RG 022 – How to Start a Multifamily Real Estate Investment Fund with Jonathan Twombly

Show Notes:

In case you missed it, here are some of the highlights from our conversation with Jonathan Twombly:

Jonathan Twombly

About Jonathan:

  • Started real estate investing in 2011;
  • Founded Two Bridges Asset Management Company in 2013;
  • In a previous life Jonathan was a lawyer working for large firms in Manhattan;
  • Graduated from Harvard College and Columbia Law School;

 

Something Unrelated to Real Estate Investing:

  • Jonathan is fluent in Japanese;
  • Jonathan lived in Japan for a number of years before he went to law school;

 

Nuts and Bolts:

Going from unemployed lawyer, to starting a real estate fund: Want to know how to start a real estate investment FUND?

 

  1. Background:

In 2011 Jonathan lost his lucrative law job, he was living off savings like a true entrepreneur. Over the next 3-4 years Jonathan had his fair share of ups and downs:

– Unable to close on two large multi family deals consecutively straight off the bat,

– His first business venture ended as they decided to go their separate ways;

– Feeling deflated Jonathan decided to pull his socks up and get serious;

  1. After all of this Jonathan formed Two Bridges Asset Management Company with an Australian partner;
  2. In 2014 Jonathan and his partner closed on four large multi family deals! Incredible! A massed over 400 units in 12 months!;
  3. Jonathan was looking to grow but both of his partners had to take a step back from the business;
  4. Two Bridges had balance sheet issues, i.e.: your balance sheet doesn’t reflect the types of loans you need from a bank ($10mill loan = $10mill cash);
  5. If you have a fund that would supply the balance sheet;
  6. In the summer of 2015 Jonathan started to raise money for a fund and brought on two experienced partners to help with the process;
  7. Through building up a portfolio of over 400 units, combined with the experience of his new partners, Jonathan and his team were able to get some traction with high net worth individuals;
  8. They are purely focused on raising capital, nothing else for next 3-6 months:
  9. Targeting HNW individuals and Family Offices through warm leads;
  10. Spent a lot of time perfecting their pitch;
  11. Not focused on smaller investors, but focused on people who can write a $1mill or $5mill check!;
  12. It takes a lot of time to get an interview with these Family Offices, but being highly targeted with your approach will reap rewards!;
  13. Committed to +$25 mill within next 12months;

 

Top Investing Tips:

  1. Most successful habit? Regimented routine and being disciplined;
  2. Most influential tool in you RE business? Networking!
  3. Most influential person in your career? Leslie Moore taught Jonathan how important it is to be professional in whatever you do.

 

Contact Jonathan if you are interested to learn more about starting a real estate fund!

 

Jonathan@themortarblog.com

 

www.themortarblog.com

LinkedIn: Click here

 

Ready, Aim, Fire!

 

Happy Investing!

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