Passively Investing in Multifamily Real Estate with Kent Ritter
“Have complex investments and the ability to make it something that's easy to understand, that people can get excited about and get on board with, and get everybody moving in the right direction.”
Kent is a former start-up owner and corporate executive turned real estate investor and multifamily operator. Kent is on a mission to empower others to take control of their financial future, while making a positive social impact, by providing modern, affordable housing to America's workforce.
Kent believes that good investing starts with education so he hosts a successful podcast, called Ritter on Real Estate, where he interviews the pros to teach you how to invest like a pro! Additionally, Kent hosts a monthly multifamily investing meeting in his hometown of Indianapolis.
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Brett:
I'm excited to have our next guest, and by the way, I'm Brett, and I'm the host of all this and I'm hoping you're gonna gain a lot of value in our conversation today. I'm excited about our next guest, he's a former management consultant startup owner, and corporate executive, in turn, he turned into a full-time real estate investor and operator he's achieved financial freedom is now on a mission to empower others to do the same through multi-family investing. He's out of the great state of Indiana, and please welcome to show with me, Kent Ritter. Kent, how are you doing?
Kent:
I'm doing great. Thanks for asking.
Brett:
Absolutely excited to get to know you a little bit more on the podcast here and share some expertise about multifamily syndication and how to essentially be passive and invest like a pro with someone who is a pro and can't renter. But before we get into that, Kent. Would you give us a little bit more about your story and your current focus?
Kent:
I mean, you hit on the highlights, I was a management consultant out of college, I spent 12 years doing that, and really what management consultants do is, we fly around the country, and we help companies solve problems that they can't solve themselves.it was a really good kind of masterclass in just seeing hundreds of different businesses and how they operate and what works and more of what doesn't work. But it really gave me a solid understanding, of those themes that that drive businesses to be successful or to fail, and I think as I moved into starting my own business, and then moved into real estate investing, that has really served me well understanding those levers that you can pull to really drive property, profitability and drive the success of a business. You mentioned starting my own business. A few years into my consulting career, a few of my colleagues and I left to start our own boutique consulting firm really just niching down into some specific technologies that we felt were going to be the next generation, we caught the wave at a great time, we grew that from five guys around literally around a kitchen table to 95 employees and about 30 million in annual revenue in five years, and we sold that at the end of 2015.
That's what really started my real estate career, I started it really just looking to deploy capital, looking to diversify my investments, and wanting to not have all my eggs in one basket in the stock market, and so I started looking at alternatives and it started out as something that was very personal to me of just trying to build wealth for my family. But as I got into it more, I really fell in love with real estate and fell in love with finding properties and, and the process of going through a transaction and really being able to identify undervalued properties and create something new, create some something fresh, improve the property, improve the neighborhood, really just really love and enjoy that process, and I had a fair amount of success in doing that, and to the point where I felt like I could, the entrepreneur and I felt like I could go out and start a business and doing that and, and not just improve my own financial situation, but start to, to add value to others and create investments that others could invest in which most people don't have access to or don't even know about. I mean, I really didn't until I started kind of diving into this world in about 2015.
Now I run Hudson investing, which is really it's a private investment firm where we invest in multifamily real estate and we bring in investors to invest alongside us to do that, and we're doing that it's we're fixing up properties, we're renovating so it's like I tell people it's like what you see on HGTV we're just doing it 100 units at a time and we're holding them for about three to five years and we're paying out the cash flow on those deals back to our investors and then when we sell we all share in the appreciation and there are some huge gains typically that occur and that if you do it right and so coming on and figuring out how to keep most of those gains and shelter those capital gains I think is very relevant to me and all of my investors so happy to be here today.
Brett:
Absolutely can't read it. That's amazing. I love that background. By the way. You can learn more about Kent Ritter at KentRitter.com. By the way, it's Ritter spelled R, I, T, T, E, R, if you're not watching this on YouTube, it's KentRitter.com Amazing. We're gonna dive into that journey and some of the top secrets to investing passively in multifamily. The world with you can't. But before we go there, I want to take one other step back, and I want you to go back and picture yourself in high school or college. The earlier days. You see, I believe we've all been given certain gifts in this life. Some people call them superpowers, some people call them strengths. I believe their God-given gifts, and they've been given to us to be a blessing and help to others. I'm curious, what are those one or two gifts that you maybe you believe you were given? How does that help how you help and bless people today?
Kent:
Sure, so my gifts, I think one of which one of my gifts that is kind of proven valuable over again, in my career, especially, launching businesses is just the ability to, I was actually told about this, I didn't recognize it. But the ability to take complicated ideas and distill them down into something very simple, and I think that's extremely important when you're running complex projects, or have complex investments and the ability to make it something that's easy to understand, that people can get excited about and get on board with, and get everybody moving in the right direction.
Brett:
That's a great gift, especially in today's world, right with a lot of competing ideas and different things that are coming at us, to be able to still what's important, and even a little bit complex and making it simple, and so now you've been able to take that and do it with multifamily investing. I imagine that's also a part of your, your training and how you were mentored and coached in the project management. Having that extensive knowledge and built up. I think that's really cool. Is that a fair summary so far?
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