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Show Summary
In this conversation, Dylan Silver interviews Geoff Tyson, known as the ‘comeback king,’ who shares his journey in real estate investing, focusing on various segments including single-family homes, short-term rentals, and multifamily properties. Tyson discusses his strategies for acquiring properties, the importance of service in short-term rentals, and the challenges and opportunities in the multifamily market. He also emphasizes the need for affordable housing and suggests areas where investors can make a difference.
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Investor Fuel Show Transcript:
Comeback King, Geoff Tyson (00:00)
It’s more of a function, right? First I’ll say, make sure what I’m about to say to you don’t include things that you don’t want to lose.In other words, if they take it or it breaks, you’re going to go crazy. Don’t do what I’m saying to you. My wife is really, she creates the kitchen as an example, just like our home. Right? They’ve got, she got cutting boards, she’s got different glasses, she’s got all types of storage stuff in there. You know, she’s got like all the different coffees, just everything that you could have at home. Right? And people don’t spend much time in the beach house, in the kitchen.
But if you need something, you go to the cabinet and you’re like, holy smokes, they have this, they have that. This is what we hear a lot. They have this, they have that, they have all these things. And man, that makes a big difference.
Dylan Silver (02:25)
Hey folks, welcome back to the show. Today’s guest, Geoffrey Tyson, is the comeback king. He was the rehab king, now the comeback king. He is an investor in Indianapolis, in Houston, in San Antonio, investing across multiple different segments of the real estate space from single family, short-term rentals, now involved in commercial and multi-family. Geoff thanks for taking the time today.Comeback King, Geoff Tyson (02:50)
Hey Dylan, it’s been a pleasure, man. I have an honor being here with you today and I’m excited about being able to serve in any way possible. Thanks, man.Dylan Silver (02:56)
Whenwe talk about a career in real estate investing and we hit on some of the segments of the real estate space that you’ve been involved in, right? A lot of people will start off in single family. Is that where your journey started? How’d you get into real estate investing?
Comeback King, Geoff Tyson (03:11)
Well, you know, real quickly, I was a little kid and my pops, we were moving from the house we were living in and his brother was moving in and I’m thinking, what’s this about?So the power of impression, right? So I mean, I never forgot that. And lo and behold, I found myself being a passive income investor, while I was in corporate America, Dylan. And doing that, I accumulated about a million dollars on paper there back in the long time ago. So was passive income. And then,
went away from it for 20 years and some other things and then came back and focused on single family, old raggedy nasty homes, hence the word rehab king, king of rehabs because the houses were dilapidated leaning this way, no bait, no, just terrible. The worst house on the block was what we specialized in. it’s an impression from an early childhood to you know today’s world, which is actually.
Dylan Silver (04:07)
You know,that’s the space that I really cut my teeth in, is in that distressed seller space, you know, dealing with the most challenging situations, people facing foreclosure, you know, the property itself could be distressed, or it could be distressed in the owner, right, or distressed in the operator if it’s an investor. And I’ve walked into, all kinds of situations that I’m sure you have stories for days to about that.
I wanna ask you, when you were looking specifically in Indianapolis, and I don’t have exposure to Indianapolis, I don’t have any deals that I’ve done there, were you looking off market, were you looking on market, did you send out mailers, what was your acquisition strategy in Indianapolis?
Comeback King, Geoff Tyson (04:50)
Well, we were living in the DMV area and doing business in Indy before I started real estate. So I built a relationship with the local real estate agents.Right. I sought out real estate investor friendly agents and understood the mentality of an investor that knew what I was looking for. So everything that came to us came through their pipeline. They set up all the search criteria. We told them what we wanted. And investors were also the second part. So who was doing business in Indy? Right. 80 percent, as you know, don’t do business. So we found that pocket of guys doing business. And then the real estate agents that were in certain areas created the search criteria that made it available for us
So we had deals coming to us all the time and it didn’t take long to get that together.
Dylan Silver (06:22)
That’s how it starts, right? And I think a lot of people, it really falls into two categories. Folks who are pouring money into marketing and then folks who have really built up these relationships to where the deals are coming to them, right? You’re active in a number of different markets. Houston, San Antonio, right? Two different markets. And I’ve looked at Houston and I’ve looked at what’s on Zillow and I believe now that the MLSs have merged. So I might even have MLS access out there. I gotta see.But the Houston market is interesting because you’ll have homes like in Galveston, which look like beautiful homes, and they’ll be at a lower price point than if that same home were in Dallas, were in San Antonio, were in some of the greater Austin area, right? What’s causing that? Is it flood insurance? is it you know demand? Is there a lot of inventory out there?
Comeback King, Geoff Tyson (07:07)
Mm-hmm.Dylan Silver (07:15)
Why does Houston seem to be at a lower price point than some other markets?Comeback King, Geoff Tyson (07:20)
I mean, that’s a great question. Part of it is a lot of the areas have no zoning. So, I mean, you could have these beautiful million dollar houses next to a series of shacks and a series of industry worn out warehouses all throughout the city. So the zoning issues.have gotten better, but there’s really no guarantee. So the value of the neighborhood is impacted by all those other things going on. And Houston really is just, you know, it’s always seemed to stay lower than Dallas and San Antonio, I think we’re going to be a little higher depending on the product, right? And Galveston, you know, Galveston is just a unique animal all by itself. And maybe we could talk about that at another time in terms of values.
because COVID just shot values up the gouser like tenfold. Unbelievable.
Dylan Silver (08:11)
When we talk specificallyabout short term rentals, right? This is something that I think a lot of people, and I’ve said this on other shows as well, that this is one of those areas that’s attractive to investors and then also to folks outside of real estate investing. You think of you know Airbnb in a home. You have a property that everyone lives in, And if you’re the owner there, thinking, well, when I’m not here, I’d love for this place to make money, right? But it’s not.
quite that simple. There’s a lot that goes in there, not to mention in places you know like Dallas, I’m pretty sure you can’t do short-term rentals in Dallas. So the actual regulations can change as well. Geoff, what makes a successful short-term rental?
Comeback King, Geoff Tyson (08:51)
boy, desirability, right? And service, right? Because there’s, in Galveston as an example, there was just a ton of people that went into that market, short-term rental market. So you had more choices. You had better deals because people didn’t understand pricing as someone traveling. But really it’s value and service. right?I mean, those folks will withstand the storm. I mean, everybody’s coming out of the market now. There’s a ton of inventory from investors that bought short-term rentals that didn’t understand what I’m talking to you about, bringing value, having a right price, providing outstanding service, right. being better than the competitor in the service space. Service, I think, is number one.
Dylan Silver (10:08)
How does that translate or how does that, how can that be relayed to people, you know, through the platforms that are being marketed? Like as an example, when I’m buying a home or when I’m looking at that homes on market, I’m looking at the pictures and I’m seeing what’s in the area and it’s a similar thing when you’re looking at where you’re gonna go for whatever you’re going, right?you don’t really have an idea of what the experience is going to be beyond what you see in images. So how can you relay the service that you’ll provide to folks through a short-term rental?
Comeback King, Geoff Tyson (10:42)
Well, you know, all of our short term rentals, have a goal to be five star reviewed in every visit. So it goes back to that mentality and providing five star service.as an investor. So our properties and my wife is like, man, what’s the review? What’s the shortcoming? right Where do we fall? Where do we drop the ball at? And then let’s fix that. And always pushing, asking questions from the folks that are visiting us. So it’s communication and service. Right I mean And everything’s based off the ratings, I mean, you can come out, even if you’re
to say this even if you’re property may not be exactly like you say it is but if you are able to provide the overall thing and people are like man this was a wonderful Bing five visit five star visit you know it’s that’s the truth about it I mean people will tell you other things but the ratings make a big difference
Dylan Silver (11:36)
I don’t want to ask you to give away all the gold nuggets here, but if you could give our audience one thing that they could do in their Airbnb to put them above the rest, is there one thing that you would advise folks? Is it good communication or is it something that’s you know a function of the Airbnb itself?Comeback King, Geoff Tyson (11:52)
It’s more of a function, right? First I’ll say, make sure what I’m about to say to you don’t include things that you don’t want to lose.In other words, if they take it or it breaks, you’re going to go crazy. Don’t do what I’m saying to you. My wife is really, she creates the kitchen as an example, just like our home. Right? They’ve got, she got cutting boards, she’s got different glasses, she’s got all types of storage stuff in there. You know, she’s got like all the different coffees, just everything that you could have at home. Right? And people don’t spend much time in the beach house, in the kitchen.
But if you need something, you go to the cabinet and you’re like, holy smokes, they have this, they have that. This is what we hear a lot. They have this, they have that, they have all these things. And man, that makes a big difference.
Dylan Silver (12:39)
Yeah, you know, whenwhen we talk specifically about, you know, opening up the cabinets and being able to, you know, cook a meal, I can see that going a long way. Right. So you have one experience. I’m actually from northern New Jersey originally. So I’m thinking, you know, if Jersey, Jersey Shore homes, right. And if they have in their kitchen in your you’re hosting people and you can actually, you know, host and put together a meal that could be a hugely memorable experience for folks.
And I think in general, when we talk about you know creating an environment that is memorable, you know some of these little things do go a long way, whether that’s a theme, whether that’s you know being able to stock a kitchen full of anything that they could possibly want. And then of course, we talked about communication. Of course, that goes a long way, because if you can’t access the property, because you don’t have the right code to get in, that’s immediately going to start things off on the wrong foot.
I do want to pivot here though and ask you about a different segment of the real estate space, which is multifamily. In multifamily in Texas specifically, there’s a lot of competition. It seems like there’s, you multifamily investors everywhere and developers everywhere as well. But it’s also a tricky game because of that. And over the last five years, there’s been some level of distress in operators who didn’t see things like the arm rates doubling on these loans.
Comeback King, Geoff Tyson (13:40)
Sure.Dylan Silver (14:03)
know, materials increasing, vacancies maybe increasing to some degree because of the supply as well as rents decreasing in some areas. Who would have thought that, right? So it’s a little bit more challenging in some regards, but there’s also opportunity in multifamily as well.Comeback King, Geoff Tyson (15:01)
I would agree. I would say that, you know, Austin, as an example, they kind of overbuilt multifamily space. Dallas has kind of the same thing. Houston, however, didn’t have as many new starts over those last five years. And now I’m speaking from my side of it. And we haven’t actively pursued it like we’ve done the single family home. But I’ve always and I suggest everybody else do my homework on things I may not be in yet. So I understand what’s going on when we’re ready.So it’s, it’s, it’s, you know, old average laws, supply and demand, right? I mean, you overbid. That’s it.
Dylan Silver (15:36)
That’s it. That’s what it comes down to. you know,when we talk specifically about what I’ve seen is a trend towards, and I don’t want to say like multifamily at large, but definitely it’s harder, and I was mentioning this to you before the show, it’s harder to be a flipper in Texas when you’re competing with, you know, $240,000 brand new homes, right? It’s tough to sell your $220,000 flipped.
you know, home, even if it’s modernized, it can be challenging. But there’s still a place for that. You just have to really be focused on buying the deal right. You’re not gonna be able to make up for it when you’re competing with new construction like that. And I’ve actually seen now more people get into ground up construction, get into being a builder and a developer, get into multifamily really because of that, because they’re saying, Hey you know
Flipping isn’t as easy as it was in 2018, so we’ve got to you know pivot our business.
Comeback King, Geoff Tyson (16:37)
And Dylan, you’re right, man. You can buy the same house, you know same square footage, all the look, less than new construction, than existing. That makes it difficult.Dylan Silver (16:50)
Hey. ⁓Comeback King, Geoff Tyson (16:53)
You know, you have to really be creative in what you want to do with the packages that you may have that are in that situation. People still need a place to live. So you always challenge investors if they’re in that situation. Make sure that it’s something that you don’t understand, but there’s a possibility. Get connected, reach out, get some help, ask more questions, take off the ego and raise your hand and get some help.Dylan Silver (17:15)
You know, you’ve had experience in a number of different markets. I’ve lived in a number of different places and I’ve worked as a wholesaler in San Antonio, in DFW. I’ve done some deals in Tennessee as well. I’ve looked at deals in Alabama. And what one of the things that I see time and again, wherever I’m at, doesn’t matter if I’m dealing with a distressed single family or I’m looking at multifamily investors.is this desire for people to get into real estate, whether that’s as an owner or as an investor, but also the demand for affordable housing. and uh you know you could almost beat this like a drum, right? And it’s still not gonna be enough. I do think that real estate investors are trying collectively to fill that need, whether it’s through building, whether it’s through like ADUs, alternative dwelling units.
whether that’s true, I’ve seen more and more folks get into affordable housing, you know workforce housing, and then Section 8 as well. Where do you see as being the trend in affordable housing? And are there any things that investors could be doing more of to create more affordable housing?
Comeback King, Geoff Tyson (18:14)
Yes.Well, you know, would tell them I would focus on veteran housing. I would focus on special need services where people are functioning. They just need a place to stay. And even Section 8. I know in Galveston, as an example, Section 8 has unique programs for investors that have nicer properties normally to provide those inventories to them.
because they’re working on taking their client and bringing them from the rental mentality into nicer living styles at an affordable price and teaching them about home ownership.
Dylan Silver (19:01)
Yeah, I mean, I’ve seen more of that. And I think the old, you know, conception that people have about Section 8 being dilapidated and run down, I’ve seen some Section 8 homes, say, well, that’s a nice looking home. And that can be that can be Section 8 as well. We are we are coming up on time here, though, Geoff, any new projects that you’re working on, or how can our audience reach out to you or your team?Comeback King, Geoff Tyson (19:25)
Well, would say, you know, project wise, we’re looking at 25, the 50 door hotel, I’m sorry, apartment units in the Texas area or in the Midwest. So if anybody has anything like that in their inventory, let us know. And best way to reach me, I’m on LinkedIn and my email is [email protected] I keep it simple, easy on Facebook, Instagram. Just look for the comeback king in there and we’ll be sure to make sure we get back to you.Dylan Silver (19:52)
Geoff, thank you so much for your time today. Thanks for coming on the show.Comeback King, Geoff Tyson (19:55)
Thank you, had a great time. See you next time, Dylan.
