rental properties within the family. And I just wanted to highlight this it was on Paul's bio. And I thought that was interesting. Paul's personal mission statement is to be a catalyst for growth. So yeah, welcome to the show, Paul. And if you wouldn't mind, just give the listener your focus, and maybe touch on that catalyst for growth monitor there that I mentioned earlier.

Paul Hassebroek:

Yeah, I think my my personal statement came from my desire to give back. I'm my my career has been around giving financial advice, raising capital for startups, private equity, and I'm now focused solely on commercial real estate. But I'm trying to connect people and capital together to get stuff done. So being being the catalyst for growth is helping bring capital the deals help give advice, or let people leverage my experience in whatever way I can to help them achieve what they're trying to achieve.

Dave Morgia:

Yeah, I mean, we could probably do a whole show on kind of add value first and the successful kind of follow, right? Because that's essentially what you're saying, right? Being being a connector, helping people and making sure they can kind of navigate their business will will ultimately kind of fold back into yours inevitably. But yeah, your background, Paul, kind of kind of a interesting and sophisticated one with your kind of experience already in the real estate field. Pe and you know, your projects in your history before six, four, what do you just kind of mind digging in there, how you apply that to what you're doing? For the sixth floor side of things, and kind of what your strategy has been over the last few years?

Paul Hassebroek:

Well, I mean, my background was as a financial advisor, and I, I at a pretty young age went on my own, I hung my own shingle out. And so my 15 year career as an advisor was really focused on helping high net worth clients achieve their goals and, and help them you know, with solutions to difficulties or troubles they were having financially. And along that way, like all these high net worth clients, they're all getting hit up by people like me now saying, I've got this project, I've got this property, would you invest in it? And so my clients would bring me the PPM and say, Hey, Paul, you you know what's going on in my world? Like, number one, is this a good deal? And number two does, it makes sense for everything that I have going on in my financial life. And so that was sort of how I got into the private equity world almost 14 years ago. We were Iowa based, and eventually expanded into with offices in Florida and Tennessee. But we did a lot of stuff with biotech, ag tech businesses in Iowa. And then in 2016, and 17, I got involved with a developer friend raising equity and giving asset management advice on a couple of real estate projects. And there was during my 15 year career as a financial advisor, I didn't invest directly in real estate, I kind of thought I was too busy. I was maybe leaning too heavily on on the experience of my how my parents ran and manage a couple single family rentals when I was younger, and I was hooked on that first multifamily deal. So ultimately, I exited that business in 2019, a partner bought me out and I decided to pivot into commercial real estate full time, mostly focused on multifamily, but my secondary focus is on hotels. So

Dave Morgia:

you mentioned Well, I guess from what it sounds like, you have a lot of, you know, client facing investors facing experience. But you also mentioned, you know, kind of getting into the nitty gritty on asset management and just the operations of all these deals. So could you just kind of fill me in on where maybe the majority of your time lies these days, you know, how much is it kind of split between you and any partners you have? What does that kind of look like for you?

Paul Hassebroek:

Right now? My team is me, an executive assistant and a financial analyst. And I've had different co GPS on each deal. So we're really underwriting deals, most of the time trying to find stuff right offers and then put the capital stack together by either bringing in a joint venture partner or you know, some kind of strategic partner on each deal. So the name of my firm is six for asset management. And we I mean, I really view us as asset managers, when, like, trying to explain to say my mom, what I do, I'm trying to find good real estate investments and match up the individuals or investors that need that type of asset in their portfolio. So

Dave Morgia:

yeah, and getting into I guess, you mentioned you're you're primarily focused on sourcing and, and managing these deals. Sounds like you prefer on the joint venture side of things or the code up side of things to be like the deal sorcerer. We mentioned before the show you were focused on Florida. Is that is that the only place you're looking for deals at this time? Are you looking elsewhere in the US?

Paul Hassebroek:

No, I've got quite a few properties in Iowa, in Iowa and Wisconsin, kind of the Upper Midwest area. So we're looking for some stuff up there, but I live in Florida now. So I've been looking really closely in sort of the Carolinas, Florida and Georgia. We did a deal in Georgia last year and one in the Fort Lauderdale market in multifamily. So I would like to slowly be transitioning more and more into the state of Florida. But

Dave Morgia:

so what would that look like the transition? I mean, it's kind of you plus a couple of hires under your team, right? It's not necessarily, you know, a lot of times you'll see kind of two partners with, you know, focus on different channels of the business, whether you juggle in the asset management, how do you kind of transition into getting more of a footprint into Florida? What does that kind of focus shift look like?

Paul Hassebroek:

It's really interesting, because what I've discovered is that my Midwest investors, are they, they are sort of interested in investing into Florida, but they know the Midwest better. And you know, Florida is very competitive right now, it's hard to find a lot of value in multifamily deals across the whole state. So what I've found is that the people I've met investors that I've developed here on the East Coast only want to invest on the East Coast. You know, they're really focused on like Texas, or Florida, right? And so, the Midwesterners, the ones that winter in Florida are okay, investing in Florida, but I have a little group of investors in the Midwest that really want to put money there. So again, it's like trying to match up the investment with what the investor needs. Are they looking for growth or looking for income? Do they have a geographic limitation? I mean, I've said this before to people, like, if it was all my own money, you know, I would go wherever I can make money. With my investment dollars, I'm not really geographically limited. But in this syndication business model, I'm I'm cultivating deals that are attractive to my people.

Dave Morgia:

Yeah, it's funny, you mentioned not necessarily the friction to invest somewhere else. But you know, there's some kind of slowness to shift the mindset for some of the passive investors. I guess that's really just a testament to just kind of staying in your niche, right. And you can't just throw like a random deal that's out of your profile, completely different than what your investors are usually used to investing. You know, if you if you do the Midwest and Florida, you can't give them some crazy distressed deal, you know, on the west coast, because they've never seen anything like that before. Right. Like, they don't do that with you. So it's really Yeah, I mean, they see that

Paul Hassebroek:

I learned the hard way, because after I exited the family office practice, the first deal I found was a hotel in Des Moines. And I had been sort of conditioning my investors on this, you know, here's what I'm doing. I'm looking for multifamily. And then I got this pushback. They're like, Well, what what is this? This isn't, this isn't multifamily, you know. And so I found that first capital raised on the hotel to be significantly harder than I thought it was going to be because they weren't used to that asset. And I've been pitched all kinds of different real estate asset deals and I usually I say no to almost all of them, because I know that that I've got this list of people investors looking for passive income, you know, we've talked about multifamily. And that's just the easier for them to digest, I guess.

Dave Morgia:

See, this is why before the show, I told you, I don't like to shoehorn it into a topic because we're going to dive into the cabaret soon for a little bit. Yeah, so to me, it seems like there is just like a certain velocity at which you can push An investor to be comfortable in a certain asset class or location or whatever. Like you say the hotel is like brand new to them, they weren't on at least, you know, a good portion, we're ready for that. What did you do to kind of shorten the gap, the learning curve, whatever it is, to get some of your investor base a little more prepared and comfortable with different type of asset classes, whether it was you know, the Florida deals or the hotels, you know, whatever examples can come to mind.

Paul Hassebroek:

I mean, on that first hotel deal, it was the end of 2019, it was a conversation about why it was a good deal. You know, who was going to be managing it, I use professional property managers on all my real estate. So I don't, I'm not I'm not fixing any leaky faucets, right. And then we bought our second hotel at the end of last year. And that was significantly easier to raise capital for because I had more of a track record. So it was sort of the law, the first deal on that first hotel, it was a smaller deal. And it was a lot easier to raise equity for the second one.

Dave Morgia:

Yeah, and I guess, you know, getting into that law, the first deal or the second deal, going back to the kind of Florida portfolio move, like you mentioned, there's still some friction with some of the investors to get and get them up to speed on the Florida market. Is there some more active things you're doing this time around kind of taking those hotel learning lessons to get people more familiar with the the market and what you're trying to do? Or are you just kind of approaching a deal by deal and seeing who's already warmed up, if you will,

Paul Hassebroek:

yeah, deal by deal, I'm not spending a lot of time trying to convince Dave to cut a check for this one particular deal. A big focus of mine for capital raising, especially during the pandemic, I had a deal that was getting ready to close rate in March of 2020. And it fell apart. And so I had worked on that deal for like three months and had to walk away. And so then, you know, it's very hard to for it, I found it difficult to get another deal under contract for quite some time. And so I said, I'm like home with homeschooling the kids, like, let me just focus on building my investor list. So I spent a lot of time on LinkedIn marketing, a lot of time trying to grow my investor list, in at the start of the pandemic, I had, like 325 qualified investors, mostly high net worth, but people that I had actually spoken to that were interested in real estate, and my experience has been, you know, like any, any buddy will tell you, it's a numbers game. And that, that has been my experience. So I was like, by the end of the pandemic, which was only going to be like two months, right? I'm gonna grow my list from 325 to like, 1000 people. And I think by the end of 2020, I was at like, 425, and I've got almost 500 people on my list, now, it's just keep steadily growing. But when I send a deal out, I know that, you know, 20% of those people will express interest, but it has to be a good deal number one, and number two, they have to be liquid. And so the the response rate is always, you know, typically, like 5% of whoever's on my list is going to respond. And so there's, there's some people that I may have, you know, it's I'm leveraging my experience as a financial advisor in that world, we call them money, dudes. So it's like, Hey, Dave told me that he had 100, grand coming due in August, you know, so it's August, I should call him in, you know, so it's, it's that kind of like, knowing your investors, understanding where they're at, but also, just, I don't, I don't call like all 500 people I do. I do webinars and invitations, and then do constant education and emails between deals, and so that they're hearing from me, like once a month, I'm keeping in contact with them. Let him know what we're working on.

Dave Morgia:

Yeah, you're kind of lead me into my next question, because I was going to ask, you know, onboarding a bunch of new investors, if you will, what it takes to get them up to speed with what you're working on. Sounds like a lot of the same stuff where it's more of a pull campaign, and not necessarily pleasure, or it might be reversing that. But But either way, you're not necessarily calling all 500 Every month, because that would be a insane and be not really fruitful for everyone's time. Right?

Paul Hassebroek:

Yeah, I tell like some of my coaching clients, like, if you talk to if you talk to someone and they say, Yeah, I'm interested in real estate, the first time they hear from you shouldn't be when you have a deal. And especially if they've never invested with you before they're probably going to pass on the first deal. I mean, people just do that. It was like that way on the hotel. That first hotel was a hard capital raise. I raised 1.6 5 million for that. This past one we did, I did, like 2.6 million was raised for that second hotel deal, that 2.6 was so much easier than the 1.6. And so it's a bigger dollar amount, but it was easier to raise money for because people knew their, you know, maybe I posted on social media about successes with the hotel. Here's what we're looking for, here's what we're doing. So it's like a warm call when when they hear when they get that email from me, and it says, Hey, we've got another opportunity. If you got some cash available, you should look at this, you know?

Dave Morgia:

Yeah, and I think that's, I couldn't agree more. It's hard to be a guinea pig. And people don't want to feel like that, necessarily. It's not to say that your first deal is going to be, you know, something you don't do perfectly. But I mean, results are everything. And I'm sure as an investor, you'd want to see Paul's second deal better than the first one, because you want to see what happened to the first one, right? It's just, it's just human nature to want to know, from a risk perspective, what happens on the first one that he's never done a hotel before. So it makes a lot

Paul Hassebroek:

of sense, right? This is my third year now, and I have had all this experience in the past. But, you know, for various reasons, I couldn't talk to all those people. So when I started this commercial real estate business, I was really focused on rebuilding that investor list and growing that, and one of my biggest wins, or of last year was that the last deal we did the one that we close in September, the end of September, I had three investors in there that that was their third deal with me. And that was very exciting for me, because I want people to have a good experience, I want people to investors to want to share their experience with others in their circle and want to come back into future deals. So

Dave Morgia:

yeah, and, you know, there's two prompts, that it's like, one, the referrals are huge, because of someone's happy a personal referrals, so much better leverage than any social media promotion, any other thing that you could do to convince someone to get on the phone with you, you know, a friend telling you that they trust this person is way better than you trying to convince them and be that person makes money that deal, you know, have hopefully 1.5 or two times the amount of proceeds to roll on to the next one. So, right, it kind of a funny two prong approach there.

Paul Hassebroek:

Yeah. But I guess it's, it's, it's a marathon, not a sprint, you know, like to use the cliche, it really is true that it builds over time. So

Dave Morgia:

yeah, and we'll probably take a hard pivot here, because I think you do have some some value on the asset management side of things to provide. You mentioned, you know, the focus is going to be a little bit more Florida heavy. What is that going to entail for you guys? What are your systems in place? Right now? I guess, you know, what is your structure? Was it with third party property management, third party construction? Or is it all vertically integrated? You know, what is that going to look like for you to scale in the next couple of years,

Paul Hassebroek:

we're focused on value add, we're focused. I live in South Florida. And so I've got some people here in the like Miami, Fort Lauderdale area where we've been looking to add a lot of properties. And I know who will manage those. And then we're also looking in like Tampa, Orlando, Jacksonville. And so part of that was identifying trusted property managers there, which is sort of trial and error. You know, we've, we've, we look at a lot of deals, and loop those people in to get their advice on it, and we're getting to learn something about them. And even if the deal didn't work out, we know who we would call first. When we have the next prospective acquisition. The biggest thing for me right now is just like continuing to scale the equity. I think that's the biggest. I don't want to call it the biggest throttle. The thing that that is, I think, a challenge for a lot of people. But I want to just continue to kind of mechanize that like, like I was saying a little bit ago, I don't want to have to call a whole bunch of people for individual $50,000 checks, I want to get going more and more in a more automated way where we can I can make the best use of my time and continue to raise money for for new deals.

Dave Morgia:

And that that's an entirely different episode in and of itself. I'm the if you're talking like the V and I like visionary integrator, I'm the integrator of our group. So I do all the, you know, the back back of the office stuff, and my partner Travis is doing all you know, the kind of higher dollar per hour calls and all the front facing stuff. That could be an entirely different show. But yeah, I was just curious to hear your take on what it takes to scale in Florida. And I guess just is it normally because the prices in Florida are higher per door typically, is that why you're looking to kind of raise more equity just because you're looking at bigger dealings as far as nominal dollars to close?

Paul Hassebroek:

Yeah, the dollar amounts are going a lot higher. We don't own any hotels in Florida, but we've identified that as like the next 12 months. Our goal is to add a number of hotels here and And those properties just cost a lot more in Florida. We I was working with a partner on a multifamily deal in in Florida this morning, and it's like, you know, they got 15 offers, they called seven of us back for best and final it in the people that we're bidding against are, you know they're from out of state or even out of the country is just a lot of money coming into Florida. So I still believe there's deals here, there's value to find here. And my hope is that by being local and having good broker relationships that I'm getting to look at some of those before, people from outside of the state are. So I don't think it's a waste of time here at all. But it's just a tougher environment right now.

Dave Morgia:

Yeah, we, we also invest in Orlando and kind of shared similar sentiments. It's in some aspects, pretty hot. And people shy away from it in that sense, you know, kind of like people talk about DFW and some areas in Texas a little bit where it's almost too hot for some people to function. But I think you're right, there's there's kind of avenues in between the institutional side stuff and maybe the smaller multi, where there's there's definitely room and like you say, being local, getting like a two week headstart on a deal, where you can actually go walk it and get your ducks in a row before the bigger out of state or out of country. Investors can can get a look at it. The agility is definitely I think, in my opinion key to be able to kind of get the ball rolling.

Paul Hassebroek:

Yeah, because it's a seller's market, like I'm seeing. I'm seeing people want money to be non refundable immediately, you know, very short due diligence periods, they want you to close very quickly. And so making sure I know where the components of my capital stack are coming from and how long they'll take, to get in position to close is really important to be competitive.

Dave Morgia:

And now, you mentioned the capital stack, maybe we'll hit that for a second. Is there anything you're looking to do to kind of improve the team to be able to close something in these markets? Obviously, you're bringing in you know, limited partner equity, but are there partners that you want to strategically bring in that can kind of boost the resume of the team as a whole to kind of make it more attractive for if you're looking at these kind of more institutional buys these these bigger dollar prices. Sometimes, like you're saying these these big, big groups come in, they are obviously going to be way stronger, sometimes because of the check that can write in the background they have. So is there anything you consider on that avenue?

Paul Hassebroek:

I'm not necessarily on my team. But as far as resources I've been spending a lot of time building relationships with more like institutional investors, looking at different ways to finance deals that we can close quicker with stuff that is like mez debt or bridge debt, something that comes available quicker than say, going through an agency loan, which takes forever to get underwritten.

Dave Morgia:

Yeah, man, it seems like there's I mean, of course there are still closing but it seems like there's no agency deals closing these days and it's all bridge that it's just like all the deals I see closing on you know, all these PPM they just seem to be the bridge three one ones and then some type of refinance or sell which there's nothing wrong with but it's just funny how the market shifts over time. Yeah,

Paul Hassebroek:

it makes me nervous, you know, to be in like a two year three year loan right now and and think about where interest rates could potentially be. You know, I don't know. Makes me nervous right now. So

Dave Morgia:

yeah, I guess it depends on the business model. There's like the two schools of thought in my mind right now it's like essentially go for like a short term flip scenario where you can keep it flexible be able to basically leave some meat on the bone and get the get the sailing make the investors happy. Or there's like the Yeah, just like lock in the super long term with the rates still is pretty low as they are right now and try to just find that cash flow and Bad Boy, that's going to be you know, the one you want to marry for 20 years. It's very tough. But yeah, that's that's kind of what I see. At least right now.

Paul Hassebroek:

Yeah, same.

Dave Morgia:

Yeah. So I mean, I guess getting into the Florida market, you you say you know, hotels and Malta is the focus. Where do you think the deals you're gonna close are this year? Do you have like a hunch that it's going to be kind of more leaning on the hotel side than multi or vice versa? You know, if you were just to kind of make a prediction right now, do you have a guess?

Paul Hassebroek:

I don't, I don't really I think we've been networking hard in both asset classes, and underwriting deals when they come in. So we had a there's a Midwest City that we identified as a top price. back for a hotel, and I just got a bank owned property come across my desk this week. So, you know, we're tackling that. And in Florida, we're underwriting you know, dozens of multifamily deals from Jacksonville, over to Tampa and down to Miami. Just looking for opportunity for the right, the right deal at the right time.

Dave Morgia:

Yeah, I think that's, that's it, right. It's like, you have to just take the KPI, whatever it is you want to do you want to close, you know, hotel deals and multifamily, then you got to back it out. And I don't know what your numbers are. I'm sure it's, you know, several 100 deals before you get the one that closes. But as long as you get to that several 100 that you evaluate, eventually you'll kind of piece together. Yeah, that's right. It's tough to pinpoint exactly where they're going to come from, or whatever. But keep your high level and putting the numbers to play. Yeah. So if we were to, I guess, scale it back and talk about the equity for these deals, where the majority of it comes from now and like where you want it to go? Is it mostly like syndicated checks, like LP level 100k 200k checks? And you mentioned like, you know, more institutional partners? Is that kind of more of a stack that you want to be able to deploy in deals and kind of shy away from the smaller LP dollars? Or is it? Is it more just Yes, yeah. Okay. Yeah, yeah. So So what's the logic?

Paul Hassebroek:

To multifamily deals I did last year, I partnered with a family office that's comfortable writing, like $3,000,000.03 and a half million dollar checks. And then I raised the rest from my network, which was really nice. And on the hotel side, though, it's like you described all 50,000 $100,000 checks, a lot of high net worth investors, and some, like friends and family type money. And so I want to be able to continue to identify where I could find more of those larger checks, because it saves me as the operator a lot of time and putting the, the equity piece together.

Dave Morgia:

Yeah, it definitely is literally less investors in the deal, right. One of maybe like the edges on that double sided sword is just the strictness of the criteria of the dealer and the investment when you get in the higher capital dollars, is that something you're kind of running into? Or not necessarily running into, but just navigating through as far as sometimes when people write a seven figure check? It's, it's got to check a lot more boxes than it does for someone that writes a 50k? Check. So what does that kind of look like for you? Yeah,

Paul Hassebroek:

there's, there's a couple of groups that I've been working with that have been underwriting me individually. And it's been, there's been a lot of them checking the boxes before I'm approved on their platform as an operator, and they would consider funding a deal. So there is some of that. And I think, maybe my background being on the other side of it, where I was coming in as the equity partner on a deal. And, you know, I would ask the sponsor for certain things, or guarantees or concessions. So, it, it is something to be aware of, because if you are getting big checks from somebody, a lot of times, they they're going to there's going to be strings attached, I guess. Sometimes they're compensated compensation related strings, sometimes it's like, Hey, if you don't have us caught up on the prep by year five, we can force you out. Right, like, not out of your GP position, but out of a management role. Like, there's different clauses like that, where they want to be able to protect their investment and, and base and basically have the ability to fire you if you're terrible at your job. And I think that's reasonable. But you just you got to, you got to know going into a negotiation like that, like, what you what's reasonable for your own situation, right, like what you're going to agree to?

Dave Morgia:

Yeah, I mean, like you say, bring in a, well, I guess, like, bring a bigger check, you know, bigger, bigger portion of just the equity stack, you have kind of the wherewithal to dictate terms a little bit more. So from a sponsor perspective, like you say, you just have to be a little bit more malleable if you're going to be willing to let someone bring in a bigger chunk of the equity and it's much easier once you can get through the hurdles, but to actually make sure that their needs are met and your needs are met can sometimes be a little bit of like a massage game, right. Kind of like you mentioned, just making sure making sure the matches, there's a couple more steps. So yeah, I just wanted to I don't hear Yeah,

Paul Hassebroek:

I don't think I don't think it's any different than like, you know, you know, finding a new partner in your practice your new co GP or someone where you got to figure out okay, like, you know, I got to I've got to share the car pulsation with this person, this is what they're going to do, this is what I'm going to do. What happens if they don't do their job? Or I don't do my job? Like, how are we going to handle that? You know? And so, overall, it's been a very good experience for me. I think. Some people are wary of it or, but, you know, it's just something to be aware of, and work around, like any negotiation, just knowing what what you can accept and what you can't for terms.

Dave Morgia:

Yeah, and like almost every, you know, not just real estate, but in any business. Transparency is probably the key, so long as you can be up front. And everybody kind of knows the mechanics of it from from day one, it doesn't make it to

Paul Hassebroek:

transparency and have a good lawyer.

Dave Morgia:

There you go. There you go. Yeah, Paul, I appreciate the the talks, we kind of scattered, you know, through a couple of different topics, like I say, maybe thought we were going to hit more asset management today. But really, we ended up kind of more in the cap raising territory, which is totally fine. But before we do kind of sign off, I just want to hit these five key questions if you're ready. Sure. So first one is if you can only pick one trait that explains your success, what is that trait? And why?

Paul Hassebroek:

I would go with curiosity or listening, I think you have to listen more than you speak and be curious, I tend to not say no to any deal that comes across my desk, I'm like, Hey, let's do a quick underwriting on it and see if anything's there. And same with investors, I'm happy to chat with people and find out whether they're a good fit with us or not. And I think that's helped me uncover a lot of opportunity.

Dave Morgia:

And then second one here, what is the most uncharacteristic thing you have done in your business? And why did you do it?

Paul Hassebroek:

I don't know. I guess I would answer that with when I bought that first hotel. You know, we we have like for good months before the pandemic hit and, and everything went sideways. And so like there was a point there, where it's like, well, why did I do this? So it's working now. So I'm happy.

Dave Morgia:

Yeah, I think you know, your first deal as a hotel, pre COVID, and then into COVID. And coming through that alive and in the green is probably probably pretty good testament that you're probably pretty good for the next future for the old enough.

Paul Hassebroek:

So let's hope so that's what I tell people that the pandemic took, like a seven year economic cycle in hotels and shortened it down to three months. You know, it was it was very, all hands on deck for quite a few weeks or months straight, trying to figure out where we stood and, and there were a lot of hard decisions to be made. But we got through it. So it was it was a good a good life experience.

Dave Morgia:

Yeah, that is that is a definitely a great test of, of your prowess. So so good job on that. And then, Paul, can you name a time where you felt like you were not going to end up successful? And what did you do to overcome that fear?

Paul Hassebroek:

I mean, I could I could answer that a couple different ways. You could go back to, to just starting this business, I do think I do think that, you know, operating a successful real estate investment business is a business and you have to approach it from that mindset. And sometimes it's hard to get something like that up and running. And so taking that first step is the critical part. So for me, it was like, I've engaged coaches and mentors, networked with people like you to learn and share experiences and help realize that what I want to achieve others, others have achieved before you know that it's possible. So taking that first step is a critical part.

Dave Morgia:

Yeah, the networking is huge. It's not only good for the education piece, right? But then once you get up to speed there, those are the people you'll probably end up doing deals with, because they took the time to teach you they, they obviously found a reason to like you because you bring some type of value to them. So they're probably gonna end up the people that you'll actually close a deal with. So it's funny how it all just works out fluidly like that. Yeah. And then can you name a time where something in your business went perfectly? And what did that do? Or what did you do rather to make that a reality?

Paul Hassebroek:

I don't know. I don't know if anything's ever gone perfectly, especially in real estate. I guess one thing I would share is that we closed on the second hotel acquisition at the end of September of last year, and that was a deal that we had been talking to the seller for two years or more on so it it really just took a long time to get there. And once everybody finally got on the same page, it was one of the smoother transactions I've had yet. I hope that It's not the smoothest I'll ever have. But it really felt like like I said, it was a big win for me to have repeat investors. The equity raise went really smoothly, was the first time with my new team members in place to help move things along quicker and smoother. And it felt like a big win. For me.

Dave Morgia:

Now, that's good. And just that persistence, obviously paid off to two years can can be mentally physically draining on something like that. So So yeah, all tied up at the end. Nice is probably early. So that's awesome. And then last one here, Paul, what have you been focusing on lately to improve yourself or your business?

Paul Hassebroek:

I read a lot. And I've been trying to listen a lot to audiobooks and talking reengaging with a lot of people that I've maybe met at conferences, looking for new conferences to attend. So I run two multifamily meetup groups in Florida that we meet once a month and each of those and so again, I think trying to be a catalyst for growth means like networking with everyone I meet, trying to find out how I can help you get what you want. And then making sure before you walk away you know what I'm looking for. So that if you happen to stumble across the good franchise hotel deal in Florida, that you'll give me a ring and point me in the right direction.

Dave Morgia:

Yeah, man, it is funny. Just putting out in the world what you want how it'll find a way to come back to you like a boomerang. Right? When people know before you leave what you're looking for, yeah, 1010 fold approach there. Yeah. That's awesome. But yeah, Paul, appreciate the time today. Like I say, we really got into the crux of capital raising, but a lot of good stuff. They're talking about the systems and navigating certain types of deals and just maybe pivoting into some new structures with some higher check writers. Really interesting stuff. And just in case listener, did want to learn more about the hotels you're looking at in Florida or the Midwest or the multi you have going on? How can they reach you?

Paul Hassebroek:

pretty active on Facebook and Instagram. And then my websites are Paul has to brook.com and six for asset management.com for the business, so there's information you can find there. Awesome. Contact Info.

Dave Morgia:

Awesome, Paul. Thanks again, so much. Really appreciate it.

Paul Hassebroek:

You bet this was fun. Thanks.

Thank you for listening to the show. I don't take your time and attention for granted and appreciate that you would spend it with me. If you enjoyed this show or any of my previous shows, it would be a huge help if you would rate and review the show on Apple Podcasts or your favorite podcasting service, or even just share the episode with a friend. And if you'd like help from me or would like to talk about real estate investing further, feel free to visit the show notes for more information, or you can visit davidtravis.com.