Navigating Syndication and Market Cycles with August Biniaz

This podcast episode of Get Your Fill, Financial Independence and Long Life features August Biniaz, Co-founder and CIO of CPI Capital. We explore the transition from residential real estate to large-scale commercial real estate (CRE), the mechanics of real estate syndication, and current market trends such as oversupply and the future of office space.🏗️ From Home Building to Private EquityAugust shares his journey from a real estate familyin Vancouver to becoming a prominent voice in institutional capital. After starting with fix-and-flips, general contracting, and spec homes (speculation-based building), he realized that scaling to high-rises typically takes generations. To expedite this, he pivoted to Real Estate Private Equity and Syndications.Biniaz emphasizes that the biggest hurdle for any realestate entrepreneur is capital. While the U.S. has highly liquid debt markets (banks and insurance companies), a sponsor must still bring roughly 30% equity to a deal. Syndication allows a General Partner (GP) to pool funds from Limited Partners (LP) to acquire assets that would otherwise be unattainable, such as $20–$30 million multifamily apartmentcommunities.📈 Key Investment Concepts & TermsThe transcript highlights several technical terms essentialfor modern real estate investors:Real Estate Syndication: A partnership where multipleinvestors pool their money to purchase a large property.Built-to-Rent (BTR): A growing niche in CRE wherecommunities of single-family homes are built specifically for rental purposes rather than individual sale.Loss-to-Lease: The difference (delta) between currentin-place rents and the higher market rates.Gain-to-Lease: A current market phenomenon where in-place rents are actually higher than what new tenants are being offered due to cooling markets.Concessions: Incentives used by landlords to maintain occupancy during an oversupply.🏢 The Shift in Asset Classes: Office vs. ResidentialThe speakers discuss the "post-COVID" landscape of commercial real estate:The "Office" CrisisOffice space has been hit harder than any other asset class.Biniaz notes that while newer "Class A" offices with luxury amenities (sushi bars, yoga studios) still attract tenants, older buildings with traditional cubicle designs are failing. Notably, only about 5% of older office buildings are viable for residential conversion due to structural limitations like plumbing, HVAC, and elevator placement.Multifamily and OversupplyMany U.S. markets are experiencing hypersupply. While this leads to flat or negative rent growth—which is difficult for investors—it benefits consumers through lower prices. Biniaz predicts a supply bottleneck in 2-3 years because new construction starts have "dropped off a cliff" due to high interest rates.💡 Mindset and Investor RelationsBiniaz candidly discusses the psychological aspect of raisingcapital. He initially felt like he was "begging" for money untila mentor shifted his perspective: providing an investment opportunity is a service that gives retail investors exposure to institutional-grade deals.He also highlights the importance of matching the communicator to the investor. While he focuses on analytics and spreadsheets for institutional players, his partner, Ava Benisaki, focuses on investor relations, connecting with people on a personal level to understand their "pain points" and long-term legacy wealth goals.🏦 Conclusion: The Cyclical Nature of Real EstateThe episode concludes by reinforcing that real estate is along-term play. Despite current headwinds—including interest rates, inflation concerns, and shifting labor demographics—the speakers remain "bullish." Real estate historically recovers from corrections (like 2008) and remains a premier vehicle for diversification and beating the market over a 10-to-20-year horizon.Connect with August: https://www.linkedin.com/in/augustbiniaz/www.cpicapital.comJoin themailing list: https://eyimbook.com/newsletter/