Creative Capital Podcast 116: Uncharted Territory in Development with Michael Holman

Nov 19, 2021

Michael Holman is a VP at Overland Group, Inc., a vertically integrated real estate firm specializing in the development, construction, and management of real estate assets. Michael oversees the development and capital market efforts at Overland. He specializes in the development and financing of multifamily, mixed-use, and storage assets across the western US. He is actively overseeing the development and financing of over $160 million worth of real estate assets and has millions more in the pipeline. Michael has managed the development of some extremely complex projects. His development experience includes rezones, re-plats, land assemblages, HOA creation and extinguishments, easement creation and abandonments, multiple TIC owners, and much more across multiple projects. His quick rise to leading developments is because of his ability to put together first-class development teams, foresee problems, and provide strong leadership.

 

In this episode, Michale talks about everything you need to know about new developments, from its definition to its deal structure to its average returns. Michael also shares the pros and cons of new developments and the factors he and his company consider when developing properties in a particular location. Michael and I will also share our thoughts on the current real estate market and where we think the market is heading. I learned a lot in this episode, and I am sure you will too! Listen in!

[00:01 - 08:48] Introduction  

 

• An overview of the episode
• Welcoming Michael to the show
• Michael shares his background
• Growing up around real estate development

 

[08:49 - 22:17] New Development: The Big Picture

 

• New development: what is it?
• • The whole development process
  • What the team is comprised of
  • The average timeline for a new development
• What the deal structure looks like
• • Average returns
• Cons of a new development
• • Less cash flow
  • Development is more fluid
• Pros of a new development
• • There’s no limit to the upside
  • Less building issues
• Factors to consider when finding a site to develop
• • Macroeconomics
  • Population and employment growth

 

[22:18 - 46:39] Analyzing Market and Development Trends

 

• Michael on where he thinks the market is heading
• The current supply-demand situation
• On affordability of real estate
• How they decide what type of multifamily they would develop
• Michael’s advice to those who want to start in new developments

[46:40 - 50:45] The Pod Decks Segment

 

• What could never be replaced by technology, and why not?
• What would be the first few things you would try if you found out that you were completely impervious to physical harm?

[50:46 - 01:02:03] The Core Four

 

• What is your favorite real estate-related book?
• • The ONE Thing (link below)
•  What do you think your unique skill is that helped you become successful?
• • Being relentless
• Tell me something that's true about real estate that almost nobody agrees with you on
• • Real estate, in general, is simple
• What one piece of advice would you give the listeners wanting to succeed in real estate investing?
• • There is always a way
• Connect with Michael!
• A summary of the episode
• Closing words

Key Quotes: 

 

“Partner with an experienced developer. … The experience that somebody who's in development and knows development, the key is they know what to look out for and what to anticipate before it comes up, and that's where the value is.” - Michael Holman

 

“The team is the most important thing in a development because you have to get a lot of different people on board. … The more experienced and the better your team is surrounding that, the more smoothly that process is going to go.” - Michael Holman

 

“There is always a way. If you are willing to put in the time, effort, pivot, and think outside the box, there is always a way.” - Michael Holman

Resources Mentioned:

 

• The ONE Thing

Connect with Michael on LinkedIn!

 

Check out Overland Capital on their website, Facebook, and LinkedIn!

You can reach and connect with me on Facebook, LinkedIn, Instagram, and Youtube 

For more information about Ferrari Capital visit us on our website https://www.ferraricapital.com

 

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