Broadcasts.com - "Episode 209: Real Estate Development with Karl Krauskopf" (The REI Diamonds Show-Real Estate Investment Podcast)

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Episode 209: Real Estate Development with Karl Krauskopf

Published: Dec. 28, 2022, 3:30 a.m.

Episode:\\xa0 Real Estate Development with Karl Krauskopf

Guest:\\xa0 Karl Krauskopf is a multi family real estate investor and developer based in Seattle, Washington.\\xa0 He is the managing partner of Auroras Investment Group.

Big Idea: Real Estate development, specifically the entitlement process can produce large gains without the risk of construction.\\xa0 Flipping houses is a great place to start in real estate, but can be challenging to scale.\\xa0 This is why many real estate developers progress to development of land and larger projects after finding success in single family homes.

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Resources mentioned in this episode:
https://www.AurorasInvestmentGroup.com/

View the Episode Description & Transcript Here:
https://reidiamonds.com/real-estate-development-with-karl-krauskopf/

Dan Breslin: Welcome to the REI Diamond Show. I\\u2019m your host, Dan Breslin, and this is episode 209 on real estate development with Karl Krauskopf. Karl is a multi-family real estate investor and developer based in Seattle, Washington. He is the managing partner of Aurora\\u2019s Investment Group. Real estate development, specifically the entitlement process, can produce large gains without the risk of construction. Flipping houses is a great place to start in real estate, but it can be challenging to scale, which is why many real estate developers progress to the development of land and larger projects after finding success in single family homes. On this episode, Karl and I discussed this as his recent or past transition to larger deals and the same transition that I am currently going through myself.

Karl: Sure. Happily. So, how I got into real estate was probably a little bit different from most folks. I got into real estate. That was 10 years back, I was a veteran and working in the healthcare industry. I was a director of corporate strategy and business development. So, that is where my passion lies, which is really around growth partnerships. How do we basically, how do we grow an entity of business?

And what ended up coming to fruition and what bore the real estate endeavour was my wife and I going into a conversation about wanting to start a family, wanting to have a kid, and what better way to start a side business, which would become my future business, is having a kid. So, spent about six months during my wife\\u2019s being pregnant, self-educating myself, really learning how to maximise my income, as well as getting into diversifying my income by adding additional streams of revenue. Decided it was time to take the first leap, which was buying a duplex, a remote duplex across the state from me, and with full intentions of rehabbing, refinancing it, and repeating it. Come to find out that I was not the right asset for that. And now I just spent about $75,000, the majority of my at that time, disposable income in putting it, parking it into a duplex that had no direct path for the refinance. So, I started sweating. I was nervous, didn\\u2019t know what to do. We were about to have a baby. So I figured what\\u2019s the best next step? Well, the best next step, apparently at the time was to flip a massive home. My first flip ever, it was a hoarder home too. Fantastic idea, right? No, it was awesome. I believe it was four dumpsters\\u2019 worth, 440-yard dumpsters\\u2019 worth, of junk that we took out of this home. All this direct to say back is, I\\u2019m working a 40, 50 hour a week job as well as we just had our newborn, and apparently I\\u2019m a glutton for punishment.

Karl & I Discuss Real Estate Development:

Entitlement Process-Real Estate Development
Finding Mentors doing Larger Deals
\\u201cCovered Land\\u201d play-teardown deals
The Microsoft Real Estate Market-Seattle, Washington

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