WS1601: Hyper-Focused Real Estate Investing | Stewart Heath

Published: March 10, 2023, 8 a.m.

Market diversification is one thing that\u2019s always emphasized in investing circles. But there are those who dare to concentrate on a particular market and have grown their businesses to success.


In this episode, Harvard Grace Corporation CEO Stewart Heath explains to us why his hyper-focused property investing strategy has worked for him. Life Bridge Capital\u2019s Whitney Sewell gets to know more of this industry veteran in this new episode.

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Key Points From This Episode:\xa0

  • How did he start in real estate investing?
  • How has the property industry changed through the years?
  • Why is he committed these days to syndications?
  • Why did he decide to be hyper-focused on a particular market?
  • What is his philosophy behind focusing on one asset class?
  • What are some factors that he thinks can break a deal for him?
  • How should investors calculate the amount of reserves that they need to have?
  • What is his best source for meeting new investors today?
  • How does he give back to the community?

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Tweetables:\xa0

\u201cSo these days, I do syndications, not only to give other people opportunities to get into real estate deals. But it's also risk diversification.\u201d

\u201cWe make sure that there are plenty of reserves in all of our deals from the get-go.\u201d

\u201cAnd because you don't know what's going to happen, I've also focused completely on cash flowing properties.\u201d

\u201cThat's what investing is about. It's about recurring cash flow.\u201d

\u201cHyper-focus is really for me, I'm not saying that I will never do anything. In other markets, the Tennessee Valley is fairly target rich, and I like to be one hour away from our deals.\u201d

\u201cWe manage our properties, we do the property management. I think the property management model is broken. And so we sort of do that."

"We take a customary fee for that, but trust me, we're losing our shirts doing that. But to me, it is so important to do the boots on the ground management to deliver on the proforma that has been sold to the investors.\u201d

\u201cThe model is broken, where you can't really hire top notch people without them basically taking on more than they can handle and make that make that a business itself.\u201d

\u201cSelf-storage is a great way to play the multifamily movement.\u201d

\u201cWe feel like being an expert in the community makes it not so necessary for us to focus on asset class expertise if there is such a

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