John Casmon went from a marketing career at General Motors to general partner in over 900 units, roughly $90 million of real estate. On this episode, host Abel Pacheco and John talk about running real estate like a business and choosing the right kind of leverage.
In this episode:
- Treat it like a company: "real estate is just like any other business. You have HR, marketing, finance, different departments. People make a mistake in not treating it like a business."
- The leverage fork: a limited partner "wanna free up their time, they don't want a second job," while a general partner is "willing to work a little bit harder for a shorter period of time to leverage this skill."
- The warning against vanity: "having 900, it could be the same as having 90." On a 100 plus unit deal he hires a manager and plays asset manager; on a 15 unit he does all the work.
- Cash flow first, "using appreciation as the icing on the cake," because you cannot control the exit cap.
- Abel in Buffett's words: "If you don't find a way to make money while you sleep, you're gonna work till you die."
Abel Pacheco is a San Antonio real estate operator who went from 8 single family houses to a share of roughly 1,500 apartment doors, and now works as a fractional Chief AI Officer helping small and mid sized businesses put the back office on autopilot.
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