089: Real Estate Investment Strategies with Ian Djuric

Real Estate Runway

Jan 11 2023 • 30 mins

Ian Djuric is the managing member of the Djuric Family Office overseeing the family's real estate portfolio and equity investments for the past several years. The family office invests as both a GP and sole owner and has an ownership interest in over 5,200 multifamily units. Before running the family office full-time, Mr. Djuric had a prolific career as an owner-operator in the waste management industry.

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[00:00 - 06:27] Opening Segment

  • Introducing Ian to the show
  • Brief background and career
  • Developing build-to-rent communities and storage portfolios
  • Investing 10 - 50 million a year in LP checks for land development deals

[06:19 - 14:24] Exploring the Growing Appetite for Build-to-Rent Communities in the Real Estate Market

  • The risk profile of buying class A properties versus C and B class properties
  • The average cost of running class A properties is 37-39%
  • Lower tenant turnover and delinquency rates in class A properties
  • Ability to push rent organically without having to spend a lot of money on it
  • Appetite for build-to-rent communities due to lack of supply and people choosing not to buy due to high-interest rates

[14:25 - 29:35] Renting Makes More Sense: Exploring the Benefits of Institutional Equity in Build-to-Rent Development Deals

  • Partnering with a life insurance company to provide debt and equity up to 92-90% LTC
  • Bringing in a passive institutional partner for additional equity at 7% LTC
  • Paying a 2.5% acquisition fee and a 2% asset manager fee
  • Multi-family deals average 60-80 million but only get 50-60% leverage
  • Institutional equity provides no investor reporting, but high fees
  • Having prep in a deal can be beneficial when structured correctly
  • Two mantras of how to make a return on a deal: syndicated equity or pref equity

[29:36 - 30:53] Closing Segment

  • Final words
  • See the links below to connect with Ian

Quotes:

"I never did one of the weekend classes or mastermind programs. I just kind of paid for my education by sponsoring the entire deal and getting every single day thing. That I think, is the best education money can buy" - Ian Djuric

"Don't be nervous about having prep. Having prep can be great, especially if it's structured the right way." - Ian Djuric

Connect with Ian through Instagram, Facebook, or visit www.DjuricFamilyOffice.com.



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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.