We’ve already covered real estate fund management @passion4rei series, but we haven’t dived into how to transition into the fund management side of real estate investing. That’s why our host, @fuquanbilal, sits down to chat with Greg Hughes, a fellow mastermind buddy and co-manager of four alternative investment funds. Greg began his career in real estate investing while house hacking at 19 and continued to grow as an investor and strategist reaching the point where he is today. Currently, he co-manages four alternative investment funds and has raised over $95 million in funds and gets cash flow from hundreds of houses in multiple states.
Greg shares how he transitioned from a 15-year old with his own lawn care company to a real estate investor and strategist with an (almost) recession-proof diverse portfolio. He covers what he learned during the last housing crisis and how he and evolved to keep his cash flowing. Greg also gives insights into what he’s doing now to keep his business growing and scaling into the future.
One big topic of the conversation was the 1031 exchange, a tax-saving investment strategy that you might not be aware of. Greg explains how a 1031 exchange works, how it benefits both the investor/owner and the person on the lease, and how to leverage it in different ways.
On top of all that, Greg and Fuquan have a real interesting conversation about growth, scaling, and adapting as an investor. It’s one thing to start an investment strategy in real estate. It’s an entirely different thing to adapt that strategy in a changing world. Greg covers how he adapted his investing strategies before and during the recession and how he’s preparing now for the future. He also shares how he is scaling his business even more and gives insight into the challenges in that scaling process.
Highlights from the Interview
- How Greg transitioned from a 19-year old business owner/real estate investor to co-manager of four fund management companies
- Why Greg chose real estate & alternative investments instead of the stock market
- Challenges of moving from property owner to fund manager
- How did your investing strategy survive the recession?
- How do I adapt my strategy for a new market?
- Planning a cash flow strategy to protect your assets
- Biggest challenges as a fund manager
- Dealing with outside property managers vs your own
- 1031 exchange – How does it work?
- What he’s looking forward to in 2020
- Why investing in your education as an investor is critical to your success
About Greg Hughes
When Greg was only nineteen, he made his first real estate investment: he bought three houses on a half-acre lot, living in one and renting the other two. After learning the value of a smart investment strategy, he partnered to build several commercial buildings from the ground up, which he still owns and manages today. Over the last 10 years, Greg has raised $95 million and has profitably bought and sold 595 single-family residences in 22 states. He is co-manager for four alternative investment funds: Hughes Capital’s current offering, a buy and hold fund, which purchases residential real estate in select U.S. neighborhoods chosen for long-term stability and profitability, Assuravest, LLC, which purchases non-performing notes in bulk at a steep discount, ROI Strategies, LLC, which owns homes in the single-family market with a rent to own model, and Sentinel, LLC, which purchases re-performing mortgages on single-family homes. He is the co-owner of the operational companies Hughes Private Capital and Advanced Commission. A real estate and investment author and finance strategist, Greg has been a regular guest on Nevada Real Estate Radio, Money Watch Channel 2 News with Kristin Remington, The Blend in Las Vegas, and a speaker at the Small Balance Real Estate Summits. Greg was born and raised in Reno, where he lives with his wife, Tanja, of 30 years. They have four children – Kayla, 27, Hayden, 25, Tate, 22, and Dexter, 20. He enjoys golf, tennis, pickleball, and snow skiing.