John Casmon

How to Raise Millions from Your Network with Ryan McKenna, Episode 90

Ryan McKenna was introduced to syndications in 2002 and spent 15 years studying and investing passively before taking an active investor. Ryan is the founder of McKenna Capital, a private equity firm that helps investors to become passive equity partners in institutional-quality, recession-resistant, real estate. Focusing on value-add multifamily, self-storage and manufactured home parks, McKenna Capital has helped investors allocate capital across 5,000+ units with a combined asset value over $500,000,000. On today’s episode, he shares his tips to raise millions and his principles for vetting an operator.

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Key Market Insights

Got involved in real estate syndications back in 2002 while playing baseball at Arizona State through a teammate’s father
In 2006, began with single family rental in Arizona
Realized he couldn’t scale with single families
15 years of studying and learning before starting McKenna Capital
Began investing with his mentor and decided to bring other investors into the deals
Built a list of 250 people in his network and only 5 said I’m not interested.
Relationships with 7 operating partners
12 deals in 2018: 9 multifamily, 2 self-storage, and 1 mobile home park
Ryan’s tips on raising capital – build a reputation as someone people would bet on
What Ryan seeks in an operator: Character, track record, communication, team and business plan
Sees investor interest continuing to expand
Partnering with multiple operators allows for diversification
Buying B and C class, value-add multifamily, self-storage and mobile home parks, which tend to do well during recessions
Manufactured home parks are more tailored towards retirees
Mobile home parks way more demand than there is supply, but they are extremely affordable