Find Deals and Stop Chasing Returns with Ivan Barratt, Episode 59

John Casmon

6 years ago

Growing up in a family of investors, Ivan Barratt had a taste of real estate during his formative years. Since then, he had set his goal of becoming an investor himself. He studied about the industry and even worked a commission-based job just to gain experience. At his lowest point, he started a property management company Barratt Asset Management out of his spare bedroom and slowly began acquiring properties. Fast forward, he became a multifamily owner, manager, and syndicator, who specializes in an agency and FHA finance project. Based in Indianapolis, he focuses on strong Midwest markets with a long-term strategy. On this episode, he shares his thoughts on managing properties, finding deals that work, growing markets, and financing opportunities.

Key Market Insights:

Grew up in a family of real estate investors, influencing his vision
Graduated from one of the top real estate schools, Indiana University
Worked on commission-based as an in-house salesman for a local developer
Started Barratt Asset Management (BAM) out of his spare bedroom in 2010
Leveraged BAM as a vehicle to acquire assets and generate cash flow
Manages over $150 million of real estate
Recently closed a 163-unit apartment community
Property Management Company – provides relevant and honest information regarding your chosen market and expected type of tenants
Current underwriting strategy: Does not chase internal rate of return and cap rates
Indianapolis Market is gentrifying economically: New developments & constructions, and diversified job growth
Other Markets: Suburb Northeast of Indianapolis (McCordsville), Southwest Ohio, Kentucky
Good Location: Strong school districts, diversified employment, new developments
HUD Financing: Long-term financing for ABCD assets with 85% LTV for acquisition, replacement reserves and renovations
Currently writing his book and redoing his website