MB465: Behind the Scenes of Nighthawk Equity: How We Run a Multifamily Investment Firm
Financial Freedom with Real Estate Investing
Michael Blank
4.7 • 577 Ratings
🗓️ 31 March 2025
⏱️ 35 minutes
🧾️ Download transcript
Summary
Welcome to another episode of Financial Freedom with Real Estate Investing! In this special episode, we bring you a deep dive into Nighthawk Equity with all the partners in the house – Garrett Lynch, Drew Kniffin, and our very own Michael Blank. It's been a while since the last team update, which was back in episode 414, where we discussed a deal that we didn't do.
This time, we're pulling back the curtain to share where Nighthawk started, the lessons learned, and what lies ahead in their journey to scale and face market challenges.
On this episode, Michael, Drew, and Garrett discuss everything from the origins of Nighthawk, the trials of joint ventures, the importance of asset management, to mastering the art of raising capital. Learn about their transition to focusing deeper into specific geographies and how they're adapting to today's market conditions.
Key Takeaways:
- A Glimpse into Nighthawk's Origin Story
- How Garrett joined through the Deal Desk with a challenging El Paso deal
- The evolution from joint ventures to focus and scale
- The Importance of Focus and Geography
- The shift from multiple markets to being deeply rooted in Atlanta
- Economies of scale and operational efficiency as major benefits
- Mastering Asset Management
- Why executing the business plan is crucial for financial success
- Enhancing procedures and systems for operational excellence
- Challenges and Innovations in Raising Capital
- Introduction of fund managers with Fund of Funds program
- Experimentation with paid Facebook advertising for scaling capital raise
- The Secret Sauce Behind Partnership Longevity
- Open communication and radical candor as key to sustained collaboration
- Defining roles and respecting decision-making processes
- Market Insights and Future Outlook
- Navigating current economic conditions
- Strategies to seize opportunities in the coming years
Join the Nighthawk team as they reflect on their past, share valuable insights into their operations, and look forward with anticipation to what’s next in real estate investing. If you're ready to take the next steps toward financial freedom, whether actively or passively, they're here to guide you.
Visit thefreedompodcast.com to discover resources customized for your journey. Whether you're looking to find deals as an operator or become a passive investor, this is your starting point.
Catch the energy of this episode, and as always, happy investing!
For more information on achieving financial freedom through real estate investing, visit thefreedompodcast.com.
Let's get you one step closer to financial independence!
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Resources
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Schedule a Free Strategy Session with Michael's Team of Advisors
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Review the Podcast on Apple Podcasts
Get the Book, Financial Freedom with Real Estate Investing by Michael Blank
For full episode show notes visit: https://themichaelblank.com/podcasts/session465/
Transcript
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| 0:00.0 | Hey, dealmakers, welcome to the show where it's all about financial freedom with real estate. |
| 0:04.0 | Let's do this. |
| 0:20.7 | So today's episode is a special one because we've got the Nighthawk equity partners here in the house. |
| 0:25.7 | That's right. |
| 0:26.0 | Garrett Lynch and Drew Diffin are here to talk about Nighthawk, a little behind the scenes look. |
| 0:31.1 | And the last time we did this when we had a whole team was about a year ago in episode 414, |
| 0:35.2 | where we broke down a deal that we didn't do. And today we're kind of |
| 0:38.9 | pulling back the curtain on how we run Nighthawk, how we met, how we got started, and a lot of |
| 0:44.4 | lessons learned along the way. We're also talking about how what's next for us, how we intend to |
| 0:49.7 | scale and some of the challenges we see for there and also what our market outlook here. So we really |
| 0:53.4 | cover quite a bit on this episode. You know, let any further ado, let's get right into here with a conversation with Garrett and Drew. What's up, fellas? What's going on? You know, it's kind of rare. All three of us kind of are on the same call. And just kind of jam a little bit about Nighthawk, right? A little bit behind the scenes, look maybe where, how we got started and some of the shenanigans |
| 1:14.9 | we've done. Well, not really that shenanigans, but, you know, a little bit about where we've come |
| 1:18.9 | from and also maybe what we're seeing now, what we're doing and kind of what the future holds for |
| 1:22.4 | Nighthawk. So let's talk about where we came from. Drew. I remember I met you, gosh, when was the 2017 or something? I can't remember what that was. |
| 1:29.9 | It was 16. Yeah. It was 16. Yeah. Long time ago. I remember it was a time when the company was growing a little bit, the educational side. And so I decided to bring on some coaches to help me with the students. And I think that's when I brought you on. And we met in Texas, |
| 1:45.4 | I think, at some event and the first time that we met. Last I was in Houston. Yeah, you bet. |
| 1:51.1 | Correct. That's right. And then we started this deal desk thing. Talk about the deal desk thing, |
| 1:56.9 | because I think you ran it for a time. Yeah, right. That's exactly right. So we started with the education business, right, helping people learn how to buy multifamily assets. And what we learned is some people could find the assets, but they had trouble either raising capital or getting the loans to buy them. We said, let's create a deal desk where people can submit deals to us, submit deals to us, we'll partner with them and buy the deals together. |
| 2:18.3 | So we did that for a while and brought a handful of deals in the organization. |
| 2:23.4 | And eventually we said, hey, let's professionalize this. |
| 2:26.1 | And in summary, we sort of learned that we had gone into the private equity business and owning |
| 2:33.8 | multifamily. |
... |
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