Michael Kelly has over a decade of expertise in banking technology and transforming organizations holistically across people, processes, and technology.
Areas of focus include agile coaching, product management, project management, scrum master, jira/confluence administration, and automation via Python, SQL, and machine learning.
Episode Highlights Here:
Michael:
The cool thing for the investors is there’s a lot of cash flow that continues to flow while we’re doing renovations and cash flow gets better and better. Now, put that into new development.
Brett:
What’s the number one secret to investing in, you know, build-to-rent and in commercial real estate that you have found so far?
Michael:
Yeah, so let’s unpack this. Let’s rewind this train a little bit. I got started in multifamily and apartment buildings. And essentially, what we do is buy underperforming or distressed apartment buildings. And we flip them like you flip a house. It’s a value add scenario. When you flip the house, you sell it later for more money. But what we do in apartment buildings is flip it over multiple years, keep occupancy high, right, we will do 10 units at a time renovation, then put new tenants in at higher rents and keep churning. But the cool thing for the investors is there’s a lot of cash flow that continues to flow while we’re doing renovations; the cash flow gets better and better. Now, flip that into the new development. You don’t get the cash flow, there are no occupants. Investors get in when we cut are. You can get in with from a purchasing standpoint, purchasing land, you get in with this, this big loan builders loan that you only pay interest on as you draw it. So then we got dirt, we put roads, we put utilities in, and then we turn around, and we start building the homes. We call it horizontal multifamily. So we’ll make these tiny starter homes, like 1000 square feet, 1500 square feet, two bed three bed. Rather than living in an apartment, you’re living in a small house. We have property management, site maintenance, and all the amenities. It’s like a lovely Class A apartment complex, but we’re building it with single-family homes. So out of all of this, you create this community that is worth a ton of money, and you buy in for very little because, for one, you bought a piece of land, and then you turn it into roads and sidewalks and utilities. And then you turn it into these single families. As we build these single-family homes, say we do ten at a time, we start filling 10 at a time that we work on the next step, and the cash flow starts flowing from there. But you can imagine we buy a piece of land, I’m just going to use made-up numbers by a piece of land for a million dollars. We put 10 million into it to build houses. And it sells for 30 million. So the growth of your money is quite significant. And there’s a bit of cash flow. It just takes a little while to get there.
Brett:
Okay, cool me on pakaloa That, so maybe most traditional values add real estate is you buy an existing building, you rehab it, and you keep cash flow along the way. And then you sell it for a profit. And your model is and or you’re just building single-family homes by themselves. Your model was more like, hey, built by a big giant piece of land. And let’s make 150 units. 150 homes are individual and suitable, but there are the detached 1000 square feet two or three-bedroom units. It takes a little while to get it going. Because, you know develop the land. But you’re all in for about 11 million, let’s just say On 150 Homes, and you’re selling it for the entire project for 30 million. Is that a fair summary? Yeah,
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About Michael Kelly
Mr. Mike Kelly brings 10 years of multiple industry experience ranging from start-ups to established
enterprises, applying his technology skills with his business expertise to drive growth, increase revenues, and
achieve corporate goals. He excels in identifying the key strategic objectives of a company’s operations and
leading teams through guidance and collaboration to gain results. He has deep expertise in the financial
industry, spanning hedge funds and major financial institutions, implementing technology solutions to
improve processes, cut expenses, and support growth initiatives. His career experience has included startups, fast-growing firms, global operations, and established companies that are seeking growth and expansion
strategies. Identifying and implementing best practices is one of his cornerstone strengths, especially in the
technology arena through application of the agile methodology.
Mr. Kelly has a passion for people and is a true servant leader who values innovation and possesses
refined leadership teams that enable him to be successful leading large, cross-functional, and geographically
diverse teams to success. He values professional development in both himself and his teams and strives to
provide a positive growth environment for his team members.
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