Ep 66: The Benefits of Sticking to Your Guns with Andrew Campbell
With so many developments in the multifamily space, it’s easy to get caught up chasing shiny objects. While this could work out for you as an operator, there is a great deal to be said about really narrowing your focus and sticking to your guns. Andrew Campbell, the co-founder of Wildhorn Capital, has used this approach to grow his business and has reaped the rewards. With a clear vision and transparent, albeit unusual investment thesis, Wildhorn Capital has made its mark in Central Texas. We kick off the show with a look into Wildhorn’s long-term approach. It's tempting to go in and out of a deal as quickly as possible in a flourishing market, but Wildhorn does things differently. By sticking to their deal criteria, they have been able to remain true to their investment thesis along with attracting like-minded investors. From there, we dive into the benefits of working in your backyard and knowing the market intimately. There are certainly tradeoffs by not diversifying geographically, but the advantages of boots on the ground expertise outweigh other drawbacks. Next up, we talk about the pandemic and the various ways it’s influenced business. We wrap the show up with a look at the future of interest rates and much more. Be sure to tune in today!
Key Points From This Episode:
Andrew’s background, how he found real estate, and what he’s currently involved in.
How Andrew met his current business partner, Reed Goossens.
Wildhorn’s approach to holding periods and why they have chosen this strategy.
How Wildhorn stays disciplined to stick with their long holding times.
The capital preservation plan that accompanies a longer-term deal.
How Wildhorn stays consistent with its marketing message and investor responses.
Why Wildhorn uses third-party property management, rather than bringing it in-house.
Some of the advantages Andrew has seen from working in his own backyard.
How the pandemic has influenced Wildhorn’s underwriting and deal selection criteria.
The different buyer and seller expectations that have emerged from the pandemic.
Trends that Andrew saw with cap rates prior to the pandemic peaking.
Andrew's take on interest rates and where they’re going.
The drawbacks that can come with working locally only.
“Real estate is not getting rich quick. It’s get rich slow.” — Andrew Campbell [0:06:36]
“We don’t get a ton of pushback because that’s who we are. Wildhorn delivers 12% returns in Austin and San Antonio. We are not trying to do anything else.” — Andrew Campbell [0:15:43]
“I do think there will be more looking for the security that multifamily provides.” — Andrew Campbell [0:28:48]
“The best hedge against inflation is a hard asset, so buying real estate is going to be appealing.” — Andrew Campbell [0:29:05]
Links Mentioned in Today’s Episode:
Get in Touch
Interested in Investing With Us? Click Here
Connect with Chris - https://linktr.ee/chrisgrenzig
Toro Real Estate Partners - http://tororep.com/
The Real Estate Investing Experience - https://www.thereiexp.com/
The REI Experience YouTube - https://www.youtube.com/channel/UCjt6pmkA8ogACZ26oqhBM0g
The Real Estate Investing Experience Podcast - https://podcasts.apple.com/us/podcast/the-real-estate-investing-experience/id1481520260