June 15, 2022
Joe Fairless

JF2843: Generating Value from Distressed Properties ft. Ken Naim


Ken Naim originally studied to be a pharmacist, but after determining the career wasn’t for him, he quickly pivoted to IT. Before launching his IT career, Ken purchased his first property — a condo for his grandparents. Today, Ken is president of DB Performance, an IT consulting company, and the managing member of his real estate syndication company, Beacon One. In this episode, Ken shares the details about his first commercial property deal, why he invests across asset classes, and what drove him to do his first syndication this year. 

 

1. First Commercial Deal

Ken’s first commercial property was a 40,000 sq. ft. industrial warehouse in Sebastian, FL. “It was a screaming deal and it worked out immensely well,” he says. He purchased the dilapidated building at the height of the pandemic for 80% less than its appraisal. He was confident that he could create value, however, based on comparable properties in the area, and its proximity to the highway. After rehabbing the property, Ken sold it to a bicycle company for $2.6M — more than twice what he’d paid for it. 

 

2. Why He Invests Across Asset Classes

“I’m looking for value that I can create, and I don’t care what form it comes in,” Ken says. He targets physically distressed properties that he can rehab, as well as financially distressed properties where he can raise rents or lower expenses. For example, he is currently upgrading the fluorescent lights in an office building to LED. While it’s costing him $40K to do, the switch will save him $20K per year, creating approximately $250K in added value to the building. 

 

3. Transitioning to Syndication

Ken did his first syndication this year. Because he considers himself an introvert, he was apprehensive about raising capital. However, Ken realized his passion for real estate made the conversations much more pleasant than he anticipated. Although he has historically worked alone, Ken is also open to the idea of bringing on a partner to help with the work that comes with owning multiple properties. “I’m not saying I’m looking for a partner, but if a partnership were to come about, I would be for it,” he says. 

 

Ken Naim | Real Estate Background

  • President of DB Performance and managing member of Beacon One. DB Performance is an IT consulting company; Beacon One is a real estate syndication company.
  • Portfolio: Owner of
    • 37,000 sq. ft. office building
    • 25,000 sq. ft. industrial building syndication
    • 12,000 sq. ft. retail shopping center
  • Based in: Lake Worth, FL
  • Say hi to him at:
  • Greatest lesson: We all have negative experiences that create mental roadblocks; don’t let them become permanent limiters of your potential.

 

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