Uncovering the Journey: How ZB3 transitioned from house hacking to syndications

Are you looking to diversify your investment portfolio with a reliable and family-oriented real estate company? Look no further than ZB3 Real Estate! Specializing in Apartment Syndication, ZB3 Real Estate offers a unique opportunity for investors to get involved in residential apartments with multiple investment levels.

Back in 2018, I scraped together every penny I had and jumped headfirst into real estate by buying a "Frankenstein" 4plex—a house that had been broken up into four units over the years. I had no idea what I was doing at the time, but I knew I was diving into something that could change my life. And it did, big time. I learned the basics on the fly, doing everything myself, from fixing things to managing tenants. Over the next four years, I took on similar properties, each one teaching me more about real estate, while I gobbled up blogs, books, podcasts, and advice from mentors like they were the only thing keeping me going.

During those early years, I was "house hacking"—living in one unit and renting out the others. This allowed me to live for free while building up my real estate knowledge, little by little. It wasn’t always easy, but it worked. And as I gained more experience and confidence, I started thinking bigger.

Eventually, my focus began to shift. Real estate had given me so much—a place to live, financial freedom, and the foundation for something greater. I wanted to share that with others. I wanted to get people involved, not just so they could benefit financially, but so they could learn alongside me. That’s what pushed me toward syndications and drove me to establish ZB3 Real Estate. Real estate is a team sport, and I thrive when I’m part of a team—helping others succeed is what drives me. I could’ve done it all solo, taken less risk, and still been successful. But where’s the fun in that? There’s no better feeling than seeing others win because of the work we’re doing together.

This drive to help others isn’t limited to real estate—it’s the same reason I became a manager so early in my career. Seeing others grow and succeed gives me more fulfillment than anything else. And that’s what ZB3 is all about. I’ve fine-tuned my strategy and learned a lot of hard lessons over the years, but I’m more excited than ever to keep growing and to help others grow along with me.

At ZB3, I always put my investors first. I’ve even taken personal financial hits in the past to protect my investors’ capital. That’s just how I operate—my word is my bond, and when you invest with me, you can count on me to always have your back. I’ve built systems and processes that allow me to find great deals, analyze them effectively, finance them the right way, and manage them with excellence. This all leads to strong returns for everyone involved, and that’s the goal.

What ZB3 Focuses On

At ZB3, we’re all about finding value in multifamily properties. We don’t just invest in anything—we’re picky because we want to maximize returns while minimizing risk.

Here’s what we’re looking for:

1. Property Type and Size

We’re focused on Class B or C multifamily properties, which typically need some love but have solid potential. The sweet spot for us is between 5 and 100 units, priced between $500k and $4M. These types of properties provide great opportunities for value-add improvements, which is where we really shine. It's big enough to stop small investors, but small enough so we aren't competing with institutional investors and large corporations.

2. Location

We focus on secondary and tertiary markets with strong economic growth, primarily in the Front Range of Colorado and Omaha/Council Bluffs. Our playground includes thriving cities like Littleton, Loveland, Westminster, Lakewood, Arvada, and Omaha neighborhoods such as Dundee, Benson, Aksarben, Bellevue, Midtown, and Elkhorn. We avoid high-crime areas and places lacking potential for revitalization because we’re all about growth—both for our business and the communities we invest in.

3. Financial Metrics

We’re usually targeting properties with a cap rate around 6-8%, but the pro-forma matters more than the purchase price for us. We’re looking at the long game—what we can make the property into, not just what it is when we buy it. It's also important to track vacancy rates, gross potential revenue, gross expenses, NOI, etc... All of these numbers feed into our comprehensive underwriting models.

4. Value-Add Opportunities

This is where we make things happen. We focus on properties with deferred maintenance or under-market rents that have the potential for a major upside. We tackle everything from interior upgrades like kitchens and bathrooms to exterior improvements like landscaping and common areas. We also focus on reducing expenses through better management and adding revenue streams like parking fees or pet fees.

5. Investment Horizon and Exit Strategy

We typically hold properties for 2-5 years. Our goal is to stabilize the property, improve it, and then sell it at a profit so we can trade up to something bigger. We’re always thinking about how we can grow and move on to the next opportunity.

6. Financing and Returns

We usually seek 70%-80% loan-to-value (LTV) financing with an interest only period while we stabilize and aim for a target internal rate of return (IRR) of 15-20% or more with a sale in 2-5 years. Ideally, we’re looking for a 5%-10%+ annual cash-on-cash return once the property is stabilized with fixed rate debt to ensure we are able to ride out any storms.

7. Property Condition

We prefer properties built after 1970 to help avoid the need for major plumbing and electrical repairs, but we’ll consider older ones if they offer enough upside. We’re looking for stabilized properties with occupancy rates of at least 85%, or lower occupancy if there’s a significant value-add potential.

8. Miscellaneous Considerations

We like dealing with motivated sellers, distressed properties, or older mom-and-pop owners who might not have maximized their property's potential. We’re not interested in Frankenstein houses (even though I started with one) or motel conversions. We prefer buildings that were designed to be multifamily from the get-go and have individual electrical setups, or at least the potential to be converted that way. There shouldn't be a homeless shelter nearby or evidence of criminal activity in the area.

The ZB3 Values

At ZB3, our values are more than just words—they’re what drive everything we do. We stand by our commitment to being:

• Confident and Capable: We’ve been through the ups and downs and come out stronger. We know what we’re doing, and we’re ready for anything.

• Friendly and Open: We’re approachable and believe in transparency. We keep the lines of communication open with our investors because this journey is one we’re on together.

• Authentic and Humble: We don’t pretend to be something we’re not. We’re down-to-earth, and we’re always learning and improving.

• Collaborative: We love working with others and believe that the best results come when everyone brings their strengths to the table.

• Family-Oriented and Focused on Growth: Whether it’s our investors, our partners, or the communities we invest in, we treat everyone like family. We’re in this for the long haul, and our goal is to grow together.

That’s the heart of ZB3—investing isn’t just about making money. It’s about building something bigger than ourselves and bringing others along for the ride. If you’re looking for a team that’s dedicated to doing things the right way, with integrity and a focus on growth, we’d love to have you join us on this journey. Let’s build something great together.