How Busy Professionals Build Wealth With Multifamily Syndications

Patrick & Alan Davison (00:00)
it helps you get to the next level. And but the other cliché, you mentioned a cliché a minute ago, other cliché is that your your network is your net worth. That’s another that’s as a cliché as well. Yeah. And but it’s but like many clichés, it’s actually very true. And and so you know someone sitting at home on their couch trying to get themselves involved in a business that they don’t yet understand and have never been involved in before, that ain’t gonna work. You need to get out there, you need to get up and go and meet people, talk to people. And the th the great thing about these these meetups is people don’t undervalue you if you know nothing.

Meghan Escobar (02:12)
Hello everyone. Welcome back to Real Estate Pros Podcast hosted by Investor Fuel. I am your host today, Meghan Escobar, and I have the pleasure of sitting down not with just one, but two incredible individuals who are out here in the real estate world doing some great things. They’ve been in the industry for quite a while, doing fix and flip, and have recently started a new venture and journey where they’re building up the Coalition Capital Company and son and father, father and son. I’ve got Alan and Patrick Davison here with me today, and I will let them tell their story because I’m not here to be their author. I want them to give you straight from the horse’s mouth. So I do think that our audience will gain some insight based on how you’re structuring your business and the way that you’re operating in in the ways that you are. so with that said, I wanna say thank you to both of you for taking your time out of your day to be here today.

Patrick & Alan Davison (03:09)
Thank you, it’s great to be here.

Meghan Escobar (03:11)
Absolutely. So Alan is dad and Patrick is son, just in case you guys were wondering here. And you know, for those who might not be familiar with you know, Alan or Patrick Davison or Coalition Capital, can you give the audience a thirty thousand foot view of, you know, what it is that you guys are focused on today and specific markets that you’re operating in?

Patrick & Alan Davison (03:34)
So what we’re focused on is connecting busy professionals, busy business owners. who need to throw off some capital from their business to develop long term wealth and so we help them invest in high quality multifamily and senior living facility syndications. we are part of a mastermind group we have access to some of the best deals in the country and definitely many of the best operators in the country. so we put together people who want to invest in that field with the people who are the best people to operate it and to guarantee their success in that investment field.

Meghan Escobar (04:18)
Beautiful. And so I know we talked a little bit before we got on here. And so I am familiar with, you know, what you guys are doing and how new you are, but the audience is. And so, you know, I know you’ve got some some skin in the game when it comes to fix and flip. And you guys started with Springwell Properties and have since then ventured off into this new new journey about 18 months ago. Can you you know It’s just not an easy thing to do in this market. So do you mind sharing what is keeping like what’s the key to keeping your machine running smoothly?

Patrick & Alan Davison (05:45)
Well the key to keeping the the machine running smoothly for us is building the brand, getting a lot of investors, interested in what we’re offering, the connections that we’re building for them, and also to keep ourselves well connected with what’s going on, what are the new deals, what are the best deals, what are the teams in our network that we can put people together with. So that’s really what what drives the thing on is a constant need to be connecting. individuals have a need one side and the other p individuals and companies that have a need on the other side and acting like a funnel between the two.

Meghan Escobar (06:23)
Love that. So you you’re basically the bridge.

Patrick & Alan Davison (06:27)
With the what, sorry?

Meghan Escobar (06:28)
The bridge.

Patrick & Alan Davison (06:29)
With a bridge, yeah. With a bridge. Yeah. Exactly, yeah.

Meghan Escobar (06:33)
I love that. And you know, one thing that I always like to to hone in on a little bit here on these on these shows is talking about maybe a situation as an operator where you had to pivot fast because a deal had gone sideways or just something that kind of kept you on your toes. And the reason I think this is important because We live in such a highlight world where we see all the highlights of success when people are posting on their social media, but we don’t often hear about the things that happen behind the scenes to make it happen. So is there a moment, you know, I you you’ve been doing this for nearly a decade. I mean, is there a moment that you hold on to that you could share with us?

Patrick & Alan Davison (07:25)
one specific moment. the mid major challenge that people have when they’re operating multifamily or in our case or recently senior living facility is that when the biggest opportunities are when you have a value add proposition. And that normally involves a fair degree of capital expenditure, which in turn means you need to turn the facility to one extent or the other into a construction site. And so but at the same time you need to be able to build up to to fulfill your business plan, you need to be able to boost up the the occupancy of the property and then increase the rents after that. So it’s a struggle that we’ve had recently is that when the construction’s going on, those two things aren’t conducive to each other. They they they conflict in a big way. People don’t like living on building sites. They they don’t like living in construction zone where there’s you know dirt and noise. And so trying to find a way to to manage that. is one probably the biggest challenge that we have in this field. And

Meghan Escobar (08:34)
Mm. I

Patrick & Alan Davison (08:35)
the way

Meghan Escobar (08:37)
go ahead, I saw I apologize.

Patrick & Alan Davison (08:39)
That’s all right and and probably the best way to to manage that to work very, very closely with the contractors, make sure they’re working in specific areas, controlling their access to the overall property, limiting it to where the work needs to be done, and creating some sort of barrier between where the work’s going on and where people are living so that their impact is is minimized, but it can never be completely eradicated and that’s kind of the biggest challenge.

Meghan Escobar (09:06)
Hmm. Yeah, I I would imagine that make that makes a lot of sense. And I know y you did mention that you do have a background in construction. And so that’s helped you understand that concept of business. Is that right?

Patrick & Alan Davison (09:20)
Yes, I mean I have a I built I bought the company I worked for, and in today’s dollars it was it had a revenue of about three million a year. I built it up over a twenty year period to sixty million a year again in today’s dollars. I changed the way the business operated. It was a basically a typical building company. I got it to specialise in the interiors of high quality establishments like retail stores, including Harrods in London. We’re originally from the UK, so that’s where we operate. We also carried a very high profile project for Arsenal Football Club. We did in today’s dollars again, a seven million dollar project in eleven weeks to the highest standards and and the no there’s no allowance for failure. They just cannot fail. Well in the example of the football club the soccer club, Arsenal had to kick off their season on a certain date and we had to be out of there and had the up the the facility which we were building which was a a hostess or hosting facility, it was a very high quality restaurant and club. and it had to be open on the first day of the new season. There’s no need for ex room for excuses there. So I came from a very high high intense driven sector of the construction industry. And so I think I can bring certain and do bring a certain amount of of skills that I developed in into that. Into the what we’re doing now.

Meghan Escobar (11:33)
Yeah. It’s like ’cause y you understand the behind the scenes stuff that probably most people in your position wouldn’t.

Patrick & Alan Davison (11:39)
A lot of people that are doing this this are aren’t don’t come from a construction background and they may come from a like a general real estate that may be brokers that come into it or they may come in with a lot of people come in from all kinds of f a variety of fields. Very successful people still that come in, they may you know, their previous job might have been selling medical equipment, but they can come into that field and if they’re they’re the right type of individual they can make a success of it. But they don’t have an understanding. It’s certainly the start of of the construction process and how that how how that’s best to be managed.

Meghan Escobar (12:13)
I would imagine that to be a benefit in your position.

Patrick & Alan Davison (12:15)
I certainly think it is, yeah.

Meghan Escobar (12:17)
Yeah, absolutely. And talk to us a little bit about what Coalition Capital is focused on scaling next. I I know we talked a little bit about that in Discovery, but I think it’s exciting you know, to to share.

Patrick & Alan Davison (12:29)
But what we’re focusing on right now is is building our brand, building our network of investors that we can call on and we can offer them opportunities. we don’t sell them anything, we offer them opportunities, these are high class opportunities and they you know, people who are are are intelligent and and understand that know that they’re good opportunities. We don’t need to sell anything to them. And so the idea is to build up as big a network. we really want to have a situation where we have, you know, a lot of people ready looking for a deal, because we don’t have a deal every day. Well and so whenever we get a deal that they’re often ready, they’re ready to go and ready to to to invest with us. We invest alongside them. So when we do a deal, we also put our own private capital in as limited partners. So we’re in this have the same experience our investors do. We have skin in the game and you people know that you know our interests are aligned with theirs.

Meghan Escobar (13:29)
I think that creates a lot of you know, trust knowing that there’s a piece of your pie going into the deal as well and so people can kind of be you know, feel a little bit safer.

Patrick & Alan Davison (13:40)
Yeah. Yeah. Well that’s certainly that’s certainly what we’found with people so far. Once they find out that we’re also investing our own money as LPs in the deal, yeah, that gives them a lot more confidence.

Meghan Escobar (13:52)
I would imagine that. I would it would give me some. So yeah, that’s awesome. And and and huge. So that’s gonna help compound things for you guys to the next level, I believe.

Patrick & Alan Davison (14:02)
We certainly hope that. I mean our main focus is on building up that network and we’re spending a lot of energy and we’ve got a lot of help on board doing that. we’re very confident we’re gonna do that and we’re looking forward to it.

Meghan Escobar (14:13)
I’m looking forward to it as well. And we talked a little bit about this as well as also in the discovery, but I think it’s important for our listeners to hear as well. As most of our listeners are very green in the industry, they’re just getting started. Or we have, you know, individuals that are really just looking to level up. And I I always think that it makes a lot of sense to bring up building relationships, growing your network. you know, often our influence is our success is influenced by who we surround ourselves with. I mean, many mentors on very high levels will tell you, like, you’re the f average of the five people you spend your most time with, right? We that’s a that’s a famous quote. But I’m curious to know what your take is on this, Alan i and Patrick if you wanna chime in. Like when it comes to growing your network, what has made the biggest difference for you getting into certain Mastermind rooms.

Patrick & Alan Davison (15:07)
Well first of all I think the the the the getting into a mastermind room is is something you need to spend a bit of money on. You need to spend some money on that to join the groups. that’s not as easy for people just starting out, maybe don’t have that money. Maybe say, Well, I’ve got money here but I want to put it into a deal Well you know, you’ve got to invest in yourself first of all. we come into a business like this that you maybe don’t have any understanding of it but you know you’d like to be involved and you’d like to take part in it. you still you you you just can’t start off knowing everything day one. You’ve got to invest in your own education. there’s plenty of free boot camps out there you can look at. Find You know, you should I think the someone starting out in this, I would get them to to go on to to to watch podcasts, to to look at boot camps. So boot camps are quite often free, and quite often minimal amount of money. But from the point of view of going on a few boot camps and see see which mentors out there really suit you and that you can f you feel comfortable with because they’re not they’re all different individuals. Find someone and you’re gonna probably have to join their group. But there’s other ways you can do it without without spending money or any serious amount of money and that is by joining in local area real estate investors associations. We’re certainly a member of the few we go to four or five meetups a a month. Getting out there and meeting people, boy it it it it really does it helps you get to the next level. And but the other cliché, you mentioned a cliché a minute ago, other cliché is that your your network is your net worth. That’s another that’s as a cliché as well. Yeah. And but it’s but like many clichés, it’s actually very true. And and so you know someone sitting at home on their couch trying to get themselves involved in a business that they don’t yet understand and have never been involved in before, that ain’gonna work. You need to get out there, you need to get get up and go and meet people, talk to people. And the th the great thing about these these meetups is people don’t undervalue you if you know nothing.

Meghan Escobar (17:20)
Yeah.

Patrick & Alan Davison (17:20)
Because everybody knows nothing at some point. When you go in and you start talking to people, then as long as you’re a genuine person, ask questions, people people want to help in these groups. Our experience is that people want to help you. And w there’s no such thing as a stupid question. Another cliché is the only stupid question is the one you don’t ask.

Meghan Escobar (17:41)
It’s very true. And it and at the end of the day, I think people need to understand, especially because we also live in such a digital world today where a lot of younger folks might not understand the importance of building relationships. And here’s the real truth, people. Like you are in if you’re in business, you’re in a people business. Like business is people. Like businesses do not run without people and the relationships are everything in this space. So thank you for sharing that.

Patrick & Alan Davison (18:10)
Personally actually because I’m naturally more of an introverted, maybe a bit shy kind of person and getting myself out there and meeting people, just talking, going to the local groups, it’s really brought me out of my comfort zone and that’s where real personal growth lies. Getting outside your comfort zone, putting in the effort. Not

Meghan Escobar (18:27)
That’s right.

Patrick & Alan Davison (18:28)
always gonna go well, but you know, you try, keep trying, keep trying.

Meghan Escobar (18:32)
Yeah. The only way to truly fail is to not try at all, right?

Patrick & Alan Davison (18:36)
Yeah, yeah.

Meghan Escobar (18:37)
That’s a guarantee fail. Like guarantee fail, you know. Yep. And we got we gotta learn. You gotta learn from your mistakes. So I really appreciate you both sharing so much insight on that on that subject because I think it’s really important. And you know, before we do wrap up here, if someone reach someone listening in wanted to reach out and learn more about what you’re doing or has a potential opportunity for you, what would be the best way for them to touch base? Is there a social media site? Is there an email, phone number?

Patrick & Alan Davison (19:11)
What would be the best way? I would say call us up, have a chat, we have a website. You could book a Zoom call if that works better. if you wanna maybe just read some information first as well.

Meghan Escobar (19:21)
And is that just the coalitioncapital dot com? What’s the site?

Patrick & Alan Davison (19:24)
No, we’d have to send it. It would be it’s www.coal-cap.com.

Meghan Escobar (19:33)
Perfect. We’ll have that dropped in the link.

Patrick & Alan Davison (19:35)
I think if someone Googles Coalition Capital as well, that’d be a be a good thing.

Meghan Escobar (19:39)
Perfect. And you know, what we’ll do is make it a lot easier for our audience and we will drop all of those back links, the phone number, the website. we’ll drop it right down below. or even if there’s a a link to book in, not book book in for a zoom, if that’s something you guys want to provide, we can do that as well. And so with all that, I wanna thank you both for being here and sharing your insight, sharing your wisdom and your experience, and more importantly. your perspective on the industry that you’re in. So we need more people in this space that are doing things the right way. And it looks like you guys are both very authentic and passionate about what you’re doing. So thank you so much again for being here.

Patrick & Alan Davison (20:21)
Thanks you again for having us. Thank you very much.

Meghan Escobar (20:24)
Absolutely. And for those that are tuning in, if you got any value and you want to hear more, please be sure to hit like and subscribe. We’ve got conversations coming in like this on a daily basis with operators like Alan and Patrick who are building real businesses in real time with real people. We’ll see you on the next episode.