Spencer Hilligoss worked a full-time job in technology so he opted to invest passively in real estate. Starting with a duplex in the Bay Area, then turnkey rentals in the Midwest, before focusing on passive apartment syndications. Spencer managed to work his full-time job and invest passively until he was earning enough from his passive investments to become a full-time real estate investor. Spencer and his wife Jennifer are partners in over 5,000 units, valued at over $600 million. Now, he has launched Madison Investing to help others invest in multifamily.
Key Takeaways:
- Exposed to real estate at a young age as his parents were in real estate. Worked open houses as a kid, made him run to the technology field
- Quit his technology leadership career right before Covid19 hit and is a passive and active full-time real estate investor
- Worked at LendingTree and learned how much investors make on deals piqued his interest in REI
- How he found his first rental property in 2016 and pulled a ‘newbie” move that didn’t give him the cashflow he wanted
- The importance of underwriting skills
You can build the perfect plan, but success comes down to the operator
- Understanding the 3 pillar framework of analyzing a market: Team, market and deal
- Why deal analysis should include more analysis about the “who” in the deal
- Why Spencer invests in multifamily properties vs. turnkey properties
- The best question to ask a sponsor operator to gain valuable insight into their work ethic and business values
- Evaluating risk factors in a deal
- Spencer answers today’s biggest question: Why should I invest in real estate during COVID19?
- The challenges of investing and running 5000+ units
Bullseye Tips
Apparent Failure:
The way we conduct ourselves in business when times are bad, is when your true qualities shine through.
Digital/Mobile Resource:
Syndicated Deal Analyzer
Most Recommended Book:
Rich Dad, Poor Dad by Robert Kiyosaki
Daily Habit:
Calendar blocking
Wish I Knew When I Was Starting Out:
Understanding goal setting on cash flow
Current Curiosity:
Education within the real estate sphere
Best Place to Grab a Bite in Alameda, CA
The Tavern
Contact Spencer: