Buying Real Estate in California and How to Work with the Ultra-Wealthy to Syndicate Real Estate - The Moonlight Real Estate Side Hustles and Syndications Show | Lyssna här

At just 20 years old, Zihao Wang has made significant strides in real estate. 🌟 With degrees in computer science and finance from MIT and experience at Morgan Stanley, he now manages half a billion dollars in assets. His family transitioned into property investing after the 2008 crisis, and by 2016, Zihao was already managing their properties and learning about acquisitions and capital markets. 🎯

Balancing College and Real Estate

Zihao successfully balanced full-time responsibilities while building his real estate portfolio. 🏦 He credits a strong team of 10 for managing day-to-day operations, which allows him to focus on high-level tasks like acquisitions and investor relationships. His approach demonstrates how teamwork can facilitate real estate investments alongside a full-time career. 📊

Recent Acquisition: Downey, California 🌴🏘️

Zihao discusses a recent $20 million acquisition of a 90-unit property in Downey, California:

Finding the Deal: The property had below-market rents, presenting a value-add opportunity. 🏡
Underwriting and Financing: Zihao raised $7 million in equity and secured 65% of the deal through debt, adopting a conservative financing approach. 💰
Value-Add Strategy: Plans include renovations to increase rents and reduce operational costs. 🛠️
Exit Strategy: Aiming for a 3-5 year hold to boost net operating income (NOI) before selling or refinancing. 📈

Navigating Tenant Laws in California

Zihao highlights two key strategies for increasing rents in California's tenant-friendly environment:

Rent Control: Targeting properties with low rents allows for gradual increases post-renovation. 🏘️
Tenant Screening: Rigorous checks ensure reliable tenants, reducing payment and eviction issues. 📝

Key Insights for Investors

Build a Strong Team: Delegation enables focus on growth. 🛠️
Leverage Partnerships: Collaborating with fund managers can accelerate business scaling. 🤝
Understand Your Market: Knowledge of local laws and conditions is crucial for success. 📊

Moonlight Coaching Round: Zihao’s Tips 🌙💡

Know Your Deals: Understanding underwriting is essential. 📊
Time Management: Adopt a "work hard, play hard" mentality. 💼⏰
Start Small: Learn from professionals and build a knowledge base. 🛤️
Invest Passively: Real estate provides inflation protection and strong returns. 💰🏢