In a recent virtual event hosted by Osher Partners, industry veteran Joe Lubeck, CEO and Founder of American Landmark, shared his wealth of experience and insights on the multifamily real estate market, particularly in the Sunbelt region. Lubeck, who has overseen the development of over 100,000 multifamily units worth $7 billion, emphasized American Landmark's focus on sourcing deals in high-growth markets like North Carolina, South Carolina, Florida, Texas, and Tennessee.

"Our focus, while of course we're always focused, the real story is, don't do any bad deals. Make cash flow, make your IRR, make your multiple."

One of the keys to American Landmark's success has been their ability to move quickly and go non-contingent on deals.

As Lubeck noted, "We are not the highest bidder, but we trade on predictability and having available cash."

This reputation has helped the firm establish strong relationships with sellers and secure off-market opportunities. Lubeck also highlighted the importance of maintaining low leverage, even in the face of the current interest rate environment. As he stated,

"Our company has never missed a payment to a lender, ever. We've always been low leverage."

This conservative approach has allowed American Landmark to weather market cycles and avoid the pitfalls of over-leveraging.

In addition to their multifamily portfolio, American Landmark has also been actively expanding into the single-family rental (SFR) and build-to-rent (BTR) sectors. As Lubeck explained,

"We really like the juxtaposition of having the multifamily next to the townhouses, cottages, and single-family homes because, ideally, you start with a single person or a couple in your ones and twos in the multifamily units. Hopefully, they pay you on time, and you've provided them with great customer service and value. When they get married, have a child, or need a home office, they will hopefully evolve from your left side of the multifamily to your right side of the single-family homes."

When asked about the potential for a market crash similar to 2008, Lubeck and his colleague, Greg Calico, expressed cautious optimism. As Lubeck noted, "I think right now, certainly we have ups and downs, but the banking system is not at risk like it was then. There weren't major national and international lenders going bankrupt." Calico added, "I don't really see that. I think that, you know, again, I think if we would have seen it, you might have seen a little bit more of it in '23 you know, again, if the tsunami was coming, I think you would have had a little bit more headwinds in this past year."

Overall, the discussion with Joe Lubeck provided valuable insights into the strategies and mindset of a seasoned real estate investor navigating the Sunbelt markets. His emphasis on disciplined investing, low leverage, and a focus on cash flow and returns serves as a valuable lesson for both seasoned and aspiring real estate professionals.

The event was one of many organized by Osher Partners, a nonprofit dedicated to creating and promoting targeted business and educational opportunities for New York City's Jewish business community. The organization is co-founded by Shaya Lesches, who continues to drive Osher Partern's mission. You can learn more about Shaya Lesches and his work at shayalesches.com.

Interested in more inspiring conversations and events like this? Check out upcoming events.