Transforming Lives Through Real Estate With Matt Faircloth

Matt Faircloth has been an active real estate agent since 2002. He founded The DeRosa Group in 2006. A real estate investment company that specializes in buying and renovating residential and commercial properties. The vision is to do just that to help you to get transformational life through real estate and is focused on maximizing investor returns while providing high-quality spaces for sale and for lease, and they are a perfect, perfect company committed to making money or making a difference.

He’s been investing full time for 15 years, involved in a lot of different real estate ventures from fixing flips, and single-family homes and tax liens, and all kinds of other fun stuff. His primary focus is multifamily. But we also get involved in some other alternative assets too. He also owns an office building that is cut up into a Regis-style office complex, but his primary passion is providing amazing above-bar housing for people.

Watch the episode here:

Listen to the podcast here:

Transforming Lives Through Real Estate With Matt Faircloth

Brett:

I’m excited about our next guest. We’re gonna be talking about all things of how to transform your life through real estate. In fact, this next guest has been an active real estate since 2002. He founded The DeRosa Group in 2006. The vision is to do just that help you to be to get transformational life through real estate and is focused on maximizing investor returns while providing high-quality spaces for sale and for lease, and they are a per profit company committed to making money or making a difference. By the way, we’re also streaming on expertcresecrets.com. If you’re finding us there, would you like to bring on guests that kind of crossover to both podcasts, especially commercial real estate experts, such as our next guest? Please welcome the show with me, Matt Faircloth. Matt, how are you doing?

Matt:

I’m awesome, Brett. Good to be with you. Thanks for having me.

Brett:

Like the dance this morning. Like the energy, I’m excited to dance. It’s Friday. We’re recording in mid-August, and let’s talk real estate. Let’s talk marketplace. Let’s talk about your story though first. For our listeners to get to know you for the first time would you give us a little bit more about your story and your current focus?

Matt:

Thank you, and an honor to be here. Love the model your show looking forward to getting into some conversations. My name is Matt Faircloth, my company’s called The DeRosa Group. We are a real estate company dedicated to transforming lives through real estate. That means is we provide awesome housing for people that they can say they’re proud to live in. We provide great investments for people that want to diversify outside of Wall Street. Then we provide exciting work environments for those that work at properties that we own. We also support operators that are doing the same thing through our initiatives there. Been investing full time for 15 years, have been involved in a lot of different real estate ventures from fixing flips, and single-family homes and tax liens, and all kinds of other fun stuff. My primary focus is multifamily. But we also get involved in some other alternative assets too. We also own an office building that is cut up into a Regis-style office complex than that, but my primary passion is providing amazing above-bar housing for people. That’s us.

Brett:

Amazing. Where are you located?

Matt:

I currently live in I live in Pennsylvania. Our office we have an office in the office building I mentioned is in downtown Trenton and we have assets in North Carolina, Kentucky, Virginia, and no not Virginia yet. We hopefully have a deal on Virginia, but North Carolina, Kentucky, and Pennsylvania, New Jersey.

Brett:

I don’t think one other step back to where I want to go back to maybe your university days, your high school days, when you were younger, perhaps. I believe we have all been given certain gifts in this life. These gifts I believe are given to us to be a blessing and help to others. Some people call them a superpower. Some people call them strengths. I think their God-given gifts, and I think they’ve been given to us to be a blessing to others. I’m curious, what are those one or two gifts that you believe you’ve been given, and how does that help how you help and bless people today?

Matt:

Sure, I would use the same language myself. But, the way that I would say it is that I’m blessed with the ability to explain complex things in a simple fashion in another life. But I wanted to be a teacher. Because I know I can do that I can explain things that I’m passionate about to people and help them understand those complex things. Those things are real estate investments for me. But I can also explain to my seven-year-old how an automobile works in ways that he’ll get it. I think that that’s one of my god-given talents. I’m also good at good. I’m good at it for things that I am excited about. I’m good at conveying that passion to others. if I’m excited about it, I’ll likely get you excited about it. Those are two things that I bring to the table.

Brett:

Those are great gifts, making complex simple being a teacher at heart and then helping to inspire get people excited about things that you’re passionate about. Is that a fair summary? Let’s jump right into the number one secret of transforming lives through real estate First of all, how cool is that? That you have a trademark I believe that’s the name for the right for this transforming lives through real estate, touch on that. Then second, what’s the number one secret to doing just that?

Matt:

I think that the concept of trademarking something is that, if it’s if you come up with a concept that’s so special to your brand, and so special to what it is you’re creating, it’s good to protect it because other people might say, that’s a good idea, I’m gonna use it for my company too. But if you want your company to be known for a phrase, or for a brand, or for a name, or for a logo, or whatever it is, it’s just good to protect it legally, so that other people can’t run out there and put their stuff, that’s fine, too, I’ll put my stamp on it as well. The concept of transforming lives through real estate, something that we came up with years ago, upwards of 10 years ago, and that we were certainly the first ones to use it.it makes sense to just protect it in that because it’s something that I wanted our company, whenever a company known for. It is our vision, longer-term, Brett to start supporting, not-for-profit initiatives and give back and helping people. Having like, consciously based investing and things like that, that I want to add something lives to scale beyond just buying apartment buildings and doing good things with other wood go and doing good things with money in real estate. But also, doing good in the world, with the returns that we make as a company, not that I make for investors, but with returns that I make, to taking those things and pushing them through other real estate benefits and things like that. I think we get to transform people’s lives through the profit that we make do so love it.

Brett:

I think it’s fantastic. I think it’s wise to. Not only have a vision statement, have a set something that’s a slogan, but that’s also a brand, all of those things, and then to try to actually go do that right what you’re doing right now. Let’s dive right into that. What’s the biggest deal that you’re finding our biggest opportunity or biggest challenge, however, you want to take this right now for the deals that you’re looking at, or even the investment you’re making? You mentioned hard money lending. Walk us through kind of what your I guess, your 2021 strategy is and what it’s how it’s all coming to.

Matt:

I’ll comment on a few things. We’re launching a blended fund, and that blended fund is going to invest in hard money loans and distressed mortgage assets and operators that we believe in and want to take your business to the next level. That’s what our fund is going to get itself into. It’s new. I can’t talk a lot about what 2020 has been like for that fun because the fund just got launched, believe it or not, Brett two weeks ago. But what I will comment on is our experience in finding multifamily in today’s markets, because that’s been a journey, it’s been the secret’s out, multifamily is a good place to invest, and so there’s a lot of new operators and people that want to make a name for themselves in this space, or existing seasoned operators that are looking to expand and grow because new investment capital has discovered that this is a great place to go a to park money but also to make great tax leverages as your company brands as well, to make tax leverages and real estate investment. The multifamily space has got a little more competitive. We have underwritten happy to say bright 150 deals this year, and we’ve made we put one under contract and closed on one and we’ve made best and final and a few didn’t quite make it. We’ve got a few that I think we’re about to hit one in the next week or so, and but I think that our strategy has been Brett to look at more deals to do some of the market solicitations for people that are looking to sell that aren’t on the market right now. It also considers expanding one-two markets that we’re in, in the US. That’s been how we mitigating how competitive multifamily investing has been these days.

Brett:

It’s wild. I couldn’t agree with you more, and it’s especially I’m here in California, and it’s just like these cap rates, I’m selling a deal right now, it’s gonna be $175,000 per unit to attend to do an exchange buyer representing my client is going to be doing a Deferred Sales Trust, and it’s going to be a record-breaking price for the units. Now the units have a substantial amount of loss to lease the ability to just if all this rent control is in place. Now a lot of people aren’t moving, if they move out, which we have. Two tenants have moved in check it out. Two tenants have moved out in the past three months alone, and that’s kind of when they listed we started three months ago, and so we were on this pro forma, and the idea was, well, we want it to six, but the market was like two-three to two four-ish, but it was counting on the ability to move out but we didn’t know it could be a year or two or three. But all of a sudden we got to move out boom price fall above asking price at two six and then contract now. But the point of all that is its hyper-competitive. Because multifamily is the basis of the foundational living of housing, and you’re right it’s also financeable, very financeable and there’s a lot of money chasing fewer deals, especially those that are value add. Let’s dive into that one deal that you found (a) How did you find it? (b) What is the deal I get? Give us the specs, and what’s the outcome on the pro forma?

Matt:

We have one that we’re chasing, that’s a big deal. 300 units in a part of Virginia, that’s really exciting, and that’s I’m hoping we land that one. But I’ll start with the deal we just closed which was two weeks ago, which is 152 in Lexington, Kentucky, and it’s okay. It’s it was off a market deal. owned, believe it or not, Brett by our property manager, and that’s your lesson, like put a pin not put a pin but just put a little lesson in that one, that if you don’t, if you tell brokers you want to buy, they get that they understand, that’s why you’re in the market, that their job is to sell real estate for people, but also tell other people you want to buy. We told our property manager we were looking to buy and we tell our lawyers and our title companies and our mortgage brokers we want to buy that we’re aggressive we want to get in and this property manager turned over a lead for us to say hey, we brought this deal four years ago.

We’ve kind of brought it as far as we want to we’re looking to get out of ownership actually we want to get into just managing and just they want to build and manage that’s it you want to build apartment buildings and manage them for other people the end they don’t want to own long term assets anymore they want to build and sell and manage so their business model was changed because nothing stagnant is it right things change and business plans change and desires change and goals change and things have a beginning middle and an end and this property manager was getting to an end of their ownership period on this property, and it just so happened to work they were thinking about listing it and they said well we won’t list it if you guys will let us keep managing it and there is a plus operator so absolutely yes manage my apartment buildings is what they already manage if you haven’t already and the other thing is that they were like well we would list it for this but if you guys will buy it for this it’ll save us that real estate listing commission it’ll save us the hassle of having put it on the market maybe have to go back and forth with buyers and sellers with buyers and it’s not so and we’d like to do you guys a favor and silence you guys for a good hassle free number. Everything worked the numbers added up. Off we go.

Brett:

Telling people you want to by having a good relationship with property management. They sold you their actual deal. What was the deal? Like how many units what was the cap rate IRR? Cash on cash, kind of give us, and what’s the business plan to make it a home run?

Matt:

152 units. Lexington Kentucky it’s called the Lexington villas we call Lex villas for short. It is a B-class asset. It was built a while ago in a 1970s vintage but it’s got it’s it had a major facelift major rent Oh, by the property manager. The rents are solid, the prop because we’re buying from an A-class operator. A lot of deals that I’ve done Brett have been with manage by column-like B level or sea level even property management company for the big thing you got to do is I got to get that property manager added here because they’re just wrapping this place around a tree, and we need to get a new pm in to run this property. This was not the case in this asset, this asset was already being run very well, and believe it or not, Brett they’re already doing, they had already implemented at our request. Once we put it under contract, we said we want you guys to start doing rent increases that as leases renew to do a mild Renault, and rent increases as we as we go towards closing.

They agreed to do that, and so as they got closer to closing this ridge doing these rate increases and doing these renovations on their own dime at our request because they were going to be we were going to be their client very soon, and they were able to prove our business model before we closed. How great is that? That so cash on cash on the deal will be in the mid-single digits the first year 6, 7, 8 percent somewhere in there. We offer an interesting model Brett we’ll do a typical syndication investor, investor level split where they get 6% pref on their money plus 70% of the upside 70% of the profit above that. That’s one model you can do. But that’s a 10-year-old. You don’t want to hold for that long. It’s okay. We also have another share class that we offer investors where they can make 9% on their money paid monthly, 9% coupon has no upside. That’s okay because we’re going to refinance the property in a couple of years, and we’re going to take them out completely. It’s a two-year cycle at 9%.you can either go short at nine even have no upside, but hey, that’s the exchange, you’re making an exchange. For a short investment cycle, or you want to go along with us and join us for the long marathon, you can make a 15% rate of return on your money, but you’re going to be in for a while you’re going to have is returning capital at refi. But you’re going to be writing running the marathon with a sprint investment or a marathon.

Brett:

Got it? 6% perhaps 100% a 70% upside 10 years hold longer with 10 years versus 9% pref zero upsides, but a little bit shorter term with the refi, and by the way, you can learn more about Matt Faircloth at The DeRosa Group com that’s The DeRosa Group that homeless d e r o s a group comm for those who are listening on iTunes. I like the 152 units. I like that it was a deal that you had someone that you trust, it knew someone who’s going to be managing it right. When you could hold accountable, even after it’s the close of escrow, for these units, someone that’s going to be willing to put some value adds in before and kind of prove that we can get some higher rents. All of those are really good signs and good indicators for a solid deal. Love that, and then you’re going and you’re chasing the 300 unit. You want to touch on that one briefly as well.

Matt:

That one breakfast ran under contract on it, but I can tell you, it’s in a top tier market, of the, called the Mid Atlantic region, probably like put it in a top-five city that’s facing tremendous growth, and it’s what I like, I like two things, Brett, I like deals that are either off the market, sold by my property manager and all that’s just a slam dunk. The other thing I like is deals that have a little conceptual hair on them if they if you will. Not down the middle of the fairway opportunities because if you throw up if it’s a plain vanilla bread and butter deal down the middle everybody in their mom is gonna be in on this. I like deals that have something a little funky to it, and this deal has two things that are funky. It’s the ownership arrangements, funky because it’s a condo, it’s a bunch of condos, and it’s a loan assumption. You cannot go get your own debt on the property. I going to assume the debt in that, but that’s favorable.

Transforming Lives Through Real Estate: “The right to private property meant at the same time the right and duty to be personally concerned about your own well-being, to be personally concerned about your family’s income, to be personally concerned about your future. This is hard work.” – Mikhail Khodorkovsky

Brett:

Is it a yield maintenance deal or is it a big prepay? Is that why doing a loan assumption?

Matt:

Well, I mean, it’s one of those. That’s the double-edged sword. We’re doing deals with agencies with the federal agency like Fannie Mae, Freddie Mac, is they offer phenomenal terms nonrecourse interest-only rate lock for a long period of time, they kind of stay out of your hair, they’re the gold standard, aside from like, going to a hud lock for 30 years. They’re the gold standard for real estate financing. But if you want to sell shorter than your cycle on the loan, either you better have somebody to inherit that loan for you, or you better be waited to just pay out the nose in fees, and it’s some people call it prepayment penalties because you said they like to call it to yield maintenance and things like that one is really defacement or whatever one is really, really high.

Brett:

What’s the interest rate on a loan?

Matt:

It’s in the I think it’s in the high 3’s. it’s favorable. It’s okay.

Brett:

What does it adjust?

Matt:

Like 12 years?

Brett:

Was it 30 years?

Matt:

20, 30 years am IO for four years. I get IO for four more years. I can enjoy cash flow, do some more stabilization. Build a backup

Brett:

sounds like a decent loan. I mean, our rates have dropped into like, the low threes, but to get the IO for four years, and it’s not going to just for 12. Most of the threes I’m seeing are fixed for 5, 30 year am.

Matt:

It was secured a while ago. It was secured a couple of years ago. But the one caveat, you got to expect this because they’re not given the property away. They’re there. The equity, they will have to put in as well above 20 25%. In that and that’s the owner’s profit. That’s the owners. The owner’s upside

Brett:

Do you pay a penalty? I’m sorry, assumption. It’s a 1% assumption of cost normally,

Matt:

That’s good. It’s a big equity race. Go ahead. Well, it’s a lot of equity to come in. Now. We’re trying to figure out how we can drop something called a supplemental, which in layman’s terms, that just means a second mortgage to drop in a supplemental on the property.

Brett:

They allow that and I’ve seen fewer and fewer banks allow in seconds behind the first so what are they going to do this sublet on themselves?

Matt:

The dust lender, the servicer will allow for like, the agencies will allow for supplementals behind these mortgages, especially if it’s an agency that agencies understand that, if I can’t let you pay off a mortgage, I and you’ve increased, you’ve added a bunch of value. Under certain circumstances, they’ll let you come in.

Brett:

300 unit deal and you can get some pretty solid numbers and the occupancy is pretty high, the larger the deal. The stronger the marketplace, the less more likely they are to do those things. That is fantastic Matt. We’re going to shift any last thoughts on that? Are you good?

Matt:

No. Good to go. Thank you.

Brett:

We’re gonna shift a little bit start part of our niche focus is Capital Gains Tax Deferral, and helping people make sense when they go to sell these highly appreciated multifamily GP positions, cryptocurrency primary homes, or even like trying to raise capital for future deals. I’m curious about your experience that what’s been the biggest frustration when it comes to capital gains tax deferral, and or the 1031 Exchange over your career?

Matt:

It’s interesting, and I’m grateful we’re having this conversation because I get this happens regularly. To frustrations, I’ll go through them, because I do a lot of what I do in my companies dealing with investors, new people that want to place capital somewhere that want an alternative to Wall Street that want to consider multifamily investing, whatever it may be. I talked to guys this week, Brett said, I’ve got a property I’m selling in Florida. He’s a blast, he’s sold it for selling it for a reasonable profit, wants to put it somewhere, right wants to put the proceeds somewhere, and he said, can I 1031 into one of your profit and one of your syndications, and I said, you can, I know how to do it through something called a tenant in common tech and an app, but the paperwork about that thick, it’s going to be a pain in my butt through pain in your butt, you’re not going to be happy, I’m not going to be happy. But we’ll do it. If you can bring, a lot to the table. Those are the typical conversations I have, and I and a lot of times, Brett, what I’ll do is I’ll try and defer them away from the 1031 altogether to say, how about, you just sell it and just take the money, and you bite the bullet if you will, and I’m gonna do I’m gonna be doing a cost segue anyway, and so you’re gonna have a capital gain, and my cost segue is going to show a capital loss, and so we blend those two together, and I can wash out maybe not all of but a good portion of your gain on the deal.

That’s been, it’s not the best. But it’s been good enough. There’s good, better, and best. It’s been maybe in the good range on what I can offer. That’s frustration. Number one. frustration. Number two, is people don’t want their money back, Brett, when you go and sell these properties, which we do, and we also refinance or whatever, they kind of get mad at you. It’s like, Well, great, you just made me this phenomenal return, we’re selling a property in North Carolina, we’re producing a 2x equity multiple, double their money, Brett in three years, right? 30%. Look at me, look what I want for you. But they’re like, you just made me a problem. That’s what the investors are like, and they’re saying, Listen, this is great. But you just made me a problem. Thanks for the tax bill. Matt. We have to find something else to put them into. That the whole thing costs a can wash out the gain, and so that’s been the biggest frustration is the clunkiness in finding new assets for investors that are coming off of what was involved in, or that want to come in, that are getting that want to get in through unlocking equity they have in real estate that they have and don’t want to do it through a refinance. They want to sell what they have an upgrade and do a deal that we have going on. That’s a real frustration, my friend, and that’s why I’m glad we’re talking.

Brett:

Thank you, Matt, and let me unpack that a little bit for listeners to kind of just kind of make sure we’re on the same page, and I think we are which, by the way, cost segregation is amazing, right? Especially if you have a brand new depreciation schedule, that’s a mess talking about, he’s buying a brand new deal without, 1030 wanting typically, right, and now that gives you a brand new depreciation schedule. If you invest new money into that, and your old depreciation schedule doesn’t travel through 1031, then guess what you can get some more of that cost sag Casa is going to be accelerating that depreciation on multifamily is typically 27 and a half years if you’re going to take it a straight line, but you can go in and do a study and that study can constrain those components or can break out the components and reduce the time and you can take it all like a year or two. Especially with this thing called bonus depreciation, which is pretty amazing. Yes, if you can cost segue and you can find a deal. I love that strategy. The key is finding the deal. That makes sense. Having enough deals that make sense, and you’re not letting the tax tail wag the investment dog right, and then right peg into a round hole, right? Yeah, so it’s got you got to it’s like a Rubik’s Cube right, and you hold in this cube, it has different colors on all the sides, and we got to line up this and this and this and if we can get it just right, amazing.

But if you run out of time, or you run out of space, this is where the deferred sales trust we absolutely love because the old schedule doesn’t travel. In other words, you can sell put into deferred sales trust, turn around and invest it if you’re an active owner did a brand new depreciation schedule without using the 1031 and having to have those light kind requirements and it’s seamlessly to go into deals with you because it’s just a trust. It’s not a 1031 hat’s a cool way to make that work as well. But really what we’re talking about here is what’s called tax flow versus cash flow, and so like you touched on that investors don’t want their money back. I mean, they want cash flow. But all of a sudden, if you give them all of the principal back, guess what just happened, they’re paying tax or they’re having to figure something out, and so as the basically the economic tides change, and they’re changing fast, and Biden has some serious proposals, that are literally wealth transfer, explosions for the wealthy in America, especially for real estate owners, right, taking I’m talking about taking away the stepped-up basis, talking about taking away or limiting the 1031 exchange, talked about doubling the federal capital gains tax rate from 20 to 40%. Which in real estate, typically, it’s 30 to 50%, depending on the state you live in, and the depreciation recapture.

But if he doubles that, it’s going to go 50 to 70, so on the federal side, because it goes 20 to 40. We’ll see those things pass. But just realize we’re no longer in a cash flow game. That’s important. That’s just one leg of the stool. The other is tax flow, you got to make sure you got a dream team who’s helping you to move this Rubik’s cube to just the right order at just the right time so that you don’t have your wealth wiped out. By the way, you can learn more about the deferred sales trust at capital gains tax solutions, calm that’s capital gains taxation calm, because seven of these deals in the past 40 days alone will close another seven in the next 40 we just closed a $5 million cryptocurrency case, they bought it for a theorem for about 100 grand, they’re selling it for about five and guess what they’re gonna do, they’re gonna invest it tax-deferred into multifamily investment properties, get that depreciation. Pretty cool. That being said, Matt, are you ready for the lightning round?

Matt:

Amen. You’re taking his school right now, and I want to talk to you offline about this whole thing, because this is the conversation I’ve been looking forward to having, and I think that things like the DST are don’t take this wrong way is the best-kept secret out there that it’s not used not leveraged enough, and it’s funny because Brett, we’ve been beating on bids by organizations that came in with the DST, because the return profiles are a little bit different, as you said, they’re not investing for cash flow. They’re investing because they want that asset. They can have depreciation and they can continue the cycle going and everything like that. I’m interested in learning more.

Brett:

Let me clarify real fast. The Deferred Sales Trust is not a Delaware Statutory Trust, a Delaware Statutory Trust, and what you’re referring to is these big groups that overpay for properties, just to be able to have people to be able to 1031 until is Delaware’s, especially they have what’s called mortgage over basis challenges, and they’re really huge groups, and they have huge fees. I’ve done some Delaware Statutory Trust, they do have their place. But that’s just another form of a 1031 Exchange. I call it the Hollywood video to the blockbuster blockbusters, your traditional 1031, Delaware, it’s just in the Hollywood video down the street. They have their place, but when highly appreciated marketplaces, they’re not great because we’re selling high and buying higher. Now, the Deferred Sales Trust is IRC. 43. It’s an installment sale. It’s a completely different part of the tax code. But we have all kinds of flexibility. We have no timing restrictions. It is a little more complex as people haven’t heard about it before. But, you can learn more about that at the capitalgainstaxsolutions.com, we can also go to YouTube, I have a whole thing called Delaware versus Deferred interest. Any thoughts?

Matt:

I love it. I’d love to talk more. How do we get it? I don’t know if it would be awesome to get you to, I don’t know. I’d love to put get the YouTube link to myself for whatever.

Brett:

You search Capital Gains Tax Solutions, you search that, and then you can search the channel that pops up on YouTube, and then just search Delaware Statutory Trust versus Deferred Sales Trust. I call it the Battle of the DST’s. By the way, any Delaware people out there on the show, to have the battle have the debate. Because it’s a cool debate. We just did a deal last week, a partial Delaware Statutory Trust, and a partial deferred sales trust.it’s never just one size fits all. Sometimes it’s a mixture between a 1031 a Delaware and a Deferred Sales Trust. Imagine that multiple tools to solve complex problems. This is what we do every single day and Capital Gains Tax Solutions. Enough of that commercial. Thank you so much, Matt. Are you ready for the lightning round?

Matt:

I’m ready for lightning round and I can’t wait to hear more about this, and I think that you’re I think that the vehicles you’re talking about here are going to be the new standards as the world changes.

Brett:

We can it Netflix blockbuster.

Matt:

Let’s look at some lightning bolts.

Brett:

Okay, here we go. Coming fast here. Go back to your 25-year-old self Matt, what’s the one Golden Nugget Make sure to tell yourself to do.

Matt:

25-year-old self I would tell myself that my physical health is more important than I think it is. Because I’ve really gotten into taking care of my physical body the last couple of years in my 20s again, live forever. You’re in your 20s you got to think you’re bulletproof. I thought I was more invincible and realized how important it is to take care of my body and the last Say, say four to five, then that so probably tell myself, what you get to the gym, get to the gym and eat a little healthier.

Brett:

Makes cowards of us. All right, and if you haven’t read the TV 12 Tom Brady’s book yet and, read the book, it changed my mind. I grew up as an athlete playing college basketball and scholarship, playing football all my life, and I read that book and going, I’m just learning about fitness and health, like read TB12. Second question. Number one book you’ve recommended or gift at the most in the last 12 months.

Matt:

Let’s see that one book of gifts that are recommended in the last 12 months recently, I’m recommending a lot of drama health, about Tim Ferriss, The 4-Hour Body came out a while ago. But it is a phenomenal manual on human health.

Brett:

Beautiful I’ma check that out. Love Tim Ferriss, third question. The biggest obstacle facing multifamily investors or syndicators or buyers.

Matt:

Deals, finding deals or deals makes sense, not forcing a square peg into a round hole in that and and and also syndicators that are out there in the market that are trying to get deals done, just so they can get a fee. That syndicator that is in this thing for fees versus in this thing for long-term equity building investor wealth, that is willing to outbid me or us on deals just so they can get their acquisition fee.

Brett:

That’s true. Next question, what are you most curious about right now?

Matt:

I’m curious about where I think that the US is there is just a world in a way is like a precipice of like, let’s look not sure where things are going to go.I sure do wish but I had a crystal ball to see where the next five years are going to go from an economy from a global prosperity standpoint, from a global unity standpoint. I’m more I’m and I feel like we’re kind of at that fork in the road, that we could go down the awesome lane, or we could go down the Oak Lane, and I’d like to see the world go down to awesome town and become more prosperous and become more blessed and more harmony and more unified, and I think that we are this strong possibility and going there. But there’s also a lot of strife and a lot of diversity, a lot of divisiveness and a lot of us in them going on in our world too, and I sure hope we don’t go down that road. But who’s to say, because I see both roads are very clear on how we get there. So

Brett:

Last question, Matt. After all your success, helping all the people that you help on a mission to transform lives to real estate, how do you stay centered in your values, and how do you stay encouraged to charge forward to reach for new heights.

Matt:

I take time to review my values on a regular basis. My spouse and I are on the same page, Brad like that, that is my value foundation is my marriage, and my wife and I still go to church almost every Sunday, sometimes online, zoom church, that’s just because of COVID. But because it’s convenient. But, but we do that regularly with our kids and everything like that, and so our family is a source of our values, and that’s how I stay centered in it. My wife and I do read spiritual readings on a regular basis, and I tend to put it around me and not just put it as this thing over here. I believe that I believe it and also consume it regularly.

Brett:

Amazing. Matt, I want to thank you for being on the show. I want to remind the listeners they can find you at DeRosaGroup.com. I want to encourage you to keep using the gifts and talents you’ve been given of making the complex, simply being a teacher at heart, and I think the third one was, I forget but those are the main ones that I remember right now. Using least those two and the other one you mentioned as well, and I can go to DeRosaGroup.com learn more about Matt, I’ll be in New York in about a month, and as I fly over Pennsylvania, we’re close to a wave, I mean, I don’t get to that side of the Northeast too often, but I’m hoping the weather is really good. Her October’s pretty, pretty solid in that area.

Matt:

New York in October, it will be spectacular. I hope you enjoyed I’m sure you’ll enjoy it. You’ll have just perfect weather not too hot, not too cold. A little chilly at night, but nice, chilly, not cold, and maybe you’ll catch the leaves change too. If you get that’ll be a blessing to perfect.

Brett:

Thank you Matt Faircloth for being on the show, and also want to thank our listeners for listening to that episode of the capital gains tax, which is podcasts. We covered a lot today, some complex stuff, we dived into some loan stuff, we dived into commercial real estate stuff, some tax stuff. If we can help you at all just go to capitalgainstaxsolutions.com especially if you have a deal that’s worth at least a million dollars in net proceeds and at least a million-dollar gain. We get free consultations and we walk you through the different options opportunity zones 1031 exchanges, Delaware Statutory Trust, of course, the Deferred Sales Trust, which we believe is the Netflix to the old blockbuster way of doing things, especially right now. But we want to help you get clarity on all of those options. You can create and preserve more wealth or help your clients do the same. go to capitalgainstaxsolutions.com for that, please rate review, subscribe, please share this with somebody, please tag somebody. We so appreciate you out there and we look forward to talking to you.