BigMikeFund
BigMikeFund
302: Why Real Estate is the Ultimate Vehicle for Family Freedom - Wayne Courreges III
Loading
/

In this episode of the Big Mike Fund Podcast, “Big Mike” Zlotnik sits down with Wayne Courreges III, a former Marine, CBRE veteran, and the founder of CREI Partners. Currently based in Central Texas (but joining from the road in an RV!), Wayne provides a “boots-on-the-ground” look at the 2026 real estate landscape.

πŸ”΄ ▢️ Watch this episode on YouTube: https://youtu.be/H6yNz0yXnfQ

Get into the link to get instant access (before we take it down!): ➑️⏳ https://TempoFunding.com/special-report

πŸ“Œ Learn our full investment playbook & connect: https://TempoFunding.com/Connect

πŸ”‘ Book your FREE strategy call to apply these conservative principles to your portfolio: https://TempoFunding.com/IRCall

Timestamps

πŸŽ™οΈ 0:00 – Intro: Mike Zlotnik Welcomes Wayne Courreges III of CREI Partners.

🚐 1:45 – The RV Experiment: Running a Business While Crossing 48 States.

πŸŽ–οΈ 5:20 – Background: From the Marine Corps to 16 Years at CBRE.

πŸ‡ΊπŸ‡Έ 10:15 – Patriotism & Progress: What 9 Months on the Road Taught Wayne About America.

🏘️ 14:40 – 2026 Multifamily Outlook: Doubling Down on the “Receding Supply Wave.”

πŸ“‰ 19:10 – The 30% Discount: Analyzing Real Case Studies in San Antonio.

βš–οΈ 24:35 – Portfolio Guardrails: DSCR Targets and Why “Two-Base Hits” Win.

βš™οΈ 29:00 – The Complexity of Operations: Why Value-Add is Harder Than it Looks.

🀝 34:15 – Who Before How: The Importance of Vertical Integration.

🏁 38:00 – Conclusion: How to Connect with Wayne and CREI Partners.

Connect with Wayne Courreges:

Email: wayne@creipartners.com

Website: www.creipartners.com

Tempo Socials & Contact Links

Facebook: πŸ“˜ https://tempofunding.com/facebook

Twitter/X: βœ–οΈ https://tempofunding.com/twitter

LinkedIn: πŸ’Ό https://tempofunding.com/linkedin

Instagram: πŸ“Έ https://www.instagram.com/tempofunding

Email: πŸ“§ invest@tempofunding.com

Transcript

Mike Zlotnik: Welcome to the Big Mike Fund podcast. My name is Mike Zlotnik, also known as the Big Mike, and I'm joined today by Wayne Courreges. That's a wonderful name. You said it's French, it's pronounced a little differently, but in English it sounds courageous. So you hail from β€” where's home? Where, I'll do a quick intro, but you do a lot of deals in Texas. Is that where you're based?

Wayne Courreges III: Thanks, Big Mike. How are you doing today? Yeah, we're based in central Texas. So I grew up in Austin, but we live out in Bryan College Station. It's where our home headquarters are, but we have offices in Austin and Houston with my company.

Mike Zlotnik: Good. So the introduction β€” you are a founder of CREI Partners. Currently you have properties in Texas, Louisiana, Alabama, mostly multifamily, but you do some RV and boat storage and business storage, but multifamily is your core business and it's mostly in Texas. And you are a Marine. Thank you for your service.

Wayne Courreges III: I appreciate it.

Mike Zlotnik: And you have multiple master's degrees. You have a master's in economics from the University of Oklahoma, and a master's in business administration from the University of North Carolina. So once again, welcome.

Wayne Courreges III: Yeah, I'm excited to hopefully add value to the audience.

Mike Zlotnik: So tell us a little bit about you first. As I said, you live in central Texas β€” family, just a couple of words about you, family, kids, whatever works for you.

Wayne Courreges III: Yeah, we have three kids, married β€” been married 17 years. We have one boy, two girls, a Great Dane and a lab. And we are actually nine months into an RV trip. We have two more months left, so we finish in May of 2026. The last seven months we've been on the road. We're actually renting a house β€” that's where I'm doing the podcast right now β€” in Hot Springs, Arkansas. My birthday was last week, so I was like, I don't want to sleep in an RV for my birthday. So we rented a house here on the lake in Hot Springs. Anyway, excited to be on the show. My background has always been in commercial real estate β€” I really don't know anything different. I started investing in real estate at an early age. I was 19 when I bought my first single family home. I worked for CBRE, a large commercial real estate company, for 16 years. While I was working there, I started CREI Partners, where we're focusing on, as you mentioned, multifamily. And I've doubled down β€” I can tell you reasons why. But yeah, that's a bit about my family and what we're doing these days.

Mike Zlotnik: Thank you for sharing that. Happy belated birthday. And let me just understand this β€” you are on the road for nine months in the RV, driving around the country with your family. Are the kids homeschooled or are they small?

Wayne Courreges III: Yeah, they're 14, 12, and 11. We have them in an online accredited program. Every Friday's a travel day. We tow a Jeep and park for a week at a spot and go from there. Real estate has really allowed that opportunity β€” having team members with boots on the ground in Texas. I wouldn't be able to do it in most industries, but real estate has provided that opportunity, which I'm grateful for. It's a chapter. We are not nomads by any stretch. We have a home base β€” I'm not renting the home out, so we can always go back. We're two months left, we're not quitting. We're going to finish this trip. We're going to Santa Fe, New Mexico next week, then the Grand Canyon, Utah, and then start heading back home to Texas. But trust me, Big Mike β€” I am excited to be in my bed. I'm excited to see my cows and just be back in our normal routine.

Mike Zlotnik: That's amazing. Not many people do this. You've got kids, they've got to get to school β€” it's not easy. You want to see the country, but you have to maintain continuous education for your kids and obviously run your business. Though I'll acknowledge that in real estate, yes, you can do your business remotely, and that's wonderful.

Wayne Courreges III: On the education though β€” if you do have an opportunity, whoever's listening β€” we've seen so much of the country. And as much as the country is politically split, I will say that no matter what state we went to, whether it was a very liberal area or not, the patriotism is strong throughout America. American flags, honoring veterans β€” many roads had pictures of veterans who served those communities. That's one of the biggest things I've taken away from this road trip: America, holistically, we still love our country. As a former Marine, it just means a lot. Sometimes you think the country is going in different directions, but that's been something I've just been amazed by β€” I'm talking Maine, Vermont, Massachusetts, Michigan, so many places where I was just amazed with the patriotism and the love for country.

Mike Zlotnik: Yeah. I couldn't agree more. We're all Americans, whether we have views on the left or the right. I go back to my days coming to America in 1989 β€” I was so grateful to come here. This was my land of opportunity and freedom from the USSR, when I immigrated. I'm a US citizen, a US patriot in the same way. I do believe in America and I do believe we can still find common ground, still continue to live in a great country. We're still the light. If you compare it to the movie Gladiator, when Marcus Aurelius is talking to General Maximus and says “Rome is the light” β€” America is the light where the rest of the world has got worse problems than we do. I certainly support American patriotism and hopefully we will continue for many years to find a middle ground and move forward.

So agreed. All right, let's go to opportunities and multifamily real estate in Texas. What's happening right now? Where are you seeing opportunities? The market has reset quite a bit β€” we've seen drastic changes in pricing and valuations. What are the cash flows today? What kind of deals are you looking at? Are you finding a lot of distressed sellers and great properties? Just talk to me a little bit about multifamily today.

Wayne Courreges III: Starting from a macro standpoint β€” I've been in commercial real estate for 18 years now. I've seen the ups and downs across all asset classes: office, retail, industrial, multifamily, storage. They all have cycles, like any investment. If one investment was hitting the mark 100% of the time, people would only invest in that one thing. The thing I love about commercial real estate β€” I'm not saying don't invest in other assets, whether it's stocks or oil and gas, I'm pretty diversified myself β€” but the majority of our net worth and liquidity is tied up in real estate. A big part of that is I don't have to worry about geopolitical events, what's going on in the market today, a political post impacting markets, or institutional investors pulling cash out of funds. At the end of the day, people need a place to live.

Because I've seen the holistic ups and downs, I've done everything I can to not go wherever the herd is going. A lot of people went into multifamily, multifamily took a hit, then they started going to car washes and ATMs and other avenues. But not every corner needs a car wash β€” and who's the buyer five years from now in those things?

For us, we've doubled down on multifamily. 80% of our portfolio is day-one cashflow multifamily. We want a strong debt service coverage ratio of at least 1.4 β€” meaning for every dollar of debt service, we have 40 cents left over. Strong cashflow and strong occupancy. There were properties back in 2021 and 2022 I wanted to get into, but I couldn't find anything β€” I'd make an offer and get outbid by a million plus. I saw the frothiness. People were using debt in ways that shouldn't have been used. What's come to pass is what I sort of predicted. So what does that look like for us now? We are buying really great opportunities. Last year we bought two properties in San Antonio β€” one was $3 million less than what they paid a year ago.

Mike Zlotnik: On a percentage basis β€” let's get a little more specific instead of dollar amounts.

Wayne Courreges III: About a 30% discount on that property from a year prior. The reason, unfortunately, was that the lender called all the loans for that investor. Because of our relationships with brokers β€” we've done many deals and we're good people to work with β€” brokers typically go to people who are easy to work with and can get deals done even in tight capital environments. They brought that opportunity to us, we put an offer on it, and we were able to get the deal closed.

Mike Zlotnik: Was that a 30% discount to the previous year or to the peak of the market? Was the purchase price below the mortgage balance? And what cap rate did you buy it at?

Wayne Courreges III: The going-in cap rate was about six to six and a half. I typically don't concern myself too much with the going-in cap rate because we're usually buying assets that have some type of value-add component. If I were buying a brand new 2020s-era multifamily property, cap rates would be extremely important because there's not much value-add you can do. But for us, if we're in the market range β€” we're definitely not buying at a four or five cap β€” we're in the six cap range. I'm more focused on cash-on-cash and where the debt service coverage ratio is.

That property was about 30% less. Honestly, I can't remember if it was below the loan balance β€” I'd be lying if I said I knew for sure. But it was a fire sale situation. When things seem too good to be true, it's important to be conservative on the rent roll and just expect that there are probably residents who shouldn't be there. We've turned that property around β€” we're at 90% occupied now, trending upwards. We went as low as 78%. Just because we bought at a discount doesn't mean it hasn't been a ride to operate. That's really important β€” we have full-time asset management and third-party property management. If you don't have full-time focus on these properties, it can be a struggle. You can buy a property that looks good on paper and then it turns quickly. That's where a lot of people make big mistakes β€” dealing with millions of dollars without the experience or team to operate and execute the business plan.

Mike Zlotnik: That's the biggest risk with value-add multifamily β€” the operating component. It's way harder than it looks. What's the age of the property?

Wayne Courreges III: 1985.

Mike Zlotnik: So you're looking at a C+ type of product.

Wayne Courreges III: Yep. We're only buying B-class β€” sloped roofs, brick facade, garden style. Part of the reason is I've seen the historical cycles: Class A does great in good markets, but when times get tough, people look for value. They may not want to go to a C or D property. A C property is typically 1960s vintage and comes with a lot of repair and renovation. And that's another thing, Mike β€” I don't want to buy a property where I have to spend too much on infrastructure and exterior. Everybody in Texas expects their HVAC to work. If I have to go in and replace all the HVACs or repair the roofs, I'm not as excited. So for me, like growth stocks versus value stocks β€” I sleep at night with two-base, three-base hits. I'm never looking for home runs. Home runs get risky β€” higher returns but higher risk. We've stayed around two-to-three base hits, cashflow every quarter, and not losing capital for our investors.

Mike Zlotnik: What you're calling a B or a C β€” there's not a big difference between mid-to-late-seventies and mid-eighties product. They all need work, and the condition depends on when and how they were renovated. That's the big risk. The question about cap rates β€” I was just curious how deep a discount you're getting, because the story of “I'll buy at a six or six-and-a-half cap and add value” is where things failed. There's been oversupply, rents have been very soft in the Sunbelt, and negative rent growth in many Texas markets. So you have to bite deeper. That's the only real adjustment β€” buying deep enough that your cap rate gives you enough margin of safety. Six to six and a half in multifamily today isn't that exciting. I was honestly expecting to hear eight or nine cap.

Wayne Courreges III: I want to tell everybody not to buy multifamily, it's awful, six and a half cap is terrible β€” that's kind of the messaging going out there. Which is incredible, because those of us who've been in commercial real estate for decades know there are ups and downs. When we can buy day-one cashflow with the tax depreciation β€” we're getting 100% bonus depreciation on our properties, solid cash…

Mike Zlotnik: That's icing on the cake. Bonus depreciation is just that β€” icing on the cake. You cannot include it in the return calculation. Returns have to be purely cash-on-cash.

Wayne Courreges III: But it depends on who your investor base is. I was in California this past weekend for a wedding, and a lot of the doctors who invest with us β€” they invest passively but don't need the cashflow. They need the depreciation, they need the tax write-offs.

Mike Zlotnik: I agree β€” I'm not arguing. You can make the picture look better with tax benefits if you can use the depreciation to offset other passive income, or if you're a real estate professional. All of that is given. What I'm saying is β€” and this is where most people use it for marketing, which to me is completely wrong β€” don't include depreciation in your ROI computation. ROI is purely: you put in $100K cash, what cash flow do you get, and what do you get on sale? The tax benefit is wonderful, but it's not accurate to include it because depreciation is not a permanent deduction β€” it's a temporary benefit.

Wayne Courreges III: I agree with that. When we do our marketing for an investment, we'll mention tax depreciation, but we don't include it in the return expectations.

Mike Zlotnik: IRR doesn't care about depreciation. IRR is based on when the cash was put in, how much cash comes out and when, and what the total cash is on sale. I'm just clarifying that β€” not to say there are no benefits. Just that selling based on tax benefits, while not illegal, can give investors a skewed picture of what the deal actually is at its cap rate.

Wayne Courreges III: A lot of people invest in oil and gas because of depreciation β€” every investor is a little different and has different priorities. But on the multifamily side, you made a great point about negative rent growth and supply. There are different things to consider β€”

Mike Zlotnik: How much of an issue is negative rent growth today?

Wayne Courreges III: In certain markets it definitely is. But when you scale back and look at new permits coming online and migration patterns, that's why we heavily focus on β€”

Mike Zlotnik: The permits have fallen off a cliff.

Wayne Courreges III: Exactly. Where people get in trouble β€” and this is why we've been successful β€” is when they just look at the last couple of years of data and set their expectations as “multifamily is bad for years to come.” If we really believe there's no housing shortage or no migration into cities like San Antonio, Houston, Dallas β€” if we believe nobody's moving in β€” then yeah, multifamily is going to be a bad investment. But in these high-growth areas, especially in Texas, you're going to have a lot of people moving in. And as you just mentioned, there are no new permits coming. At the end of the day, it's supply and demand. As supply tightens, yes, right now there's a lot because of the expansion cycle from 2021-2022, but that's been cut off.

The next couple of years will likely still have negative rent growth. But negative rent growth isn't as negative as people think, because a lot of those numbers refer to new leases coming in. There are a lot of leases currently in place where people don't want to leave β€” this is their home, their kids are in the school district. We're still seeing 5 to 7% rent increases on in-place rents because they're still well below market. So you can't put everything in one bucket and say “negative rent growth for everybody.”

And when you look at a city like San Antonio, a lot of new growth is in West San Antonio because that's where the land is. But where we're buying is typically in North San Antonio, right outside the 610 loop β€” that area is fully built in. There's no new development coming because there's no new land. So when we're looking at properties and cities, we ask: is it a fast-growing market? San Antonio was the fastest growing population market two years ago. Where's the migration happening? Where's the building, and when does it stop? In two years, everything being built now will be complete and nothing new is coming online. That's where we see the opportunity for our investors.

Mike Zlotnik: 100% agreed that the market is oversupplied today, but forward supply looks very weak. That story has been said before β€” positive rent growth should finally come in 2026, after multiple years of negative rent growth driven by oversupply. With a multi-year view, you should see a return to growth, and yes, a lot of inbound migration from California and elsewhere. Texas is one of the most business-friendly states. But affordability has always been an issue too. And with the current administration, with deportations especially impacting Hispanic communities, I've heard the demand has weakened because of that.

Wayne Courreges III: Absolutely. If you're talking about undocumented residents β€” we've always been verifying legal status.

Mike Zlotnik: When you're buying an apartment complex, you have to go through the rent roll in depth as part of underwriting and understand who is in the property, especially in more affordable areas.

Wayne Courreges III: Yeah, that's where we do our due diligence heavily β€” we do lease audits and things like that. Most of the deals that come to us don't even go to market; they come to us direct. Once it goes on the market, we're not buying. There's no offering memorandum. We go in and do all those lease audits ourselves. We haven't really seen the impact of the immigration situation because our residents are Americans or green card holders. They're legally supposed to be here.

Mike Zlotnik: Understood. So back to the basics β€” what's your buy box right now? What's your ideal target? If you found it today, what would make it a great candidate?

Wayne Courreges III: We focus on 1980 to 1990 product in San Antonio and certain parts of Houston β€” northwest Houston is the corridor we like. In San Antonio, it's North San Antonio. Typically anything in the six to six-and-a-half cap range. But as I mentioned, we're more focused on cashflow β€” the debt service, the full capital stack. If we're getting investors 4 to 5% cash-on-cash in year one and year two, growing to a stabilized 7% cash-on-cash, I think that's a strong deal.

Mike Zlotnik: Let me stop you there. What you just described β€” maybe that's what Texas looks like today β€” but I'm not hearing a deep enough discount. Maybe it's 30% off the peak, but at six and a half cap, what debt do you use? Agency debt or bridge?

Wayne Courreges III: I've steered away from agency debt because of their collections rules β€” it's more resident-friendly if you go that route with Fannie and Freddie. The last couple of deals we did were not Fannie. We got a better IO period as well.

Mike Zlotnik: Do you use bridge debt? What do you look to refinance into β€” a HUD loan or something else?

Wayne Courreges III: Everything's fixed rate. I prefer private debt β€” could be community banks. We've used a debt fund out of New York for the last two deals. It's fixed rate, typically a five-year interest-only period. Rates range from about five and a half to 6.25 depending on timing. Last year it was closer to six.

Mike Zlotnik: So what I'm hearing is that your spread between the cap rate and the interest rate is very thin.

Wayne Courreges III: Hopefully it's positive. In Texas, with property taxes and insurance, expenses are a bit higher β€” especially taxes. We don't have income tax, but property taxes are definitely on the higher side. For our investors, though β€” and every investor base is different β€” we can get them 4 to 5% cash-on-cash, which annualizes into about a 20% average annual return over five years including cashflow and exit, plus the depreciation benefits. Our investors have been very happy with that. A lot of them are looking for capital preservation. They believe in the Texas markets, they believe in landlord-friendly states.

The biggest thing I've seen is people shifting to different asset classes chasing returns. We've chosen to be experts at one thing and do it extremely well. We don't have a capital problem because people come to us knowing we're easy to work with, we communicate, we provide quarterly distributions, and K-1s on time. For those investors, it's been good. They're not necessarily needing cashflow to get out of their day job β€” they're using it to diversify and get tax benefits.

Mike Zlotnik: I appreciate the clarification. It's good to hear what the Texas market looks like right now. You're catering to cashflow investors with a roughly five-year hold. That story was actually working a few years ago, and a lot of people have had rough experiences because of market conditions and the reset.

Wayne Courreges III: But you have to look at the capital stack. What was happening β€” and the rumblings are already starting again at conferences β€” is bridge debt was supposed to be used when you're buying a property that needs significant work, and you need to renovate or stabilize it enough to bridge the gap from unstabilized to stabilized before getting into fixed-rate debt. A lot of that's driven by DSCR β€” if you're not at 1.25, you likely can't go agency or get traditional fixed-rate financing. Where people got in trouble is they were overpaying because they were using bridge debt as a lever β€”

Mike Zlotnik: They paid too much per square foot, per dollar of income. Low cap rates, high prices, financed with floating rate debt. Then rates spiked and decimated the entire industry. All understood. Bridge debt itself is not a horrible product β€” the timing was horrendous. It was used successfully through multiple cycles after 2008. But using it at the peak was devastating. Can you use bridge debt again now? I think you can, though people are nervous. If you're buying at a better cost basis it can work, and the big unknown is still rent growth. So can you buy deep enough? That's what I keep coming back to.

Wayne Courreges III: I wouldn't touch bridge even now β€” if you need bridge it means the property doesn't qualify for agency or long-term debt, which means β€”

Mike Zlotnik: I'd differ on that point. Today, a lot of people think fixed rate is pure downside protection β€” agreed, that's my preference too. But the reason people use bridge is heavy value-add. If you have a lot of work to do, you almost don't have a choice because the occupancy doesn't support a qualifying DSCR.

Wayne Courreges III: That's risk, and I want to sleep at night. I want to buy day-one cashflow.

Mike Zlotnik: So you don't touch those types of distressed properties.

Wayne Courreges III: Absolutely not. For those who have that appetite β€” there's higher risk, higher reward. With bridge debt, the loan balance actually grows as you're funding renovations, so you're adding to the debt. For us, we use fixed-rate debt and bring in additional equity to fund capital expenditures β€” the loan balance doesn't grow. You don't know what rates or valuations will be when it's time to refinance. We only buy with fixed-rate debt. Our loan balance won't increase, and our capital spend goes through equity.

Like I said, if we're getting two-to-three base hits, we're going to win the long game. We're not losing capital, we're not having these shoots β€” solid distributions, tax benefits, and then year five is where we see the 20% average annual return. A 12% average annual return is pretty great compared to losing everything in a higher-risk deal. It's a diversification product, and we've really doubled down on being okay with not chasing bridge debt or deep value-add. Yeah, it's going to have higher returns β€” it's sexier for people wanting high-teens returns. But a nine and a half cap anywhere in Texas means that property has a lot of problems. I've never seen a nine and a half cap in Texas multifamily unless it's like 20% occupied, which is a deep, deep value-add β€” and my risk tolerance just isn't there.

Mike Zlotnik: What's counterintuitive is this: when you get a deal at a nine cap β€” and you're right, it might not be possible at nine in Texas, maybe it's seven and a half or eight depending on the market β€” it means a distressed situation for the owner, not necessarily the asset. Ideally the asset is solid but the owner is motivated. You can get to a high cap rate without it being low occupancy.

That's the dream, and maybe it's not possible in the way you're describing. But I'd argue it is possible, especially right now, because the buyer pool has shrunk. Before, many people were syndicating and a lot of those people are now bruised, scarred, and hurt. Institutional investors have pulled out completely. So your competition is smaller.

The point is: mindset. You've got to buy deeper. Six to six and a half is too low. In Texas, can you find seven to seven and a half? That's based on current rents, not heavy value-add. Not negating any of the safety elements you mentioned β€” I actually like all of them. Fixed rate debt is one-sided upside: if rates fall you benefit, if rates rise you're protected. Low leverage is downside protection. All agreed.

So final thoughts β€” any other comments β€” and how can folks reach out? And I want to be clear I wasn't being negative. I was making a mindset point, and Texas is different from other markets. Maybe nine caps don't exist there, but in a smaller market with a motivated seller, it can happen.

Wayne Courreges III: For sure in a smaller market. We only focus on the big cities β€” Houston, San Antonio, and Dallas β€” and part of that is risk mitigation, because nobody right now is buying in small markets due to the additional risk. You can certainly find higher caps there.

I love this conversation because that's what's fascinating about real estate: nobody has a crystal ball, everyone has different risk tolerances and different tastes for investment. For us, because I've been in the industry and I've seen the ups and downs β€” two to three base hits. Stay conservative on debt, capital structure, loan-to-value. Don't over-leverage. Don't add onto debt with capital expenditures and hope the income follows. I've seen it fail when markets shift. That's why we've grown during this time β€” we've stuck to the fundamentals.

I'm not here to say we've done crazy sexy returns β€” but if I can do 12 to 20% average annual returns and tell you we haven't lost investor capital, that's really solid. We've been in the industry a long time. I'm excited to grow and grateful for investors that reinvest and bring others. For anybody who wants to learn more about passive investing, we have a free resource at passiveinvestorcoaching.com β€” no sales pitch, just education on passive investing so people can decide for themselves what risk level, cities, and asset classes work for them.

That's why real estate fascinates me β€” we can have these discussions and invest in what we're comfortable with.

Mike Zlotnik: I love it. It's been my personal mission to help folks make these decisions with eyes wide open β€” understanding the risk-reward tradeoff. Real estate is a long-term play. Exactly what you said: buy conservatively, leverage conservatively, don't go heavy on value-add, have a time horizon. Given enough time, time cures all evils β€” rents grow, population migrates, markets adjust. If your downside is protected, you can do just fine. You're not swinging for a high return; you're making sure you don't lose money, getting a little cashflow, and building confidence in the safety of the play.

One more thing β€” it's counterintuitive: higher price, higher risk; lower price, lower risk. Most people think the other way. As prices climb, people think the risk is falling β€” but it's the reverse. That's why I kept pushing for a higher cap rate all conversation. And to be honest, we bought a deal in Michigan a year ago β€” a lakefront property β€” at a nine cap. Maybe it's Michigan versus Texas, where seven is more realistic.

Wayne Courreges III: I wouldn't invest up north, honestly β€” you can get a nine cap there because there are different buyer pools. But with that, what is the landlord-tenant balance?

Mike Zlotnik: Michigan is far from Illinois. Michigan is much more landlord-friendly.

Wayne Courreges III: Sure, but there are different parts of Michigan β€” Detroit, for example β€”

Mike Zlotnik: Not Detroit itself β€” the suburbs. The moment you go to the suburbs it's very different. And the other big issue is affordability. People in the Midwest spend a significantly lower percentage of their income on rent compared to Texas. That's one of the challenges β€” Texas is a great, business-friendly state, but it's less affordable.

Anyway, I appreciate you. Thank you for coming on the podcast. What's the website?

Wayne Courreges III: CREIpartners.com is our website, and you can also check out passiveinvestorcoaching.com. I really appreciate this conversation. And Mike, mostly I'd say β€” Michigan, beautiful state, lots of great areas around the US β€” it's really just about finding people who are experts in certain areas, who focus and don't take a shotgun approach. Real estate is already a risk in itself. Finding people who know their markets and assets inside and out β€” that's the key to winning this long-term game.

Mike Zlotnik: Agreed. “Who before how,” and vertical integration. You can't be a jack of all trades. Staying focused gives you a significant competitive advantage. Wayne, I appreciate your wisdom. Thank you for sharing, thanks for coming on the podcast, and have a wonderful day.

Wayne Courreges III: I appreciate it. Enjoyed it. Talk to you soon.

ABOUT US

At Tempo Family of Funds & Syndications, we provide diversified, conservative commercial real estate investment opportunities tailored to meet the needs of busy investors. Our offerings include high depreciation deals, strong income funds for passive investors, and hard money loans. We manage everything from private lending to private equity and consulting. Our commitment to transparent communication, professional administration, and robust partnerships sets us apart. Our investment options span multifamily projects, self-storage, shopping plazas, industrial, hotel conversions, and more. We aim to be your go-to resource for institutional-quality investments that are tax-friendly and IRA-compatible.

#MikeZlotnik #WayneCourregesIII #CREIPartners #RealEstateInvesting #Multifamily2026 #TexasRealEstate #RVLife #DigitalNomad #MarineVeteran #PassiveIncome #MarketReset #WealthBuilding #BigMikeFund