EP#128 Investing in Multi-family as a GP with Arn Cenedella
Arn Cenedella from the Spark investment group is back on show to discuss his expertise and experience as a lead GP and as a Co-GP. Arn had previously been on the 32nd episode of the show where he had discussed his transition into Multifamily investments after being a single family investor for 40 years.
Arn Cenedella, the founder of Spark Investment Group, is a real estate expert with more than four decades of experience, including 30 years as a realtor navigating the real estate landscape in Silicon valley, California. During that time, Arn invested in real estate, ranging from single family homes, fix and flips to land subdivisions and condominium conversions to commercial multifamily properties. Through these experiences, Arn developed a passion for helping others achieve their own financial freedom through investing in multifamily real estate syndications.
In this episode, Rama and Arn converse about ways to source opportunities. Arn shares how he has cracked 3 good deals in the past year and discusses his business plan and exit plan with those investments. Later on, Rama and Arn also talk about Arn’s current interests, the books that inspired him on his investing venture and his contributions to society.
- The issue that came up with Arn’s property deal was that the CoStar had indicated the units to be 763 square feet and when he went for his initial tour he didn’t feel like those were 763 square feet. So then Arn measured the identical units for himself to find out they were about 610 square feet.Despite, a significant difference, Arn and his partner worked through it. Arn believes the broker simply passed on the CoStar report, which could sometimes have erroneous data and that’s why you must check it yourself.
- The business plan with the deal is waiting for the leases to expire and then offer the existing tenants the right to renew for a year at a higher rate, or if they decide to move, then renovating the units to provide facilities like washers and dryers to benefit the tenants and also get the rents closer to market just by natural turnover of the tenants.
- Arn’s current focus is trying to find another acquisition, particularly in the Greenville area. He is also investigating a new market in North Carolina, known as the triad, which is basically Greensboro, Winston- Salem, and high point.
Here, are some key take-aways from the episode you shouldn’t miss
- Reach out to the investor’s relation person for the syndication group, follow them for some time and schedule a call as a potential LP investor and then talk about their current offering and mention your interests in taking on a more active role in apartment syndications. Network with people, talk about your capital investment and tell them of your interests and aspiring role with the investments
- When people start in this business, they kind of contact their friends, family, and work colleagues, and are able to raise enough capital through their social and professional circles. The more deals they do, they tend to go up in price range. So the capital demand increase, and at a certain point, they hit the wall with what their friends and family can invest and at that point, they start looking for partners
- You learn by doing, certainly you need to educate yourself. There’s no doubt about that
- Develop relationships with brokers, investment advisors and just keep checking in with them to know if there is anything new in the market that could interest you. Staying on the top of mind with the brokers is essential so that when they get something, they think about you and shoot it your way and you can grab that opportunity.
- The relationships, friendships and having fun while you are working is a big part of the business.
- Progressive Properties of Greenville website : https://www.propgreenville.com/
- Score : https://www.score.org/
- ‘Best Ever Real Estate Syndication’ book by Joe Fairless and Theo Hicks : https://www.amazon.com/Best-Ever-Apartment-Syndication-Book/dp/0997454326
- Creative Cash : The Complete Guide to Master Lease Options and Seller Financing for Investing in Real Estate by Bill Ham, Gino Barbero, Jake Stenziano
Tune into Arn Cenedella’s previous episode :
Connect to Arn Cenedella
Website : https://investwithspark.com/
Facebook : https://www.facebook.com/arn.cenedella
Phone : 650-5756114.