Episode #97: Limited Partner Horror Story with K. Trevor Thompson

No, this episode doesn't contain any ghosts or haunted houses – but you might wish it did. Today's guest is K. Trevor Thompson, who has a 50-year career as a highly successful VP, has invested in 17 deals as an LP, and most recently, a GP on a 240-unit in San Antonio. But early on in his career, he joined as a Limited Partner on a 170-unit deal that quickly turned into a nightmare. Join us as he shares his struggle to keep the property afloat, despite the numerous poor financial decisions surrounding this deep value ad that was way off-budget, running out of money, and dealing with the struggles of workforce housing in the middle of COVID. We discuss the gross mislabeling of the asset class of the property, a reality that was impossible to rectify or rebrand, and some proactive solutions he found in trying to support the tenants amid some truly dangerous situations. From repeated mismanagement that resulted in their CapEx essentially pouring down the drain, to having his life and the lives of his family threatened, this horror story is straight off of Elm Street. To hear about these hard-won lessons on underwriting, and the top advice that he has to share so that you can be spared a learning curve like this, tune in today!Key Points From This Episode:Introducing Trevor and how he jumped into real estate investing. Some backstory on how he got involved in a particular deal that didn't go as planned.Trevor describes the dire situation when he finally saw the property and the books.Talking about how many operators don't take asset management seriously. The importance of hiring a competent asset management team.Looking for someone to blame versus taking responsibility and plotting a way out. How the situation was exacerbated when COVID hit. His attempts to be proactive and provide solutions for the tenants during a tough time. Hear the dangerous events that undermined their attempts to build an image of safety.Some of the awful mistakes they made and shortcuts they tried to take.How they eventually sold it and broke even.Trevor shares his advice to LP investors on what to look out for!Hear his asset management superpower around incremental improvements. Links Mentioned in Today’s Episode:K. Trevor Thompson on LinkedInEmail K. Trevor ThompsonNiagara Investments LLCAsset Management Mastery Facebook GroupBreak of Day Capital Break of Day Capital InstagramBreak of Day Capital YoutubeGary Lipsky on LinkedInBest in ClassGarzella Group