EP353 Creative Financing and Cash Flow Opportunities in US Multifamily Real Estate Dave Mastronardi

A Canadian Investing in the U.S. with Glen Sutherland

Glen Sutherland hosts Canadian Investing in the US with guest Dave Mastronardi. Dave runs a real estate investment firm in Canada focused on the southern US, particularly Florida. He is also a partner at Midfield Investments, focusing on multifamily properties in Texas. Dave's Real Estate Journey Previously the CEO of a large manufacturing company; transitioned to real estate full-time after the business was sold. Started with smaller, self-funded projects in Ontario before expanding into larger multifamily investments in the US. Emphasized the importance of scaling through partnerships, capital raising, and team-building. Current Project: 120-Unit Property in Montgomery, Texas The deal involves a brand-new multifamily property purchased from a developer at $142,000 per unit—significantly below typical Canadian prices. Located near Houston, in a growing area with strong commercial and residential development, including amenities like a new Home Depot and other retail spaces. Demographic appeal includes commuters to Houston and residents drawn to nearby Lake Conroe (comparable to Muskoka, Ontario). Deal Highlights Seller Financing: Favorable terms allow flexibility and a path to HUD financing. Cash Flow from Day One: No significant renovations required; focus on minor amenity additions. Low Risk: De-risked due to immediate cash flow, strong market demand, and equity on purchase. Avoiding high-risk "value-add" strategies common in previous hot markets, given interest rate fluctuations and renovation uncertainties. Final Notes Glen and Dave highlighted the importance of shifting strategies based on market conditions. Dave emphasized prioritizing cash flow and minimizing risk in the current environment, as opposed to high-risk renovation-heavy projects. The project stands out due to its favorable terms, location, and growth potential.