December 10, 2024
Episode 208 – Gary Lipsky – Real Insights for the Business of Real Estate Investing
“Real estate is a great place to put your money. It’s a long game, don’t chase the grand slams, do your due diligence and seek out advice. Don’t be afraid to get a second opinion.” – Gary Lipsky
- Gary Lipsky is a real estate entrepreneur focused on Multifamily Syndications and has acquired 3200+ units with a total value of $280MM. He’s won the Best Real Estate Syndication Company by AAOA in 2022 and recognized as the 25th fastest growing Real Estate company by Inc Magazine.
- Gary is the host of the Real Estate Investor Podcast, where he interviews experts to educate investors. He is also the best-selling author of “Best In Class” and has spoken at countless conferences.
- Gary has built several companies, co-produced 3 independent films and started a non-profit organization for underprivileged children. His vast experience serves as a great foundation for his multifamily business.
- Listen in to this episode for some authentic guidance, real stories and nuggets of wisdom for real estate investing. Gary shares the opportunities he saw that got him started in 2002, and what he is up to currently in the space of multi-family syndication. With its ups, downs, challenges and rewards, Gary highlights the importance of building networks, seeking help and collaborating for confidence and success – something he admittedly didn’t always do. Gary operates within a values-driven team and emphasizes how important trust and relationships are in every aspect of the business. Gary and Patrick discuss raising capital, market focus, fundamentals, relationship building, and a word of caution about from whom and at what cost we take advice.
- Show Notes
- [00:42] Patrick introduces his next TEDM guest Gary Lipsky.
- [02:11] Gary and Patrick get their conversation underway with Gary’s explanation of what he does in the world of investment real estate, how he defines multi family syndication and how it differs from say a REIT.
- [05:17] As an entrepreneur from the beginning, Gary saw opportunity in real estate investing when in 2002 he was doing research to buy his own home. He didn’t pull the trigger right away, but when the time was right, he began his full-time real estate journey. There have been many ups and downs along the way, but Gary is committed to learning and growing.
- [10:03] Trial by fire. The entrepreneurial spark was lit within, and he loved being in the action even in high school. Although he wasn’t raised around anyone taking on real estate, Gary inherently knew this was the path he wanted to venture down. Gary blazed trails on his own and only later learned the value of mentorship.
- [11:46] Gary shares how he started with a singular mindset of doing it all with a bit of help from others. He wasn’t aware of building teams or leveraging other people’s skillsets. It was less to do with resistance and more to do with a lack of knowledge. Now his network is strong, and he fully embraces the power of asking for help.
- [15:07] Insights in raising capital. Gary started with an Imposter Syndrome. In his words – he was terrible at it. He grew his skillset and started to share with others what he was doing. And perhaps more importantly, told the story without expectation of an investment. He advises to play the long game, show respect for where people are at, and build relationships. You’re only as good as your last deal, and better to take your time.
- [17:44] Strategies for raising capital. Gary describes their approach to generate interest, leads, and investors. Thought leadership in various forms has been a key component and Gary explains what they’re doing in that space.
- [19:07] One of Gary’s thought leadership platforms is authoring a couple of books. He talks about the latest release and what inspired it.
- [20:18] A few critical points in Gary’s view are to ensure investors are clear about the deal, that they have read the offering memorandum (as long and dull as it may be!) and that their expectations are managed. Communication, transparency and working hard at problem solving are foundational pieces that retain investor trust.
- [22:32] Gary shares their model for what and where they buy, the strategy behind it, and the importance of focus. As an example, Gary explains the fundamentals he and his team saw driving the market in Tucson, Arizona and why they chose it as one area of investment focus.
- [27:05] Fear, uncertainty, doubt. Given the state of the world economically and politically, Gary shares his views and approach on further investing, capitalizing on the market and fluctuating interest rates.
- [30:46] Expanding on their model and approach, Gary talks about their buying strategies, intentions for holding the properties, and navigating the inevitable cycle of real estate.
- [33:58] Certainly learning in the trenches has played a bit part in Gary’s education, but he’s grown to learn how important it is to have a network of people he can reach out to who may know more, or work together to build confidence, knowledge and success.
- [35:59] So what does Gary’s personal portfolio look like? Is he diversified beyond real estate?
- [38:07] Invest Smart! Where you can find Gary’s new book (link above,) the premise of the book and its rewarding outcomes.
- [39:38] Patrick and Gary discuss the influx of “experts” in real estate investing and raising capital online. With a sharp rise in content, in some cases, it’s frightening to see people who are offering these mentoring programs, who have done only one deal or even none. Yes, you start where you’re at, but we need to use discretion with the advice we are getting and at what cost.
- [42:22] Promissory notes: a cautionary tale.
- [43:56] Mission, values, and vision. Values drive every decision they make. Quality, care, value-add, and a safe place for tenants to call home are qualities they strive for with their properties. Creating a culture of well-being within the ecosystem of their buildings, from management to residents is essential. In the end, it also produces a better return for their investors.
- [48:37] Relational vs. transactional. Its critical to protect investor trust and relationship care as people invest their hard-earned dollars with you.
- [50:48] Parting thoughts and nuggets of wisdom from Gary.
- Selected links and people mentioned from this episode:
- Break of Day Capital
- Invest Smart. Spotting Red Flags in Real Estate Syndication by Gary Lipsky
- Best in Class by Kyle Mitchell and Gary Lipsky
- Real Estate Investor Podcast
- Connect with REIN Canada
- REIN Canada
- [email protected]
- REIN Channel
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