Scott Everett founded S2 Capital in 2012 to acquire multifamily Real Estate. In the past
10 years as CEO of S2 Capital he has built a Real Estate investment company that has acquired over $6B of multifamily assets totaling 40,000 units and 3 operating companies that generate annual revenues in excess of $350M with over 600 employees.
On this episode, Scott discusses how he got started in value add MF and grew to 38,000 units, how he underwrites deals, and what matters when underwriting a deal. They chat about how S2 is set up operationally and how his different teams all work together. Scott also shares why he's raising a fund after 10+ years of syndicating deal by deal. Enjoy!
Follow Chris on Twitter: https://www.Twitter.com/FortWorthChris
Follow Chris on LinkedIn: https://www.linkedin.com/in/chrispowersjr/
Learn more about Chris Powers & Fort Capital: https://www.FortCapitalLP.com
Follow Fort Capital on LinkedIn: https://www.linkedin.com/company/fort-capital/
Listen & Subscribe on Spotify: https://open.spotify.com/show/7oIeNSaSJ4zkTQOXiedyOr?si=dEM48cSPQ9OIQ1HiD8sjrg
Listen & Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-fort-with-chris-powers/id1410549811
00:28 - Scott’s RE Career
04:25 - Scott’s First Deal
13:54 - What are illegitimate reasons a property isn’t performing?
16:23 - How do you think about approaching a deal?
19:21 - How much has the RE landscape changed over the past decade?
21:54 - Being Laser-Focused On One Asset
25:06 - How do you think about due diligence?
27:50 - Scott Walks Us Through The Entire Deal Process
33:57 - Why do you renovate units so often?
35:09 - What’s the first 90-180 days after closing look like?
39:14 - How long does a full unit rehab take?
39:55 - When do you talk to folks about renewals?
45:12 - What separates you from the competition in the construction part of the process?
49:10 - What are you experiencing in the current labor market?
52:38 - How do you think about staying on top of materials supply?
54:24 - Are rents so competitive that class B tenants are moving up to Class A apartments?
55:54 - What do you want your asset managers focused on?
57:10 - Break To Reinstate What The Question Is!!!!!!!!
59:23 - What’s your ReFi strategy?
59:58 - What’s the difference between Fanny & Freddy loans?
1:00:52 - What’s your confidenace you’ll get to your NOI number on a deal?
1:02:31 - Where do most people miss the boat in terms of CapEx?
1:0423 - How are you refreshing your portfolio today?
1:08:27 - Is there any technology that has your attention right now?
1:11:37 - Why are you raising a fund?
1:29:52 - Is there anything out there that scares you?
1:31:13 - What’s your words of wisdom on building a great family business?
1:35:13 - What is the S2 foundation?
The Fort is produced by Johnny Podcasts