Discovering what you’re capable of — with Meir Fried, Co-Founder and CEO of Lightwater Capital

For many real estate pros, branching out into a new area or pursuing larger deals causes a lot of trepidation.

Meir Fried, Co-founder and CEO of Lightwater Capital, is an example of what happens when someone leaves their comfort zone, conquers fear, and takes on new real estate challenges.

In episode 9 of The Dealmakers Podcast — our podcast that gives insight into how the top performers in the industry operate — Fried details what he did to level up in the real estate world.

Plus, he shares tips investors can use to start reaching their potential.

Who is Meir Fried?

Meir Fried started the real estate industry “a little late” at 26 (after leaving rabbinical school) in the property management business.

He and his Lightwater Partner, Joe Wasser, managed a few dozen small buildings in the Tri-State area.

Fried scaled the property management business to about 3,000 units and later pivoted to investing in multi-family properties. Over the past two and a half years, Lightwater Capital has built a national portfolio of almost 2500 apartment units.

In the podcast, Fried discusses how he had to forgo good deals in a familiar industry to strive for deals with greater reward potential.

Sacrificing immediate success for long-term goals

As he progressed in the property management business, Fried discovered it was difficult to scale.

“Over time, we realized that…finding our target customer was just very unpredictable. We wanted to do something where, if we got good at it, we should be able to continuously grow.”

So he shifted to small multi-family investments and started to see success. But he still felt like there were deals he wasn’t tapping into.

Then, shortly after Fried closed on a $2 million property, he found out about a friend of a friend who was an investor — and had just closed a $900 million deal.

It was a wake-up call that cemented Fried’s decision to pursue more substantial deals. However, that decision would mean he’d have to venture far outside his comfort zone.

The more he explored larger multi-family properties, the more he realized that it’s a “different trade” involving sophisticated underwriting and new go-to-market strategies.

But that didn’t deter him. He recalls telling his business partner,

“We’re not going to do what’s easy. We’re not going to do what we know like the back of our hands. We’re going to sacrifice two, three, or four deals that we could have done in a year. All this time will be spent devoted to finding the one deal that covers 10 of these potential little deals.”

The first deal they closed was a $16 million deal. And while that deal came with its own set of COVID-related complications, the business has taken off from there.

Naturally, the transition to eight-figure deals required Fried to transform what he thought he could do. And some of what he learned along that journey applies to any investor in the same scenario.

5 tips for reaching your potential in real estate investing

Everyone has different dreams and goals in their real estate career. For investors to reach their potential and expand their limits, Fried’s story has five big takeaways.

#1 – Change your mindset to expand your scope

A pivotal moment for Fried was comparing his $2 million property to the $900 million deal. When that happened, Fried said to himself:

“These guys (who closed the large deal) may be much, much smarter than me, but there’s no way they’re 450 times as smart as me. If they can do 900, I can do 20. I can do 30. I can do 50.”

Fried recognized the potential of the market and decided to explore new opportunities. Sometimes, all it takes to make larger deals seem feasible is to be exposed to them.

#2 – Don’t limit yourself to one location

Fried started out in the Tri-State area and focused on New York City, but he soon found out that the market didn’t align with his goals for property acquisition.

After research different markets, he found that markets like Atlanta and Indianapolis better matched his buying criteria.

He notes they looked for “places that are business-friendly, that had minimal regulations, that were about a two-hour flight or less (from New York), and that were looking to welcome people who want to do business.”

If you’re having difficulty finding advantageous deals in your current market, don’t be afraid to explore and make connections in other markets.

#3 – The status quo can be dangerous

Humans are creatures of habit. And falling into routines is common. But in real estate, those comfort zones can create limitations on what is possible. Even though it may be scary, taking risks can help you reach your full potential.

On trying a new venture, Fried encourages, “It’s a bit more difficult than you think, but don’t be afraid. Take your time. You can learn new things. You can take risks that are thoughtful risks. Don’t be frivolous, but don’t get complacent. Don’t be okay with the status quo.”

#4 – Not every deal needs to be a home run

In certain market conditions, it’s easier to get investors phenomenal returns (i.e., home runs).

But Fried repeats some sage advice he was given about the business of real estate. He says, “It’s a long-term business. Sometimes, people hit it out of the park. But the people who do really well hit singles and doubles for a long period of time.

Instead of doing nothing because the market is less predictable now, Fried is focusing on solid deals with sound metrics that offer investors stability.

“At a time like now, I think people want stability. And that’s why our next couple of deals, we’re going to be going to market if we can win at the metrics we need, offering investors long-term stability, it’s not going to be the flashiest deal. It’s not going to be double or triple your money, but we’ll be offering you stability. And a lot of people want that.”

By giving solid, reliable returns to his investors now, they’ll be more likely to invest with him when home run deals are easier to come by.

#5 – You’re more capable than you think

Maybe the most important principle Fried stressed is not to sell yourself short. When investors feel like they want to transition into a new area of real estate, they shouldn’t let fear dictate their decision.

He emphasizes, “Number one: you can master a new craft a lot faster than you think. And number two: a lot of the things that you learned … you continue to incorporate them as you move forward.”

“You’re a lot more capable than you think,” he added. “In a much shorter time than you realize, you can become a master of a new craft and continue to grow the skills that you have.”

Listen to the full episode

Meir Fried’s story is an inspiration, and it was an absolute pleasure to speak with him. While we highlighted some key points, the full episode is definitely worth a listen. And make sure to catch up on previous episodes by clicking the link below:

The Deal Makers Podcast

Modified Date & Time : 02 Oct 2023, 01:14 pm

Author

Asaf Raz

Asaf is Agora’s Head of Marketing and a growth expert providing consulting services to tech startups and VCs. Asaf is also the host of The Deal Makers Podcast, where he hosts top CRE talents for conversations where they share their success stories and industry insights.

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