Eric Scovill sits down with Robert Ritzenthaler from REM Capital to discuss the ups and downs of real estate investing. Robert has an extensive history in real estate, beginning in New York City with a mentor who taught him the ins and outs of real estate in the context of commercial mixed use and development, then moving to his current ventures in conservative multi-family investments.
Here are some topics from today’s discussion:
Episode Highlights:
[06:10] Learning from Your Failures
While REM Capital is a highly successful company today, that doesn’t mean that Robert has always been successful. In investing, especially with real estate, there are bound to be hard lessons learned. For Robert, that meant learning that your word that you give to your investors is more important than the contract you sign. Often, business means falling back on the letter of the contract, but that’s just the minimum. The real contract is upholding the spirit of the contract, and that’s the foundation of the relationship.
[19:27] Defining and Assessing Risk
The most important thing to invest in is your team. As Robert puts it, machines aren’t running the world at the end of the day, but the people. Investing in talented, quality people can make or break your business’s trajectory. So, do your homework. The benefit of working in multi-family investments is that it's direct, unlike traditional Wall Street investments where there are a lot of uncertainties and unknowns. In real estate, you can more easily project cash flows, manage lease agreements, and really know who you’re investing in. This also creates a reliable network of accountability that makes it a more level playing field for all parties.
[22:30] Educating Stakeholders
Robert and the REM Capital team spend a lot of time educating their investors. The more well-educated investors are, the better decisions they make and those decisions can benefit everyone involved. Education is also an excellent way to build relationships in business by adding value and making connections, especially in a world where money is always put first. Offering education and insight helps us take a step back and remember what’s really important: people.
Create your
podcast in
minutes
It is Free