Episode #209: A Guide to Recapitalization with Matt Faircloth

Passive Income Through Multifamily Real Estate

In the current real estate climate, it’s tough to find deals. This is why today’s guest, Matt Faircloth believes that if your company already owns a good piece of real estate, why would you go and sell it? Matt feels it’s better to refinance that property, replace some investor equity if they want to get out, and just continue to recapitalize. Matt has been a full-time real estate investor for 15 years. In that time, he has successfully completed projects involving dozens of fix and flips, office buildings, single-family homes, and apartment buildings. He has amassed a portfolio of over 1,000 units and has raised tens of millions in equity for these real estate projects from passive investors. Apart from creating content for his YouTube channel, he is also the author of the Amazon bestselling book, Raising Private Capital: Building Your Real Estate Empire Using Other People's Money. Today we discuss the importance of maintaining and improving your property in line with the market, how to teach your kids to invest early, Matt’s working relationship with his wife who is also in real estate, and how they maintain a work-life equilibrium. Matt also explains why he terms his business as a “seldom sell” company, what recapitalization is, and why it works so well. To find out more about recapitalization and how it may work for you, tune in today!

Key Points From This Episode:

• An introduction to Matt Faircloth and his impressive career as a full-time real estate investor.
• Why he terms his business as a “seldom sell” company and what he means by this.
• Insight into the process of recapitalizing, how it works, and the level of stabilization that it offers investors.
• Matt breaks down an example of how he calculates what the return is for exiting investors.
• The importance of always having a CapEx budget and keeping up your property in line with the market.
• How Matt maintains a work-life equilibrium and the benefits he derives from entrepreneurship.
• Matt’s wife Liz’s real estate career and how they serve as board members for each other.
• How to teach your kids to invest early.
• The role of incentive programs for those that run the assets that Matt owns.
• Why Smart Sheet is the one tool Matt uses in real estate investing that he couldn’t do without.
• One of Matt’s biggest mistakes in real estate investing so far involving a Ponzi scheme.
• How he needs to realize what he should and should not be doing himself to grow his life to the next level.

Links Mentioned in Today’s Episode:

Matt Faircloth

Derosa Group on YouTube

Raising Private Capital

DeRosa Group

Liz Faircloth

The Real Estate InvestHER

The Only Woman in the Room

The Real Estate InvestHER Show

Smart Sheet

Limitless Estates

Passive Income Through Multifamily Real Estate Facebook Group

APT Capital Group
Garzella Group