How to Reduce Risk by Choosing the Right Location For Your Real Estate w/ Drew Whitson of Endurus Capital

📌 Multifamily Wealth Project Conference, Apr 26 - 28, 2023
The Multifamily Wealth Project connects you with influential leaders, deal makers, investors, brokers and peers in the multifamily industry. 👉 Book your spot HERE

Drew Whitson has been purchasing investment properties since 2007 and has extensive experience in the Twin Cities and mid-Atlantic markets. Prior to investing in real estate, Drew was a finance executive for a Minneapolis based Fortune 50 company. Drew received an Economics and Finance degree from Bethel University and later an MBA from the University of Minnesota’s Carlson School of Management. In addition to Endurus Capital, he is currently a Professor of Finance at Bethel University in St. Paul and lives with his wife and four kids in Mahtomedi, Minnesota.

You will learn:

1) How Endurus Capital, a Minnesota-based real estate investment firm, was able to formalise their partnership after working together for years.

2) How the three partners behind Endurus Capital, with different skills and interests, bring different value to their team.

3) What Endurus Capital is doing to professionalize their operations by developing back-end systems and bringing on staff to support their work.

"We saw really early that working together we can do a lot more than us working separately.”

Some key points:

(01:22) Introduction to Endurus Capital, from Drew himself
Serious branding efforts is something the company undertook only recently
(04:45) Drew and his partners worked together for a LONG time before formalizing their partnership officially
(06:14) How Drew approaches solving disputes within partnerships: all of the primary partners are full-stack syndicators, who think long term. Drew likes to emphasise that as individuals we get less done, much more in a partnership. 
(08:19) Of the 3 main partners at Endurus could get the job done on their own, but how do they compliment each other in terms of skills? Todd has contractor experience, Matt has systems management and networking experience. Drew himself brings his investment banking and finance experience.
(11:08) The on-going effort to professionalise the operation and Endurus
(12:39) The in-house  file organisation system that Endurus uses: Institutional investors do their due diligence when it comes to back-end information processing
(13:54) How Endurus manages their staff: which roles have been brought in-house and which ones are external partners?
(17:54) How has Drew's role changed within the company since more and more people have been brought on? There is more time to get involved at the physical locations
(19:12) Less risk in terms of the property LOCATION. The location is the only problem you can't really slave with more money.
(20:36) Drew defines what it means for a property to be well located:
The way you make money in this business is by finding a dodgy building in a good neighbourhood
(21:53) Markets that Endurus currently focuses on: Lexington, Louisville, and Memphis
Older housing stock, stable and diverse, many available renters. Areas need to be accessible to the company team: Either fly direct or drive 2 hours max to your property
(26:13) How much of the Endurus portfolio consists of assets from before the company was formed?
(27:30) At 3000 units and total value of around 300 to 400 million, Drew considers the company to be a mid-size player, on the way to the big leagues
(30:48) How to reach out to Drew

🌎Reach out to Drew Whitson
Website https://www.enduruscapital.com/
LinkedIN: https://www.linkedin.com/in/drew-whitson
Twitter https://twitter.com/dswhitson

🌎Reach out to Jonathan Twombly
LinkedIn: https://www.linkedin.com/in/jonathandtwombly

Loved this episode? Leave us a review and rating on Apple podcasts by clicking here.

Make sure to also check our previous episodes:

Going From Working In Hospitality To Multifamily Investing & Hotel Conversions With Charlie Rushton

🎤 Podcast production Everglade Media