Mac Shelton on Underwriting, Markets, and Management: Lessons from Multifamily Deals

This episode features Mac Shelton from Sweet Bay Capital discussing his experiences in multifamily real estate investing. Mac shares insights into his firm's investment strategies, detailing both successes and challenges. He dives into specific deals, including his "best" and most challenging, offering valuable lessons on underwriting, market selection, and property management. The conversation explores the nuances of student housing and the potential of investing in tertiary markets.  

 

Key Takeaways:
• Importance of Underwriting: Thorough underwriting is crucial to mitigate risks, especially with older properties.
• Market Selection: Tertiary markets can offer strong rent growth and less competition compared to primary markets.
• Student Housing Nuances: Student rentals can be profitable but require careful management and consideration of location and market dynamics.
• Value-Add Strategies: Implementing value-add strategies, such as renovations and rent optimization, can significantly increase property value and returns.
• Managing Challenges: Real estate investing involves challenges; effective management and conservative budgeting are essential for navigating them.

 

About Mac Shelton:
Mac Shelton is a founding partner of Sweet Bay Capital, a multifamily investment firm focused on value-add properties in Virginia and the Carolinas. His real estate career began with underwriting debt and equity deals and raising capital. Mac's firm targets 20% deal-level Irrs and focuses on improving property efficiency and profitability through renovations. Based in Raleigh, North Carolina, Mac is also a 1st Lieutenant in the North Carolina National Guard.

 

How to contact Mac:
• Sweet Bay Capital Website: https://www.sweetbay-capital.com/
• Mac Shelton LinkedIn: https://www.linkedin.com/in/mac-shelton/

 

How to contact Brad:
• Risk Strategies on LinkedIn: https://www.linkedin.com/company/risk-strategies-company/posts/?feedView=all
• Brad on LinkedIn: https://www.linkedin.com/in/brad-weaver-bb29035/
• Book an intro appt with Brad: https://zcal.co/fwbn/introcall
• Brad’s Direct Cell: (845) 779-2044