From Engineering to Real Estate: Amanda Larson's Path to Multifamily Investment Success

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Bowling here with Pivot to Prosperity brought to you by Pivotal Real Estate Investments where we help our investors build wealth and income through commercial real estate that improves communities. And today we have Amanda Larson with us. Hi Amanda, thank you for coming.

Hello Jenny. Thank you for having me. It's such a, such a joy and a pleasure to be on your, on your show. I've been listening to a few of your episodes recently and you've, you know, doing a great job and have some great guests. So thank you.

Thank you. Well, I love to have people, my peers, like you're a peer. We know each other through a mastermind and we are both in the multi family space and so it's great to be able to share our experiences and, and so I'm going to read your bio and then you can add whatever occurs to you is something worth adding.

Absolutely.

Amanda is the founder of Amax Equity. Do you pronounce that Amex or do you say Amex?

Ama. So as a side note, people call me Alma, like just the first three letters of my name. So Alma and then X Equity.

So ah, I should have asked you that before we get on Ama X Equity. Okay. A real estate private equity company with a mission to empower busy professionals by helping them build multiple streams of income by investing in apartments. With more than 15 years of experience in engineering and construction, Amanda brings a solid foundation in project management engineering and an MBA in finance in her real estate investments. With a significant portion of her career spent working abroad for multinational engineering and construction companies, she's honed her skills in leading projects and teams towards a common goal. Very good. Now what? Tell us more. Tell us more.

Yeah, so I guess, I mean that gives a basic background, engineering and construction. That didn't shine really light onto my entrance into real estate. But I guess I would add that I grew up in a family that always owned real estate, single family and a little bit of farmland and things like that. And so it was really ingrained into me early on that real estate is a good asset class, a smart asset class, a cash flowing asset class. And it just made sense to my family and it, I never really thought much about it. So I, you know, I started investing in 2010. I was actually living overseas and I bought my first rental property in the US and I still own that and that's how I got started. And it's just been, I wouldn't say a family business but I fortunate to have been introduced as at a very young age. You know, the, the opportunities that it can allow.

I Think that's really huge. There's so many people that are tied up in other things in life. My parents used to buy and sell houses. They'd give us all a paintbrush and say, go paint kids.

Yep. It was all do it yourself everything.

Child labor. But yeah, but so we saw them making money, you know, and so. Yeah, but that's, yeah, we're blessed for that.

But.

So what made you choose construction for your degree?

Well, my degree is in electrical engineering. And after finishing with my undergrad, I moved to Australia and I had done a couple of semesters of school over there. So I, I knew a little bit about the job market, but it was a matter of just, I moved there, I didn't have a job lined up. It was super scary. So I went on, went over there and it was just the first job that I got. I needed sponsorship and so they're willing to hire me and so I jumped on board and it was an experience ever since I remember. So my first job was on a coal terminal. And being a girl from Nebraska, I never thought I would, you know, you just, you're there working in this heavy industrial construction job, thinking, I got my engineering degree. This is not where I expected to land at all.

And we were talking before recording it. You've done some very interesting projects actually, because. Yeah, you. And then transmission and light rail and energy, oil and gas and.

Oh, yeah.

So all infrastructure stuff too.

All infrastructure in like, heavy industrial. So nothing, Nothing pretty to look at. And a lot of things that are built in the middle of nowhere. So I've spent a lot of time in the remote outback.

So when you travel, do you go to cities or do you go to the outback? Kind of.

I'm primarily a city girl. I love visiting cities and then when I go to more remote places and do some hikes and some outdoor adventure stuff. But I do, I am at heart a city girl, so.

Gotcha. And you're, you said you're a runner, so would you rather run in the city or in the country?

In the city, actually. Yeah. I, I, I live kind of in the middle of Houston right now, and I like running through Houston and there's a lot to look at and I'd rather look at people and things and events and activities than, than trees. I don't know.

We all need a little of both, though. We know that. Right?

That's right. That's right. It's all about getting outside, being active. So.

So what got you into going for multif family investments?

Yeah, so I It was around 2015 and I decided that I wanted to get more involved in real estate. Like I had, you know, owned a couple of re rentals, but not really diving in. And I joined one of the mentorship programs and started going to, to meetups. And I was dabbling in a lot of different areas of real estate. I was thinking about fix and flips and lease to owns and rentals and retail. And it was really. I stumbled on this meetup and they were talking about syndications and I didn't know there was such a thing. Um, and so when I heard this presentation on you can own a hundred units instead of 1 unit or 101 units. You could own all 100 at once and you could pull money together and better yet, you could do it without doing anything. You could just invest in somebody else's deal. It was like a light bulb turned on and I just said, why hadn't anyone, why is no one talking about this? And maybe it was because I hadn't been looking for it, but that was really just a turning point. I pretty much decided that at that moment, like, I'm not going to buy any more single families because it was. I don't, I don't necessarily enjoy being a landlord. It's a lot of work. It's a lot of looking after tenants, making sure your units are always occupied, making, you know, getting the call to fix something. It's not what I love doing. Some people do, some people, that's their wheelhouse. But I would rather, rather own a business. And that's what owning multifamily is all about. It's owning and operating a business.

So now you are the boss over the people doing that. It sounds like too, you're, you're in asset management, right?

Yeah, I do the asset management, asset management, acquisitions. I think when you get into syndications, you, a lot of, most people do a little bit of everything. You kind of become this person of all trades. But you, you find where your strengths are. And that's, you know, with a project management background that in engineering, I really enjoy the, the acquisition side, the analysis and the project management.

Got it. Well, that sounds interesting. And so you have a couple investments now or.

I do, yeah. Yeah. So Yes, I have 260 units in Houston and 150 units in San Antonio. Of course that's, those are with teams of people. So we partner with, I partner with other GPs or general partners and yeah, we acquire these assets and that's what we're working on. And we're also in acquisition mode. So looking at assets right now in Dallas, Fort Worth and in Houston. So. So it's.

Yeah, we were talking about that. There's a lot of deals we look at, isn't there, before we can find one to even think about making an offer on. Right.

It's amazing, Jenny. And I think you. You know, I've worked on a couple things with you, just, you know, looking, just analyzing deals, and I think you also recognize the amount of work that goes into it. It's not. It's not like buying a house where you put an offer in and you might have a few offers that you're competing against. Um, it's, you know, turning over hundreds of opportunities and looking at them and then reviewing and analyzing and then maybe offering on five and maybe. Maybe winning one. You know, it's. It's a process, and it's not something a lot of people, unless you're in the business, you don't realize how much goes into it. And it's all just sweat equity until. Until you get that one diamond in the rough that you think is a good deal and. And that you can. That you can win.

Right? Yeah.

Yeah.

And then these days, there's still a lot of competition even, but.

Yeah, yeah. I mean, the good deals get a lot of attention. So, you know, I think there was a time when offers weren't being put in, but if you're in a strong market, they're getting a lot of offers, and you need to stand out amongst those offers.

So are there any. Any tricks you want to share about what you all do to try to win offers? Or is there anything about the. The way you approach them that you would like to share?

Yeah, definitely. I think part of it depends on the. I'm going to say part of it depends on the market cycle. So it worked. What worked two years ago doesn't work now. A couple years ago, I would say that price was the driving factor. Highest offer, oftentimes one. Now it is certainty of close. So they want to know that you are a known entity. And so it's about partnering with the right people, because there's a lot of deals right now that, you know, people are putting offers in, and then ultimately they don't end up closing. So from a seller's perspective, they want to know that you're going to close. And usually that comes down to raising the equity. So finding strong partners that have a strong resume is really meaningful right now and can take you a long way, right?

Absolutely.

It's all about relationships, no matter what it all comes down to relationships and having.

We go to so many events, right?

Yeah, that's right. It's, you know, meeting people and finding people that you work well with, with integrity and that, you know, it's. It's a business where when you partner, you not only have to think about getting. Getting the deal or getting the. To the next step, it's also taking care of those investors over the next three, five, seven years, because that's when it matters who you're partnering with.

Yeah, yeah, absolutely. You're in business together, all of you, so you need to really be sure you want to be there. And that's a huge part of the decision. So. And we talked before coming on the air, too, about educating people on just this.

Right? Yeah.

It's amazing how many people in real estate don't even realize they can be an owner, too.

Oh, yeah, it's. Yeah, you brought up a very good point. Just walking. You know, I think you brought up a point with, you know, in hotel. And I don't think about when I go into a hotel, owning the hotel, but it's absolutely an opportunity. You know, it's, you know, just like apartments, people don't realize that it's private owners that own these apartments most of the time. And hotels are the same way. But, you know, you shown light, you know, on that for me earlier, and it's. There's opportunities out there. It's just a matter of right curiosity and becoming interested and asking the right questions. Yeah.

The story that I shared with her before starting to record was I was renting a car out of a hotel locally, and I walked in and it was nice, Mediterranean feel, ants everywhere. I looked around and said, I want to own something like this, and I absolutely will keep that in mind. And I talk to people all the time that buy and sell hotels and. Yeah, always looking for an operator that I would. I would pair with. So it might happen someday.

Well, you know, you put it out there and you start talking and asking people. I think once you uncover this world of you can own a lot. You know, the world of syndication, it opens up a whole new perspective on life, is that, you know, you just. For a long time, a lot of people assume that they just can't. They don't have the money on their own. And most people, for most things, is out of reach for most people. But once you start collaborating and putting things together, a lot becomes possible. And that's when doors open up.

Right. And there's ways for people to ease into it. Of course, which is important. Right. Do you have many sophisticated investors you're working with?

Sophisticated as in just learning or. No.

To qualify for the 506 BS that that would be.

Yeah. 506 B. I think, I think all investors, even if you're accredited, I think it's important there's no formal qualification for 506B. It is having the, the knowledge and the wherewithal to know what you're investing in. So it's asking some questions. Do you understand what the risks are? Do you understand, you know, what's your experience in real estate? What's your experience in investing and getting to know that it's really, it's not a self assessment, but it's understanding your investor and that they know what is what they're getting into. And I think no matter what, even if they're accredited, it's, your investor needs to know what they're investing, what they're. They do.

Yeah. And that's so true. So many accredited investors think that, okay, if I'm qualified then, then maybe I should do it. And they don't understand all the, all the pieces and parts.

Yeah. And I think, you know, for me it helps it's in the long run as a, as a sponsor, if your investors, the more educated they are, and I'm not saying they need to know everything. Right. But if they understand what they're getting into, it's just a better relationship long term because deals will go well, but even there will always be hiccups. And every single deal, not everything will go exactly as planned. And that will just be easier in the relationship if people understand that, you know, people that own real estate, do investments and are experienced investors understand that things go well. But even when things go well, there are, there are hiccups or turns or, you know, nothing is perfect and ever, you know, setting expectations and understanding the business is really important.

Yeah. And we've just gone through one of the biggest changes in the market in 40 years. Right. Because interest rates are higher than they've been in 40 years and nobody guessed they'd go up so high so fast. That's never happened. So yeah, there's some, there's a shakeout.

Yeah. And so the investors that understood, understand the risks are, you know, weathering that storm a lot, I think.

Right.

Better than others. And. But it comes down to, even when you buy single families, if you, if you don't understand, you know, if you watch HGTV and you think that everything is, you know, works out perfectly and it's done in 48 hours or whatever. It's, it's. That's not how real estate works. And that's, yeah, you know, blessing. It's almost. You can use it as an opportunity because a lot of people don't like taking on the efforts. Effort and it's taking on some unknowns.

Well, and I think that part of what, what maybe should be thought about is the fact that you've got this business plan, right, that says this is what we plan to do, what we projecting and expecting based on these assumptions and all. But it's important the investors realize that things might happen. I mean, look at 9, 11, you know, there's all kinds of things or Covid, you know, that where you have to change up that plan. So they need to be ready, willing and able to flex as flex is needed.

So, yeah, it's, I mean, it's up to the sponsor to be. To have a 1. A realistic business plan and to understand what is realistic in the market and what is, what's possible. But when it comes down to working with markets and politics and everything that can happen, things can go unplanned or, you know, just people, you know, it's. You're working with hundreds of people in your, in your apartment. But so it's up to the sponsor to be realistic and, you know, clearly communicate that this is the plan and here's our plan B and here's our plan C. And we're going to do the best we can and we're going to be stewards of your capital because that's the most important thing, is taking care of your investors. And I think once that's understood and there's an agreement, it makes life a lot easier.

Oh, yeah, for sure. All right, so we are at that pivotal point where I need to ask you if there is a pivotal person or event that brought you either to where you are today or that's pushing you towards something now.

Yeah, definitely. So I, I just, I briefly mentioned it, but it was, you know, I looked back and it, the turning point was showing up at that one meetup. And not only did that shed light on the possibility of syndications and owning multifamily real estate, but it also, you know, the, the host of that meetup I'm good friends with now. I've partnered with them. They are, you know, I've leaned on them for advice. And I'm going to say mentorship, not a formal mentorship, but definitely, you know, guiding me on my path. And so that was definitely a pivotal moment without, Without A doubt. So, you know, and I have the joy of. We partnered together on a deal in Houston, so it's. It's been quite an experience, and so I have a lot to be grateful for.

So, as you know, if you want to nominate them as a pivotal person, you can do that.

Yeah. So, I mean, I'll. I'll give a shout out. So it's Ben Settles and Ferris Musa with Disrupt Equity.

Oh, okay.

Well, great.

Well, so you want us to contact them to see if they want to be on the show and, and be honored as a pivotal person.

Yeah, you can. Or, you know, you can definitely reach out to them. I can help you with that. And yes.

Yeah, yeah, we actually.

You should collaborate. Let's collaborate. Yep.

You should be the one to call them and say, well, you don't have to be. We can call and say you've been nominated, but if you want to, you can say. You can call and say, hi, I nominated you. I want you to go on the show.

Yeah, yeah, definitely.

Okay. Okay, well, great, great. So tell people how they can get in touch with you.

Yeah. So the best way, there's a couple ways. So connect with me on LinkedIn. It's Amanda Larson. You can find me. Otherwise, my website is Alma or it's almax equity.com and my email is amanda almax equity.com. so it's am x equity.com. and so I love to hear from people, reach out, say hello, ask questions. I've got some free downloads on my website, so, yeah, check me out.

All right, we'll put that in the show notes. You'll get the notes beforehand and we'll make sure everything looks hunky dory. Okay, perfect.

Great. Thank so much.

Appreciate it. It's been fun.

Thank you so much. It's been a joy.