The #1 Investing Strategy Most People Still Ignore

Aviva (00:00)
This week's

listener of the week is Tales of a Landlord. Tales, thank you so much for leaving us a five star review. And for those of you listening, if you leave us a five star review below, you might be next week's listener of the week, week, week. This week on Commercial Real Estate Secrets, we have Mr. Tom Dunkel. Mr. Dunkel is the managing principal at Eagle Capital Investments.

Mr. Dunkel, thank you for being on the show today.

Tom Dunkel - Eagle Investments (00:31)
Hey Aviva, it's great being with you and all the listeners. I'm looking forward to our chat today.

Aviva (00:35)
Likewise, so for the listeners, give us an overview. Who are you? What do you do and what are your commercial real estate secrets?

Tom Dunkel - Eagle Investments (00:44)
Sure, I'll try to keep it short and sweet, although I'm solidly in my 50s now, so I do tend to ramble and go on and on and on. But short story is I got out of business school and went into mergers and acquisitions in the aerospace industry. And then, know, fast forward several years in my corporate career, I ended up getting fired for my corporate finance job.

which was the kick in the pants that I needed to go out into the world and do my entrepreneurial thing, which I had been wanting to do because for me, the corporate track and scraping and clawing up the corporate ladder, it just didn't sit well with me. It didn't make sense to me. I didn't think I could get where I wanted to go doing that. So I was forced into entrepreneurship.

I'd always had an interest in real estate. So I started out doing residential stuff, fixing and flipping wholesale rental properties, which the best day of my life was selling my last rental property in 2018. That was awesome. But, along the way, you learned a lot of lessons, lost a lot of money initially, because of course, you know, I got caught in the great recession in the 2007, eight, nine timeframe.

I learned some hard lessons early in my entrepreneurial career. But here I am 19 years later, alive and well, sharing my story. But along the way, got into some cool asset classes. We've been in distressed mortgage debt. I was in self storage for five years. I was the chief investment officer at Bellrose Storage Group. But most recently, I've launched a new fund of funds, which is called Eagle Capital Investments.

And what we're doing is basically giving my community of investors that I've cultivated over the years and gotten to be good friends with many of them, I'm giving them the opportunity to basically tag along with me, invest with me in opportunities in multifamily, mobile home parks, self storage, of course, private lending.

know, basically all of those cool things outside of stocks, bonds and mutual funds that an investor wants to get into to have a truly diversified portfolio with capital preservation and growth and income and tax advantages and all that cool stuff. So I'm really, really excited about this, this new venture.

Aviva (03:02)
So tell me about this fund. Where are you acquiring? How are you acquiring? What I know you lightly told us about what you're acquiring. I'd love to hear more.

Tom Dunkel - Eagle Investments (03:13)
Yeah, of course. Well, along the way, as I've curated this, this is community of investors have also met many, many just world-class operators in very, in these various asset classes that I've come to personally know, like, and trust. So I feel it feels great. I'm able to kind of take my friends and investors and put them in great deals with my friends who are operators and sponsors of deals.

So yeah, so basically I've kind of handpicked a few operators in these various asset classes that I know, like and trust. They've got great track records. They're people of character and credibility and integrity. And they're just really good at what they do. So for example, I just finished helping raise money for a multifamily deal in Phoenix, Arizona, which is a great market, right?

as an investor myself, that's one of the thing, key things I look at is, is it a robust market, right? is there growth there? There's job growth. is it a diverse economy? Right. You don't just want like a one factory town where if that factory goes out of business, you know, the town goes out of business. so Phoenix, thought was a great opportunity, great market.

Aviva (04:12)
Yeah.

Tom Dunkel - Eagle Investments (04:26)
And the operator, which of course is super important, ASYM Capital, they're a really solid group. I've gotten to know Tyler and Hunter there over the last several years. it's just kind of that type of relationship of Evo where I can just pick up the phone and call these guys and get the questions answered and get the real nitty gritty on the deals.

Aviva (04:50)
If you could only acquire one asset the rest of your life, what are you acquiring and why?

Tom Dunkel - Eagle Investments (04:55)
Wow.

That's such a tough question. Because obviously that kind of goes against the whole diversifying thing. But if you're asking me asset class, geez, even though I love self storage, I feel like there's this persistent shortage of housing in our country. So I feel like multifamily is just going to be a wave to ride for a long.

Aviva (05:05)
Sure.

Wow.

Tom Dunkel - Eagle Investments (05:22)
If you're forcing me to pick, I would pick multifamily. But practically speaking, I'm building for myself and my investors who follow me. I diversified portfolio that's going to include multiple asset classes in multiple markets.

Aviva (05:24)
I am.

Wow. What type of returns are you trying to achieve or expect to achieve for your fund?

Tom Dunkel - Eagle Investments (05:45)
Sure. Well,

overall returns are typically going to be in the low to mid teens range over like a three to five year hold period. And that'll consist of maybe cashflow along the way. It might range from maybe 5 % a year cash on cash up to maybe 10 % a year cash on cash. And then the rest of it will come in the form of appreciation over time that we'll realize at the exit of

project.

Aviva (06:13)
What is your exit strategy or how long of a hold period are you looking for?

Tom Dunkel - Eagle Investments (06:20)
Yeah, so typically these types of opportunities, whether it's multifamily, self-storage, those are going to be probably three to five year hold periods. If it's a pretty quick value add kind of deal, it might be on the shorter end of that scale, maybe in the three year period. But if there's a little more hair on it, if it's a bigger project, maybe there's an expansion or a conversion component, then it might be more to the five year.

end of the range. And that's another thing I really like to do in my own portfolio is have some of those longer term projects. But then I also do a fair amount of private lending and my investors who work with me, we do that together. And that's going to be, you know, invest investing in a first position mortgage loan to like a rehab guy who's fixing up a property and selling it. So

That's like a 12 % cash on cash kind of return. But that's typically going to be like a nine month, maybe 12 month kind of hold. So it's a little bit shorter, but high cashflow. And the operators that I work with in that world, they always have another deal coming. So it's pretty easy to keep your money working, even though that's typically a shorter term hold.

Aviva (07:37)
more.

So if you have someone who's looking at the returns of the stock market this year, last year, and you're looking to raise capital from them, how are you, I don't wanna say selling real estate as an investment over the stock market, but that is the question. Why invest in real estate in 2025 as opposed to the stock market?

Tom Dunkel - Eagle Investments (07:57)
Yeah

Sure, well, we've been talking a lot about diversification, Aviva. So I would never tell someone, sell all your stocks and put it all in real estate. I mean, that doesn't make sense. At the end of the day, like I said, I'm an investor too. But what happens is when you start to accumulate some wealth, and this we see from the wealthiest families in our country, you diversify away from...

the stocks, bonds and mutual funds. I they typically still have that kind of portfolio going, but they add to it, know, small businesses or private placements in real estate or, this type of asset class or getting into some more sophisticated kinds of investments. And that, starts to create some true diversification so that if there is some, world event or something and all the stocks and all the bonds drop in value, which

We've seen happen over and over and over again throughout history. Now they have that real estate component, which is well diversified in and of itself that helps to kind of balance out those swings in the public market. what I would say to someone, especially these days is, now is a really good time to take some money off the table, right? The stock market has had a nice run.

And, you know, by every measure historically it's, it's pretty highly priced right now. So now would be a good time to take some gains, take some money off the table and start putting it into some alternative asset classes like multifamily, self-storage, mobile home parks, et cetera. And so that's part of the reason I'm here. Part of the, what I like to do is help people make that transition.

Aviva (09:45)
okay, that's a good response that I'm gonna use when other people ask me that question because.

Tom Dunkel - Eagle Investments (09:52)
No problem. Use it at will.

Aviva (09:55)
No,

as an investment nerd, it's just really interesting to hear different outlooks and I know some people who are all in on real estate, know some people who are all in on the stock market, your strategy is diversification and I mean, it makes nothing but sense.

Tom Dunkel - Eagle Investments (10:15)
Well, success leaves clues, right? So you just, look at the successful people in our society and you know, maybe try to take some tips and tricks from them, see what you can learn and apply, right? You got to apply it.

Aviva (10:25)
Yeah.

if you had to choose three markets in America that you would buy from, what are your top three real estate markets in the US of A?

Tom Dunkel - Eagle Investments (10:38)
Wow, Aviva, you're killing me. These are hard questions, no, but I will say it is a fair question. You know, a lot of people these days, and I can tell you from our personal experience on the storage side of my experience, are shying away from like Florida and the Southeast. Like people are kind of done with these hurricanes and they've come in, they've caused all kinds of damage and.

Of course, that's terrible by itself, but the lingering after effects of that are that insurance companies, if you can even get insurance in Florida anymore, it is super expensive. And so that was one of the things I found attractive about this multifamily opportunity in Phoenix. There's no natural disasters in Phoenix. You they don't have fires, they don't have hurricanes, they don't have earthquakes, right?

So I would say, know, Phoenix is definitely a market I would look to put more capital in for sure. Aside from that one, you asked me for three, that's tough. I tend to follow in that regard kind of the demographics, right? So people are generally, know, big picture moving out of the Northeast and they're moving to the South and the Southeast. So we just talked about the Southeast, which is, you know, maybe, maybe

Aviva (11:38)
Hmph.

Tom Dunkel - Eagle Investments (11:59)
not so great right now. Phoenix is great. The other place I would look would be Texas. So I do have some operator friends that are in Houston and in the Dallas markets, and they're telling me some really good things about those markets as well. So I would look there. And then, know, honestly, know, out where you are in Denver,

You know, I've been hearing good things about that too. However, it does seem like it's gotten a little crazy as far as pricing. So frankly, I I might steer away. Sorry. I'll come to, I'll come out there to ski and hike. Cause I have hiked the Colorado trail, backpacked it. But, but yeah, and then, you know, I've

Aviva (12:26)
You're telling me.

No.

Wow.

Tom Dunkel - Eagle Investments (12:39)
Aside from that, I don't have a specific answer at this point, but I am interested and I've heard some other investors talking about finding like some niche-y like secondary and tertiary markets in the Midwest because they have been overlooked. The prices have not been run up so much. And so I need to do a little more digging, but I do have a friend who's a mobile home park guy and he's looking in places like Tennessee, Kentucky.

those kinds of markets. So I have to learn more, but that's my lame answer to your very good question.

Aviva (13:14)
it's not a lame answer. You would,

you know, I ask people this question all the time. People love Texas, people love Dallas, and people love Houston. So I guess Austin, the secret's out.

Tom Dunkel - Eagle Investments (13:19)
Mm-hmm.

Hmm. Okay.

Yep,

yep, San Antonio maybe, I don't know. Gotta look into it.

Aviva (13:30)
Hmm. Yeah. Hey,

it's a big country. There's a lot of opportunity and we are, I just feel very lucky that it's our sandbox to play in.

Tom Dunkel - Eagle Investments (13:40)
It really is.

that's honestly one of the things I really do like about real estate investing in general is it is inefficient. Right. So even if you're in a hot market like Phoenix or Dallas or Houston, there are still going to be opportunities available for the right operator that finds the right situation. And especially these days, right. There's a lot of folks who bought properties a few years ago and they used floating rate debt. That was the situation on the deal that just closed in Phoenix.

The property's running beautifully. No problems with the property. The problem was the buyer, the owner, the operator of that property took out a floating rate loan a few years back and his interest rate increased 5%, 500 basis points. And it just, you know, it forced him to have to sell this beautiful, wonderful asset. I'm sure he didn't want to, but he had to because he...

because of the financial situation. So we're starting to see those kinds of things, and that's an opportunity, right, for the right operator to come in and get the right kind of financing on those kinds of properties.

Aviva (14:41)
Sure.

I know, I know I sold the building last year with that situation. So I get it. I got that call, unfortunately, but.

Tom Dunkel - Eagle Investments (14:52)
Mmm, yeah.

Yep, well, you live

and you learn, right?

Aviva (15:00)
Well, I don't want to learn that one, but, but I will.

Tom Dunkel - Eagle Investments (15:04)
Hey, you're still here. You're still

here. You're still doing this awesome podcast with your awesome warehouse hotline business. So good for you. Got to keep grinding.

Aviva (15:07)
hey,

it's the long game. We're here to play, you know, this is not the get rich quick scheme. This is the long game. Mr. Dunkel, what makes you happy with what you do in commercial real estate?

Tom Dunkel - Eagle Investments (15:18)
100%.

Yeah, that's such a great question. And it's a perfectly timed question. Cause like I said, I've started this new venture with Eagle Capital Investments. And at this point in my career, I just really love sharing with people and helping other people. know, with through Eagle Capital Investments, I'm able to help my investor community build their wealth and hit their financial goals. And on the other side, I'm able to help my friends and these operators who are building these amazing businesses.

who are really solid people, I'm able to help them build their business by bringing capital to them. So I'm just really feeling very fortunate about my position in life right now. So it's really quite rewarding, I have to say.

Aviva (16:10)
I feel the same way. I say this all the time. I feel like the luckiest person in the whole world that I get to do this and talk to people like you. just what a treat it is to work in. It's like you said, it is really an inefficient business. I say it's the Wild West. That is a really eloquent way of saying what I say. But you're right, there's no rule book.

Tom Dunkel - Eagle Investments (16:26)
Totally.

Aviva (16:38)
every building is owned by somebody different and their house rules might not be your house rules. And that creates opportunity for you, me, your partners, and the listeners. Speaking of which, Mr. Dunkel for the listeners who want to find you, follow you, learn more about Eagle Capital Investments, where can they do so?

Tom Dunkel - Eagle Investments (16:41)
Mm-hmm.

That's right.

Sure, sure. Well, this has been great Aviva. Again, my name is Tom Dunkel. I'm the managing principal at Eagle Capital Investments. And the easiest way to find me is to go to investwitheagle.com where you can get my free ebook, which is all about my approach to investing and due diligence. So it can help people de-risk opportunities and, you know, ask the right questions, make sure you're comfortable. You can sleep at night.

going into these various opportunities. So go to investwitheagle.com.

Aviva (17:37)
InvestWithEagle.com. Thank you, Mr. Dunkel, and for everybody listening. We'll see you next week.