We had the pleasure of sitting down and speaking with Anthony Scandariato, the Co-Founder of Red Knight Properties, a privately held boutique multi-family and mixed-use real estate investment and property management company. With around 1,000 units up and down the East Coast, Anthony has his hands full. Read the interview below to learn how he schedules his weeks, how he got involved in real estate and what he thinks the next couple of years will look like in CRE.

1. Did you always know you wanted to work in real estate? How did you get to where you are today?

I actually did not know but I did always have an interest. I had some family members that owned buildings and was fascinated to hear stories and understand how it is mostly passive in generating an income. I really developed an interest after I graduated college where I studied general applied economics. Throughout college and for a little while after I had a start-up company focused on consumer product retail where we sold university branded sunglasses and sweaters to bookstores and whatnot. Although it was completely different from real estate, it was a very entrepreneurial experience and I enjoyed the sales aspect. Ultimately, I wasn’t passionate about the product so I left the firm to pursue real estate where I utilized my connections and networking to get my footing.

2. What was the biggest struggle you faced in starting your own company?

There are always challenges in running your own company whether you are just starting out or years down the line. For me, the biggest struggle in getting started was building out a team that would be able to withstand the business. Property management can make or break the multifamily business especially and I did not have a strong team there from the start. Fortunately, we were able to overcome these challenges, but it did take time. You must have the right team and systems in place in order to be successful.

3. What is the most important lesson you learned throughout your professional journey?

There are a lot of different lessons I have learned throughout my career but I think the most important is to always be prepared for a downturn in the market. The real estate market has been fueled by cheap money for a long time and we are seeing that somewhat come to an end. You need to be in a position to structure your portfolio around getting through the hard times. This is key! Especially as we move through 2023 and 2024, its important not to put too much leverage on your deals and lock in fixed rates as long as you can.

4. How has the current market affected business for you? What do you think the next 6 months will look like for commercial real estate?

I am actually excited for the next 6 months to a year – or the next 2 years I should say. We are going to see some interesting opportunities from sponsors who didn’t prepare for 3% cap rates coming to an end. According to the Trep database there are around 1,500 apartment buildings with over 100 units that are facing possible default in 2023 and 2024. To be honest, I image there are a lot more than that. So, I am actually kind of excited about the opportunities this will present.

5. As a multifamily owner and operator with around 1,000 units up and down the East Coast, what does a day in the life look like for you?

I try to block out my days. Obviously, we have a lot going on and I am pulled in multiple different directions. I try to plan my weeks in a way where, for example, Monday I will focus on Marketing, Tuesday I will focus on Property and Asset Management, and Industrial Relations, Wednesday I will look at new deals, etc. I wasn’t a big fan of the former CEO of Twitter but this is something I learned from him. Setting my focus every day has been super beneficial. This isn’t to say I am never pulled in a different direction, which is fine, but I try to always come back to what I was doing before.

6. Tell us a little bit about your podcast.

It is called Discovering Multifamily, we have over 200 episodes and we started it during the Pandemic. I try to do a weekly show where we talk for 20-30 minutes with high-level guests about whatever is going on specifically in the multifamily industry at the time. Usually, it is about the state of the market and what other operators are doing in the industry. It has been a really cool experience and I love being a part of it.

7. What is next for you and Red Knight Properties?

We are hunkering down in terms of making sure our portfolio is operating effectively with our existing assets. In 2022 we did buy deals, so we are making sure we execute the business plans we have acquired and reposition them successfully. We also sold some properties this year, so we really just need to make sure our portfolio is operating smoothly and ready for the upcoming year. I haven’t started looking at new properties yet but that is definitely something on my radar and I am excited about the possibilities there.

8. Are you a sports fan? What football team are you rooting for this season?

I gotta say the Giants!

The statements and opinions stated in this article or post are of those individuals interview or participants of events being reported, they are not in any way endorsed by nor are they statements or opinions of Jafri Journal LLC.