Ep. 016: Navigating the Syndication Landscape: Insights from Nick DiLeone
In this episode of On The Move, Dustin sits down with Nick DiLeone, a seasoned real estate investor and syndicator, to delve into the intricacies of the multifamily and RV park investment landscape. Nick, hailing from the New York City area and having spent time in California, now calls Frisco, Texas home. With a background in commercial real estate and a focus on property operations and asset management, Nick has transitioned into the world of syndication, establishing his own company, Leon Real Estate Partners. As a general partner (GP), Nick has a diverse portfolio, investing in tertiary markets along the I-35 corridor, including Waco and Temple, as well as the DFW and San Antonio regions. He has also forged partnerships in deals across Virginia, Tennessee, and Kentucky, showcasing his ability to identify promising opportunities beyond his local market.
One of the key factors that sets Nick apart is his institutional background and the conservative approach he brings to his investments. "We use institutional metrics to measure ourselves and our performance and bring that conservative mindset," he explains. This mindset is reflected in his focus on fixed-rate debt, positive cash flow, and careful underwriting to ensure long-term success.
Nick's involvement in the local real estate community is another distinguishing aspect of his business. He co-hosts a monthly meetup in the DFW area, providing educational and networking opportunities for aspiring and seasoned investors alike. "We like to give back. It's part of our culture to give back to people," he says, emphasizing the importance of building relationships and sharing knowledge within the syndication ecosystem. When it comes to evaluating potential deals, Nick and his team place a strong emphasis on metrics such as NOI growth, population trends, and value-add strategies. "We underwrote very conservatively through this kind of uptick," he notes, highlighting the importance of maintaining a disciplined approach in the face of market fluctuations.
For aspiring GPs looking to break into the industry, Nick offers valuable advice. He recommends investing in another GP's deal to gain firsthand experience and build relationships, as well as joining mentorship programs to accelerate learning and networking. "You got to go to conferences. You got to go to meetups. Get into that growth mindset that a lot of syndicators have," he advises.
As Nick looks towards the future, his vision is to continue growing his business beyond the confines of friends and family, leveraging his institutional connections and the relationships he has cultivated through his meetup and other industry engagements. With a focus on executing three multi-family deals and exploring new strategies like triple net sale-leasebacks, Nick is poised to navigate the ever-evolving real estate landscape with his trademark blend of conservatism and innovation.
