RG 117 – Seek out Superstars: Real Life Lessons for Syndicators & Investors w/ Dave Zook

Reed Goossens
May 24, 2018
House - drawing in the sand

RG 117 – Seek out Superstars: Real Life Lessons for Syndicators & Investors w/ Dave Zook

About Dave

  • Dave is a multifamily investor
  • Dave has several businesses and works with many teams
  • Dave’s latest investment is in holiday resorts

Nuts and Bolts

Dave Zook is a business owner and real estate investor. He invests in multifamily, self storage and resort community development. Dave and his investors have earned in excess of $150 million worth of real estate acquired since 2010. Dave owns over 3000 multifamily units in Memphis and Tenessee and has developed the Mahogany Bay Resort on an island near Belize. Dave earned his first dollar as a child working in the grounds of his dads business where he build little creations out of metal off-cuts and sold them to customers. His family are all quite entrepreneurial and the family business is still going and Dave still has a stake in it with his dad and brothers. Dave also owns a sales and marketing company and a modular home business.

Dave’s most important business tip is working in a team, as teamwork is the only way he’s kept several companies going. Each team works in their own areas of expertise and has their own responsibilities. Dave isn’t boots on the ground with real estate and he has someone else for property management as well. His other tip for team work is to work with experts and once you’ve found an expert in a particular area; don’t let them go! When looking at a deal, don’t focus on the deal itself but instead focus on the people behind the deal and get people referrals. If they are good at what they do then they’ll come highly recommended. You also need a broker who talks you out of as many deals as he agrees to, this is because a broker should be motivated by more than just the sale and have your interests at heart.

Dave has invested in the Mahogany Nay Village Resort when he was offered the opportunity by someone he was already working with whom he trusted. The management team is American but the manufacturing facility is on mainland Belize. By having the manufacturing so close to where the skilled workmen were they saved a lot of money, instead of shipping people out to the island. The homes are built on the mainland in a pre-fabricated manner and then shipped to the island. The risk to the development is changes in the market, which Dave guarded against by building all the homes with cash, so there’s no refinancing and it’s all done with private investors. After the development has been stable for 6 months Dave will refinance to pay investors. As no banks were involved this means that there was only 2 ways for investors to get involved; buy a home with cash or syndicate which is what Dave did. Return on investment will come through cash distributions from guest fees and re-financing.

Top tips

Most important habit – Write down the important tasks either night before or in the morning

Most influential person – Robert Kiyosaki and Robert Helms and Russell Grey

Most important tool – Financial calculator

Contact – davezook@therealassetinvestor.com

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