Creating a solid base of knowledge, relationships, and structures before scaling up will ensure success. In the 9th episode of CashFloPro, we talk with multifamily real estate syndicator and co-founder of Starboard Equity – Rebecca Moore. With more...
Creating a solid base of knowledge, relationships, and structures before scaling up will ensure success.
In the 9th episode of CashFloPro, we talk with multifamily real estate syndicator and co-founder of Starboard Equity – Rebecca Moore. With more than 10 years of experience in real estate investing, Rebecca shares her story of how she and her husband achieved great success in owning more than 2000 multifamily units. She will now share her knowledge in multifamily acquisitions, strategic partnerships, and investor relations to help you leverage the power of commercial real estate to achieve financial freedom.
Starboard Equity focuses on helping people passively invest in multifamily real estate syndications. Rebecca and her husband Warren founded the company to help others understand how to diversify their portfolio and take advantage of strong-growing markets in the commercial multifamily asset sector.
In this episode we discuss:
If you are interested in learning how to invest in real estate and achieve financial freedom through passive income, make sure to tune in to this episode to find out how Rebecca did it and what steps she took on the road to success!
Find your flow,
Resources mentioned in this podcast:
Casey Brown 0:00
Countdown and then when we get done, you'll need to stay on until it says 100% at the top of your screen, okay. Hey there and welcome to the cash flow pro podcast. I am here today with Rebecca Moore of starboard equity in Dallas, Texas. Rebecca, how are you today?
Unknown Speaker 0:18
Casey, thanks so much for having me on very
Casey Brown 0:21
much. So that's we're glad to have you. And, you know, we're just looking forward to hopefully moving through, where you've been, what you came through to get to where you are today, and the beginnings of your process, the mediums and the trials and tribulations of getting to to to be as successful now, the way I understood we were chatting before the before we hit record. And it's my understanding that you all are currently in six syndications or GPS of six syndications. Is that correct? That's correct. To two in Dallas and for in Houston. And, and those I mean, that's definitely no small feat. I mean, that's that took some some serious work and some serious, just elbow grease to get that going, I'm sure. So tell us a little bit let's let's kind of start back and maybe, say the birth of starboard equity. And, and, you know, you can kind of give us the path that led you to where you are now.
Unknown Speaker 1:21
Sure, that sounds good. It's a long story, but I think, some, some good tidbits out out of that start. And so, again, I'm married to a wonderful naval officer retired now, but was active duty, he would buy houses in the places that he was stationed. And at a time that we were near retirement, we were saying, what are we going to do with these cells? So we just have a few in few Virginia. Christy, and we were stationed in San Diego for his lab. And we were thinking like, an eight Plex or something to build, you know, keep our retirement. So we went to an A real estate Expo, at some people who were teaching how to syndicate building sells a much higher level of an idea, right? We could, that we ever thought about. So this idea of all of our money into one building, we could gather a bunch of people and big building 100 doors or more, I mean, that kind of our minds, but the scale so that we didn't have to do the toilets, termites, and tenant. Three was, right, the three T's Yeah, we didn't have to do all that work. And it could eventually be passive income, which was exactly what we were looking for in retirement. Yep. So. So the kind of this snafu for us was that this mentor in Dallas, Texas, and we were located in San Diego, California.
Casey Brown 3:17
Unknown Speaker 3:19
the train button. Yeah, it sure was. So but we weren't going to buy in California. Okay. And everybody knows that California prices, of course, are much higher. However, appreciation is through the roof. And when you buy in California, you're going to get a piece of something that's going to appreciate for not I mean, phenomenally, phenomenally. Cash flow is going to be low, where in Texas, you're going to get something that cash flows that is as many of us could afford. The appreciation is not as much as California, but it's a better place to buy and because Tech is a landlord friendly state. And that's some syndicators want to be thoughtful about that evict when necessary. Were like in California. So on our journey, to learn about syndication, I had to fly Alice, just about every other month to learn this. And that was our choice to learn this process, because my husband taken over a ship Squadron and so he said, Okay, honey, but you've got a right right. So it wasn't like I was a stay at home wife. I am a I was a full time clinical psychologist working at the Naval Hospital at that time, but over over the weekends, you know, Self want to fly a plane on a Friday night and come out to Dallas. So it was hard, it was hard, you know, you have to have not only motivation, but a passion and inspiration for that dream.
Casey Brown 5:16
I just, that's what a lot of people, they want to just step into the business and just say, hey, hey guys, here I am, I'm ready to syndicate. And it's, you know, there you are basically working full time or more than full time, your husband is certainly working full time. And, and it's just being a weekend warrior. And of course, in the, in the single family space, when I was in the single family space, it was the same thing it was, it was you work all day, every day. And then on your spare time, when people are at the bowling alley, or whatever with their kids, you're you're pounding away trying to fix a bathroom floor, you know, it's but but that's, but essentially, I mean, look, look where it led. And, you know, it's it's like, so many of the of the people say that have the courses and the classes and the life coaching and so on, it's you spend, you spend a year or two doing something that you that you enjoy, but focusing probably more so than than the actual work that happens, just focusing on one thing, and it really got you but I mean, that that beginning story, I didn't I didn't realize when we were when we were talking there that that that you had, that you were actively back and forth, just learning the business. You know, that's that's one of those things that's that so many people try to try to forego that step. And just jump in. And like you said earlier, you know, you're talking about we were talking about mentors, before the before the we hit record and, and, you know, not just the the investment, but the time, the time away from your family and your husband and other things that you did on every other. I mean, that's, that's unreal. So. So I'm assuming that that, that kind of once the once you got the feel of the business, and you you you started seeing what the possibilities were you kind of stepped into and then at that point was was starboard equity born? Like, like, kind of after you after you got that feel? Or was it? Was it kind of born after you found your first deal? Or? Or how did that? How did that kind of all come about?
Unknown Speaker 7:31
Oh, I have so many answers to that.
Casey Brown 7:35
No, it could be a process. I'm sure
Unknown Speaker 7:37
you've Right, right. So I'm back to again, having that passion and everything I did. I like to remind your listeners that as a psychologist, I didn't know anything about construction, I didn't know anything about bank financing. I didn't know anything about managing or building tenants, or anything like that. So my time that I spent going back and forth to Dallas was learning about the apartment business, as well as learning how to underwrite. And so I just want to encourage all your listeners that even if you have a background in finance, or in construction, or in managing people or in any of those fields, you don't have to most of us graduated high school, some of us have some college, you all have the ability to learn and shoot and you want to learn, although it will take time. You can do it. All of us can do it if you have yourself. And that's what I kept telling myself and a lot of times I would inundated by us who you know did have, let's say many years system and understood the financing, etc. Or under it would cost to rehab a an apartment. Lease. I know who I can ask. Yeah, that's exactly right. So
Casey Brown 9:15
so Oh, I was just gonna add, you know, that's that. Yeah. I mean, everything you said there go. I'm sorry.
Unknown Speaker 9:23
Yeah, no worries. So I did start by being a passive invest. Some of the friends that I met into their deals, and that is where starboard equity basically come out of is that we wanted to invest with LLC, just as an extra layer of protection. Don't necessary for those of you who don't want to do that it was just something that we're going to grow. So So we started with that was another great way for me as a syndicator. For me to see how other syndicators ran their business, because most indicators, give you quarterly reports, if not monthly reports, every month should get the financials. And you can read through those findings. Be, first of all, the first time I ever saw finding a building, right? I've never seen that before. Yeah, I understand the increases of rents and other income impact things, how the end, how the upgrades, apartments, how when you put in new new fixtures, or how low flow toilets, how that changes the expenses, all those things you can begin to learn as a passive investor is really, really helpful on the way to being syndicator yourself, because you learn the financials that way. And you
Casey Brown 11:07
know, I had a guy tell me one time, he said, I have a lot of these stories, I had a guy or somebody told me something that grew out basically everything I ever say that take care of the if you'll take care of the little money being the the low float, or the you know, this the little things, the big money will take care of itself. And that's probably one of the truest statements I've ever heard when it comes to because so many people go into these, these apartment syndications. And they automatically think that the increase in value has to has to be built on the tenants on the tenants back rather than, you know, by increasing rents. That is that that's the goal to increase rents, and increase rents, increase rents. And the danger to that is that if you start increasing the rents, and don't focus anything on reducing the the expenses or adding benefits to the increased rent, then that might be great today might be great. Tomorrow might be great next month, the month after that, but the problem is, if the market ever shifts, and that's, that's a big, that's a big limiting belief for myself, or I guess, hold back for myself, and a lot of these this stuff is that, hey, it's wonderful. As long as everything is good, there's never going to be another bad day. But the bottom line is, is when the market shifts, the higher end stuff that people don't feel that the value is really therefore, they tend to fall off first. And then and I don't know about you, but but, you know, the years years ago, when flat panel LCD TVs came out, you know, I can remember seeing massive signs and big things draped over the side of apartment building, sign a one year lease and get a free TV. And you know, and that's the kind of stuff that, that people as syndicators are value add, or whatever the case is, you know, don't don't just be a value add, where you just start shifting the rents north, you know, do what you all did, and say, Hey, let's control some of our expenses. And let's control some of the benefit our tenants get. And that's, that's huge to me. And in, you know, we're a fund to funds. And so when we're interviewing a prospective operator, that that, that all operators are not, are not equal, do we all know that, of course. But we're interviewing an operator, we don't necessarily want to hear about everything they're going to do to increase our investors return, we want to hear what they're going to do. Increasing it basically built on, on on increasing prices, if you will, we want to hear, hey, we're gonna add this or we're gonna do this and, and, you know, for self storage, like, for instance, that one of the Self Storage stories that I like is, is adding the sales of locks in the, in the room where you go in and sign up for your storage building. But I love that that was that was just that hit me right between the eyes, and I hope it hit a lot of our listeners and just they think, Hey, this is where it is. And you you're doing that kind of stuff and value adding so continue on.
Unknown Speaker 14:24
So are the important pieces of adding value to the tenant? Yep. Yes, decreasing the expenses. And so that gets to the operations part. So again, learning through being a passive investor, to get to the point, build soon be a great syndicator yourself. Learning what investors want because you've been an investor first.
Casey Brown 14:51
Yep, that's exactly right. Absolutely. So Lee so now let's let's we see that you all want To invest as an LLC, or as an LP with an LLC, I know there's a lot of L's in there. So don't get confused for you all. So basically, it's the two of you, you now are owners of an LLC, and then that LLC invests in the syndication. So then that way if some attorney decides if something goes haywire, they they start routing through into who they can get to you, you've got that, I guess, the corporate veil or whatever, separating you and the syndication and then the syndication should have either been an LLP or an LP, or I'm sorry, LLP or no see one. So you've got several layers there between you and them now, at what point so you're a passive investor through this LLC. And you've now learned and you're, you're kind of viewing this through the lens of, of somewhat in both ways, I mean, really, you're seeing the tenant interaction, you're kind of learning yourself, the psychology, if you will, of this whole relationship. And then, so now step us into, Hey, guys, do you want to invest with us because we're going to borrow whatever.
Unknown Speaker 16:10
Okay, so my group now, so now I'm with my mentor, I have a group of folks that I've met, and everybody is able to, we gather again, in Dallas every other month. So I'm getting to know everybody, I'm learning everybody. And me and a friend Dustin miles, we began to underwrite together so I could really learn and what was great is that he, he's an engineer, I'm a psychologist. So he was, he was really great to help me with the person. And he had syndicated already before. And that was really, really helpful. He knew the brokers here in Dallas, he knew how to put the numbers together, he knew a tax person, he knew the loan people he knew management company. So he, so as a new Syndicate, really start to hook up. And and because done it before, because they have all the tools that you need. And that'll save you all the time and money from mistakes. So Dustin, and I, yeah, started looking for our own building for us in two together, and he had a share of investors. But because it took so long to get our first deal, by that time, lots of relationships with potential investors within our group primarily, that we were
Casey Brown 17:59
able to meet every other month.
Unknown Speaker 18:01
Yes. Awesome. But it is it's a kind of a self feeding group. Yep. Yep. That is one of the good reasons why you might want to get in and find their own, or mentorship or go to the multifamily conferences and putting out your cards, which are now more digital cards. Yeah, get to know, they call warm leads. And yes, get yourself a website, get yourself out on LinkedIn, because you need to have a pre existing relationship if you're going to, probably with people that you know, and you and I, as we were talking, or this recording is that, did you go to friends and family? Oh, no, because my friends and family don't have that much money so nor did they have the mindset and neither did I have the mindset of invest with me. You know, I wasn't there yet. I wasn't there yet.
Casey Brown 19:13
And it takes a while to get there. One thing that that before we before we proceed because you're you're kind of right here in one of my one of my channels of like, I'm a huge proponent of a mentor. And I'll say I'm not selling a mentorship program. I'm not an affiliate of a mentorship program. I'm not even going to tell you who to get as a mentor. The bottom line is that if you are going to be successful in this business, in any kind of way, you have got to go get a mentor and I told you as we were discussing prior to I was like at first I was like $10,000 for a mentor, man who does that. And then I got like a month in Unlike Alright, $10,000 for a mentor, I couldn't get my card out fast. And I'm like, I'm ready to do that. Let's go. So, so I'm a huge proponent of saying, of, of just like Richard Branson, the guy that's the Virgin, galactic virgin, whatever it is. Airlines says, if you're the smartest person in the room, you're in the wrong room. And basically, you know, that's that that couldn't be that could not be a true statement when it comes to real estate syndication simply because there's, there's so many little nuance things, there's so many little fringe things that you may or may not learn. But if you can pick those things up and mash them all together and say, hey, yeah, let's go, you know that the chance of you making a mistake that cost you far more than $10,000 Is it basically takes it down considerably. Because let's be honest, I mean, basically, you write a run on sentence and a PPM, that's not that you don't really understand. I mean, just think about what that could cost you in the courtroom later on. I'm just, I'm never trying to be negative, I'm just saying that, that all of these things are things you need to consider. And mentorship is, is, is the very best way for you to to sit down with somebody that knows what they're doing exactly what you did. And hey, listen, what you know, there's a huge word here, the word is relationship. I mean, you basically sit there five minutes ago, and went through all of these relationships. Now. Now this guy that you sat down with, was he in your in your your group? Right? So he has, what do you say a tax person? Investors, brokers? I mean, the list went on and on. Yeah, and yeah, vendors. And then the fact of the matter is, is that if you hadn't been in that, in that group to begin with, would you not in any of them, you would not have known him. And then you would not have been able to step in and leverage the fact that because everybody wants to bypass this relationship thing, social media has made it where like, Hey, I'm your friend, and let's click of a button, and we're friends. That's not you, when you're asking somebody to invest 50 102 50 A million dollars, wherever it is with you. I'm sorry, y'all. But that that click, that button is not going to do it, then that the fact that you're an acquaintance, and you you know, I learned that the hard way in real estate. I mean, I had family that sold their house with another agent, because I didn't have the experience, or they didn't think about me or something like that, you know, and it's just it's that initial, you have to dig in and become that trusted source. Yes. Again, I interrupted you, I'm going to let you go for here and start start with with post relationship there. And I just, I can't address that enough. Y'all mentor, mentor, mentor, so
Unknown Speaker 22:55
yes, relationship business. And in a mentor, you need to out what caliber of mentor and relationship that you want, if you are going to get the guy. You get what you pay for. If you're going to go for the 2000 $20,000 person, I'm going to tell you that you're probably going to get what you pay for. And you're definitely going into it. Yeah, you're going I mean, if you're going to put in dollars, you're going to get out of it. Because you're going to be with that caliber. And you're gonna say, Well, we're back down. I don't have $20,000 Nope. But you will, you will not be and I can guarantee you, they tell you if you can put yourself into that out. Because again, birds of a feather flock together, right you? Yes. Your five people that you hang out with your network is your net worth,
Casey Brown 24:03
how many? How many, right? Have we heard yours? Unbelievable. And that's this, I tell you, when I joined my mentorship program, I immediately, five minutes after after submitting my payment, I had access to an attorney. I had access to an account. I had access to somebody just to ask a question. I had access to numerous I have access to the Slack channels that they have been on for months, years that you know what all I do is go in and type down. Hey, I need to know about this. And there was there was, you know, eight or 10 Different things that had already been discussed in the group with replies and links to special apps. I mean, there you go.
Unknown Speaker 24:46
That's wonderful. That's wonderful. And it's so helpful. Having a mentor isn't anything new. I mean, we all those are mentors, right? Right. Now from my own education and that, you know, I went a little over. That's what society told me to do go to school, get an education, and then you're going to have the American dream. Yeah. Well, that much. Yep. But, you know, getting to the highest degree I could, I still went to school and had mentors, I still had a super not a supervisor in a job, but a patient psychologist that I went to for all of my cases. Or to to really, really learn what's going on in that patient's mind. Well, that's the same with syndication, having your is sort of the first is the ground. X, for syndication, you know, learning your spreadsheet learning? Is this going to be a deal that's get you the profits that your investors have? Yes, this is a good deal. You're learning so much.
Casey Brown 26:08
And all of this. All of this is just being a good steward of your investors money. I mean, at the end of the day, when you're looking at an investment, and you're like, you know, if you hadn't have learned all of this other stuff in the bag, what, you know, what chord would have to be stripped for you to be able to say, Hey, I'm the person you need to invest with, because, you know, I didn't do any of this other stuff. But hey, invest with me. You know, I'm saying so if you're a good steward of that, and so, all right, well, we got a few minutes left here, I want to I want to I want to push forward here just a little bit now. Right now, the best understood I think I mentioned earlier, you're actively in six different syndication. So a couple of different pieces of this pie here that I'd like to dig into is, number one, where did you find the deals? Or how did you find the deals and I'm gonna bet that that word relationship is probably going to going to come back up at some point. Where did you find you know, how did you find the investors and where where were where were they actively hiding at and when you started looking out for those and then overall, just give us an overall brief of of, you know, this is kind of where we're at today we're out looking for deals in assume you're probably still looking in the Houston Dallas area or Yeah, Houston I'm sorry. So let's let's start with with these relationships with the brokers and how they how they how you kind of port a little water on those to get them to move forward.
Unknown Speaker 27:38
Yeah. Being in the DFW area again, I was still at that time, I was still flying out. It was years that I was flying out from California, Dallas and I would have coffee with them. You know, on a Saturday morning or a Saturday morning but usually they like either a Friday or Monday not on their weekends have have a coffee with them. Anytime you're in that town it even if you live there go tour tour a property that they have available, get to know them be friendly. It was enjoyable for me to learn more about their lives. Yep. Like a name to a face is important and when call them back. And so a three other friends here in the Dallas area that was by could say I'm a friend of Dustin miles or whomever? Yeah, that was very important to the real deal. Live here. Yeah. So the second deal that I got I actually bought that was a passive investor in that deal. I knew Yeah. I'll have performed and so I just said one because I know you
Casey Brown 29:00
bought it from the syndication that you were a passive investor in. Oh, yes. Yeah. It was. Oh, yeah.
Unknown Speaker 29:12
Fucking deal. And I knew the broker. So I said, that this is mine. I need to have it. So So I and so knowing this person Taylor here in the DFW area, when some friends of mine who were new syndicators found another deal in the area. Taylor, who had known me knew that I knew these friends and because they had no exposure. Yes, yes. He said, he said, Rebecca, you need to team up with these guys because they don't have experience. I know you. So let's put you together with them and get this deal. So I was so I was able to shepherd my friends by giving them basically the experience of the family. Mae, which is an agency loan by helping them get the property management by just helping them understand the whole process. So that was how we got our second one or excuse me, third one here in Dallas.
Casey Brown 30:14
Yeah. Love that story. That's yeah, so
Unknown Speaker 30:16
it's great. So that's relationships. Okay and getting more deals.
Casey Brown 30:21
It just comes right circle full circle right back around to
Unknown Speaker 30:25
right but that's having friends in the group so get to the conferences become friends
Casey Brown 30:31
and hey, I'm guilty as charged myself have I always prior to to the syndication business and my realization that of this stuff that has to be nurtured of trying to scale before I ever deserve the right to okay, like, you know, you don't have a solid base. And I guess what I'm getting that is those relationships. Oh, my goodness. So So you bought that So you bought your your you knew it was a bomb deal? And you knew you were going to get that you were in a right spot? Do you You knew it was getting ready? I assume you do is get ready to come on the market? Oh, yeah. Cuz I was based based on reporting from your from your lead guy or sponsor. And so you got this thing bought? And you syndicated with this other group? Is that right? Am I following that correctly? This other group helps you syndicate that out? Did I miss the second
Unknown Speaker 31:31
Casey Brown 31:32
Yeah, the first deal they helped you with
Unknown Speaker 31:35
that is? Well, I got the first deal with my friend Dustin. And then I bought I bought my second deal. That was the one that I was an LP in as well. Gotcha. Gotcha. Okay, cool. And then the third one was helping my friends. Because I knew the broker. Yeah. So that that was helping. In that sense.
Casey Brown 32:00
It all comes back to those relationships every 100% of it. So well, listen, I we're kind of running short, short on time here. But is there anything else you'd like to pass along? And then I'd like for you also to share a way for the listeners to be able to reach out to you, whether that be via email, or LinkedIn, or whatever the case is, whatever the best way for somebody to reach out to you. And, you know, if especially if they're interested in investing in, in the Dallas or the Houston area. I mean, I'm assuming you all got any active deals that are kind of coming this way for folks to consider? You know, certainly give them away to reach out to you.
Unknown Speaker 32:42
Yeah, that. And if anybody has questions about syndication and things like that, I'm always happy to help folks. So again, we are starboard equity, and you can find our website at starboard equity.com. And again, it's like the starbridge side of ship. My personal email is Rebecca at starboard equity.com. And we do have a 506, which means that I can speak about a new deal that we do have, I don't know if it will be available by the time that this podcast but it is a new deal that's coming out in an area, Clear Lake which is really beautiful by NASA Center and the medical center down there. So if anybody's interested in investment, we have something for you. So go to our website and join Bob and you can find out about everything that we're doing.
Casey Brown 33:41
Good deal that's let me just let me verify that sta R bi rd starboard equity.com.
Unknown Speaker 33:48
It's Bo, eight rd,
Casey Brown 33:51
B O Stasi. The ship thing messed me up. Well, now we got a bo, AR D there.
Unknown Speaker 34:01
There you go. Starboard equity, Alberta equity.
Casey Brown 34:03
So yeah. Rebecca, thank you so much for being on today. And we, you know, we can't thank you enough. And folks, please reach out to Rebecca, if you're interested in looking at something in the Houston area down there have questions. She's obviously very willing to help and assist if if you're looking into the syndication world and trying to try to find your way, reach out again, you know, I can't imagine she's got time to mentor everybody that wants mentoring buy or talking to but but reach out. Rebecca, thanks again. And we hope everybody has a wonderful day. Thank you for listening to the cash flow pro podcast. We hope everybody has a good day. Thank you.
Unknown Speaker 34:43
Unknown Speaker 34:45
Transcribed by https://otter.ai