The LSCRE Podcast

"Buy when there's blood in the streets. Be greedy when others are fearful." We’ve all heard these sayings, but living through a full market cycle proves just how tough they are to follow. Take Peter Lynch’s Magellan Fund as an example. Despite delivering legendary 28% annual returns from 1977 to 1990, the average investor in the fund actually lost money. Why? Because they chased per...

In this episode of the LSCRE podcast, Craig McGrouther and I dive into the excitement surrounding the upcoming LSC Summit! We break down the fresh new format, highlight some of the powerhouse speakers, and share what attendees can expect. We also explore the crucial role of talent and compensation in the investment industry, the real impact of profit splits, and why critical thinking is essential...

In this conversation, Craig McGrouther interviews Joseph Woodbury, the CEO and founder of Neighbor, a unique storage and parking marketplace. Joseph shares his journey from a traditional career in finance to entrepreneurship, detailing how Neighbor allows homeowners to rent out extra space for storage and parking. The discussion covers the vetting process for hosts, the flexibility of rental durat...

One of the most fundamental principles of investing is the relationship between risk and return. At its core, this concept suggests a positive correlation: the more risk you take, the more return you can potentially make. However, the key word here is can —because returns are never guaranteed.  Greater risk doesn’t just mean the possibility of greater rewards; it also means a greater dispersion of...

In this episode of the LSCRE podcast, Craig McGrouther and I discuss our experiences at the Best Ever Conference, insights on market trends, investor psychology, and the current economic landscape. We emphasize the importance of understanding market cycles, the resilience of multifamily investments, and the need for investors to adjust their expectations in light of current conditions. Learn more...

In this episode, Craig McGrouther interviews Garrett Nondorf from Flagship Capital, discussing his career journey, the unique operations of Flagship Capital, and their investment strategies. They explore the challenges and opportunities in the current real estate market, particularly focusing on debt and equity funding, and the importance of strong property management in secondary and tertiary mar...

In this episode, we are joined by Sam Morris, Partner at LSCRE to talk about the Houston real estate market - how it's grown, why people are moving there, and what makes it a great place to invest. Our discussion covers how Houston evolved from an oil-dependent economy to a diverse, thriving hub with a strong corporate presence and a unique cultural landscape. We analyze supply and demand tre...

In this episode, Craig McGrouther interviews Luis Frias, a real estate professional based in San Antonio, who shares his journey from being a licensed real estate agent to becoming a multifamily investor and owner-operator. They discuss the current state of the real estate market in Texas, focusing on the challenges and opportunities in cities like Austin, Dallas, Houston, and San Antonio. Luis em...

This podcast episode discusses the recent merger between LSCRE and Sunset Capital, highlighting the organic nature of the partnership and the benefits this merger brings to investors. In our conversation with Sam Morris, the newest LSCRE team member and partner at LSCRE, we explore market insights, investment strategies, and the cultural alignment between the two firms, highlighting the importance...

In this episode, Craig McGrouther and Randy Smith discuss Randy's journey from corporate sales to real estate investing, the current market dynamics, and the importance of due diligence and operator selection. They explore the challenges and strategies in capital raising, the significance of diversification for investors, and Randy's coaching initiatives aimed at helping new capital rais...

I just got back from an amazing trip to Sedona after RaiseFest in Phoenix! Great hikes, pickleball, cigars, and, of course, plenty of real estate talk. One topic that kept coming up was exit cap rates.  Many investors default to widening their exit cap rate for conservatism but in today’s market, that strategy doesn’t always make sense, especially for value-add deals. Your exit cap rate should ref...

On this episode of the LSCRE Podcast, Craig McGrouther and I take you on a journey through some of our latest experiences and insights. We start with our trip to Sedona and our time at RaiseFest, where we connected with industry leaders, shared ideas, and picked up valuable lessons along the way. From there, we dive into some big developments in the real estate world, including Apple’s major inves...

In this episode, Craig McGrouther interviews Aaron and Jacob Thomas, founders of Twin Lux Capital, about their entrepreneurial journey from traditional jobs to raising capital in real estate. They discuss their initial foray into Airbnb, the transition to multifamily investments, and the importance of education and taking risks in entrepreneurship. In this conversation, Aaron and Jacob Thomas from...

Are you forgetting about recurring CapEx in your underwriting? How confident are you that your budget accounts for everything? The reality is, recurring CapEx expenses can sneak up on you, especially with older properties.  Things like appliance replacements, HVAC systems, and even roof repairs add up quickly. If you’re not factoring those in, your cash flow might take a hit. In this video, I’ll w...

In this episode of the LSCRE podcast, Craig McGrother and I discuss various topics related to real estate investing, including capital calls and dual tranche syndication structures. We explore the challenges of in-house construction and accounting considerations, as well as current market trends in multifamily real estate. Our conversation also touches on the importance of sleep for productivity a...

In episode, Craig McGrouther interviews Greg Gruehl, founder of Gruehl Capital Management Partners, who shares his unique journey into the world of industrial real estate. From his early influences and experiences during the financial crisis to navigating the COVID boom, Greg discusses the intricacies of industrial leasing, the challenges of entrepreneurship, and the innovative strategies his firm...

Capital calls are often perceived as a touchy subject in real estate investing.  Many investors view them negatively, associating them with financial distress and mismanagement. However, capital calls are not inherently bad; rather, their implications depend on context, execution, and purpose.  Instead of treating all capital calls as the same, it’s crucial to explore the nuances and evaluate thei...

In this episode, Craig and I are joined by James McCabe to discuss his creation of the Placement Fund. We explore the fund’s structure, investment strategy, and the critical role of risk management in today’s market. We also discuss the challenges of raising capital, the value of offering fixed returns, and the impact of fluctuating interest rates. Emphasizing a conservative investment approach, w...

In this episode, Craig McGrouther and Bradley Oliver, Director of Acquisitions at LSCRE, discuss the recent NMHC conference and reflect on the multifamily housing market in 2024. They review our acquisition achievements, the challenges posed by market volatility, and the cautious optimism observed at NMHC. Looking ahead to 2025, they outline our focus on deal flow, particularly in Houston, and hig...

I started tracking my sleep, stress, and meditation, and suddenly, they all improved.  Why? Because what you measure, you manage. This same principle applies to business, especially in multifamily real estate. Many operators say they want to reduce turnover, increase occupancy, or improve retention. But are they actually tracking their renewal rates? If you’re not measuring key performance indicat...

In this episode of the LSCRE podcast, Craig McGrouther and I discuss the complexities of fund management, particularly the pitfalls of chasing higher compensation at the expense of deal quality. We explore the importance of understanding sponsor incentives, the dynamics of cap rates in the current market, and the necessity of aligning interests between fund managers, sponsors, and investors. Our c...

In this conversation, Craig McGrouther and Adam Carswell dive into the evolution of capital raising, highlighting the shifting dynamics of investor relations, the growing influence of personal branding, and the critical role of strategic networking within the Raise Masters community. We explore proven strategies for effective capital raising, emphasizing the importance of authentic connections, lo...

What’s next for value-add deals: Boom or bust? For years, the value-add strategy dominated multifamily investing. Investors bought underperforming properties, made strategic upgrades, and increased rents to unlock significant value. But as more capital entered the space, competition surged, prices inflated, and true value-add deals became harder to find. At the peak of the cycle, deals were flippe...

In this episode of the LSCRE podcast, Craig McGrouther and I discuss various aspects of the real estate market, focusing on the fragmented nature of multifamily housing, the implications of Fed rates on the economy, and the importance of homeownership as a path to wealth. Learn more about LSCRE: www.lscre.com  

In this engaging conversation, Justin Moy shares his journey from a traditional upbringing to becoming a successful entrepreneur and real estate investor. He discusses the importance of taking risks, the desire for geographical freedom, and the lessons learned from early investments. Justin also highlights the significance of understanding market dynamics and the value of experience in navigating...