During this HyperFast Wealth segment, host Dan Lesniak speaks with Kevin Palka of MVP Equity & Asset Construction about working as a highly successful real estate developer. They discuss important keys to running a construction business and pursuing development projects, as well as how to create good habits that will impact every area of your life.
Episode Highlights:
- Kevin Palka started in real estate at age 18, and grew up in the construction industry.
- If someone has a track record that goes back prior to 2008, that means a lot to Dan.
- Asset Construction is a general contractor that does work for developers.
- MVP Equities is a development company. They acquire land and title. They determine the highest and best use for that piece of dirt.
- Keeping cost to a minimum without sacrificing quality is a huge key to running a construction company.
- Do your homework when choosing a construction company.
- From the developer side, it's all about location.
- Developers need to find deals that make sense and bring them to the marketplace.
- Developers need good deal flow and must stay disciplined. As a developer, you must always act from a place of certainty.
- Kevin works with real estate brokers and architects to generate his deal flow.
- To maintain that deal flow, Kevin has at least one networking meeting daily.
- If you’re just starting out in this business, hire a coach or partner with someone who has done a deal. This will help you compress time.
- Have good metrics and track them.
- Kevin provides insight into his personal habits. He journals daily.
- What is the one door I want to open this week? What are the four keys to opening that door?
- Kevin also reviews his progress weekly. You can course-correct on a daily basis.
- Focus on changing habits. It takes ninety days to change a habit.
- Kevin’s longer-term goals are to focus on areas of high growth and to develop six hundred units per year.
- Sometimes they sell the property after three years. They also partner with national management properties. If they keep a property long term, they'll refinance it in ten years, take some equity out, and do another project.
- Avoid competing commitments. They will bring your production down.
- Dan and Kevin discuss the importance of focusing on your strengths.
- Bring in the right people to compensate for your weaknesses.
- If people want to invest, investing in apartment buildings is a great way to do it.
- There's a huge need for quality housing. Providing brand new quality housing is helping people out.
- His biggest advice to a new investor is to do your research and hire the right people to help you evaluate the project.
- His biggest advice to a seasoned investor is to find the best financial term sheet for the project for your lenders.
- His biggest mistake in business was taking a higher interest loan than he should have.
- His biggest win was when Asset was named the DC Historic Preservation Award Winner in 2012 for a project they designed and built in Capitol Hill.
- Network with like-minded investors that could help you generate equity or a down payment to purchase a piece of real estate.
3 Key Points:
- Do your due diligence when hiring a construction company. Good crews can be hard to come by.
- Generate deal flow by working daily to build and maintain your network.
- Choose to develop better habits and track your progress.
Resources Mentioned:
- Learn more about Hyperfast Academy; HyperFast Wealth
- Dan Lesniak bio, Facebook, Twitter
- Kevin Palka: Call Kevin at (703) 201-5330
- MVP Equities
- Asset Companies