By KIMBERLEY HAAS
The 26-year-old CEO of Alpha Capital Funds has plans to buy multi-family properties throughout the state of Connecticut with the goal of acquiring 500 units by the end of 2023.
Tyler Smith, who says he was always hustling, started his career investing in real estate when he was still a student at Quinnipiac University in New Haven.
“I was putting myself through school,” Smith said during a recent interview with The Mortgage Note. “I came across real estate.”
Smith said he was 20 years old when he closed his first deal. Over time, his original company, Quick Cash for CT Houses, grew.
“Once I started doing a lot more deals I scaled the company up. We were making a lot of money,” Smith said.
Alpha Capital Funds, a real estate acquisition firm that specializes in residential single-family, multi-family properties, and apartment units was born in January of 2020. Last year, they did over $100 million in transactions, according to a YouTube video.
Smith said during the interview that many of his sellers are Mom and Pop landlords.
“We’re typically going to these sellers before they consider getting into the market,” he said.
Smith will buy separate rental buildings and combine them, as shown in this YouTube video.
Smith sees an opportunity in buildings with 10 or more units and he thinks it will be a win moving forward.
“It depends on how much they paid for the asset but usually landlords who have held properties for many years likely have a ton of equity and paid way less for them. Plus, you have to consider that the asset had cash flow the entire time they owned it,” Smith said.
Smith may be onto something. Doug Ressler, Business Intelligence Manager at Yardi Matrix, recently told The Mortgage Note that multi-family and industrial structures have presented the least risk in terms of potential for investors.
And even though the multi-family market took at hit in Q4 2022, there is still a need for rental units.
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