Tim VanWingerden on Thriving in Commercial Real Estate
#1 –How did you get into commercial real estate, and what made you choose multifamily as your specialty?
Real estate was never something on my radar. I grew up in an entrepreneurial environment, with my family owning and operating an industrial greenhouse. My intention was to work for the family business after college and grow a career within that industry.
My wife and I began looking to buy our first house, so I picked up a few books about real estate to learn about the process. And after reading those first few books, I was hooked. Somehow, I convinced my wife that we should buy an investment property instead of buying our first home. I did not know it yet, but this was my first pitch. We took our down payment and purchased two quadplexes. I viewed real estate as a side hustle and started building a small portfolio of multifamily and single-family homes. Through a series of events, my dad and Uncle began selling their business. During that time, I started planning to move into real estate full-time.
I decided to become a commercial agent because I wanted to network with as many investors as possible and create a future of potential opportunities. Multifamily was familiar, so I decided to specialize within that asset type.
#2 –What attracted you to Matthews™, and how do you plan to elevate the multifamily sector at the company?
I noticed three major differences about Matthews™:
- Growth: As the fastest-growing CRE firm in the nation, Matthews™ is on a rocket ship, and partnering with them puts me in the strongest position for growth.
- Agent support: Matthews™ understands that agents are the rocket fuel for their business growth. The firm has a tremendous support structure that ensures agents focus more time on revenue-producing activities.
- Technology: Matthews™ leaves competitors in the dust, leveraging every bit of modern technology.
With these tools, resources, and Matthews™-backed support, I can elevate my business, close more deals, and push the multifamily sector to new heights.
#3 –How do you plan to scale the Louisville office within the next 12 months?
I am focusing on growing the number of multifamily associates at the firm, and I intend to dominate the market share of multifamily deals within the Louisville and Lexington markets. I plan to be strategic in growth, I am looking for synergies within the group and a diverse set of personalities. I find that most teams share so many similarities. A vibrant and diverse culture will be another way for us to create a competitive advantage. Regarding the growth of the office as a whole, I’m in active discussions within my network and would like to have at minimum 1 representative of each specialization by year-end.
#4 –What skills have you learned that have helped you get to where you are now?
When I started in commercial real estate, I had zero sales experience. I am naturally analytical and tend to get deep into the weeds. I had to force myself to develop higher emotional intelligence and communicate effectively. I learned that sales are not about how much you say but about asking the right questions. Time management and business planning have been two important habits that I learned along the way.
#5 –What markets/sectors are the best to invest in right now, and why?
Real estate is hyper-local, and there are opportunities in every market at any point in the market cycle. Of course, I am bullish on Kentucky’s markets. Not only is Kentucky this hybrid Midwest-Southeastern market, Louisville and surrounding markets like Elizabethtown are attracting major EV manufacturers. This growth in the electric vehicle sector is very exciting, and we are already seeing thousands of new jobs created. Last year Kentucky was ranked 2nd in the nation for economic growth per capita.
#6 –How would you advise agents to navigate the current volatile environment?
Volatile times and a tightening market create an opportunity for great agents to capture market share. Stay focused within your specific area of expertise and know everything about your area of focus. Position yourself as a trusted advisor and be transparent about the current environment with owners. Provide insight to them from your conversations within your network. Only take on listings where the owner is aligned with the market conditions and take the time to understand their motivation for selling. As transaction activity picks back up, the agents who shot straight with owners and had the staying power to weather the storm will have the upper hand.
#7 –What is your biggest piece of advice for agents just starting out their commercial real estate careers?
- It takes thousands of cold calls to become good at cold calling. Just start and figure it out as you go.
- Audit your day for two weeks in 30-minute chunks. Anything that is not an income-producing activity must be moved outside of prime working hours. Cut the fat.
- If your client is asking for an update, you are already late.
- Be direct when you deliver bad news and deliver it promptly. Only deliver good news when it is a fact.
#8 –What are your top multifamily predictions for the second half of the year?
We will see that inflation is sticking around, and costs will remain high. As such, the development pipeline will thin out and constrain supply, keeping rents stable. Investors will continue shifting towards more conservative underwriting, with a stronger emphasis on in-place numbers. The exception will be older assets in prime areas that trade based on replacement value. Transaction activity will continue to slow, and all the rescue capital will be disappointed because a lot of the “distressed” assets will be worked out behind the scenes.
