June 22, 2022
Joe Fairless

JF2850: 4 Reasons to Purchase Mom-and-Pop Portfolios ft. Omni Casey


Omni Casey was born and raised in Hawaii, where he launched his career as both a real estate investor and a broker. After relocating to Virginia 12 years ago, Omni and his wife transitioned from single-family homes to purchasing entire mom-and-pop portfolios. In this episode, he shares his thoughts on the benefits of buying mom-and-pop portfolios, changing his strategy based on the changing economic and political climate, and the importance of separating financial independence from building wealth. 


Click here to purchase Omni’s new book, The Cash-Flow Breakfast Club: A Story and a Manual.

 

4 Reasons to Purchase Mom-and-Pop Portfolios

 

1. High barriers to entry. 

Omni says he loves focusing on buying portfolios because it’s hard. He and his wife typically have to make their purchases with cash since they usually only keep around 70% of the properties in the portfolio — those that fit their strategy — and sell the rest. If they took out a loan, it would make it more difficult for them to exit or reposition particular properties. “Because of that, it’s complex, and I try to chase whatever is complex because I don’t like a lot of competition,” Omni says.

 

2. Value-add and appreciation forcing opportunities. 

When mom-and-pop property owners who have had their properties for 25 to 30 years are looking for an exit, they are typically tired. If they have been tired for a few years, the condition of the properties could be declining or the quality of tenants could be deteriorating, providing ample value-add opportunities for Omni when he takes over. 

 

3. Less competition = more leads. 

Omni tells everyone at his brokerage and the meetups he attends what he is looking for. He has yet to find someone that he competes with directly, which gives him an advantage when it comes to gathering leads. He tells other investors, “I’m not really looking for the one-off properties anymore, so I’m going to send those your way … If someone needs to sell their entire portfolio, come to me.” 

 

4. Opportunities for growth around property managers. 

Omni asks his property managers to keep an eye out for deals, and he credits a huge percentage of his recent acquisitions to them. Hiring a property manager is a good indicator that mom-and-pop property owners are thinking about selling — they want to be more passive. “So my property managers typically find out before everyone else that they’re thinking about selling, and if they sell to me, it benefits my property managers because they keep those properties in their portfolio to manage,” Omni explains. 

 

Omni Casey | Real Estate Background

  • Real estate investor at New Leaf Redevelopers and managing broker at Weichert Realtors. The family investment business focuses on buy-and-hold deals that are small to mid-sized multifamily properties.
  • Portfolio:
    • GP of:
      • 170 units
      • Five commercial properties
      • Two mixed-use properties
      • One small storage rental building
      • A commercial retail unit
      • A flex/warehouse space
  • Based in: Ashburn, VA
  • Say hi to him at:
  • Best Ever Book: Multifamily Millionaire by Brandon Turner
  • Greatest lesson: There are benefits to understanding the changing economic indicators and how that changes the investing strategy that you may want to focus on.

 

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