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What’s up, everyone? Today, we’re going to cover another interview Lincoln Archibald had with Rob Fuller from ROI Property Group.
ROI Property Group, founded by Rob Fuller in 2014, generally invests in fix-and-flip operations in the Colorado Springs and Atlanta Metro areas.
Let’s dive in! (Click here to watch the interview)
Lincoln: How’d you get your start in real estate?
Rob: I graduated from college with the intention to go to med school and while I was doing interviews, I changed my mind.
I pulled all my applications and told my wife I was going to do real estate; she was supportive and I had just realized that medicine wasn’t for me.
I spent some years saving up cash, then I spent it all on 13 houses in 2009 when prices were down.
By 2016, I raised some money from investors and was averaging 30 to 40 single-family home purchases a month.
Soon after, the supply of distressed assets decreased because people were starting to buy their own homes and buyers were just more financially stable than before.
Most of our assets were fix-and-flip, but we started to buy some rentals as well.
Lincoln: Did you do all the flipping yourself?
Rob: For those 13 houses in 2009, we subcontracted them out because we were located in California.
We bought some of those homes for $2,000! The state taxes were more than the cost in some situations.
Lincoln: How did you get in the business of managing outside capital?
Rob: The simple answer is that we found deals and didn’t have enough capital to buy them.
There’s always opportunities and assets to buy if you’re looking, and that’s what we did.
Soon enough, people were approaching us asking if they could invest.
Lincoln: Let’s fast forward 8 years! What does your firm look like today?
Rob: We’ve closed out a few funds and have some going right now.
We have 25 employees at our headquarters here in Orem, UT.
Currently we have 27 projects; the smallest one is 26 homes and the largest is several thousand lots.
We’ll either sell those lots to developers or build on them ourselves.
Lincoln: You said that you haven’t always used the fund structure, at a time you were using institutional debt. What are the pros to that?
Rob: The biggest pro is getting a single check. You skip the hassel of managing multiple relationships.
However, banks are writing less of those now, which is why we have shifted over the the fund model.
The advantage of the fund is that your not linked to a group that’s linked to Wall Street; it’s just the individual.
“From my perspective, raising money gives us a little more control of our destiny.”
Lincoln: That’s a great point. We often tell fund managers that just as an investor wants to diversify their portfolio, a fund manager wants to diversify their LPs; they have a good mix of institutional, high net worths, family offices, etc.
These various classes of investors all have timeline differences, which can play to the advantage of the GP.
It’s been great how ROI Property Group got started and how they’re managing their real estate empire!
That’s all we’re covering today, but use this link to watch the rest of the “Funds that Won” interview!
If you’re looking to start your own real estate fund, visit Fund Launch!
Or, check out my YouTube channel to learn more.
Thanks for stopping by,
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author
