Episode – 23

Real Estate - Opportunity Zones, Covid-19 Effects, Tax Benefits

Description

Jay Soave is a Managing Principal at Cadence Capital Partners, LLC. He is responsible for raising debt and equity for real estate projects nationally. He is well versed in all asset classes, including those in opportunity zones. Jay has structured, negotiated, and closed sophisticated transactions for 16 years, representing over $15 billion in gross value. He specializes in JV structuring, Opportunity Zones, and REIT taxation.

In this interview, Jay goes deep into many aspects of the real estate market. He talks about the tax benefits of investing in real estate. He shares his due diligence process when looking at multi-family properties. He talks about opportunity zones. He discusses how he deals with failures and setbacks. He talks about Covid-19 and it’s effects on the Real Estate market. He shares his secret sauce for building a database of high net worth investors. If you have an interest in Real Estate this interview is a must see!


What You Will Learn
- The Future of Opportunity Zones
- Building a Database of High Net Worth Investors
- How Covid -19 has affected Real Estate
- Multi-Family Real Estate Metrics and Due Diligence
- and much more


Connect with Jay:
LinkedIn

Full Transcript

JP Maroney:

Well, greetings and welcome to another edition of the deal flow show. I'm JP Maroney, your host, along with my cohost, mr. Paul Nicoline from here at Harbor city capital. And we've got Jay Solvay on the show with cadence capital, and I'm want to jump into real quick. And I've done a little bit of research talked to you, uh, in advance through our team and want to learn a little bit about how you got started in the capital markets. And then we're going to kind of dive into big inside your knowledge of how you put deals together, your process for vetting things and what the deal breakers are, what the deal makers are for you. So, Jay, let's go back a little bit and talk about how you first got started in the capital markets. Yeah, so, uh,

Jay Soave:

A bit of a unique route. So again, thanks for having me to, uh, enjoy being here. So, uh, I was an attorney for 17 years, um, and, uh, had always had an eye on doing something different. And, um, my, my goal was to get into something and the private equity and the VC side of things always been a deal junkie my whole career. And, uh, in 2009, I got a job in New York city at a Tishman Spire, a pretty large real estate, private equity fund, and working on all sorts of transactions. Uh, they had done a lot of fun work, but uh, really started to moving in the one off joint venture type, um, developments and acquisition platform. And so basically that's what I do now. And, uh, through the course of that, I was always looking for a, you know, an opportunity to try to do something more on the business side. And when my partner in very long time, friend Michael Bennett started to think about starting an equity arm for a cadence. Uh, we continued to talk, I mean, we have been talking for for years anyway, and it was the right time. And so, uh, jumped ship in, uh, the beginning of 2018 to join him in building the platform further. And it's been a fun ride.

JP Maroney:

So when you make a big shift like that, after having been on a career path, the way you were, what were some of the biggest ahas or things that you didn't expect coming in?

Jay Soave:

Well, I think one of the biggest things is just, uh, there was, I will be Frank. It was a lot of fear of frankly, I've done this before. You know, I had went from a, a position where I was a passive, you know, things came to me and I dealt with them and certainly working in house was better than, you know, in my view, uh, at a law firm, at least then I had more control. I saw things from beginning to end. It was kind of my show to run things, but, uh, still wasn't really called on to kind of go out there and make it for myself. And so, you know, leading up to the time when it actually, I was a little bit petrified. Um, but, and, you know, I think when I first started, I was probably terrible. And, uh, but over time, what you just learned is that, you know, you put in the work you put in the time you make the calls and you get better and you get better. And, uh, the end of the day ends up, you look back and it's like, this isn't scary at all. This isn't a problem at all. And, uh, you know, I'm very glad that I did make the move. I've got a great boss.

JP Maroney:

Is there a specific area of the real estate that y'all gravitate towards? And then how have you seen that effected by this COVID post COVID?

Jay Soave:

Yeah, so we are, we are asset classic agnostic. Uh, that being said, uh, and we'll do acquisition deals and development deals, but generally we're, we're seeing most of our work is on the development side. And, um, today it's probably primarily multifamily and economy is the biggest asset class anyway. Uh, so those are probably where I spend the most time, both pre and post COVID. Uh, we also do opportunities though work too, but excuse me, it's not exclusive. Uh, it, it really was. I, I left it out and I was a tax attorney for those 17 years and in house. And so kind of when this came about, I just saw that it was a very, very powerful program and we should, should get involved there. Um, and it kinda really played into our strengths of our database and how we run our process. We can talk about that later.

Uh, so we do that to a COVID has affected a lot and, um, it really hasn't changed our focus all too much, other than continuing to be selective at our process. Uh, we, we, we have a screening tool that we put together with the MBA students from the university of Michigan. They have like an internship program that they're all required to take, uh, that helps us to look at the factors that capital finds important. So we connected them with some family offices and investors and developers give him a crash course and then sent a survey out to our sponsors to help us weed, these deals out, uh, because we work on a contingency basis and, uh, I don't want to work on things I'm not going to get paid on. So, uh, but that also helps us to, to make sure that we're taking on deals and we're beating up deals before we take them out.

We don't find the landmines three months into it, four months into it. And I think what's happened today in the postcode world is that there are groups who are, you know, kind of sitting out, waiting to see what happens because they think maybe there's going to be more trouble coming. Uh, you haven't seen a lot of it yet. Uh, and that might just be a factor of, there's been a lot of government intervention, like while you can't kick people out and you can't do this. Um, and we'll see what happens with that. And there's certainly been a lot of fiscal stimulus to date, you know, what happens in three or four months from now, and that doesn't take, I'm assuming that will take place, but, uh, regardless of what happens and, um, and so it just caused a big upheaval. And so people are just being, either sitting on the sidelines, waiting for the other shoe to drop, um, coincidentally, that's what happened in April.

They're like, Oh, well, you know, it's fine in April, but may even be worse than it ever did now will amaze fine. Maybe June is going to be worse than never did. Um, so it's been pretty resilient to some extent, but people are much more cautious and there's definitely a preference for existing product compared to development product. There's, uh, certainly multifamily and industrial are more preferred. I mean, hotel and retailer kind of a mess right now, retail is already a mess. It's just more mess. And, uh, office is the big unknown. And because it's a big unknown and how it's gonna play out, it also is not getting a whole lot of traction. And so, um, at the end of the day where we're just concentrating on the things that we think people are going to be interested in, and that's multifamily and industrial mostly so matter medical office as well.

JP Maroney:

You talked about office. Yeah, I saw the other day, I think it was California, an article I was reading about where they were dumping massive amounts of sublet office space into the market. Um, that certainly we've seen it. I mean, you're coming in virtually with us, whereas we would love to have you here on the set. Um, lot of people are figuring out that they can do business remotely, where it was an option before it became a mandate. And now I think many, many people will never go back to the way things were before. Um, incidentally, if you're watching or listening to this episode of the deal flow show, you can get access to our archives, our previous episodes, as well as our future episodes and subscribe and follow us by going to the deal flow show.com the deal flow show.com. Jay we've heard from many of the past guests about the jobs act. So we know that that's also impacted Caden's capital and maybe specifically, any opportunities zones you want to tell.

Jay Soave: 

Sure. So, um, so I say I do, I have a little bit of a deep inside knowledge. I mean, real estate has always been a very, uh, generous tax investment for investors. There's, there's a number of provisions that, uh, you can, you can defer recognizing income using depreciation and other methodology. So as great advantages, you can do tax planning for generational transfers. There's a lot of things there that are, um, you know, very, very detailed, but they're there. Uh, and, and when you say add the opportunities zones onto it, but basically where you can invest capital gains of any sort into a project, defer paying taxes on those for a number of years. Uh, and then once you, if you hold that asset for 10 years, you don't pay tax when you sell it, that's pretty, pretty powerful. And all the other stuff that already applied to real estate still applies to so that you don't lose out on those other benefits at the same time.

Um, and so I think, uh, it's continuing to be, and will continue to be something that people are interested in. I think what's happened to some extent was there was this idea in some people's minds that, Oh, opportunities zone I can charge, or I can, people will pay more for something. And so I, my returns don't have to be as strong from a sponsor perspective, and that has not played out to date. Uh, people are very cautious. They want to make sure that the real estate is a good, strong deal on its own, regardless because tax benefits don't matter if you have a loss. So, uh, they're, they're very concentrated on it. And people, people really are starting to gravitate more and more to it. It just it's complicated and it's not for everyone it's not for just jumping off the shelf and saying, you're going to learn about it because there's as with anything in tax, unfortunately it gets very complicated, very fast

JP Maroney: 

Bookends in terms of size of deals, smallest to the largest, and then kind of what is y'all sweets?

Jay Soave: 

Well, sure. We usually don't go below 10. We've done certainly a couple of sevens or eights on the equity side of things. Uh, and then on the larger side, you know, I like big deals. I'm, I'm used to big deals. So we're working on a couple hundred million dollar projects. I think we prefer typically to be in the 15 to say $30 million range. I think that's primarily because that's where the bulk of our capital resides. We have family offices, uh, private equity funds, big smart, small, large banks, insurance companies, et cetera. And it just kind of that range overlaps a lot of those groups. And so, um, again, from, from our standpoint, we want to take on deals that we think are going to have a high likelihood of being financed. And so like to play in this space where there's the most, uh, you know, arrows issue

JP Maroney:

Y'all are raising the equity for the projects.

Jay Soave:

Yeah. We raised it. We raised equity, we placed debt. I don't want to say that we don't do that. I mean, that's what my concentration on the equity side, but we have a whole debt team as well, uh, can do pres mez, construction bridge, whatever it might be. But, uh, on the equity side is, which was my specialty and the bulk of what my firm does. We're looking to find that single bullet investor to take 90% typically of the, of the common equity in the deal.

JP Maroney:

And are you selling it based on the tax strategies? I mean, does that come into play in your deal, making process, that background that you have?

Jay Soave: 

No. Um, on occasion I do. And maybe I did, uh, more when I was first getting going, but not, I don't even bring it up really at all. So Jane, let,

JP Maroney:

Let us understand that you look for a single

Jay Soave:

Check writers. Is that what you said? Yes, sir.

JP Maroney:

On the capital stack, when you're looking at let's, let's take a $50 million deal. How much of that is going to be equity?

Jay Soave:

Uh, typically 35%, 40% these days, uh, there, it was starting to creep up where you could get more pre COVID. Um, one of the things that's happened is that pretty much overnight the, the banks themselves have really cut back on lending. I think they're lending to their relationships. So, you know, like a bank of America type bank and the local banks. And then, um, on the, um, I think some of the debt funds got got hammered. Uh, and so, uh, leverage has come back down and people are being very conservative. What they're lending on, it's getting better. I mean, may compare it today is night and day, but it's still not anywhere near what it was six, nine months ago, whatever it was,

JP Maroney:

You played with your background, sorry to talk. You played a different role, as you said, with your legal background in the beginning days before making this shift. But you know, today, I guess, but I would be willing to bet that you take a different approach to vetting bills than the average bear because of your legal background, but when you're looking at deals and vetting deals that that pre deal making process, can you walk us through how you think the mindset, the process, maybe some of the steps.

Jay Soave:

Yeah. So I think the first thing we want to do is we're going to take a look at, we like to get dirty, uh, in. And so if there's something that's put together, that's great. As far as like an offering memorandum, we usually create our own, got our own ideas on how that should be done and, uh, what, we're, what we're getting the Excel underwriting. And we're going to go through that and we're going to beat it up. I would want, I want to make sure that investors expect to see things in a certain format and certain things are done on a monthly basis as opposed to an annual basis. Um, we have like a three year deal. If you do something annually, you get a much different answer when you do it over what might be 40 months anyway. Uh, so put it into a format that makes sense.

And then we're going to I'll use multifamily. Everyone, every deal has got their own kind of metrics, but multifamily. So what are the rents where, you know, how do those compare to market rents? How fast are you leasing this up? Are you, are you increasing rents during the construction period? How much, uh, where, where are you seeing, uh, exit cap rates and how does your exit cap rate compare? And then lastly, one of the big things that people focus on is the, the Delta between, uh, your exit cap rate and your yield on cost. So, um, what's that spread and they one and a half is a, a good, good rule of thumb. It's a little bit tighter in major markets. It's wider in not so major markets.

JP Maroney:

Yeah. To that point too. There's a lot of moving parts when the deals are being made, what are some of the red flags, or what are some of the deal breakers for you and for Kayden?

Jay Soave:

Well, I think sponsorship is important. I mean, it's, it's always been important and now I think it's even more important. I think that this is something that's pretty subjective, but you know, you always kind of get a feel for things or, you know, there's, if there's some kind of game playing going on or something that usually starts to not sit very well, um, from us, I think there's, there's usually should be a story. Uh, there should be a good geography, I think is one of our first things. If it's going to be outside of certain geography, probably not even going to look at it. Uh, and then the returns, we just have a certain return expectation in our mind where we think things should be today. And if it doesn't hit those, those, uh, initial benchmarks on our first pass, it's probably, you know, it's out. Um, and then where there could be landmines after that, it all everywhere just gotta be deal specific.

JP Maroney:

Anything else about the opportunity zones that you can share? I know that's been a big topic. There's entire conferences and events around it right now, where you see that going over the next few years.

Jay Soave:

I think it's going to continue to grow because it's really in the first, maybe it's in the second any now where at first people didn't understand it, uh, that it was a it's. I mean, it's a whole brand new, um, branch of the tax law, frankly. And when you typical tax stuff, not to get too, too nerdy about it, but they develop over 10, 20, 30, 40 years. I mean, I, my whole job was full time to figure out how to deal with tax rules that have been existence forever. And, and so that's the amount of complexity and I would, and we continually find in every person in that field finds gray areas all the time. So you can imagine when you have a whole new set of venue of everything with all these new rules of details, that again would falls off very quickly, high level.

It's very easy, but devil's in the details. Um, that's very hard to get your arms around and get comfortable with things, especially when you're talking about potentially get a single check writer for $40 million, the tax counts, cause it's going to be significant, bigger, even more. So people were getting very cautious because they didn't know how these things were going to play out. And then over the course of 2000, 19 more and more stuff came out, got people or comfortable. And now you're starting to see that put into practice where like, okay, we have a lot of the things taken care of. We are a lot of the questions, um, solved. Now let's go find deals that that makes sense. And I think that the, the market is maturing to the point where there are less of these deals out there, I think, or I haven't seen them any as many lately that are just pie in the sky type things.

Um, and I don't want to listen to any of that because it might be obvious, but you know, some of the things I've seen were just insane and it just went insane. And I just didn't understand. And sometimes like who thought they were a good idea, uh, and how they convinced themselves to spend time doing it, but you know, that continued to happen. And what, and what that happened to do too, was to turn a lot of people off from the investment side, because, you know, if you're sitting there, you're at a family office and you've got a lot of money to manage, and every time you get an opportunity zone deal with some crazy project that doesn't have any basis for reality, or the return expectations are just, you know, not realistic for someone who wants to make money, uh, you just kinda like get jaded to it. And I think that as that has died off and people have maybe done a deal, know someone who's done a deal, you're going to continue to say, okay, this is a good program. There are good opportunities out there. I should be looking at this and it's just going to continue to grow.

JP Maroney:

Other than the obvious, um, simplicity, maybe of having a single check writer. Why did cadence decide to go down that path? In other words, why is that your choice for raising the equity?

Jay Soave:

I think it's the simplicity and really, I mean, it's my comfort zone. And it's really where I think we spend a lot of time finding and harvesting investors. And we're looking to find people who are sophisticated and who can interface with, um, with the sponsorship group. We can do a lot of them, uh, because our, our database is very diverse and large. I think if you were to go down the path of finding a hundred thousand dollars check writers, you've got to amass a pretty substantial database of those you'll will take a very large amount of time. And I think at some point, unless you get to a pretty, really substantial number, it's going to impact the number of deals that you can do. Because obviously, even though you have a very large database, there's only so many deals that certain people will do. And obviously the check size might be bigger, smaller. And so your capacity will be constrained. And that altogether, I think that's really the primary reason.

JP Maroney:

How have you, and this may be secret sauce. I don't know, but how have y'all built that database? It's one thing to compile a list of potential targets. It's another thing to have a relationship with them to get in the door as well as to persuade them that, that it makes sense for y'all to be a part of the project. So what's been y'alls process for building that, that network and that, that database,

Jay Soave:

I think the secret sauce is hard work. Uh, and, and you're right. We have, I have two jobs. My, my one job is to find clients and execute on the deals for them. But my other job is to find other capital sources too. And so it's a background process that's happening, uh, both in connection with the deal and just passively and identifying people who we want to want to target. And so that, that could be from connections with other, other capital sources. We have a reading articles and you're like, well, who's that group I've never heard of them before. Um, and just general digging around you, you learn more and you find out other groups and then you do the hard work, which is trying to get ahold of them. I mean, a lot of our time we spend a particular on the family office side.

Uh, it's a hard, it's a hard, uh, cabal to kind of break into, but, you know, you spend the time because it's worth the energy. And as you do the, how did you do more deals with those, those, uh, types of groups, the more they're open to conversations with you and introductions to you. And so it's just, it's just part of the grind. And, uh, you know, it's, it's a good way to get those minor victories on a week to week basis where you, you get there and group you've been trying to get in front of it for six to nine months, and then they finally like, all right, let's, let's talk. And, um, part of it, and then obviously maintaining those relationships. But what we try to do specifically is we want to make sure we understand what everyone wants. It's not that I just know that this group is out there and they have money.

I want to know what do you want? Where do you want it? What's your risk profile? What's your check size range? What asset classes are you interested in? So that when there's an opportunity, I send them something they want not so that what we're trying to avoid is sending them a whole bunch of things they don't want so that when my email comes in, they just delete it. Um, I think some of our competitors have a different tactic and they just blast blast, blast, blast. And, you know, I don't, I don't want to hobby lobby in Tulsa. So, um, you know, there's, maybe there's a good deal, but you know, you just kind of get to the point where you're getting these emails that you might not want and you just get numb to it. So everything is really done to preserving and maintaining those relationships with capital, send them deals that they want send them deals that we've vetted, send them offering memorandums that are direct straight to the point. Here are all the things that you need to know, whether you want to talk about this further on page two, not at the end of this thing. After reading cruising through 50 pages, Oh, there's a tenant can kick out in two years. It's like the whole thing, like all of it done with a view to making sure that they're happy and continue to just answer our emails,

Paul Nicolini:

Uh, J outside of the opportunities zones, give us a 30,000 foot view of where you see the real estate market going. And then where does cadence capital fit into that scenario?

Jay Soave:

Sure. Uh, I think the, the easy part we fit in is that, um, when things get hard, we're, we're, we're a good group to know. We have a lot of relationships on the capital side with people who have money and are looking for opportunities and it's always about, and it really helps to know what you want. And when we spent a month, two months in April, may talking to probably four or 500, 600 different capital groups to understand, and banks and lenders, what do you want? What do you, what is it, what are you doing right now? So that's how we reacted to it. And so now when I have things that might be a little bit outside the box, or a distressed opportunity, I know some of the groups that want those. And so I'm just going to send it right to them. And maybe, you know, that's how we get really good at our job.

When we see opportunities where it's like Idaho wants that that's this group, and you could be very efficient with your, with your job. Um, and then, you know, as what's going on in the world, I think you're going to continue to see industrial being gangbuster. Uh, it's just, it was before COVID happened. It's even more so now I knew a group that was under contract on five or six deals in a portfolio pre COVID, dropped it in. COVID what it, 10% higher pricing after COVID kind of hit. So it just, it's on fire. You're going to continue to see, I think multifamily will continue to do well. And I think people are going to make some, some good bets on the office side and the retail side and the hospitality sites. It's not all going to fail. And, and I personally believe that office is going to come back, um, or maintain or whatever it is.

To some extent you're going to have maybe people want more space. There was a group that was, uh, just an Elise in Chicago, and one of the biggest things that they wanted to triple their size, I believe. And, uh, one of the reasons why they triple their size was because they wanted more space for the people. And maybe that becomes a theme where it offsets some of these people working from home. But I also believe too that, uh, the office has a go way because of the collaboration element. And maybe it doesn't isn't necessary for every job role, but when I certainly did transactions and when I was an attorney, I can't, I can't count how many times I would just quickly go down the hallway to get an answer on a question and, or sit in my boss's office for three hours, pounding through something.

That's very complicated trying to get to the bottom of it, where that is best done internally. And then in a collaborative environment together, or another way where you just go down the hall, you would talk to your body and you say, I'm working on this deal. And I got this thing and he's like, Oh, well, you should call this guy. Or did you think about this and takes that thing in a whole new direction? And I'm talking about transactions, but I think that's one of the reasons that you're going to continue to see them in the tech world. Facebook has been a doubling down. They basically said this during the first, during the great recession, they were like, well, what we're going to do is we're just going to get more space at a cheaper price. And you're seeing them do the exact same thing today.

They're just going to get gobbled more and more of that space, because that's what they see. And if Facebook is doing that, everyone's going to be doing that. What I also find is that it's hard to train people. And how are you if you're a small business, maybe four or five people. Sure. If you've got like Google hires, 20,000, 30,000 people a year, how do you train those people if they're all over the place. And then lastly, I think from a productivity perspective, I was a young guy. Once I know, I know Paul for personal income, he was like, man, who likes to have a good time? And, um, you know, did you want to have a 21 year old Paul? And just said here, no, here's eight grand, you know, check your monitor. I don't think that's really a very productive use of people's time. And so the small cost of real estate compared to having to train and bringing new people, we're finding people the work efficiently, uh, just doesn't, doesn't justify the work from home experience. And so I'm just a believer that it's going to continue to, uh, uh, it's going to come back or stay or whatever you want to call it. Maybe it was some tweaks here and there.

Paul Nicolini:

Did I hear him right? Was he throwing me under the bus? I don't know. I was looking at you. You look like a guy that's partied too much.

Jay Soave:

No, we did have a good time. The guy, man, Paul, Paul's a man.

Paul Nicolini:

Uh, Jay, tell us though, how not everything goes. It goes up and not everything goes your way. How does cadence deal and maybe yourself as well? How do you guys deal with failure?

Jay Soave:

It's inevitable. I mean, I think that's a good thing too to ask. I mean, what, so when I was first starting, I was another thing that was, I think hard for me to, we're getting into this type of business. It's a, is you try not to get too emotionally invested to, to say or may. And I mean, another one you don't, you know, you don't spend the, the, the checks before their cash kind of thing. And, um, you know, cause it could, you just don't have control at the end of the day. I don't have control over any of the decisions that the capital groups, I introduced two deals, what they're going to do. And you could show a deal through a 50 different people that have 50 different reasons why they don't like it. And, and so the hardest thing to do is just to kinda like take a very boring, just stable approach to everything and just know that, you know, it's, you're doing everything that you can and once I've done everything, I can, I start going and look for other deals to work on things to other work on, to occupy my time.

So I'm not sitting there just, you know, lamenting about it. And then if that negligible disappointment happens or this thing that, um, you know, it comes out of left field happens, you know, kind of looking like that's a little ridiculous thing I've ever heard. I can't even understand this then because I haven't gone and invested it. Um, you know, you get over it, you know, maybe two years ago, three years ago, that would have been like, you know, a couple of days I needed to recover. Now it's just like, this is absurd. And, you know, just you get thick skin for sure.

JP Maroney:

Fair enough. You know, when, when you think about failures or what I call learning experiences, uh, learning opportunities, you're looking in the past. I want to look into the future in just a moment, but if you're watching or listening to this episode of the deal flow show, you can get access to our archives, all of our previous episodes, as well as get access to our future episodes by subscribing and following us@thedealflowshowdotcomthedealflowshow.com. All right, Jay. So here's the question for yourself personally. It could, and I'm going to open it up just a little bit. It could be professionally, um, or personally, are there any unmet or, um, unattained as yet goals, things that you're still reaching for that gets you up and gets you excited in the morning?

Jay Soave:

Oh yeah, for sure. I mean, I think it's, uh, I enjoy the hunt. I enjoyed the chase, so that's always, always there, but, uh, I think it's continued to grow. I mean, I do look back, uh, from where we were to where we are today and, uh, I am very happy and very impressed. We've, we've, we've come a long way in a short period of time. We've come to be an effective source for, for, for doing something. That's very difficult on the equity side of things, and I'm very proud of our people for what they've done. And, um, and I think that, that the, the sky's the limit for growing that team further and growing on our platform further, we want to, uh, we're we're, we're in hiring mode, we're looking for a future investment sales people. We're talking to you there, we're talking to, uh, additional debt people. We could always use more leverage there and selectively on the equity side tail, and then finding creative ways to continue to find more of these great relationships that we have. Um, always on some other goal, but, uh, growth, growth.

JP Maroney:

Speaking of hiring more people to bring in more people on the team, it could be that, or it could be other resources here at the Dell flow show and then our own networks, professionally. Obviously we know a lot of people, we built a big network. What are the kinds of people that you would love to hear from as a result of seeing, or hearing you on the show, um, project-wise or potential team members, what are the kind of people that you would like to hear from?

Jay Soave:

Well, I like good people first and foremost. I think that makes everything more enjoyable. To be honest with you, time is short. I don't really want to, you know, I didn't do this and come and do this thing just to, just to make money. I don't want to work with a-holes. Uh, and, uh, life's too short for that kind of thing. So good people on the client side. And certainly that's, it's really, that is probably a gating issue. On our side. We have, uh, 15, 16 people, total, everyone gets along, everyone has a fun relationship with each other. We have annual, you know, we had annual retreats where we'd go out. We would usually go to Denver or the mountains or whatever, and hang out. Everyone has a good time. I mean, it's just like this, you know, got some, some terminology that I use, maybe it's not appropriate for here, but, uh, you know, it's like, Nope, no jerks policy and that's pretty, pretty solid. And then from there, it just depends on the role, but we're looking for people who have experienced the real estate world and they're hustlers because this is not a business for you waiting for things to happen. You got to get out there and grind it. And, uh, that's not for everyone. There's a

JP Maroney:

Rule or a quote. I use a lot of times, it's the law of emotional gravity, the law of emotional gravity States, that one negative person can pull down five positive people, but five positive people can't pull one negative person up and don't hire them to begin with if you can. And if you get them, get rid of them quickly, because they can destroy an organization, destroy morale, destroy your ability to do deals, uh, ruin relationships with potential clients, or as you said, equity sources, and definitely get all the negative people out of your life and out of your company as quickly as you can. And I'm not looking your way for anything.

Paul Nicolini:

I was just going to say, I can attest because his partner, Mike Bennett is a super guy, so I'm sure you guys got to go on over there at Katie's capital. Uh, uh, Jay, tell us something that maybe the audience or our listeners, whatever it wouldn't know about, uh, yourself,

Jay Soave:

Otherwise they want to know all the big names of Michigan fans. They might know that me and my partner and a few other guys own a house in Arbor, three doors from the stadium. So, I mean, I'm personally, I'm a, a big, like more Thai guy did that for 10 years. So, uh, love to do that. Um, no fights professionally, probably not going to happen at this point, but, uh, certainly enjoy that, uh, big, big, uh, adrenaline junkie.

JP Maroney:

Well, what is the best way for someone to reach out to you? Is it a website, a LinkedIn, what's the best way for them to get into contact with you?

Jay Soave:

It is great. And then, um, our, our website is a cadence rec.com and my emails and a phone number up there. So please reach out. We'd love to hear from a capital liquor for deals, uh, people looking for opportunities, um, looking for, uh, equity sources and happy to help a debt sources of all too

JP Maroney:

Excellent. Jay Solvay cadence, capital partners, glad to have you on the show. And on behalf of my partner here in crime, mr. Paul Nicoline, I'm JP Maroney from Harbor city and the deal flow show team. If you're watching or listening to this episode and you're thinking, you know what? I know the perfect guest for the show, Hey, maybe that guest is you get in touch with us, go to the deal flow show.com. There should be a link there in the menu for you to apply as a guest or suggest a guest for us. And we'd love to hear from you if you're listening or watching the show and you know, other people in deal making process, the capital markets, the investment space, and you know, they should hear about the show, share it, share it on your social media, get the word out there, and we'll see you again on another episode, very soon of the deal flow show. Take care. Thanks Jay.

Comments

Click Here to Leave a Comment Below

Leave a Reply:

dealadmin