The FORT Podcast: M. Stanfield (Twitter Anon) – Investing in America’s Most Challenging Affordable Housing
Twitter Anon M. Stanfield aka @mu2myoc on Twitter is an expert in affordable housing. Over the past 18 months, his firm has acquired $200M+ in affordable housing projects in Texas. They buy distressed value-add deals and spend a pile on CapEx. Before launching his own fund two years ago, he had developed over 3,000 units of affordable housing in multiple states. Prior to that, he was an affordable housing broker.
On this episode, Chris and M. Stanfield discuss:
- An in-depth analysis of the affordable housing industry and how it operates.
- Stories as a landlord of some of America’s toughest affordable housing communities.
- How his firm creates value and win/win situations for all involved.
(1:47) – The culture around people living in low-income housing
(13:06) – What are you buying and what issues are you walking into when looking at a deal?
(17:26) – Low Income Housing Tax Credit process
(22:18) – Thoughts on Section 8 housing
(32:30) – What drives you to work in this asset class?
(39:41) – Serendipitous opportunity vs. “working for it”
(43:59) – How do you turn these properties around from a physical perspective and a resident perspective?
(54:58) – Is there any real solution to helping low-income housing?
(59:40) – Re-tenanting a property
(1:09:20) – What 2-3 levers can you pull that drive 95% of returns?
(1:16:07) – What’s your take on the market right now?
M. Stanfield, a reputable figure known widely on Twitter for his insightful takes on real estate, graced Chris Powers’ podcast for an enlightening conversation. Stanfield’s expertise is not merely a product of his extensive time in the industry, but also of his profound understanding of the multifaceted world of real estate investment, development, and management.
The discussion commenced with Stanfield emphasizing the paramount importance of conducting thorough inspections on older properties, particularly those built in the mid-70s or earlier. He astutely noted the potential pitfalls of overlooking pipe inspections, underlining that such negligence could be detrimental to the very foundation of a real estate deal. This point underscores the intricate aspects of property due diligence that often go unnoticed but can have significant financial implications.
Venturing into the realm of community impact, Stanfield elucidated the significance of positive role models in communities. He touched upon the influence of undesirable elements, highlighting the role of real estate professionals in shaping and transforming communities. The conversation then seamlessly transitioned into the lifecycle of a real estate deal. Stanfield’s insights into the process, from spotting a potential property to understanding the nuances of affordable housing, were meticulously dissected, offering listeners a panoramic view of deal-making.
Affordable housing, a cornerstone of the real estate sector, was a focal point of the dialogue. Stanfield illuminated the intricate process of applying for low-income housing tax credits. He detailed the challenges and strategies associated with acquiring and managing these properties, emphasizing the balance between business objectives and community betterment.
Stanfield’s expertise shone as he delved into the complexities of the Section 8 voucher program. By elucidating how it assists renters and benefits landlords, he underscored the symbiotic nature of this initiative. The intricacies of managing older properties, especially those built around the mid-70s, were also touched upon, providing listeners with a holistic understanding of property management’s challenges and rewards.
A significant segment of the conversation revolved around the transformation of properties with a troubled past. Stanfield offered pragmatic insights into handling problematic tenants, the eviction process, and the overarching importance of establishing a harmonious community environment. The financial and operational ramifications of illegal activities within properties, such as drug-related offenses, were also discussed, shedding light on the multifaceted challenges real estate professionals often grapple with.
The conversation culminated with Stanfield highlighting the pitfalls of relying solely on numerical analyses for investment decisions. He championed the importance of physical property assessments, emphasizing the distinction between being merely wealthy and being a truly sophisticated real estate investor.
In conclusion, this episode with M. Stanfield proved to be a treasure trove of industry insights, offering listeners a comprehensive view of the real estate landscape. From due diligence in older properties to the nuanced world of affordable housing, the discussion was replete with invaluable takeaways. For anyone keen on understanding the intricacies of real estate, this podcast episode is an indispensable resource, with Stanfield’s expert reflections guiding the way.
The Fort is produced by Johnny Podcasts