155: How Operational Efficiency Forces Appreciation in Multifamily with Jered Sturm

Zen and the Art of Real Estate Investing

It may not be the first thing that comes to mind when you consider real estate investing, but those with training in the trades have a unique advantage as investors. They understand the day-to-day expenses of maintaining and running an asset better than most.

On this episode of Zen and the Art of Real Estate Investing, Jered Sturm joins Jonathan to discuss his real estate investing venture in the Cincinnati, Ohio, area. Jered is the co-founder and CEO of SNS Capital Group, a private equity investment firm specializing in creating wealth through real estate. SNS Capital focuses on acquiring and operating large apartment communities. SNS Capital uses operational efficiency to force appreciation in these multifamily properties.

As they open their conversation, Jonathan and Jered delve into Jered’s first exposure to real estate in high school, the competitive advantage his natural affinity for trades gave him, and how a house hack helped him jumpstart his real estate investing career. Jered shares why the first few purchases he made were with cash, the challenges he experienced as he moved into larger-scale multifamily apartment buildings, and the benefits of having a successful track record before he began borrowing. Jered shares the biggest transition point in his career, the importance of understanding your competitive advantages, and the capacity you can handle on your own before hiring a team. He reveals the two components he looks for before purchasing value-add assets, how to evaluate properties for improvements they need that could force appreciation, and Jered’s reasoning for not hiring outside property management. Finally, Jered explains why he focuses on the Cincinnati market and how remaining process-focused instead of percentage-of-growth-focused benefits his business.

If you’ve ever wondered if knowledge of the trades can help you start a real estate investing career, Jered Sturm’s story offers a resounding “yes.”

In this episode, you will hear:

• Jered Sturm’s first exposure to real estate in high school and the competitive advantage he had
• How a house hack helped Jered jumpstart his real estate career
• His natural talent for work in the trades and how that benefited him as he built a real estate portfolio
• Why the first few purchases were cash purchases before moving into using lenders
• The challenges of moving into larger-scale multifamily apartment buildings
• The benefits of having a successful track record with cash before borrowing capital
• Challenges of owning larger multifamily units and why that required Jered to wear several hats as he managed it and attempted to grow
• The biggest transition point for Jered and when he realized he could step back
• Understanding your competitive advantages and the capacity of units you can handle with your own money first
• Two components Jered looks for before purchasing value-add assets
• Evaluating properties based on the improvements they require that may force appreciation
• Why property management is vertically integrated into Jered’s business model
• What he looks for in a property as he evaluates it for purchase
• Controlling vacancies for executional efficiency
• How being local allows Jered to create greater efficiency and predictability with each asset
• The lesson he learned about branching out to multiple markets when you aren’t familiar with them
• Jered’s comfort with his current position in the market and his reputation
• What Jered includes in his letter of intent when he makes an offer
• Remaining process-focused instead of focusing on the percentage of growth
• Cincinnati’s appeal for investors

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If you enjoyed this episode, we've created a PDF that has all of the key information for you from the episode. Just go to the episode page at https://zenandtheartofrealestateinvesting.com/podcast/155/ to download it.

Supporting Resources:

SNS Capital Group website - snscapitalgroup.com

Find SNS Capital Group on Facebook - www.facebook.com/snscapitalgroup

SNS Capital Group on Instagram - www.instagram.com/snscapitalgroup

Connect with Jered Sturm on LinkedIn - www.linkedin.com/in/jered-sturm-066198121

Website - www.streamlined.properties

YouTube - www.youtube.com/c/JonathanGreeneRE/videos

Instagram - www.instagram.com/trustgreene

Instagram - www.instagram.com/streamlinedproperties

TikTok - www.tiktok.com/@trustgreene

Zillow - https://www.zillow.com/profile/StreamlinedReal

Bigger Pockets - www.biggerpockets.com/users/TrustGreene

Facebook - www.facebook.com/streamlinedproperties

Email - [e-mail]

Episode Credits

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