Drew Breneman

@moseskagan 🤚 I started buying property as a 19-year-old with the money I made from an internet side hustle. My parents were both teachers. At 22 years old, got my first investor. Just been growing from there. $200M of property now (35 years old) with 4 acquisition employees.

As a real estate LP, you want to work with the innovators, not the copycats. Here's my advice for separating the two: When you're evaluating sponsors, ask questions like: • "What strategies do you deploy?" • "How do you challenge the status quo?" • "How do you choose markets and investments?" Ideally, you want sponsors to have a unique answer to those questions. "Well, we buy multifamily apartments" is not a good answer. You're looking for an edge. A strategy. Something only that sponsor could say. (Ex: Breneman Capital's edge is investing in the best locations using our zip code ranking system and over 80% of our deals are off-market or from repeat sellers/brokers) Once you find a few sponsors who stand out from the crowd, your job is to work with the one who most closely aligns with your investing goals.

Don’t be too proud to ask what you don’t know. Have extreme self-confidence. Take risks when you’re young. Be constantly curious. Think long-term. Don't quit. Apply these to whatever entrepreneurial path you want. It will work for all of them.

@resetbasis Finally something more interesting than a free flat screen and a month or two free

Me: how are concessions and occupancy at the property? Broker: not bad Website:

@Stealx It’s crazy to me too

Am I the only one who doesn’t understand the benefit of Venmo’s public feed?

@robbiehendricks Had the same thing happen two years ago on a deal we canceled for structural issues. Next buyer closed without noticing it. Broker never pointed it out to them.

Was at the finish line to pick up 200 units in Q4. Nice B class deal, fairly distressed. Last minute, construction team finds structural issues. Engineering study confirms it. $1.5M issue. Can’t eat that, so had to re-trade. Showed broker the study, and the bids. We weren’t marking it up. Just wanted it fixed. Seller bailed. Said they’d re-list. Us: “You’re going to tell future buyers about this issue right?” Broker: “We have no obligation to assist buyers on their due diligence. It is incumbent on buyers to do their own research and come to their own conclusions.” Takeaway: Stay sharp out there. While I am sure this is true, never forget that (many) brokers aren’t there to be friends or protect you, the buyer. (Update: Deal was foreclosed by lender.)

@CTourtellotte Madison, WI. Chicago, IL. This is what our deals look like in both markets.

Name this market: 70% renewal ratio No concessions 7% lease trade outs

@seandsweeney Best of luck on the deal Sean

I have never raised money in public before, but that is now changing. We have set up our latest acquisition as a 506c offering, which allows me to talk about it online. We are in the process of raising equity to acquire an existing 111-unit multifamily property here in a Twin Cities suburb. We believe we are in the "1st inning" in the local real estate market. Last cycle’s new supply has been absorbed and new multifamily development is a long way off from penciling, and many existing properties can be bought at a discount. We anticipate a very strong next 3-5 years and plan to make a number of acquisitions. We are currently looking for a few additional investors who can invest $250k or more into the project. We are looking for experienced, aligned partners that want to own real estate for the long term cash flow, appreciation and preferential tax treatment. We plan to utilize a 10-year, fixed rate agency loan and we anticipate strong cash flow throughout the life of the hold. We are targeting a mid-December closing to take advantage of the 100% bonus depreciation law. If you are an accredited investor interested in exploring this opportunity further, send me a message and we can set up a phone call to discuss if this current opportunity might be a mutual fit.

@ericjackson Genuine question: how does it 4-5x just from the multiple normalization? If BETR goes to half of FIGR’s multiple, wouldn’t that just be about a 2.35x? Going from 3.4x to 8x. Thx

The setup: •Float: 8.6M shares •Short interest: 9.4% •BETR trades at 3.4× EV / 2026 Rev •FIGR trades at 16× •RKT trades at ~7× If BETR re-rates to even half of FIGR’s multiple → the stock can 4–5× immediately just on valuation normalization. Before growth.

BETR reports earnings this Thursday before the market opens. Here’s what matters — and why this is one of the most asymmetric setups in the market right now. 👇

@felixprehn AI

Just created a complete analysis of AI infrastructure opportunities covering chip manufacturers, power companies and system integrators. I shared this analysis with my 20,000+ students. For 24 hours, it's yours for FREE. Like, RT & Comment "AI" and I'll DM it to you.

@robbiehendricks Love it. Would you mind sharing the name of the EOS implementor you used? Have talked to a couple but ended up not being a fit. One quit EOS right around the time I was talking with them...

What do we track on our weekly property management scorecard? Here’s the high level stuff: • Occupancy (Physical & Economic) • Pre-Leased Occupancy • Delinquency • Leads • Leads to Showing Rate • Conversion Rate • Call Answering • Maintenance Response Time • Work Order Completion Time This data helps us keep a real time temperature of each asset, our tenant base interest/financial health/satisfaction, and the performance of our team (and ultimately, our systems). Each of our 5 departments has its own unique scorecards as well: Construction PM Finance Marketing Investment From units renovated, to Google rating, to new investor contacts, to LOIs submitted, each department has metrics that are measured and reviewed weekly to ensure maximum progress towards the goal. The great thing about scorecards is that they are objective. It’s pass/fail. We hit our agreed upon targets or we do not. We exceed expectation or we do not. There is no where to hide with a scoreboard. There is no “we feel great about it, so it must be good.” You’re either lighting up the scoreboard or you’re making honest assessments and tough adjustments. There is no cruise control. Remember: Systems and people depreciate if left alone. You’re either growing or you’re dying.

I like multifamily more than any other asset class. Here’s why: At Breneman Capital, we took NCREIF data from 1990-2020 and measured all possible hold scenarios (3, 5, 7, & 10 years) for all major product types: • Industrial • Multifamily • Office • Retail Multifamily had the highest returns and the lowest volatility in every hold period, with the lone exception of the 10-year, where it had the highest returns but not the lowest volatility. -- Disclaimer: This is not an offer to sell or a solicitation to buy securities. Past performance is no guarantee of future results, and investors may experience different results than those shown, including the loss of principal. You should not rely upon forward-looking statements as predictions of future events.

Maybe easier said than done, but as an LP, you want to work with sponsors who will wait to sell until the optimal time for investors — not when they want to get paid. You can always just ask them directly: “Can you walk me through previous deals you’ve sold and why you made the decision to sell at that point?”

Thanks to unlimited access to the “experts” via book, podcasts, social media, etc, it's never been easier to develop a skill. You can absorb decades of experience in no time flat. But that "ease" is the exact reason it's never been harder to develop a skill. Before all-access all the time, you had to get experience to learn. Now, you can learn forever without ever actually getting experience. The sweet spot is a mix between the two.

You're not going to be confident when you start in real estate. You need to ditch your ego and accept that you're going to look dumb at some points of your journey.

Higher projected returns usually come with: • More reliance on renovations. • More reliance on leverage. • More reliance on rates. • More reliance on refis. Especially in today’s market, that’s too many “what-ifs” baked into your spreadsheet. If I’m an LP evaluating two options right now — assuming all else is equal — I’ll take the lower risk, slightly lower return option 24/7/365.

Unhappy millionaires who are stressed, strapped for time, and disconnected from their families are a dime a dozen. It’s one of those things you think is ridiculous until you actually meet a few of them. It’s sad.

It’s great to have consistent investors who are ready to put capital into deals, but it’s also genuinely fulfilling to spend years with someone and watch how the investments you did together have affected them, their lives, and their families.

@bconcpa Thanks. Retail space

@drewbreneman Well done. Is that Verizon wireless deal a retail store or a cell tower on top of a bldg you bought??

Instead of looking for short-term flips during the Great Recession, we looked for properties we were comfortable owning for longer-term holds. We figured things could get worse in the short term, but we were optimistic that by 2015 or 2016, the economy would have turned around. So, with that outlook, we were buyers for the right deals. The deal that penciled for us: → 8% cap rate → Borrowed at 5.5% → Long-term hold → 7-year lease with Verizon Wireless That deal also had a 15% cash-on-cash return right out of the gate, which, now that I'm writing this, is probably the thing I should've led with. Is "Buy assets you believe in for the long term" too obvious to be considered good advice?

I used to drive around with a drywall saw and a flashlight in my car at all times. I remember cutting a hole in the basement ceiling of a property to get to frozen pipes when no one else could come at 1 AM in -20 degree weather. Drywall dust was falling onto my new coat because I didn’t own “work” clothes anymore since I thought I was done with that phase. And every time I thought I was done with that phase, something else would pop up to bring me back to earth.