EP 118: Silicon Valley Investor Shares His 2024 Predictions & Why Multifamily Is A Must with Arn Cenedella
In this exciting episode of our podcast, we have the privilege of hosting Silicon Valley investor, Arn Cenedlla, as he shares his intriguing predictions for 2024 and highlights why multifamily investing is an absolute must. Arn dives into his extensive background and experience in the real estate investing world, enlightening our listeners with valuable insights.
With a focus on long-term, fixed-rate investments and a conservative approach to low leverage and cash reserves, Arn emphasizes the importance of weathering turbulent times, drawing from his own experiences during the 2008 financial crisis. He delves into the cyclical nature of the real estate market and how investors can ride out the storm by making smart decisions.
During the episode, Arn also sheds light on the significance of 506(c) and 506(b) syndications, weaving in the importance of prior relationships in the 506(b) space. He uncovers his company's focus on the emerging Greenville County market in South Carolina, emphasizing the value of investing in neighborhoods before they become popular. Arn further shares his expert perspective on the current real estate market and provides insightful advice for fellow investors.
The conversation extends to address concerns about oversupply in the apartment market and the vital role of securing good tenants. Transitioning from single-family to commercial real estate investing is also explored, with Tejas expressing his genuine appreciation for Arn's insights and impressive success in making the transition. Join us for yet another enlightening episode that will leave you prepared and inspired as you navigate the world of real estate investing!
💥 Remember, this is your MBA. Have a notepad handy, and get ready to take some 📝 notes!
Key Points from This Episode:
Arn's background and experience in real estate investing
Importance of long-term, fixed-rate investments with low leverage and cash reserves
Arn's experience during the 2008 financial crisis and his conservative approach to investing
Discussion on the cyclical nature of the real estate market and how to ride out turbulent times
Explanation of 506(c) and 506(b) syndications and the importance of prior relationships in 506(b)
Arn's company's focus on the Greenville County market in South Carolina and investing in neighborhoods before they become popular
Arn's perspective on the current real estate market and advice for investors
Addressing concerns about oversupply in the apartment market and the importance of good tenants
Transitioning from single-family to commercial real estate investing
Tejas' appreciation for Arn's insights and success in transitioning
Tweetables:
“You can't go into real estate undercapitalized, you can't be overleveraged. And while floating rate debt can be attractive, I think you're a lot better off getting fixed rate debt.” –Arn Cenedella
“I never asked somebody to put all of their nest egg into real estate. I believe in diversification. I think diversification is a way you can reduce risk.” –Arn Cenedella
“You can treat tenants with respect, courtesy, and consideration and still do good business for your investors. In apartment communities where the tenants get along everything works and things are peaceful, they attract their friends and family there. It just makes it a better operation.” –Arn Cenedella
“Drill deep in a limited market, in a specific market than spread yourself thin over eight markets, because in your market, the brokers know you buy property, you know the property managers, you know other owners in that. And so there's this synergy where you're getting exposed to the deal first because they know you and they know you're close.” –Arn Cenedella
Resources
Spark Investment Group website
About Arn Cenedella
Arn Cenedella, founder of Spark Investment Group, is a real estate expert with more than four decades of experience, including 35 years as a Realtor navigating the unique real estate landscape in Silicon Valley, CA.
Through these experiences, he developed a passion for helping others achieve their own financial freedom through investing in multifamily real estate syndications.
Arn currently manages and operates a multifamily portfolio as a general partner and sponsor of over 1,100 units with a total value in excess of $138M. In addition, Arn is a limited partner in over 500 units located in the Southeast and Mountain West.
Through Spark Investment Group, Arn is putting his decades of real estate expertise to work for his clients, helping them reach their goals and attain the lives they’ve always wanted to live.
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The education we provide is sponsored by Lehigh Valley Fund. The fund earns returns through real estate investing and pays inventors an average 10% return with a 12 - 18% target*
Click here to book Fund Manager Tejas Gosai.
Contact Jerna Bentilanon to schedule a visit to our offices or a tour of one of our properties: j.b@lvpefund.com, 610-230-7777
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