Correcting Misconceptions of RV Park Investing with Ryan Twomey, Ep 87

Today's guest is Ryan Twomey, Ryan is one of the Founders and Managing Partners at TR Capital Partners. Starting in real estate by acquiring and managing small multifamily properties in Massachusetts he later transitioned into the large multifamily investment space where is flourishing today.

In this episode, Ryan talks about how the RV park industry is becoming more and more popular because of its high returns and less capital expenditure required when compared to regular multifamily buildings. Financial literacy, the value of action above mere knowledge acquisition, and real estate investment methods under various market scenarios are all discussed.

He dispels widespread misconceptions about the real estate industry, goes into additional detail on the importance of general partners and investors having aligned interests, and describes their individual definitions of success.

Episode Topics

[01:24]  Meet our guest, Ryan Twomey
[01:52] Ryan's Journey into Real Estate
[03:19] The Power of House Hacking
[04:40] Expanding into Larger Multifamily Investments
[13:56]  Exploring the RV Space
[23:20] Understanding the Current Market Trends
[28:06] What is one red flag every investor should look out for?
[29:31] What is a myth about the real estate business?
[32:13] Connecting to Ryan

Notable Quotes

• “When a GP invests alongside investors in their deals, it creates alignment of interest.” - Tim Little
• “Rents were also increasing. So it's more of an affordability play too for people.” - Ryan Twomey
• “A lot of people tend to invest in real estate when a market's thriving but when things slowdown they perceive it as dangerous to get into.” - Tim Little
• “Sticking to your fundamentals and not forcing a deal is key, because when people do that, they tend to get into trouble.” - Tim Little
• "Our strategy: focus on B or C class properties in B to B plus areas, add value by renovating, updating amenities, and raising rents. Control over asset value is our game-changer." -Ryan Twomey
• "The RV community isn't what people think. It's not just lower income; many are passionate, with RVs going for hundreds of thousands." -Ryan Twomey

👉Connect with  Ryan Twomey

• LinkedIn: Ryan Twomey
• Website: TR Capital Partners

👉 Connect with Tim

• Linkedin: Tim Little
• Instagram: @tim_at_zana
• Email: tim@zanainvestments.com
• Visit www.ZANAinvestments.com for more info on Tim and how you can passively invest in multifamily real estate
• Get your Passive Investor's Cheat Sheet FREE

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Transcript

[00:00:00] Ryan Twomey: Started my first job at New York life. Dealing with clients in a one on one capacity primarily focused on insurance and fixed income Products like annuities and such. However, I quickly realized that wasn't for me. And so I left that job after about nine or ten months and then transitioned into a new role as an investor relations Specialist and index analyst with the parent company for the New York Stock Exchange. So I've had a lot of experience with different asset classes and in various types of investors, and their goal is what they're looking for. So at the time, this was probably late 2019. I was really getting into more books on business, investing, finance, economics, just financial literacy stuff. 

[00:01:13] Tim Little: Hello, everyone, and welcome to the journey to multifamily millions. I'm your host, founder and CEO of ZANA Investments, Tim Little. And on today's show we have with us, Ryan Twomey. Ryan is one of the founders and managing partners at TR Capital Partners, starting in real estate by acquiring and managing small multifamily properties in Massachusetts. He later transitioned into the large multifamily investment space where he is flourishing today. Ryan, welcome to the show.

[00:01:41] Ryan Twomey: Good to be here, Tim. Thanks for having me.

[00:01:42] Tim Little: Yeah, and it's great to have you. So I read your bio and it sounds like your background might have played a part in some of the success that you're having today in real estate investing. So please tell us how you got started, in real estate and how you got to where you are today.

[00:01:57] Ryan Twomey: Yeah. I was raised in Massachusetts, in a small town called Pepperell. Guessing no, you've never heard of it cause no one really has. but since I was younger, I've always been interested in business, investing and finance. so it was always great with numbers growing up. So when it came time to go to college, I pursued my degree in finance and economics followed by getting my master's in business. Right after graduating college, I then went to get my series licenses and started my first job at New York life. Dealing with clients in a one on one capacity primarily focused on insurance and fixed income Products like annuities and such. However, I quickly realized that wasn't for me And so I left that job after about nine or ten months and then transitioned into a new role as an investor relations Specialist and index analyst with the parent company for the New York Stock Exchange So I've had a lot of experience with different asset classes and in various types of investors, and their goal is what they're looking for. So at the time, this was probably late 2019. I was really getting into more books on business, investing, finance, economics, just financial literacy stuff. and like a lot of investors, I came across two books that completely shifted my mindset, those being rich dad, poor dad, And the cashflow quadrant. So I did the whole thing where I read all the books, listened to the podcast, did a ton of research, Googling everything I possibly could. And by mid 2020, I was still in the same spot because I hadn't taken action on what I was learning yet. So then one of my close friends and now business partner, his name's Lucas, who I grew up with since we were about seven or eight years old, texted me and asked me if I want to get an apartment with him. And right for a couple of years moving together, and a light bulb went off in my head after everything I've been reading and learning about. And so I responded with, how about we figure out how to buy a place and become the landlords and live for free? So after I explained everything I've learned and stuff like that, he agreed to give it a shot with me. We then bought our first triplex in Western Mass, which is, it was a. Yeah, three families that we house hacked. And as you can imagine, never doing it before. It was a little overwhelming at first. There was a lot that you couldn't learn in books when you actually put things into action, but thankfully our realtor was someone Lucas had known for a long time. And he also owned rental property. So he helped us with, getting tenants in there and just the whole process of leasing things out and answering any questions we had along the way. and then by, by diving in head first, we were able to learn a ton about How to manage renovations, add value to the units and the property, manage tenants and cash flow and pretty much everything that comes with managing a small property and operating it on your own. and then after about a year, we purchased another property, which was a duplex in Fitchburg, Massachusetts, which we also house hacked and started to see a decent chunk of rental income started coming in and still having the triplex rented out and now having one unit in the duplex rented out while we lived on the first floor for free. So not long after that, we started getting questions from family, friends on what we were doing and how they could maybe get involved. And it just so happens that right at that time, Lucas came across a mentorship or mastermind program called Multi Family Mindset by a host of that guy, Tyler Devereaux. and that focuses on syndicating properties and really growing your portfolio and getting other people involved to invest alongside you. So we attended the intro course, which was about a couple hour class where they just break down the basics, and it's essentially the selling point for their mentorship. So we ended up moving forward with it, established our firm, TR Capital Partners, and transitioned into large department complexes using their model, which is the syndication model, and doing deals with those inside that network. And. Now we went from our first five doors to now being co GPs on 459 units between RV and multifamily assets with more deals currently in our pipeline. And now our mission is really just to get or use our expertise and resources to give others the benefits of real estate ownership without the headaches of being a landlord. So that's where we're at today.

[00:05:46] Tim Little: No, that's awesome. And there's a couple of things that I wanted to hit on that you talked about. Your story obviously mirrors so many people's stories that come into this business. but I think some of the great things that you talked about as well. One, the financial literacy piece, right? Because it's something that's not talked about often, but I think it is a serious problem,in our school system as a start, right?  Most people just don't generally have financial literacy. And,that's why it's something that I try to instill in my kids, little by little bite sized pieces that they can learn as they grow up just so they can understand the concepts that way, one day, hopefully earlier than I did when they read a book like rich dad, poor dad, or one of the other ones. It resonates more than it did with me, maybe like the first time, I didn't understand all the concepts at first, on the second read, I started to get more. And then when I reread it again, when I was in a different place in life, more financially secure, then I was able to apply more of the lessons that were really there. so I think that's really important and something that We as a society should focus on more because it's just, it doesn't seem to be happening and it doesn't make sense that people discover financial literacy, almost on accident because, Oh, I, heard it on Facebook or, someone in a podcast said I should read this book. Like why would that of all things not be part of a regular curriculum in schools, because I think it would make a huge difference for kids coming out of high school. They just even understood the difference between an asset and a liability. because I certainly did not. I made some questionable decisions, just like most of us did. And my focus was on stuff, as evidenced by these credit card companies that would prey on us on college campuses. Hey, sign up for this credit card and you get a free pair of fake Oakley's. And I was like, I need a free pair of fake Oakley's. Why wouldn't I sign up for that credit card? so that's just one example. and I think the other piece that you talked about that a lot of people listening right now could relate to is that learning, learning, but not. Taking any action and a lot of people never take action, right? Like they just read the books, listen to the podcasts and just continue going and then there's others that like, like you and I that stop at a certain point, we're like, wait, this is all just knowledge until we actually do something with it, get mad at ourselves. And then commit to doing something. and I was in a very similar place. I had read lots of books, listened to lots of podcasts and I was like, okay, I need to do something. and I bought a duplex, very similar to your situation, but I love the house hacking model and I never really had an opportunity to do it. And I'm mad at myself for that, but, I'd be interested to learn a little bit more about that. So your house was hacked. The triplex, with you and your buddy, how are you guys able to qualify for that loan? Were you able to use projected rent incomes for that in order to qualify for the loan? Or what did that look like?

[00:09:00] Ryan Twomey: So we actually got one, we have the FHA route, right? Which was three and a half percent down. So we both had the money to do it. I think having both our incomes, we both had full time jobs, and really no debt other than student loans. He had a car payment, but I didn't, pretty much just paying student loans. So that helped with getting the actual approval. And this was at a time when rates were also like two, 3%. So we locked it in at a two and a half percent interest rate. but really the whole loan process. We relied heavily on our realtor's connection with the lender, the mortgage broker, and he walked us through the whole entire process. there weren't really any hiccups along the way. I think lending was a little looser at the time. This is right when COVID started to hit. So I think that put in our favor a little bit.but yeah, as far as actually getting the loan size, I think it helps that we both had dual incomes. We both had our jobs for about two years at that point, so that's another thing the bank will look for. and then having that FHA route, where as an owner occupant, you can, like you said, you can house hack the property for three and a half percent down, so I think we only paid 14, 000 for a 425, 000 asset, and we're living for free. it was a no brainer to do it, and yeah, the lending standards, I just think at the time, were a little lower than they have been in the past couple years, especially with, everything tightening up, 

[00:10:17] Tim Little: right. And that makes sense. And I think the FHA loan is one of those things that again, and not enough people talk about. cause I hear about the struggles to put together a 20 percent down payment on a house. And I'm really confused because I have literally outside of a pure investment property have never put down 20 percent for a residence. a personal residence. It's like I've done FHA and I've done VA loan, which obviously not everyone is entitled to, but the FHA is there. And so I don't understand why more people don't talk about that, at least within the house hacking context, because it makes a lot of sense. If you can put three and a half percent down compared to, 20 percent down that is huge. especially nowadays. So how long did you have, how long did you stay in that, that first one before you moved on to the next one? And just for the folks listening, what is the requirement for how long you need to live in that asset before you can sell it and move to another.

[00:11:21] Ryan Twomey: we were there for about a year and a half before we started looking, and then, by the time we actually found a place, went through the whole lending stuff over, all, all over again,and towards some duplexes and other triplexes. It was a little under two years when we actually moved out, as far as the standards on the loan for an FHA loan, you do have to live there for a year. So if you're going to buy a place, you have to expect, you can't move out, like within the loan, for that full year. I'm not sure if you could sell it within that year. I'm guessing you probably could, but I'm only three and a half percent down. You don't have a ton of equity anyways, so that doesn't really make sense. But even though you mentioned that people were doing 20 percent down on homes, even on our second property, I think we only put 10 or 15%. It wasn't that 20 percent down, I think it is just what people initially think, because that's just what we're told, I guess you could say. and that was how it's been historically. There's tons of programs out there where you can utilize that first time home buyer, the FHA. I know in Massachusetts now they have a 5 percent down thing with mass housing where the interest rates are a little higher because it's a new program, but you can actually get an asset for 5 percent down. so for us, I, we weren't purposeful. I think that we made a great decision. Instead of buying our first single family home with the first time home buyer, we bought a multi family home. That will pay us, even if it's only, 1000, 1500 bucks a month when we're fully moved out. and then we could take that and use it to pay for part of the mortgage on our single family homes. So I think if you can strategically use those different loan programs, build up more of your assets, have some of that passive income and be able to, lower your, especially right now with rates up, lower your money out of pocket to pay for your current mortgage.

[00:13:02] Tim Little: Yeah, I agree 100%. And that's why, I tell other veterans, You know, use your VA loan for a multi unit property. You can use it for up to a four unit Like why wouldn't you do that if you can qualify for it, right? Because you may get not only your mortgage paid off Or your mortgage being paid every month, but you may be getting a couple hundred bucks on top of that. And that's amazing. And especially when you're younger, it puts you in a really good place financially because it allows you to save money. Most people just aren't able to save money because so much of it goes towards their living costs. And they're like, Oh, that's impossible. I can't save a couple hundred a month. But if you don't have a mortgage to pay, you absolutely can, and then just, Not even talking about the other advantages to real estate, depreciation and everything else. no, that's awesome. So after you played in that small multifamily space and you started going into the more commercial side of things, talk to me about the types of assets that you chose because you mentioned a couple of different things and why you decided on those specific types of assets.

[00:14:14] Ryan Twomey: Yes, at first going through that mentorship program, they focused heavily on value add stuff. So we were targeting B or C class properties and B to B plus areas that we could pump value into,renovating units, updating amenities, raising rents to market. and it's a powerful strategy because you can, you literally have control over the value of the asset. Which is something that you don't get in residential areas. That's one of the reasons also we decided to go the commercial route, because that's just another light bulb that went off where a lot of real estate for us was the income and the control aspect. But if we can actually level up that control with a commercial asset, and force appreciation, the value into it, why wouldn't you go that route? so that was how, where we first started looking at was those typical value add properties and markets that at the time when we were looking was like Texas, the Carolinas, Florida, stuff like that. Yeah. I'm our underwriter,I'm the numbers guy. So I was underwriting 50 to 75 properties every few weeks. Nothing was penciling out. Cause this is when sellers expectations were still really high. and they just weren't, we weren't able to hit our metrics based on what we're underwriting. We then went to a meetup. It was just a, like a lunch with someone in our network and they brought people along that weren't within the multifamily mindset network that we at this lunch, like late lunch. and they were in the RV space and we pretty much were telling us all about how it works and how it's similar to multifamily value add just without, these big structures that you can still pump value into, to the property. It's still valued based on net operating income. The returns are typically higher. The cap X is lower. so we were like, okay, this is definitely something we want to look into. We ended up doing a lot more research into the RV space. And we got referred to an operator in Louisiana that one of our investors has worked with in the past. He's done about 11 or 12 deals with them. He, and this operator have been around for 20, 30 years. So he had a, an, a. An RV park that he wanted to have us potentially be on with him. So we went through the due diligence with him the the underwriting, the whole acquisition side and then we came in as part of the investor relations team where we would bring capital to the asset and Also manage our investors and other investors within the fund because it was through a fund along the way so that's how we got our feet wet with the rv space And then we, with that knowledge from the value add, actually this past month, about a month ago, we were able to get our first 24 unit value add multifamily projects under contract and enclosed also. so we have the knowledge for both. I think at the time, the RV space was just more lucrative as far as returns go. and may still be, but now that deals are starting to pencil out in the multifamily space, we're definitely going to be starting to look more at those types of assets. with that background that we typically have, 

[00:17:36] Tim Little: Yeah, and we'll get into that in a second in terms of the, the multi, the multifamily space. But in the RV space, did you feel like there was a certain level of education that had to take place with investors? Because I feel like a lot of investors are pretty. Familiar with apartment buildings, right? Like most of them have lived in one at some point or another, so they understand the overall concept, but a lot of people may not be familiar with RVs. you can throw these, the numbers at them, the returns, et cetera, but it may not resonate with them as much. Is that what you're seeing or has it been a pretty easy sell?

[00:18:12] Ryan Twomey: it definitely took a lot of educating. cause a lot of the people we were getting on as investors were expecting apartment buildings. That's what we talked to them about. And, I'm sure a lot of it has to do with education. So even if it's with new investors or seasoned investors, you're always talking about how the market is doing and stuff like that. With the RV space, people picture them as trailer parks, so they don't know the tip, the Numerous demographics and types of people that actually go there. It's retirees, young people that just don't want to get locked into a lease or a mortgage for 20, 30 years. That's because, with this work from home boom, there's more ability to travel and go to these RV parks and stay there for a month or a week or whatever it might be, even as a whole season work from that location and then go onto the next one. so it provides that flexibility aspect. also at the time, that's when, or still is now, the rates were so high that the multifamily stuff wasn't working out and people still weren't buying homes. Rents were also increasing. so it's a more of an affordability play too for people that want to take a couple years, maybe see the country RVing and can afford to live for pennies on the dollar compared to a rental property. so it definitely took a lot of education other than mostly just how it works and the demographics and stuff like that. It's pretty similar as far as the business model. You want to go in, improve things, raise rents to market, typical stuff. stuff. but a lot of it came down to how we manage it also, which would be there's transient sites. There's weekly sites, there's long term sites. So you have to factor all that into your underwriting. and based off of that, you have different options to play with and during different seasons. And also it depends on the locations. Obviously I'm in Massachusetts. So up in Massachusetts in the winter, There's going to be a lot less people up here camping and RVing because it's cold out. so this property in Louisiana, there were a lot more options for long term stability, rent growth and occupancy, which was a big sell for investors for sure.

[00:20:08] Tim Little: Yeah, and I've never underwritten an R. B. Park, but I can imagine that would add some complications to the numbers, just given that these aren't, long term leases necessarily like you would have, with an apartment building. So it would just complicate things from that perspective. So I have to imagine that a lot of it is based on trends and previous years data to project what you expect those incomes to be.

[00:20:35] Ryan Twomey: Yeah, and a lot of it too, came down to demand because the demand for RVs are RV parking spots that went through the roof during COVID RV sales skyrocketed because people were traveling more. They had more flexibility, like I said, with their jobs. so now we're trying to catch up as far as the demand goes and in certain areas it's harder to build than others. So if you can pick a market where, It'll cost someone too much money, or maybe the regulations for environmental stuff are too, too stringent. Then that's a great market to invest in because the supply or the demand is outpacing the supply. and that supply is more for the most part there to stay. That's, that's what it is. You can add sites, you can add parking, like sites to,the current park, if you want to, if you have enough land, but to actually physically build one from the ground up, sometimes it can be expensive depending on the market you're at.

[00:21:25] Tim Little: Yeah, and I think people need to rethink how they look at both,manufactured home parks, whatever we want to call them and RV parks. there's very, there's varying demographics as you talk about, because your mobile home park or manufactured home park, yeah, you may have that, that lower income element there, if you're talking about RVs, it may be a. A broad spectrum because you might have people who are living in their RVs because they want a lower cost of living or, just be more transient in general and travel. But we also have to take into account that a lot of people who have RVs are really well off. Because that means they have a lot of disposable income to put into some of those RVs, which can get very expensive and they have the time to go vacationing or maybe they're older and they're retired.  so there's a lot of different demographics there, so people shouldn't rush too much to judge, I think, on the assumptions that they have of just seeing a trailer park in their head.

[00:22:29] Ryan Twomey: Yeah. And those things, those RVs can go for a couple hundred thousand dollars. So it's not like it's lower income people that are doing that. a lot of it is also very passionate people. The RV community is a very passionate community. So a lot of them have preferences that you, The notion about the typical RVer is just not what its people think and like you said, it's different than a trailer park or a mobile home park or anything like that. it tends to be an affluent community for the most part, depending on actually the level of the asset. same, that with multifamily as well. lower incomes, obviously the C, the lower end Bs, the D class assets, and the A class is the higher income. income people. It's the same thing. Same thing with RVs, can be up or down depending on the market, the area and the actual location you're in. So a very similar model. just a couple of things that are different mostly with the operations and the underwriting.

[00:23:24] Tim Little: yeah. And I want to go back to some of the things you said about the commercial multifamily market earlier. Cause you talked about for a while and I saw this too, a lot of sellers were just not being realistic on what they could get. So we, as buyers , were at an impasse. In terms of here's my offer. And they're like, that's way too low. And I'm like, this is what we can offer, based on the numbers you're providing me. And so there was like this disconnect for a bit. And it seems like that disconnect is starting to close. and you had mentioned that you're starting to see some deals, pencil out now,what are you seeing generally in the market in terms of both prices and then the other challenges associated, that we saw, which is the interest rates, obviously the loans, being a challenge, finding a loan that, that really makes sense in the deal. I think that's been an obstacle and deals, penciling out and then, rents not moving up nearly as fast as they were. And in very rare cases, going down in some areas that just got, I think, a little overbuilt. What, but what are you seeing in the areas you're looking at?

[00:24:35] Ryan Twomey: Yeah. yeah. So the prices I think are starting to come down a little bit. I think that's mostly because the sellers had to feel the pain a little bit more and they had to realize that the buyers, a lot of them, at least the ones that stick to their fundamentals, weren't willing to Be speculative in their investment, so they didn't want to, they weren't able to essentially meet the need of the seller. The sellers are now being forced to reconsider options because some of their properties have been on the market for a year or so. So now we're seeing a kind of alignment with what the actual value of the property is and like the whisper or the asking price. And the interest rate thing, that's something that's out of our control, right? So similar to taxes and insurance, stuff like that, you have to adjust your, you can't adjust your fundamentals based on the interest rate. You have to just stick to your return metrics, make sure you'll be able to hit those no matter what the interest rate is, and even be extra conservative when you're underwriting those interest rates. So if you're getting a six and three quarter interest rate, maybe underwrite a seven or seven and a quarter and see if the numbers still work. If it does, then obviously, that's a great deal. So that offer price, whatever you're going to submit will work. supposedly there isn't a Santa or speculation that the rates will start to come down this year. I believe they said maybe three, three rate decreases. I don't expect them to be. Really significant because I think they're going to have to come down a little bit at a time Over the next three to five years or two to three years but as far as all that stuff goes, it's really not in your control so if you have to stick to your fundamentals stick to the returns, and if you are able to implement your business model to really suit your investors needs that you're promising them and what they expect you never want to over promise and then underperform you want to do the opposite, right? and then as far as rental prices, I know rents aren't going up as much. some sponsors will underwrite as if rents are going to 5 for the next, five years, typically we'll have to do two to three and stick, stick to the conservative underwriting, make sure that we're not over, estimating how much we can, raise rents and then increase, increase the NOI and then be in the same position that sellers are now. Where we're overvaluing our property down the road when that in reality, it's just not worth that much. so I think rents are becoming more stable, just like the whole housing market in both residential and commercial is starting to stabilize a little bit. So maybe there was a soft landing, who knows? but yeah, I think, I think for the time being, its rents will probably go back to the traditional 3 percent mark.

[00:26:58] Tim Little: Yeah, and I agree. I think that, and you're right. We don't have any control over the rates. We can sit here and hope. That they go down, but hope is not a strategy. and the only way we've really found around that is maybe loan assumptions. We've been successful in doing that, I think two, two of our deals within the past, Year or so. And that's the only way that we found, where we can take advantage of a loan that somebody else had. And it really helps, again, making the numbers work and with rents. I think you're absolutely right there. It's just a matter of tempering, and you're underwriting what those rent bumps will look like year to year. if you were putting in 5 percent rent bumps, now you're, maybe you're putting in. 3%, 2%, or maybe none at all if you're, wanna be super conservative, just to make sure that deal still works in that worst case scenario. That makes a lot of sense. alright Ryan, we do need to transition into the turbo round. I am gonna ask you three questions that I ask every guest that I have on the show, and I just ask for a quick, honest answer. Are you ready?

[00:28:04] Ryan Twomey: I'm ready. Let's go.

[00:28:05] Tim Little: Alright, what is one red flag that every investor should look out for? 

[00:28:10] Ryan Twomey: So one red flag, and this is coming from me as being an indicator. So one thing every investor should ask the GP team when they're thinking about investing is they're the GPs are investing their own capital in the deal and how much they're investing. If the GP tells you they're not contributing their own capital, or if it's like an insignificant amount, that's a huge red flag in my opinion. because when a GP invests alongside investors in their deals, it creates alignment of interest and incentive to make sure the property is performing. Make sure that they have enough skin in the game before you actually invest in their deal. And that way they're most likely 100 percent focused on making sure the asset is hitting or even exceeding those target returns. So I guess in turn, the more the GP team invests, the harder they're going to fight for a positive outcome. That's something I would definitely look out for if I was an investor.

[00:28:53] Tim Little: Yeah, I agree. Alignment of interest and skin in the game. And I think sponsors just need to be open and honest with how they're doing it. 'cause they may not be able to invest as much as each investor is putting in, otherwise they would run outta capital to do their deals. They do, they should be putting. some money in on every deal, not just, highlight the work that they're doing as the skin they have in the game. Because again, I think like you alluded to, then there's not that alignment of interest there for the passive investors. All right. What is a myth about this business that you would like to set straight?

[00:29:34] Ryan Twomey: I think one of the most common myths is at least especially lately and this kind of goes for all asset classes in general throughout investing in whether it's stock bonds or real estate is waiting for a perfect time to buy so a lot of people tend to invest in real . estate when a market is thriving but when things slowdown the perceive it as dangerous to get into, or maybe they're skeptical about it. and I actually disagree with this and think that there can be great deals found at pretty much any point in the market cycle as long as you're sticking to your fundamentals and making the,the right decisions. So that's what it comes down to is sticking to your fundamentals and not forcing a deal because when people do that, they tend to get into trouble. So like I mentioned before, I was underwriting 50 to 75 deals every few weeks. And when people do that, they tend to become impatient and begin to tweet their assumptions and try to make one work just to get one under contract. but as an investor, when you have the finances and are ready to invest, I'd say don't wait for the perfect time. If you could time the market already, you'd be rich, right? you should Be out there looking and starting to look for what you want. Find a trusted operator. And if you're going to invest in the passive route and ask the tough questions to better understand the ins and outs of the investment as a whole. So from how we arrived at the projected returns, if the property has been stress tested, pretty much all the tough questions to make sure that investor, the GP team knows what they're doing and knows how their business plan is going to make. Make it possible to hit those returns, regardless of where the market is currently, because there are good deals in really any market cycle.

[00:30:58] Tim Little: Yeah, I really want to put a stop to that, if you think you can time the market, you're wrong. and sticking to whatever your fundamentals are, because the moment you stray from those is, It's usually the time when you find yourself in trouble, right? Because you, you broke your own rules. So I couldn't agree more on that one. All right. Finally, what does success look like to you? 

[00:31:21] Ryan Twomey: I have a very simple definition of success. So success to me is just simply the achievement of a set goal. Obviously there's many different types of goals, but for me, the main ones I want to achieve have to do with health, my time, and my wealth. My mind and my relationships. So essentially I look to optimize all those things and have short term milestones that lead to longterm visions for each. But really overall, I think just setting those goals, hitting those milestones, taking the, setting an action plan in place and making, having those small ones along the way is crucial for consistent improvement in all those areas.

[00:31:51] Tim Little: Yeah, love it. because when it comes right down to it, if we don't set any goals for ourselves, there's not that feeling of accomplishment. And people don't feel like they've really had success if they haven't accomplished anything, they just float through life. So having those goals is so important. All right, Ryan. Hey, this has been awesome. Please tell our listeners how they can get a hold of you. And if there's anything else that you'd like to share with them.

[00:32:13] Ryan Twomey: Yeah, so you can get a hold of us at our website, trcapitalpartner.com, you'll find a bunch of education material there, our contact info, our calendars, if you want to set up a call and learn more about the multifamily or the RV space, and how to get in the game without, having to be a landlord, cause we've all heard that, heard those horror stories. Also, LinkedIn. Just Ryan Toomey, you can find me, my managing partner, TR Capital Partner. So yeah, you can find me in those two places. Those are my two primary locations where I get in touch with investors, brokers, lenders, anyone in the multifamily space.

[00:32:45] Tim Little: All right. we'll have all that information in the show notes. Ryan, again, I appreciate you coming on and look forward to seeing you continue to do big things on your journey to multifamily millions.

[00:32:55] Ryan Twomey: Thanks for having me, Tim. Great to be here.