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Listen "E02: Turning Old Buildings into New Creative Spaces with Nathan Krauthamer"
Episode Synopsis
21-year-old Nathan Krauthamer got kicked off campus. He had no choice but to rent off-campus, but he later figured out a better way – house hacking. He bought his first house which he rented out to three other roommates.
21 years later, Nathan is taking down warehouses and converting them into new spaces. His current project is a 50-unit warehouse in Philadelphia that will soon become 50 creative office studio spaces. And it's 75% done!
In today’s discussion, Nathan talks about his process for finding and closing deals, the power of mastermind groups, and the best way to handle naysayers.
Here are some power takeaways from today’s conversation:
An overview of Nathan’s real estate investment portfolio
Leveraging the power of networking
Ways to find deals
Due diligence period for development projects
A look into Philadelphia’s real estate development landscape
How to deal with the naysayers
How to work through tough times
Episode Highlights:
[09:39] Ways to Find Deals
There are different ways to find deals, you’ve just got to find the ones that work best for you based on timing. For instance, Nathan used to get a lot of deals from auctions, but the values have since gone up in the last year or two. Instead, direct-to-seller deals are doing well right now. Nathan recommends finding distressed properties.
[11:12] Due Diligence Period
Before starting on a development project, Nathan looks at the numbers first, figuring out the construction cost, the estimated rental cost, and the potential market. In other words, you have to think like an appraiser.
He also observes a due diligence period because you could miss so many things including environmental problems. If you get into a big environmental issue, there’s a slim chance you could get any bank financing; so new investors have to be careful with this. Hence, it’s smart to get to Phase 1 first before making any deposit.
[18:19] How to Deal with the Naysayers
There are people who are going to tell you not to do it, but sometimes you just need to follow your heart or your gut instinct and go with what you believe in. A lot of people try to talk you out of it because they just don't know.
The people who are telling you not to do something usually don’t have the ability to even help you with doing it anyway. Therefore, don't let somebody tell you “no” if they don’t have the power to tell you “yes.”
That being said, one of the biggest problems new investors have is recognizing a good rental property or a good deal. And so, they need someone that's able to guide them. This is also why being a part of a mastermind group is very useful.
[23:19] How to Work Through Tough Times in Real Estate
In real estate, there are lots of ups and downs. It’s a huge roller coaster where everybody's going to have some ups, which are the easy parts. But when things are down, find a way to push through when other people would have otherwise given up. Everybody's going to have those lows. It’s just a matter of what are you going to do once you’re there.
Resources Mentioned:
Email: [email protected]
Text/Call: 301-254-9856
*Software and tools used:
QuickBooks
Folio
21 years later, Nathan is taking down warehouses and converting them into new spaces. His current project is a 50-unit warehouse in Philadelphia that will soon become 50 creative office studio spaces. And it's 75% done!
In today’s discussion, Nathan talks about his process for finding and closing deals, the power of mastermind groups, and the best way to handle naysayers.
Here are some power takeaways from today’s conversation:
An overview of Nathan’s real estate investment portfolio
Leveraging the power of networking
Ways to find deals
Due diligence period for development projects
A look into Philadelphia’s real estate development landscape
How to deal with the naysayers
How to work through tough times
Episode Highlights:
[09:39] Ways to Find Deals
There are different ways to find deals, you’ve just got to find the ones that work best for you based on timing. For instance, Nathan used to get a lot of deals from auctions, but the values have since gone up in the last year or two. Instead, direct-to-seller deals are doing well right now. Nathan recommends finding distressed properties.
[11:12] Due Diligence Period
Before starting on a development project, Nathan looks at the numbers first, figuring out the construction cost, the estimated rental cost, and the potential market. In other words, you have to think like an appraiser.
He also observes a due diligence period because you could miss so many things including environmental problems. If you get into a big environmental issue, there’s a slim chance you could get any bank financing; so new investors have to be careful with this. Hence, it’s smart to get to Phase 1 first before making any deposit.
[18:19] How to Deal with the Naysayers
There are people who are going to tell you not to do it, but sometimes you just need to follow your heart or your gut instinct and go with what you believe in. A lot of people try to talk you out of it because they just don't know.
The people who are telling you not to do something usually don’t have the ability to even help you with doing it anyway. Therefore, don't let somebody tell you “no” if they don’t have the power to tell you “yes.”
That being said, one of the biggest problems new investors have is recognizing a good rental property or a good deal. And so, they need someone that's able to guide them. This is also why being a part of a mastermind group is very useful.
[23:19] How to Work Through Tough Times in Real Estate
In real estate, there are lots of ups and downs. It’s a huge roller coaster where everybody's going to have some ups, which are the easy parts. But when things are down, find a way to push through when other people would have otherwise given up. Everybody's going to have those lows. It’s just a matter of what are you going to do once you’re there.
Resources Mentioned:
Email: [email protected]
Text/Call: 301-254-9856
*Software and tools used:
QuickBooks
Folio
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