Investing in Multifamily Real Estate with David Saxe

David Saxe is a Co-founder and Managing Principal at Calvera Partners, a real estate investment firm that finds, acquires, and optimizes multifamily properties in high-growth markets. Under his leadership, Calvera Partners has successfully grown from investing in seven-unit buildings to acquiring 300 unit apartment complexes in different markets. David's passion for real estate is influenced by his family's history, his academic background, and professional experience working with some of the largest real estate investment firms in the nation.

Here’s a glimpse of what you’ll learn:

• [01:57] David Saxe shares how Calvera Partners grew from humble beginnings
• [04:09] The economic benefits of multifamily real estate investments
• [06:10] Why Calvera’s invests in out-of-state properties
• [08:09] Challenges and opportunities in today's real estate market
• [11:24] Calvera's strategic shift to lighter value-add deals
• [13:21] The advantages of Calvera's fund model for investors
• [24:43] Trends reshaping the real estate landscape  
• [31:18] What investors can expect from Calvera's fund performance

In this episode…

Building wealth through real estate may sound simple, but navigating constantly shifting markets, interest rates, housing trends and property features to build value and generate income requires professional insight. So what are some best practices and bright spots in real estate investing?

According to David Saxe, a seasoned real estate investor, multifamily properties remain one of the most stable and rewarding asset classes despite economic challenges. He highlights the importance of capitalizing on supply and demand imbalances, identifying distressed investment opportunities, and investing in growth markets. By focusing on value-add properties and leveraging innovative financing strategies, David demonstrates how thoughtful execution can transform underperforming assets into consistent income-generating investments. And how building an investment fund can provide additional flexibility, leverage and ability to take advantage of opportunities in a competitive market. 

In this episode of the Pillar6 Podcast, Roman Polnar sits down with David Saxe, a Co-founder and Managing Principal at Calvera Partners, to discuss building wealth through multifamily investments. David shares his journey from small-scale Bay Area properties to managing large multifamily funds, explains why out-of-state markets present unique opportunities, and offers practical advice for individual and professional investors.

Resources mentioned in this episode:

• Roman M. Polnar on LinkedIn
• Pillar6 Advisors
• David Saxe on LinkedIn
• Calvera Partners: Website | LinkedIn | Education
• Fannie Mae
• Freddie Mac
• The Count of Monte Cristo by Alexandre Dumas

Quotable Moments

• "We've perfected our business plan, and now we predominantly buy 150-300 unit apartment buildings out of state."
• "Everyone loves cash flow. Apartment buildings, if you buy them right, provide very nice distributions to investors."
• "Interest rates have a massive impact on my business, directly affecting what you pay for property."
• "Real estate is a hard asset. It is a long-term investment, not something to quickly flip."
• "It's a crazy time that we're in right now, but I'm much older and wiser, having gone through a lot in the real estate market."

Action Steps

1. Diversify your capital sources: Building a diversified investor base, including individuals, family offices, and institutional partners, ensures stability and access to funds even when market conditions fluctuate.
2. Focus on asset management skills: Prioritize honing your asset management skills, as this is critical in overseeing property managers and handling the complexities of real estate investments. 
3. Embrace geographic diversification: Consider expanding real estate investments beyond your local market to capitalize on growth opportunities in high-demand, landlord-friendly regions. 
4. Stay educated on market trends: Regularly engage with industry publications, networking events, and expert discussions to stay informed about interest rates, supply and demand imbalances, and regulatory impacts. 
5. Adopt a long-term investment perspective: Real estate is a long-term investment that benefits from stable growth and tax advantages.

Sponsor for this episode

This episode is brought to you by Pillar6. Pillar6 is a wealth advisory firm for successful individuals and families with active lifestyles.

Our clients appreciate having clarity and control over their finances and the peace of mind in knowing that their financial decisions are aligned with their core values, goals, and priorities. We provide financial planning services and wealth management services.

Schedule your complimentary discovery call to talk to us.

To learn more, go to www.pillar6.com or you can email us at hello@pillar6.com.