RCRE – The Great Debate: Development vs. Multifamily with Sam Bates

Dylan Marma and Mike Taravella interviews Sam Bates who is a Principal of Trinity Capital Group.

City dictates the developments due to zoning, permits, and plans approved
Labor rates have been rising but has found material costs to decrease due to strategic partnerships
Sam looks to exit a property when syndicating in about 5 years
However, when working with a few investors he likes to hold indefinitely
Trinity Capital differentiates itself by systematizing and develop their niche in development
Be flexible and adaptable as a real estate investor
- Sam traded a plot of land for a RV park
Developments focus on IRR and Cash on Cash Returns, instead of cap rates
Most recent development Trinity is targeting a 5 year hold and 30% IRR
HUD loans require longer periods to process so always have backup and options
Investor paradigm for development deal: It takes 2 years to build and is generally a longer hold period compared to multifamily acquisitions
Multifamily Acquisitions
- Pros: You know what you are getting
- Cons: So competitive in the market
Always add value in a relationship
Expert Pro Tip: Always continue to learn with books, podcasts, and your network

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