Your Network Saves Real Estate Deals: How Relationships Helped Edgar Close His First Apartment

Edgar De La Torre (00:00)
I think first deal topics is probably one of the most interesting things like ever. So of course when you’re trying to find your first deal, it’s like you’re you have nothing. You have no credibility, you have no background, like why would someone accept your offer? Who are you? Where’s your money coming from? And then there’s even more behind that. There’s like, okay, do you even have like a guarantor to be able to backstop guarantees on loans and stuff like that? So in my first deal in particular, a very scary thing that was happening along the way is like I had a guarantor that was a family member signing on a loan, we’re going through due diligence period in California, it’s very tight timeline. So it’s only 14 days.

Meghan Escobar (02:11)
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 with somebody fairly green to the industry, but making major moves, and I think he’s gonna be able to provide our audience with some great insights with his story, with his journey in the business that he’s built. With that being said, I’m super excited to bring on Edgar De La Torre, owner and operator of Tower Real Estate Partners. Edgar, thank you again for taking the time to be here. We’re super excited to have you on the show.

Edgar De La Torre (02:48)
Thank you so much. Appreciate it.

Meghan Escobar (02:50)
You’re absolutely welcome. Let’s go ahead and dive in, because who better to hear it from than the man himself? Those of those people out in the audience that might not be familiar with your name or your world, give us a thirty thousand foot view of what your main focus is these days and what markets that you’re operating in.

Edgar De La Torre (03:09)
Yeah, so Tower Real Estate Partners I started six months ago. We’re exclusively focused on multifamily value-add in the SoCal region. You know, I guess by background, I’ve been in the institutional commercial real estate world throughout my entire professional career, and I just recently broke off to start my own company. So I’m originally from Southern California, and while a lot of the headlines would suggest, you know, everyone’s kind of leaving California and investing in out of state, I think that is what is creating an opportunity for myself, because I’m from here and while a lot of people are not focused on the market, it’s creating interesting opportunities. I got my first couple of deals under my belt right now, and so, yeah, super excited and to keep buying more apartment buildings here.

Meghan Escobar (03:57)
Amazing stuff, amazing stuff. And you know, one thing that really stuck out to me during our kind of discovery conversation, if you will, was, you know, the way that you’re positioning yourself to create the relationships, to build the capital. Yeah, I I think I think it’s really amazing. So talk to us a little bit about what’s helping you keep the momentum, keep the drive.

Edgar De La Torre (04:24)
Yeah, on the capital side.

Meghan Escobar (04:26)
And just in general, but if you want to hyper-focus on that, yeah, definitely.

Edgar De La Torre (04:31)
I would say it’s a combination of two things: is one, kind of building out the infrastructure like from a company perspective, and the other is, yeah, keeping the engine going via capital, which is kind of how I ultimately came to doing this this conversation here. But, yeah, I think from like an infrastructure side, I mean, you know, six months ago I was trying to find my first deal. You know, got that one closed, and then I’m currently closing another one by the end of next month, so that would be two properties—a 9-unit, a 13-unit. They’re both located in Long Beach, California, one of the biggest port cities in the country.

And along the way, I’m trying to stack, you know, more type of infrastructure within that, so I’m also launching a property management company to have that vertical integration capability. So now I’m gonna start managing like each property that I’m buying. And then because of that whole story of like, “Hey, I’m from here and this is where I see the opportunity because everyone’s focused elsewhere,” also have like, you know, family infrastructure here. So I like a cousin who’s a general contractor who’s very easy to just call up and kind of do all the work for me and know my numbers and keep it low, you know, so stuff like that.

So from that perspective of building out the infrastructure of a lasting company, it’s kind of exciting to see that the pieces are falling into place. I have my head above the water now that I’ve done my first couple deals. And then the second side of it to keep things going and keep the ship running is basically trying to solve the capital puzzle. Because, you know, Rule 506(b) versus Rule 506(c) or whatever, I’ve been doing the 506(b), which is just going to friends, family, you know, former colleagues and classmates and stuff like that, and it’ll only go go so far when you’re when you’re trying to buy a bunch of opportunities that exist out there today. I mean, no one’s gonna just continue bringing up, you know, when they’re just your friends and family.

So over time, I’m I’m trying to solve that puzzle and going about it. The plan is—I haven’t, you know, I’m early on still, but the plan is to just hit it from all angles: go out to networking events, meetups, host my own meetups, try to do a little more media content, whether it’s YouTube or joining podcasts and stuff like that. So I’m kind of just trying to hit it from all angles and and try to keep the ship running.

Meghan Escobar (07:34)
Love that. And it, you know, every operator I know has a moment where things got real. And, you know, especially from somebody who came from corporate America into entrepreneurship, I’m sure you could probably share some some real-life scenario where a deal went sideways, or just a time that you had to pivot really fast to to to keep climbing. I mean, would you mind, Edgar, sharing one of those moments?

Edgar De La Torre (08:01)
I think there’s no better example than your first deal. I think first deal topics is probably one of the most interesting things like ever. So of course, when you’re trying to find your first deal, it’s like you’re you have nothing. You have no credibility, you have no background. Like, why would someone accept your offer? Who are you? Where’s your money coming from? And then there’s even more behind that. There’s like, “Okay, do you even have like a guarantor to be able to backstop guarantees on loans and stuff like that?”

So in my first deal in particular, a very scary thing that was happening along the way is like I had a guarantor that was a family member signing on a loan. We’re going through due diligence period in California—it’s very tight timeline, so it’s only 14 days. On the fifteenth day, which is when I went non-refundable with my deposit and sixty grand was no longer mine, the… that next day, the bank comes to me and says, “Well, like, we don’t like their credit, so you don’t have a guarantor anymore. So how are you gonna put this deal together?” And so I was like absolutely scared. Like, what the heck? I don’t think I have anybody that could replace, you know, couple-million-dollar net-worth-type figure of a person.

And, yeah, just kind of any shame went out the window, and I was just going down my Rolodex like calling everybody up. Don’t care, I gotta figure this out. And then it just… it was a very interesting way that it all got solved, but I basically had one of my mentors from Wells Fargo, my earliest days in corporate America, basically willing to sign up like him, his wife, his family, put his neck on the line for me. And I was like, “Wow, that’s amazing.” I kept the ship running. I kept trying to solve like the capital side of things, and then ultimately, yeah, got that one figured out. But that was a very scary moment. And if people don’t know, guarantees are a very important part—you always gotta have someone out there that’s willing to have their balance sheet on behalf of an investment. So that was one of my scariest times in my first deal.

Meghan Escobar (10:03)
Yeah. And the the the story out of that, though, is like through the challenge, you overcame. It all worked out, right?

Edgar De La Torre (10:11)
Yeah. Yeah, ’cause those are like existential threats. It’s like, yeah, a deposit like that, like…

Meghan Escobar (10:17)
Yeah.

Edgar De La Torre (10:55)
That’s gonna be a rough, yeah.

Meghan Escobar (10:57)
I could imagine, like, what were what type of emotions and feelings were you going through during that time of like potential loss?

Edgar De La Torre (11:04)
It was the most interesting feeling I’ve ever had, because I don’t think I’ve ever had anything scarier. So it wasn’t like, I don’t know, it was just a very heightened sense of like, you know, being alone, kind of just in the dark in a hole, and and there’s no other way to climb out other than like calling people, calling people, texting around, asking, you know, getting creative, too, right? ‘Cause like in my industry relationships, there’s also bankers, you know, like placement agents and stuff like that. So I was calling everyone and anyone to say, like, “Do you know anyone that out there that does like guarantee for a fee? Let me call them,” you know. They’re kicking me away, right? They’re saying like, “Your deal’s too small,” or like, “We pay crazy, you know, fees,” and like all this type of stuff that I just kept coming to a dead end until like, yeah, ultimately I… like someone that I would have never anticipated was willing to do that for me. It was just like that just goes to say, like, there’s people out there that like truly love you and and care about you and wanna see you succeed, and you just don’t know who’s gonna show up until like that time comes.

Meghan Escobar (12:10)
Yeah. Tap into the resources that… yeah. Make the dials, make the dials, even if you don’t want to. Wow. Thank you for sharing that, Edgar. You know, I I think that’s the kind of stuff that people just don’t talk about enough, right? Because we live in such this highlight world where we see all the wins, we see all the success stories on the social medias and the podcast, and we don’t see those deals that could potentially go south or, you know, what you’ve had to overcome to get to a certain point. So I I really appreciate you sharing that. And honestly, I do believe that it is what separates folks who are here to just get a quick commission check versus those that are, you know, they’ve got some skin in the game and they’re they’re gonna take it out long. So talk to us a little bit about what you’re most focused on solving next. What’s the real… the next real big goal for Edgar and Tower Real Estate Partners?

Edgar De La Torre (13:05)
Yeah, I think the next big goal for me… I think we were also talking about this kind of like on our, you know, pre pre-recording conversation, was like, I think I’m entering this world where it’s like, you know, it’s not about how to analyze a deal or how to find a deal or how to build credibility in the market. It’s like, no, deals are getting thrown at me right now because people know I’m a buyer in the in the area and a lot of people are hurting. A lot of people have loan maturities coming due, interest rates have repriced, and discounts are are real. My current deal that I’m closing is a 30% discount to a building that someone else completely renovated from scratch. Every every unit turned, every building component replaced except for the roof, and I’m getting it at 30% discount.

And so those things exist out there, and they’re coming at me. But, you know, one thing I found out really quick after doing my first couple deals is like the money only goes so far. And so now I’m trying to solve that Rubik’s Cube: like, will I continue doing Rule 506(b) or will I go Rule 506(c) and just try to get out there in the world? Which is also part of like how I, you know, ended up here on this podcast. I’m just trying to hit it from every angle on the capital raising side. Posting weekly on LinkedIn. I think I have a very just original kind of content base—I just literally tell people how it is. Like, I’m I’m kind of just straight, I shoot you straight and I just say, “Here’s what I learned,” you know, “Here’s how I’m reporting to investors,” or “Here’s what went wrong with my deal,” you know, stuff like that.

And my plan is basically just like share along the way. Since I’m super early on and I’ve just been doing this six months and I at least got my first deals across, now I think my plan is just share with the world: go on YouTube, go on podcasts, share on LinkedIn, I don’t know what else, blog. I go to different meetups out here in Southern California. So if anyone’s hosting meetups, I go out there, I network with people. I’m starting to host my own meetups to see if I could build, you know, my own Rolodex of friends and investors out here in the local area. At the end of the day, a lot of times it’s who you know, like, and trust, but also proximity. So like people in California are most likely to invest in California, especially with, you know, any news headlines that you hear, everyone’s like, “You know, everyone’s leaving for Phoenix and Dallas, and those are the hottest markets, and Tennessee and all that,” which is, you know, true. A lot of people are chasing yield out there. But I think what hasn’t… the data that hasn’t submerged to the main main headline news out there is the repricing that exists right now for coastal real estate that I’m covering right now. So long-winded way of saying, yeah, trying to get out there on the capital raising side and trying to solve that next for for my company right now.

Meghan Escobar (16:25)
Incredible stuff. And that’s really gonna, you know, help compound things for you and get you to the next level, potentially create some chaos in between, but it sounds like, you know, something huge and you’ve been putting putting a lot of thought and action into it. Sure. Now I know a lot of people, Edgar, listening in are very green to this world, getting their feet wet, maybe haven’t gotten a deal yet. As we know, you you’re still very green, but at least you you’ve got some experience under the belt. And then we have individuals who are, you know, been in the game for a while and they’re just looking to level up. And I think that they would benefit from hearing this, and especially because you talk so heavy about networking, meetups, shaking hands, dialing, you know? When it comes to building relationships and growing your network, what do you feel has made the biggest difference for you?

Edgar De La Torre (17:20)
I think it’s always face-to-face meetings. Yeah, from the earliest part of of who I was in college, it was always, always, always face-to-face coffee meetings, showing up, like, “Who are you, right? How how do you show up? How do you present yourself? How do you communicate? How do you follow up?” Like the more times that you’re able to show consistency and that you’re sharp and that you’re on top of your things, like I think that builds the instant credibility, the likability, the you know… and that’s all just like, are you that kind of person? You know, because if I think if like someone just doesn’t care as much or doesn’t wanna go meet you face-to-face, like those are different levels of of engagement and relationship building. So I’m very old school, and I like meeting people face-to-face. I’ll go tour properties face-to-face. I won’t just sit behind my computer and just blast away brokers going back and forth saying, “Why is your price what it is?” I actually show up on site, meet people, shake hands, follow up, you know, credibility, showing people respect. And yeah, ultimately, I think it’s just like face-to-face interactions.

Meghan Escobar (18:25)
Gotcha. Yeah. I would say that there’s nothing that can replace that and it’s something you truly can’t fake. So I I agree with that a hundred percent, Edgar. And before we do wrap up here, if if somebody in the audience wants to connect with you and partner up with you or learn more about what you’re doing, what would be the best way for them to reach you? Is that socials, email, website? You wanna drop it here.

Edgar De La Torre (18:48)
Yeah, so Tower REP, so , towerrep.com is my website. Edgar De La Torre, you can find me on LinkedIn. And then not sure if it’s okay, but I I’m happy to share my cell if anyone ever wants to reach out, text me, call, meet up if they’re local here in Southern California, or meet up in general if I’m ever flying out for a conference. Is it okay that I share my phone number, or?

Meghan Escobar (19:15)
Of course, yeah.

Edgar De La Torre (19:16)
So 714-414-2588. More than happy to connect with anybody that is wanting to reach out, talk more.

Meghan Escobar (19:25)
Love that. All right. Well, thank you. And I appreciate your time, I appreciate your story, more importantly, the perspective… the perspective and the knowledge that you shared here with us today. We definitely need more people in the space who are building businesses the right way and showing up and doing doing the things that most people don’t like to do. Thank you again for being here.

Edgar De La Torre (19:47)
Thanks so much, Meghan.

Meghan Escobar (19:48)
Of course. And for those of you that are listening and tuning in, if you got any value from this, please be sure to hit like and subscribe. We’ve got more conversations coming with owners and operators, just like Edgar here, who are building real businesses in real time with real people. We will see you on the next episode.