Episode 8 of Offshoot brings forward one of the “young guns” in the founding partner of Trion Properties, Max Sharkansky.
Trion is a value-add investor that finds mismanaged properties in top growth markets which they can turn around. Their historic focus has been the West Coast, though that has recently changed to include the southeast.
Max oversees all aspect of Trion’s business from acquisition, disposition, and property management to capital raises from lenders and equity partners, as well as the creation and management of their internal, discretionary, funds.
Since Trion’s 2006 founding Max has been involved in over $700MM of multifamily business, as a principal, and has captured average IRR returns that exceed 30%. Their equity funding comes primarily from a large roster of private investors that has grown organically as a result of years of success and word of mouth. At present, the firm owns 2,500 units, has 600 investors, and is on track for 10,000.
Max crushes it. He is the kind of guy that gets people saying “Man, what am I doing wrong with my life!?”
We go deep on some of the specifics of the multifamily space, and Max does a good job of portraying what it takes to execute at the highest level. He’s also got some great insights into personal performance, mentors, and relationships.
Listen for some of the highlights:
- Own real estate for the long term. Period.
- Trion bought assets right through the heart of the COVID pandemic by assessing the downside and staying committed to the long term, while others balked.
- You make the money on the buy.
- Do not over-leverage your holdings. (See what kills guys and don’t go there.)
- A reputation of “do what you say” and being easy to work with garners a lot of good will and brings acquisition opportunity.
- Why vertical integration with an In-house management and renovation team provides a competitive advantage.
- Hire the top talent and pay up for it. You might just reduce headcount by doing so, and you’ll get what you paid for. “Pay peanuts, and you get monkeys!”
- How crowdfunding improved their business and network.
- Get a mentor: it is smoother, more fun, and your career will be better.
- Think long term on all decisions and be more that fair with what the short term might ask of you.
- Take care of your health. It all starts there.