RE #206: Scott Everett - Founder of S2 Capital - 0 to 38,000 MF Units by 32 y/o
Scott Everett founded S2 Capital in 2012 to acquire multifamily Real Estate. In the past 10 years as CEO of S2 Capital he has built a Real Estate investment company that has acquired over $6B of multifamily assets totaling 40,000 units and 3 operating...
Scott Everett founded S2 Capital in 2012 to acquire multifamily Real Estate. In the past 10 years as CEO of S2 Capital he has built a Real Estate investment company that has acquired over $6B of multifamily assets totaling 40,000 units and 3 operating companies that generate annual revenues in excess of $350M with over 600 employees.
On this episode, Scott discusses how he got started in value add MF and grew to 38,000 units, how he underwrites deals, and what matters when underwriting a deal. They chat about how S2 is set up operationally and how his different teams all work together. Scott also shares why he's raising a fund after 10+ years of syndicating deal by deal. Enjoy!
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(02:07) - Scott’s RE career
(08:42) - Did something happen in your childhood that gave you your sense of confidence?
(10:48) - Scott’s first deal for 184 units
(15:33) - What are illegitimate reasons a property isn’t performing?
(18:11) - How do you think about approaching a deal?
(20:55) - How much has the RE landscape changed over the past decade?
(23:26) - Being laser focused on one asset
(26:38) - How do you think about due diligence?
(29:20) - Scott walks us through the entire deal process
(35:27) - Why do you renovate units so often?
(36:39) - What’s the first 90-180 days after closing look like?
(40:41) - How long does a full unit rehab take?
(41:22) - When do you talk to folks about renewals?
(43:18) - Do you want to get every unit updated within 2 years?
(48:09) - What separates you from competition in the construction part of the process?
(52:08) - What are you experiencing in the current labor market?
(55:33) - How do you think about staying on top with materials supply?
(57:20) - Are rents so competitive that class B tenants are moving up to Class A apartments?
(58:50) - What do you want your asset managers focused on?
(1:02:15) - What’s your ReFi strategy?
(1:02:48) - What’s the difference between Fanny & Freddy loans?
(1:03:44) - How fluid is the process of getting to your projected NOI number?
(1:05:20) - Where do most people miss the boat in terms of Capex?
(1:07:10) - How are you refreshing your portfolio today?
(1:11:14) - Is there any technology that has your attention right now?
(1:14:25) - Why are you raising a fund?
(1:30:44) - Is there anything out there that scares you?
(1:33:59) - What’s your words of wisdom on building a great family business?
(1:37:53) - What is the S2 foundation?
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