Patrick Antrim, CEO of Multifamily Leadership, discusses capital stack with Tanner Bickelhaupt, CEO and Founder of the Tanbic Company.
the Wealthy Apartment Investor Podcast
Steve La Terra started TerraLane Communities in 2019, aiming to build detached one-story one- and two-bedroom apartments. The one-bedrooms are paired within one structure, as are the two-bedroom units. These are not designed for family renters; TerraLane is renting to apartment dwellers that fall primarily into two categories: the Millennial renter, and the moved-out empty nester.
Danny Court is part of a group of economists focused on economic forecasting and how that plays into real estate. For multifamily, Elliot D. Pollack & Company is more involved with the planning and development part of things – scoping out sites, navigating regulatory or political issues, helping with zoning conflicts. They’ll get involved in government if necessary.
Patrick Antrim, CEO of Multifamily Leadership, brings up that timing of money coming in or things like assumptions and expectations can create gaps in this conversation with Tanner Bickelhaupt, CEO and Founder of the Tanbic Company.
Bickelhaupt says another surprising thing about that market was how quickly people wanted to move in immediately after signing leases. At first, he thought that was a red flag. It was also difficult to turn things around that fast.
Tanner Bickelhaupt has been investing, developing, and looking at new deals for the full cycle. He owns and operates a management company and has been successful across several asset classes in different markets. He’s also made it through different economic cycles and come out on top.
“If I’m going to invest 100 grand and I think I’m going to make 2,000 back in Year 5, which include my 100,000 but most of that return comes from the sale of the property, you really have to pay attention,” said Bickelhaupt.
“There will be 15 offers on a property, they’ll go into Best and Final. You’re negotiating against yourself, you’re raising your price even more against a number you don’t even know. Then you’re hoping you’re awarded to property. It’s a wild model, but it’s the way it is right now.”