Join us on the latest episode of Passive Investing from Left Field, with guest Ron Lockhart.
In this episode, discover invaluable insights into successful strategies for limited partners, the impressive benefits of affordable and workforce housing, and the high-return potential of real estate syndication.
Whether you’re an accredited investor or simply looking to learn more about the commercial real estate market, this episode is your ticket to staying informed.
About Ron Lockhart
Ron Lockhart is the Co-Founder of GSP REI and serves as one of the Company’s Managing Partners. His chief responsibilities include strategic planning and oversight of the company’s vision. Mr. Lockhart oversees and works to streamline the company’s operations in both real property and mortgage acquisitions, as well as project and property management.
Mr. Lockhart brings over 20 years of combined real estate investing experience to the company. Prior to founding GSP REI, Mr. Lockhart was President of LaSalle Properties One a regional real estate consulting firm that focused on assisting companies and institutions with the execution of their real estate acquisition, development, management and finance goals. While at LaSalle Properties One, Mr. Lockhart developed an end to end in house solution for clients that included planning, construction, asset and property management. One of LaSalle Properties One’s key initiatives was to invest alongside its clients in growth areas where there was an under supply of rental housing. Prior to LaSalle Properties One, Mr. Lockhart founded Lockhart Building and Investment Company which specialized in the construction and redevelopment of real estate in the Mid-Atlantic region. Mr. Lockhart has been directly involved with the investment, development and construction of single family, multifamily and mixed use real estate since graduating from Washington College in 1996.
Key Points From The Episode:
1. Ron Lockhart provide insights on his approach to investing in and rehabilitating distressed properties in urban centers such as Baltimore and Philadelphia, aiming to offer affordable and workforce housing.
2. Ron highlights the impressive performance of his real estate fund which projects an average annual return of about 22% and the potential to triple equity within a period of five to seven years.
3. The critical role of property management, including the necessity of careful tenant screening and executing substantial renovations to preserve and improve long-term property value.
4. Passive investors are informed about the benefits and opportunities of participating in real estate funds that are tailored for accredited investors interested in syndication.
5. The competitive advantage held by the guests in markets like Baltimore, where larger investors may not participate, enabling them to capitalize on value-add opportunities by acquiring properties inexpensively, renovating them, and renting them at market rates.
03:28 his real estate journey
08:39 Affordable housing vs workforce housing
10:03 Section 8
13:38 How he invests in certain markets
16:44 Finding properties
22:58 How much do these properties rent for
25:16 Are there any other government subsidies that help
25:55 How does he structure property management
28:26 Is there a problem with the owners of the adjoining properties
29:42 Using debt to fund the properties
33:00 How to analyze this as an LP
36:07 Funds overview
38:35 Podcast recommendations