E21 FCC: Axel Ragnarrson - Maximizing Returns with Stabilized Yield on Cost

Hello everyone and welcome back to the Farming for Passive Income show where we strive to educate the agricultural community on how to create alternative income streams and diversification through commercial real estate private equity.

 

Today’s guest is Axel Ragnarrson, an active real estate investor and is based in Boston. He purchased his first multifamily property during his sophomore year in college, leading to the founding of his real estate investment firm, Aligned Real Estate Partners. Currently, Aligned Real Estate Partners owns $25M in multifamily real estate and has been a principal party in $35M+ worth of transactions.

 

01:30 Investing in Boston

05:40 - Lack of Affordable housing

06:48 Reforming zoning regulations

10:19 What Litech deals are

12:15 Buying Class B & C housings and who they cater to

15:16 What drives a good renewal rate?

20:00 Despite having properties dispersed throughout the area, how can Axel maintain high customer service for his tenants?

23:10  “A lot of people are so cost-focused and not value-focused.”

30:00 “The best multi-family operators know that to achieve the best investment outcome, achieve the highest returns. You have to manage revenue, you have to drive revenue, and you have to minimize vacancy.”

32:00 Risk-adjusted returns, what passive investors missed?

34:00 What debt structure is driving those returns?

39:30 “You should embrace learning as if you are actively investing and then apply those learnings to investing passively.”

41:35 Takeaway from Axel - Yield on cost

 

Connect with Axel:

 

Website: Alignedrep.com

Invest: alignedrep.com/invest

Email: axel@alignedrep.com

Podcast: Multifamily Wealth Podcast

 

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