In today’s episode of the Untold Stories of Real Estate Investing, host Wayne Courreges III talks to Jack Krupey who has truly mastered the art of value-add investing. Jack is a firm believer in the power of strategic investing and the incredible opportunities that exist in the real estate market. He has been able to build wealth, achieve tax deferral, and help countless individuals reach their financial goals through his unique coaching program and investment partnerships.
Jack Krupey is the principal and founder of JKAM Investments. He has been investing in both real estate and distressed debt since 2001. He has built long-term relationships with experienced real estate developers, sponsors, and syndicators over his 20-year career. Jack leveraged the 2008 financial crisis as part of a private equity fund that yielded impressive returns off of distressed and restructured debt. He repositioned properties as well as modified and restructured loans for borrowers.
In 2014, Jack entered into a partnership with a large private equity fund and led the asset management arm of the firm that made over 3 billion dollars in purchases of non-performing and re-performing mortgage debt between 2015 and 2019. An entrepreneur by nature, Jack decided to launch JK Asset Management and the JKAM Diversified RE Fund to focus on alternative assets such as value-add multifamily real estate.
Prior to beginning his real estate investment career, Jack graduated from Rochester Institute of Technology with a bachelor’s in information technology. Jack graduated with a dual MBA from Northwestern’s Kellogg School of Management and from Hong Kong University of Science and Technology.
Topics on Today’s Episode:
- Jack’s journey from an IT consultant to real estate entrepreneur and financial freedom.
- Missed opportunities in the rental market for investors who did not take advantage of recent rent surges.
- Jack’s take on value-add strategy of renovating units and raising rents to increase net operating income and the value of the building.
- The benefits of real estate investment in terms of generating positive cash flow, tax deferral, and building long-term wealth.
- Many reasons to be bullish in today’s market, especially in Houston.
- The number one metric to look at is still net operating income (NOI). Interest rates can move up and inflation can increase, but NOI is the one thing we can control and if you are hitting this metric, then you should be stable in the midst of any storm.
- For individuals in high tax brackets, real estate investing can be a game-changer. Building long-term wealth and achieving tax deferral through real estate can be a powerful tool for retirement planning.
- The importance of investing with good operators who have the financial means to execute projects effectively.
- How concepts like depreciation, passive losses, and tax-deferred income, investors can strategically reduce their tax liability and generate positive cash flow.
- Jack shares his insights and wealth of knowledge on evaluating distressed deals and investing in stabilized assets.
- Today’s multifamily climate and potential risk with Class A assets.
- The national housing shortage has opened huge investment opportunities in the class B multifamily market. Rents are still rising in today’s market at a rate of up to 10-15% per year.
- The power of tax losses and tax-deferred income in real estate syndication.
- Reinvesting profits into other deals to defer taxes and achieve tax efficiency.
- Jack’s experiences in helping individuals transition into the real estate business and their focus on assisting individuals in finding passive income and non-traditional financial options.
- Finding opportunities in multifamily build-to-rent communities and RV boat storage facilities. Real Estate 101 is finding ways to unlock value.
- Resources and information are available, such as a Passive Investor Coaching Program, podcast, blogs, and an Investor Club on our website at CREIPartners.com.
Links and Resources:
Jack Krupey
JKrupey@JKAssetManagement.com
https://www.linkedin.com/in/jackkrupey
https://www.facebook.com/jkaminvestments
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