Episode 54: Growing a Real Estate Portfolio - Advice to Operate Like an Expert with Guest Ted Farry
In this episode of The Investability Podcast, Dennis interviews industry expert Ted Farry. Ted is the SVP of Operations at True Investments, a single-family investment firm based out of Newport Beach, CA. He has been an integral role in helping grow the True Investments portfolio to over 1,000 rental properties in high yielding, working class, high volume markets. True realized early on that SFR investing offered the most compelling opportunity for high yield, long term cash flow. The firm has since invested in a variety of markets, identifying Dallas, Cincinnati, Pittsburgh and Memphis for top investment returns.
Having impressive experience under his belt, Ted has seen the shifts in the SFR investment sector and tells our listeners the best way to scale and grow is by leveraging a quality network of professionals. Hire third party property managers and vendors to help take on the responsibility of effectively operating your rental property. He says that without the additional support True has enlisted along the way, there’s no way they would’ve grown to such a large portfolio. Ted also remarks that technology has played a significant role in evolving the SFR investment sector and will only continue to improve efficiencies in the future, a benefit to all rental property investors.
The advice Ted leaves our listeners is the importance of meeting prospective out-of-state partners face-to-face and spending time in outside markets being considered for investments. There is no replacement for being on the ground, doing research to understand the market and prospective vendors and taking your time to thoughtfully invest. He also feels confident that there is enough supply to go around that Ted doesn’t worry about facing competition that would prohibit True from continuing to expand.
Dennis wraps up the show by asking Ted where he sees True Investments going. Their goal is to eventually reach the 5-10K property tier, elevating the mid-market firm into institutional territory. This would not only strengthen the firm, but continue to validate the SFR investment space as a whole. We can expect to see technology, data, services and overall efficiency investments continue to be infused into the SFR market place.