Real Assets
Real Estate
Manager
Marshall Boyd is the Co-President and CIO at Interstate Equities Corporation, a real estate investment firm that manages $1 billion focusing exclusively on multi-family apartments on the California coast. IEC is one of those little-known gems for those in the know. It's an endowment darling with just a dozen or so of the most elite LPs in the business exploiting an attractive, little corner of the investment world.
Our conversation covers Marshall's path to IEC and steps to turn a family boutique into an institutional business. We discuss firm's investment thesis, sourcing, due diligence, deal dynamics, value-added operations, and exit strategy. We close covering risks to the strategies and lessons learned along the way.
Show Notes
4:22 Marshall’s background
8:55 Joining the family business
9:53 Playbook for first properties
12:07 Raising capital post-GFC
14:31 IEC’s big break
16:02 Top of funnel investment process
17:59 Buying properties in select cities
21:37 Underwriting as a small team
24:49 Negotiation and winning a deal
25:42 Making improvement post-close
29:02 On-time and on-budget renovations
31:33) Selling sooner rather than later
36:42 Finding scale in a single market
39:29 Managing contractors, tenants, and teams
41:07 Leadership lessons
41:57 Working alongside a sibling
43:27 Rates, recessions, and risk environment
45:03 Inflation’s impact on tenants
46:02 Next cycle for IEC
47:10 Closing questions
