In today’s episode, Andrew Kim, an entrepreneur in the technology space and founder of Share, discusses his journey in real estate investing and how his company helps everyday investors find low-risk, low-effort real estate investment opportunities. He explains why Share focuses on single-family rentals, highlighting their resilience and safety as an asset class. Andrew also discusses the process of finding properties, financing options, and the role of Share as an asset management company. He emphasizes the importance of diversification and the benefits of investing in real estate for W2 professionals.

Listen To The Podcast Here 

Watch The Episode Here 

What’s Covered In This Episode

  • In this episode we’ll cover:
    • Single-family rentals are a resilient and safe asset class for real estate investors.
    • Share helps everyday investors find low-risk, low-effort real estate investment opportunities.
    • The company focuses on single-family rentals because they provide control and require less capital and partnership compared to multifamily properties.
    • Share uses cap rates to estimate returns for different properties, and the range varies based on the price point and location.
    • The company outsources property management to large institutional companies, providing quality service and cost savings to clients.
    • Investing in single-family rentals can help W2 professionals diversify their portfolios and offset personal income through tax benefits.

Connect with Andrew: 

https://sharesfr.com/

https://instagram.com/sharesfr

https://www.linkedin.com/company/sharesfr/

Resources 

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Read The Transcript Here

Trevor Oldham (00:02.012)
Hey everyone, welcome back to the REI Marketing Secrets podcast. Today on the show we have Andrew Kim. Andrew, for our audience out there who is just learning about yourself for the very first time, do you mind just going into your background a little bit?

Andrew Kim (00:15.758)
Sure. Yeah. So, you know, professionally, I’m an entrepreneur in the technology space, but got into real estate investing back in 2010, was introduced to the Florida market first, and then, you know, was a very, very passive, but not the greatest investor for her since then. Focused mainly on my tech career was living out in California, building a technology company, you know, fast forward 10 plus years when it’s like, okay, well, time to

you know, think about retirement and the end game, circling back to real estate, realizing that it’s still not the easiest way to, you know, easiest place to deploy capital and find and stabilize rental homes. And then thus spawned Share, my current venture where real estate meets technology. And what we’re building is trying to help everyday investors find low risk, low effort, real estate investment opportunities.

Trevor Oldham (01:11.227)
So I’m curious how you got from California to where you are now in Toronto. Because I know you’re talking about how, you know, I’m in New York, I don’t really enjoy the cold, you don’t really enjoy the cold unless you are in Northern California. Just curious, you know, how that transition happened.

Andrew Kim (01:20.238)
Hahaha.

Andrew Kim (01:25.198)
Yeah, so, you know, I was born and raised in Toronto, Canada, and then being a tech entrepreneur, you know, I think the natural progression is get to the US and back in 2011, I moved to California because I was building a technology company and we took a lot of investment dollars from a lot of venture capital firms out in California. So I moved there, spent about four to five years out there, built and sold my company.

And then little did I know that my visa was dependent upon having that company active. So after I sold it, I unexpectedly and reluctantly came back to Toronto. But I learned about the US real estate market there and that’s kind of stuck with me ever since.

Trevor Oldham (01:59.739)
Yeah.

Trevor Oldham (02:11.483)
Yeah, that’s I kind of think so. You know, having that having that happen. I know California is a it’s a pretty sweet spot, especially Southern California. It’s a it’s a it’s a nice area. But I’m just curious when it comes to like you and your company, why did you guys choose, you know, say the single family rentals over say your multifamily? You know, I feel like multifamily sort of that hot button where people I feel like when people come across it, they say, oh, why buy one?

Andrew Kim (02:20.014)
Yeah.

Trevor Oldham (02:39.291)
house when I can buy you know four units and I can scale quicker you know that’s always I find the conversation where you know where people interject it’s like oh I’d rather own you know 10 houses 10 units instead of 10 single -family units just curious what drew you to the single -family space as compared to say the multifamily space.

Andrew Kim (02:56.494)
Yeah, so, you know, we, a lot of things change, I think, you know, technology is kind of level the playing field there in terms of being able to get that diversification and risk mitigation factor. But single family because we feel that is the most resilient asset class, the most boring but safest. And I would naturally say like, as you kind of master the single family rule, then yeah, why not progress to the multi. But I know like a multi does

depending again on size and price point, they’re a lot more, they’re a higher ticket item and typically does require you to kind of go raise capital, become a joint venture and have to do a lot of things that are probably net new as opposed to keeping the control within your own wheelhouse. If this is my capital, I can actually afford to go buy a house and it’s all mine. I don’t have any partners. I don’t have any GP. I don’t need an LP, et cetera, et cetera. So that’s why the single family. And I think like the pandemic is really also

show the hierarchy of needs of individuals, they would always kind of gravitate towards a single family. And then the tenant profile of a single family is a little more long -term. And then talking about the diversification piece, yes, of course, multi -family, it’s like, well, what happens if a person vacates your single family, you’re out? But same thing on the multi, where they’re like, well, one person leaves, I still got my other doors. Well, now,

What we’re saying is, look, you should be diversifying across multiple geographies. So before technology, it was very difficult. That’s a lot of high touch effort. But in the multifamily, we think that if you have one unit, you’ve got that all in one place. So we don’t like the idea of just buying a single multifamily and having all concentrated in the same geography. Because forbid anything happens, you deploy all your capital and next sort of

Detroit, Michigan automotive collapse happens and everything is underwater, whereas we’re like, you should be diversified across regions. But single family has always been very difficult. But now with technology, we’re making that sort of a level playing field. So whether you have units in Georgia, Texas or the Carolinas, we’re providing a singular view and single point of contact where it looks like it could potentially be all managed under one asset manager, which is us.

Andrew Kim (05:20.878)
despite it being across multiple geographies and multiple property management companies. So giving you that sort of multifamily ease, but scattered single -family diversification.

Trevor Oldham (05:32.219)
Yeah, I think that’s, I think the more you said there’s great. And I’m thinking of like the Austin, Texas multifamily market where that’s, I think that’s one of the ones that’s taken a big dip in that say 40%. So if you had say one single family home in Austin, then you had maybe one Georgia, Florida, whatever it is within the U S at least you’re diversifying where instead of just having one particular big property and you know, and just saying specifically that Austin market. So I like that aspect of it. But when it comes to like your company, how do you,

How do you like find these properties? Cause I was taking a look on your site and being in New York, I saw a couple of properties in Niagara Falls. It’s a, it’s a great spot. I will say I do prefer the Canadian side after being on the both US and Canadian side out there, but just curious, how do you guys find these properties? Is it, do you have like a set criteria? Are you just looking at like the 1 % rule? What, just how do you guys find them?

Andrew Kim (06:10.766)
Eh.

Andrew Kim (06:22.83)
Yeah, so first the Niagara Falls properties were a bit of a unique client driven request. It wouldn’t necessarily have been our first location. But how we look for properties, well, first we kind of do it’s client led. So the properties you see on our site are just more samples or what we call a buy box adjacent. So every time a client comes through, we do a bit of an intake, a KYC, we understand what their buy boxes.

Trevor Oldham (06:28.923)
Hmm.

Trevor Oldham (06:38.971)
Yeah.

Andrew Kim (06:51.022)
And then we will cast our net across, you know, typical landlord friendly states to look for matches of that buy blocks. And what’s happening behind the scenes is that we’re, you know, we’ve got feeds on almost every single MLS. So all the on market deals, plus we tap into large off market channels, wholesalers and institutions and our property management partners that are looking to offload or do any sort of dispositions. And then our system is basically shortlisting those based on like,

cap rates or certain types of yields, and then we’ll shortlist that and present it to the client.

Trevor Oldham (07:26.875)
It’s interesting to be the individual, you know, that they’re choosing Niagara for just being in New York. It’s not too landlord friendly here. I know they’re trying to pass new laws where I forget what it was. It was in the last week, but yeah, they were trying to make it even harder to like kick out your tenant and make it. It was something like the tenant will have the option to renew the lease and you can’t kick them out. It was, it’s crazy what they do in the, in New York. So, you know, I would say away from it, but hey, if that individual, they, they want to go in that spot, you know, more power to them, but.

Andrew Kim (07:35.342)
Yeah.

Andrew Kim (07:49.646)
Yeah.

Trevor Oldham (07:57.051)
We’re curious on the cost of the single families and how, I guess it’s one sort of the cost and then the financing aspect. Let’s say one is it, I know that the properties range in different prices. Like I saw the one in Niagara, you know, it was cheaper. It was 55K I think the one I saw and then other properties were 300K. Is it 20 % down? Is there any creative financing involved? What does that sort of look like from a cost and financing perspective for someone?

Andrew Kim (08:22.158)
Yeah, so yeah, our price range points range, you know, the Niagara Falls, again, we kind of, we don’t suggest that for first time investors. So we typically our sweet spot is anywhere from 150 K to like the mid 300s. And, you know, they’ve got varying returns, you know, on we would call like, we classify them the A, B and C, A’s being the higher price points, C’s being the lower in the 150 K range with the higher returns.

A is being a higher appreciating asset. So in all cases, when clients are looking for financing, we typically defer them to DSCR lenders, which we would help them sort of do the backing into the math of how much capital you need upfront to ensure that we get the best rates. And then once we have sort of a deal, prospective deal, we have a way to kind of push that deal out to thousands of lenders to see which rates come back. And then some clients will bring their own mortgage as well.

where they might go to their primary bank and their primary bank may have a good investment product.

Trevor Oldham (09:28.539)
I think that’s super helpful to know it’s crazy looking at the debt service coverage ratio of some of the properties in the multifamily space. It’s crazy what the loans were a couple of years ago and how it’s gone so different. But with these properties, is there a standard return that someone’s looking to get? And let’s say maybe…

Andrew Kim (09:42.83)
Yeah, it was free money, right?

Trevor Oldham (09:54.811)
Again, I had to keep harping on it, but it was the one I saw. The Niagara Falls, maybe that’s like, you can expect like a 15 % return because the property’s maybe more in rough shape, more needs more work done to it where more of your, say your $300 ,000 single family home, let’s say in Georgia or Ohio, or 300 ,000 in Ohio, that could be a really nice property. Maybe is that like more like a six to 8 % return? Does it depend on like the different markets, what the return someone could expect?

Andrew Kim (10:21.358)
Yeah, 100%. So we use cap rates. I know it’s a very multifamily thing, but yeah, we use cap rates. And for the A’s, so the higher price point homes, like in the 300s, we would be at the low 4%. And then for the C’s that are like in the mid 100s, those would be like in the upwards of like mid sixes.

Trevor Oldham (10:46.779)
Yeah, I think that’s super helpful to know for our audience. But we’re curious when it comes to say, like the properties themselves and you’re going out there and finding them and doing all that legwork, is there any additional work you’re doing? And what I mean by that is like, is there any like turnover of the property? Is there anything like that? Or is it more just you guys are, you know, taking all the time out of the legwork of finding these deals instead of me going out there and spending all my time where I’m super busy? Is there any of that?

you know, where you go in, maybe you rehab it a little bit, you know, touch it up just to make it livable if it is, you know, the different property.

Andrew Kim (11:23.854)
Yeah, 100%. So we’re end to end. We’ll help you acquire and then we take after you take, we’ll help you place the tenant. And then long -term wise, Share is an asset management company. So typically working with very busy professionals that understand the value of direct real estate ownership, but can’t be bothered with any sort of DIY landlord duties.

you know, a lot of them do have institutional investments like REITs and private equity funds. So they know what the upside is, but want to kind of keep it for themselves. So that’s what we provide them. So on that note, when we start searching for the home, what we will do is we kind of understand what their renovation risk is, you know, do they want something turnkey or do they want something with a big rehab? And I will air quote rehab, you know, we only do a certain degree of rehab, we won’t do major structural changes.

But yeah, we will actually when we lock up when we find a home We actually lock up the home under share and then we will assign it to the end clients So during that period during the inspection period we’ll send in a third party inspection our renovation team and our property management Partner to give us a full assessment We’ll calibrate those numbers and then present it to the client and if we think it’s still a good deal We’ll give them thumbs up If they want to proceed then we’ll help them close it out and then usually within one week of close our renovation team is in there

doing the work and then when it’s ready to lease out, well, our marketing team will start leasing it out as well. And then when there’s a tenant in place, we’re the asset management of company of record where we want to 10x your portfolio while you focus on your personal and professional careers.

Trevor Oldham (13:02.523)
Yeah, that sounds like a pretty sweet deal. And I sort of think of it as like, you know, being a passive investor where there’s the active part of it where, you know, for me, where I’m going in and I’m investing in deals with a sponsor, I still got to like vet the deal. I still got to vet the person I’m going to be investing with. I’m assuming someone would come to your company. They still want to check out, you know, see the property, see like, you know, get some estimations and different things like that. But after that, let’s say they’ve gone through the process, they found the property, maybe they did a slight little rehab.

And then you mentioned you are the asset manager on it. What’s more needed from an individual? Is it really just sort of hands off from there? Is it, hey, if something comes up, we’re going to send it your way. Maybe there’s a repair that comes up here and there that we just need to get your approval on. What does that sort of look like from a perspective of someone after they’ve invested in one of these properties through your company?

Andrew Kim (13:54.222)
Yeah, so we would think about it as like an enhanced sort of relationship with your property management company. We would be that one person in between. So you’d never actually have to speak to a PM property manager. So we’ve got certain decision rights and a reserve pool of capital that we can make certain decisions on their behalf. But we do give the client the option of, hey, when do you want to be notified? If he’s anything worth of like thirty five hundred dollars or anything like that, we give them that option. But we try to not have to bother them as much as possible.

And in most cases, I’d say like 85 plus percent, we don’t ever hear from the client until it’s tax season. And they’re like, can you please provide us with your year end schedules, ease and stuff like that. And we’re like, yeah, just log into your account, go get it. It’s like, ah, I don’t have my password. We’re like, okay, fine here. We’ll just email it to you. But yeah, they’re usually pretty hands off.

Trevor Oldham (14:30.363)
Mm.

Trevor Oldham (14:46.363)
Yeah, that’s, that’s really nice. Cause I mean, for me, like, I feel like I just don’t have the personality to go out and buy a single family home and just manage the tenant. I like, I’d rather have that property manager. I just feel like I’d be like way too lenient and be like way too nice. You know, like, Oh, you’re falling behind on rent. That’s okay. You know, just get, you know, make up on it. And the next couple of months, just knowing my personality. So that’s why I was like, if I’m going to invest in single family, I’d rather invest with a company like going through your company where you have the built out the team. You have like that extra layer between me.

Andrew Kim (15:04.078)
Yeah.

Trevor Oldham (15:15.835)
and the tenant where I don’t have to deal with that individual because I feel like I’m too nice of a person and I feel bad about kicking them out here or even like raising rents. So to not have me be the fall guy would be, uh, would be nice. But when it comes to like the tenants themselves, they’re like a screening process that you guys put them through. What does that sort of look like?

Andrew Kim (15:24.142)
Yeah.

Andrew Kim (15:33.838)
Yeah, we’ll run them through the standard sort of criminal check, like the previous sort of landlord screening, as well as their sort of debt ratio, making sure that they’ve got enough income to cover X number of months of lost rent.

Trevor Oldham (15:51.291)
and with the tenants themselves and I’m trying to think of the best way to say it but just like a turnover rate is there like a certain I know it’s more of a single -family rental where I know like multi -family apartments the turnover is like every 18 months you know the number is pretty high just because people are moving all the time where I feel like when you have a single -family house people are less likely to move because they’re not like living next to someone they have their own personal space so is there like a certain turnover rate you know and what I mean by that is

Andrew Kim (16:13.71)
Yeah.

Trevor Oldham (16:21.307)
is let’s say someone invests in one of these deals through your company and they’ve had a tenant in place for two years and then the tenant decides, hey, I want to leave. And then now there’s a few months of vacancy and obviously not collecting mortgage payments at that point. Just curiously how you handle that situation or what that looks like just from, just because I’ve heard not just not your company, but terrible turnkey companies in the past where they, where…

They have done a good job in not saying anything like that, but that’s something I have heard where they took like nine or 12 months to find a new tenant. And you know, the person, basically all the cashflow is bled out from them that they were going to make in the last couple of years. So just curious how your company handles that when it comes to that, that sort of that turnover aspect of finding like an ever placing the, I guess you could say your tenant, you know, within a reasonable amount of time.

Andrew Kim (17:10.382)
Yeah. Yeah. So what we do is we typically dot like on a zip code level, we’ll take that into consideration when we’re doing your sort of cap rate estimates in terms of vacancy allowance and like how many years is the average sort of leasing and the average leasing time. So like, you know, in a C -class neighborhood, we might allocate more months of sort of or higher frequency of turnover with a longer lea –

time to lease, whereas an A class property, we may have to chalk that up for every three years, four years. So yeah, it is very zip code specific and tenant profile specific, as opposed to what we’ve seen in the past. It’s just kind of the static 5 % or whatever percent and very naive assumptions.

Trevor Oldham (18:00.987)
Yeah, I think that’s super helpful to know, just depending and varying based on location. And when you’re like managing these properties in these different parts of the country, how does that management team work? Are you just vetting like local property management teams? Do you have your own team built out, boots on the ground? What does that sort of look like? What could someone expect from your property management side of the business?

Andrew Kim (18:22.83)
Yeah, so first off, we don’t do property management in -house. We outsource to large property management companies that typically don’t work with the retail one -off individual investor. They typically only work with large institutions, several thousand dollars minimum. They look at us as an institution because everything is on sort of one account. It’s a lot easier for them and they get to treat us just like any other institution. And then we pass through that cost savings and that quality to our end client.

And it’s really the only way we could actually scale this business is with large institutional property management companies that do have thousands of doors in that particular area. So that’s how we have sort of the buying power we do have with certain local contractors and service providers.

Trevor Oldham (19:09.307)
Yeah, I like that aspect because I know if I was going out on my own, it would be a lot harder for me to get a really good property management team that has all those systems and processes. Or if you’re the guy down the street that is going to take the money and run. Not to say that that would happen, but hopefully that would.

Andrew Kim (19:19.79)
Yeah.

Yeah, I’ve heard of that. I’ve so heard of that. But yeah, I’ve heard of that nightmare. But yeah, it’s better with larger players. They’ve got a strong accounting practice so we can get various detailed financials and estimates and strong feedback and turnaround times. There’s protocols.

Trevor Oldham (19:44.315)
Yeah, exactly. You want to have that sort of structure in place. But when it comes to these markets, I know you mentioned your customer buy box, but is there certain areas in the country that you’re looking at? I always think of your conservative states, your red states, at least for me, that’s where I personally like to invest. You pretty much go from Texas all the way to Florida, go up a little bit north, South Carolina, and go to the Midwest just because they’re more tenant friendly. And obviously that one individual, I don’t know why they want to invest in New York, but nonetheless, they…

they want to. It’s me investing in my home state, not my home state, but investing in the state where I live. But yeah, how does that sort of look from a market standpoint? Do you look where there’s more of the cash -filling aspects of it, where maybe there’s your second and your tertiary markets? How does Atlas sort of look like?

Andrew Kim (20:14.734)
HMM

Hahaha!

Andrew Kim (20:28.59)
Yeah, that’s exactly it. So, you know, we are Sunbelt Midwest. And then based on their preference, if they’re an appreciation play, then that will probably be more of the sort of prime metros in the Sunbelt. And then if they’re looking for more cash flow players, they’re the more like tertiary markets and some of them more of the Midwest.

Trevor Oldham (20:47.611)
Yeah, that’s that’s perfect. That’s I think it’s definitely good to know as well. I’m curious, someone let’s say they come in, they’re W2 professional and they want to diversify their portfolio. Maybe they have like your background there in tech. They’re earning say 200, 250 ,000 a year and they want to just diversify their portfolio. How does investing in one the single family there help them diversify? And then to what are there certain tax benefits that someone could receive by investing in these single family homes?

Andrew Kim (21:17.838)
Yeah, so the diversification here is, you know, they get the hard assets. So majority of our like majority of our clients do come and are sort of of that profile where they’re coming from the major metros like New York, LA, San Francisco, Seattle, where the average home is well above the national average. And yeah, they’re working professionals and, you know, they’re typically investing in all those types of traditional securities.

and they understand that real estate is sort of the wealth. And surprisingly, a handful of them are actually younger, on the younger side, don’t even have a primary residence. And they’re like, wow, but like, I have like 100 ,000, I want to invest, but I can’t, that doesn’t buy me a shed where I live. So might as well get into the market somewhere else. So that’s kind of them diversifying as sort of getting into the market and real estate.

Trevor Oldham (21:56.059)
Oh wow.

Andrew Kim (22:12.814)
And because there’s potentials of higher earnings returns with us as an asset management company, because they own it directly. And then in terms of how it helps them in their W2 world, is real estate with the depreciation and all of that good economic pro rata rights, we can kind of help you offset some of your personal income.

Trevor Oldham (22:37.243)
Yeah, I think that’s one of the best parts about investing in real estate. I know I got a couple of K1s this year and there might be depreciation or capture at some time, but at least for right now, you see your net income and then you see the depreciation. I really wish I could get that real estate professional tax status so I could wipe off all of that. I know that’s one you can get heavily audited. It’s very heavily audited by the IRS. So should I try to do it? I think I’m going to hold off on that because I know that one’s…

That’s nice because it’s like if you get a $25 ,000 loss, like right now I can only claim it down to zero, but then it’d be nice to really claim all of that. You know, it’s a, it definitely has the benefits investing in real estate, but, but Andrew, I just want to say I really enjoyed this conversation today and for our audience that wants to learn a little bit more about you and your company, where should they go to?

Andrew Kim (23:07.502)
haha

Andrew Kim (23:15.214)
Yeah.

Andrew Kim (23:27.886)
Yeah, you know go to our website sharesfr .com. It’s sharesfr .com as in single family rental. So sharesfr .com. You can create a free account, take a look at some of our sample properties and if you’re interested for us to initiate a custom search, you can book a call with someone on our team. And we’re also on Instagram, all the social handles, sharesfr .com.

Trevor Oldham (23:47.739)
Awesome.

Trevor Oldham (23:52.539)
I’ll make sure to include that in the show into today’s episode and Andrew, thanks so much for coming on to the show today.

Andrew Kim (23:57.646)
It was a pleasure. Thanks for having me.