Ever wondered how a rocket scientist turned real estate syndicator cracks the code of profitable commercial real estate investments? In this episode, Slocomb Reed sits down with Chad Zdenek, an industry veteran who's leveraging his out-of-this-world background to navigate the complexities of the market and share his invaluable insights with listeners.
Key Takeaways:
Diverse Market Strategies for Success:
- Chad Zdenek emphasizes the significance of investing in the right markets and building solid partnership teams to succeed in commercial real estate.
- By choosing partners based on their local expertise, Chad has ventured into markets such as Texas, Alabama, Florida, North Carolina, and Southern California. He explains how trusting the right teams has enabled him to tackle various challenges and navigate different markets effectively.
Balancing Risk and Return With Value-Add Investments:
- Chad shares how his background in construction has driven his focus on value-add opportunities. He discusses the importance of a value-add component in uncertain markets, providing a buffer against market fluctuations and creating forced appreciation.
- He offers insights into the need to be cautious with debt, especially in the current market environment. Chad highlights the benefits of securing longer-term fixed debt and leveraging interest rate caps to mitigate risks.
Taking a Holistic Approach to Investment Metrics:
- Chad offers a fresh perspective on investment metrics, stressing the need to consider risk profiles alongside return percentages. He explains how a lower-IRR deal can sometimes outperform a higher-IRR deal due to various market dynamics and assumptions.
- He shares the importance of diversification within real estate asset classes, recounting his journey from exclusively multifamily properties to branching into self-storage investments. Chad's adaptable approach showcases the value of understanding different asset subclasses to optimize a real estate portfolio.
Chad Zdenek | Real Estate Background
- Real estate syndicator, investor, and founder of CSQ Properties, which acquires, repositions, and manages apartments and self-storage properties across the United States.
- Portfolio:
- Almost $200M in AUM
- Based in: Los Angeles, CA
- Say hi to him at:
- Best Ever Book: The One Thing by Gary Keller
- Greatest Lesson: The most important trait a real estate investor should have is a long-term investment horizon.
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