How Ground-Up Development Creates Wealth: From Corporate Banking to $50M Real Estate Empire
Episode Summary
In this episode of The Real Estate Investing Club podcast, host Gabe Petersen sits down with Daniel Angel from Apex Investments to explore the journey from corporate finance to successful real estate development. Daniel shares his unique perspective as someone who transitioned from international banking in Colombia to building a thriving ground-up development company in Atlanta.
Key Takeaways:
- How to transition from corporate careers to real estate entrepreneurship
- Why ground-up development offers better returns than traditional fix-and-flip strategies
- The critical differences between real estate markets in the US versus international markets
- Essential lessons from building and selling a 50-home portfolio
- Why Atlanta’s northern corridor represents one of the best investment opportunities today
- The importance of taking action over endless education in real estate
How Do You Transition From Corporate Finance to Real Estate Investing Successfully?
Making the leap from corporate finance to real estate investing requires strategic planning and a willingness to start small. Daniel Angel’s journey illustrates this perfectly. After working in corporate banking and investment banking in Colombia, he transitioned to real estate development there before moving to the United States.
As Daniel explains: “At some point I was like, hey, you know if I don’t take the leap on myself, I’ll never do it and nobody will. So I decided to do, you know, couple of investments on the side, put together a few like underwriting models, understanding the how the process and I guess like the business went here.”
The key is leveraging your existing financial skills while learning the practical aspects of real estate. Daniel started with “a couple of flips actually here in Atlanta” in late 2015 and early 2016, using his corporate finance background to create underwriting models while getting hands-on experience with actual properties. This combination of analytical skills and practical experience proved invaluable for building a successful real estate business.
What Makes Ground-Up Development More Profitable Than Fix-and-Flip Strategies?
Ground-up development offers superior returns compared to traditional fix-and-flip strategies due to better control over costs, quality, and market positioning. Daniel’s company made this transition after recognizing the limitations of the flip model.
“We got into the ground up just because we were at the end of this, you know, doing so many flips,” Daniel shares. “It got to a point where there was so much competition and margins were starting to squash. So we said, you know, hey, what if we can buy lots instead and do the whole, build the whole thing as opposed to have to deal with the existing. So we’ll have a better control of the margins when we develop in terms of like construction costs.”
The advantages of ground-up development include:
- Complete control over construction quality and costs
- No surprises from existing structures or hidden problems
- Ability to create exactly what the market demands
- Higher profit margins due to value creation from raw land
- Better positioning for institutional buyers or end users
Daniel notes that this approach is particularly effective in growing markets: “We’re doing, for example, a project now for 252 units, you know, a big build to rent community that we’re super excited about.” This scale wouldn’t be possible with traditional flip strategies.
How Does Real Estate Investing Differ Between the United States and International Markets?
The fundamental difference between US and international real estate markets lies in the sophistication of financing tools and market responsiveness to economic changes. Daniel’s experience in both Colombian and US markets provides unique insights into these differences.
“What makes it different… is the fact that like the macroeconomics really work here and not so much there,” Daniel explains. “Everything that happens in the world has a direct impact here pretty much immediately. Rates go up, market moves. Rates go down, market moves.”
In the United States, investors have access to:
- Private lending options
- Mezzanine financing
- Various equity structures
- Sophisticated debt instruments
- Multiple players in the capital stack
Daniel contrasts this with Colombia: “In Colombia, you have less tools. It’s like one or two types of loans. There’s pretty much like equity, you know, and that’s it… it’s obviously catching up, but there’s less players, which makes it, I think harder to put things together.”
This diversity of financing options in the US creates more opportunities for creative deal structuring and allows newer investors to enter the market more easily than in less developed real estate markets.
What Are the Best Markets for Real Estate Investment in 2025?
The Atlanta northern corridor, particularly along Georgia 400 North, represents one of the most promising investment opportunities according to Daniel’s on-the-ground experience. This area continues to show strong growth patterns despite appearing tertiary to some institutional investors.
“The North corridor like Georgia 400 North… it just like, keeps growing and it keeps going,” Daniel emphasizes. As Gabe adds, “invest in the path of development. That’s a great strategy.”
The key to identifying strong markets is looking beyond current development to where growth is heading. Daniel notes that while some sophisticated investors question investing “so far away from Atlanta,” the fundamentals support continued expansion in these areas. The strategy of investing ahead of development paths has proven successful for Apex Investments’ portfolio growth.
How Can You Successfully Scale From Single Family to Multifamily Investments?
Scaling from single family to multifamily investments requires careful planning and an understanding of different operational dynamics. Daniel’s experience with both asset classes provides valuable lessons for investors looking to make this transition.
The company’s first multifamily deal taught them an important lesson about renovation pacing. “We went in a little bit too hard on renovating almost all units at the same time. So our occupancy drifted a little bit deeper than what we anticipated. And cash flow is king. So that got us in a little bit of a pickle for a minute,” Daniel recalls.
The lesson? “Be a little bit cautious with getting ahead of yourself and just follow your plan.” Successful scaling requires:
- Maintaining adequate cash flow during renovations
- Phasing unit improvements strategically
- Understanding the different financing requirements for multifamily
- Building the right team for larger projects
- Recognizing that multifamily operates differently than single family portfolios
What’s the Most Important Advice for New Real Estate Investors Starting Today?
The most critical advice for new investors is to stop over-educating and start taking action. Daniel’s philosophy cuts through the paralysis that stops many potential investors from ever starting.
“Stop reading and start doing,” Daniel emphasizes. “Sometimes you try to find the additional thing that’s missing and it’s gonna be this book, it’s gonna be this course, it’s gonna be this website… it gets to a point where it’s like you’ve read enough, you just have to go out there and do it.”
Gabe reinforces this point: “All you need is just a general understanding of what you’re doing. And then everything else will be the gaps will be filled in as you take action. Action is what’s going to actually inform your understanding.”
For finding deals and building a sustainable business, Daniel stresses the importance of relationships: “It all comes down to relationships. So it’s networking to be honest, like get out there and talk to people that are involved or that know other people and just broaden your network. That’s the key.”
How Do You Build and Successfully Exit a 50-Home Portfolio?
Building and exiting a large portfolio requires strategic planning and the flexibility to adapt to market conditions. Daniel’s experience selling a 50-home portfolio in 2021 demonstrates how timing and market awareness can transform a good investment into a grand slam.
“We had a rental portfolio that we built between 2018 and 2019,” Daniel explains. The original plan was to sell the entire portfolio to an institutional buyer, but market conditions in early 2021 presented a better opportunity.
“It was like perfect timing early 2021 when rates were like so down and it just made sense to sell it like one off for two homeowners really. So we rolled up our sleeves and started selling 50 homes one by one, switching some, actually applying some capex in them so that it would be more appealing for homeowners.”
The result? “It ended up being like a grand slam. We didn’t really intend to do it that way, but it was like the perfect timing.” This flexibility to pivot from the original exit strategy based on market conditions is what separates successful investors from those who miss opportunities.
What Separates Successful Real Estate Entrepreneurs From Those Who Never Start?
The fundamental difference between successful real estate entrepreneurs and those who never begin is the willingness to take calculated risks and start before feeling completely ready. Daniel’s journey from Colombia to building a successful US real estate company illustrates this principle.
As Gabe notes in the conversation: “Fear is what holds so many of us back. And if you don’t just get started and just get yourself over that hump, it just never, you know, you never get the feedback that you need in order to start making the correct decisions, the correct adjustments.”
The key characteristics of successful real estate entrepreneurs include:
- Taking action despite incomplete information
- Learning from mistakes rather than avoiding them entirely
- Building relationships actively through networking
- Adapting strategies based on market feedback
- Maintaining persistence through market cycles
Daniel’s approach to sharing knowledge reflects this mindset: “I like to share and to learn. So what they can expect is an open, candid conversation, whatever I can help if it’s somebody trying to take that first step or if it’s someone needing some kind of piece of advice or somebody wanting to teach me something always open.”
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