Ep 43: Scaling a Multifaceted Real Estate Business Step By Step with Ricky Beliveau, Volnay Capital
One good thing that has come out of this pandemic is that potential guests who have been in the pipeline for some time can finally spare a moment to join us on the show! One of them is Ricky Beliveau, who, through Volnay Capital and Evo Real Estate Group, does everything from development to renovations, brokering, and management. Ricky gets into the story of how he learned real estate investing after taking a college course about it and then describes his journey from his first house hack in 2010 to where he is today. He talks about moving from rentals into renovations and finally doing his own construction and shares many tips for smart ways to scale step by step.
A big takeaway is an idea that mistakes have costs relative to the size of a project, so it's always a good idea to get your feet wet on something manageable first. The interview turns to the topic of coronavirus and how it has frozen Ricky's projects, and he uses the opportunity to recommend raising capital for interest reserve accounts and overshoot timelines for projects as ways to prepare for these kinds of downturns. We then move onto Ricky’s multi-tiered business and find out how he manages to keep all its pieces moving so smoothly. It all comes down to good partnerships for Ricky, and we talk about the best ways to structure easy to exit JVs so that potential permanent partners can see if they work well together or not. Ricky shares a ton of wisdom on today's show and his business proves he knows what he is talking about so make sure you catch this one.
Key Points from This Episode:
Ricky’s discovery of the concept of real estate investing while studying finance at college.
How Ricky broke into real estate by purchasing a unit during a high rent bubble in Boston.
The limits of Ricky’s college course and what he has learned about analyzing deals since.
Buildings and developments Ricky invested in since college and how he funded them.
Advice to get into development by initially doing projects that require cosmetic renovations.
The risk in the form of mistakes scaling in cost as you take on more expensive projects.
Pivoting to condo conversions and how Ricky left his job and grew a multitiered business.
Scaling multiple condo conversions after Ricky partnered with a commercial lender.
How Ricky is coping with the costs of his frozen constructions during the quarantine.
Advice to raise for interest reserve accounts that pay off loan interest each month.
The value of overshooting estimations for construction timelines to cope with crises.
Partnering and distributions of labor Ricky orchestrates to handle his business’s tiers.
How to partner well: use separate LLCs to test the waters and know your respective roles.
“Start to understand how to analyze a deal and then that will really allow you to then build your business.” — @VolnayCapital [0:07:28]
“What I recommend for partnerships is go deal by deal.” — @VolnayCapital [0:32:01]
Links Mentioned in Today’s Episode:
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