The Lone Star Capital Podcast E44: The Lone Star Founders Story with Kent Piotrkowski [Video]

Welcome to a special episode of the Lone Star Capital Podcast! Today marks a milestone as we welcome a very special guest to the show for the first time – Kent Piotrkowski, co-founder and principal of Lone Star Capital. Join us as we discuss the challenges and successes of building a multifamily real estate investment firm. Kent and I recount the initial struggles of starting Lone Star Capital, including the daunting task of raising capital for our first few deals.

We also touch on Kent’s background as a tax attorney and how it has benefited the firm. Kent’s legal acumen shines as he explains the intricate process of acquiring a private REIT, leveraging his network and understanding of complex structures to navigate the nuances and make informed business decisions.

Learn about the strategic decisions we made early on, such as bringing property management and construction management in-house, which played a pivotal role in our growth. Moreover, discover our approach to hiring top talent and fostering a culture that embraces failure as a learning opportunity.

Don’t miss this conversation with one of the key figures behind Lone Star Capital’s success!

Rob oversees acquisitions and capital markets for Lone Star Capital and has acquired over $600M of multifamily real estate. He has evaluated thousands of opportunities using proprietary underwriting models and published the number one book on multifamily underwriting, The Definitive Guide to Underwriting Multifamily Acquisitions. He has written over 50 articles about underwriting, deal structures, and capital markets and hosts the Capital Spotlight podcast, which is focused on interviewing institutional investors.

👉 Learn more at www.lscre.com

👉 To apply to attend LSC Summit 2024: www.lscsummit.com

👉 Grab a copy of Structuring And Raising Debt & Equity For Real Estate at https://www.structuringandraising.com

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▪︎ Read Rob’s articles:
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With over $600 million in acquisitions and over 30% gross realized returns since 2018, Lone Star Capital is a fast-growing real estate investment firm owning and operating over 3,500 multifamily units in Texas. We deliver superior risk-adjusted returns through diligent sourcing and selection, vertically integrated property management, and rigorous reporting.

Timestamps:
00:00:00 – Introduction
00:02:56 – Finding the Perfect Business Partner
00:05:44 – Starting to Buy Real Estate
00:08:36 – The Importance of Underwriting and Finding a Model
00:11:22 – Entrepreneurial Aspirations
00:14:17 – The Value of Legal Expertise in Real Estate Transactions
00:17:15 – Understanding the complications of buying a private Reit
00:20:10 – The intricacies of buying a REIT
00:22:59 – Navigating an Ever Fast Moving Market
00:25:50 – Efficiently Digesting and Comprehending Information
00:28:39 – Pushing Through Challenges in the Business Journey
00:31:23 – Taking Advantage of Opportunities
00:33:55 – Differentiating ourselves in the competitive market
00:36:29 – The Importance of Relationships and Vision in Property Management
00:39:04 – The Benefits of In-House Management
00:41:56 – Lessons from Working at Big Companies
00:44:50 – The Importance of Communication in the Workplace
00:47:31 – The Challenges of Scaling a Company
00:50:18 – Doingart Smart Things with Smart People
00:52:57 – The Nonlinear Scalability of Management
00:55:48 – Overcoming Challenges and Stepping up
00:58:30 – Overcoming Challenges and Seeing Growth
01:01:05 – The Reward of Building a Business
01:03:42 – Delegating and Building a Well-Oiled Machine
01:06:18 – Patience and Empathy in Communication
01:08:57 – Growth and Bigger Deals
01:11:50 – Outro