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Wayne Courreges leads the investment lifecycle and investor relations for CREI Partners— a multi-family investment firm focused on SE United States. His current projects include a 98 unit build to rent development in Lafayette, LA and recently went under contract for 101 units in Houston, TX.
Over Wayne’s 15 year commercial real estate career, he has worked closely with dozens of real estate professionals executing their property repositioning plans of over $60M. Wayne earned his MBA from the University of North Carolina Kenan-Flagler Business School and served in the U.S. Marine Corps.
In this episode, Wayne shares the interesting and inspiring story of his origins and how his curiosity led him to owning his first rental property at a young age. He uncovers his background in commercial real estate, passion in leading teams, and desire to increase his investors and team’s wealth.
Wayne explains the importance of property asset management and how it is the process of maintaining and improving the value of a property portfolio. It involves activities such as monitoring performance, making renovations and improvements, and carrying out marketing and tenant retention strategies.
Mr. Courreges emphasizes on how creativity can increase value and attractiveness to residents and shares tips on what really matters to residents. Tune in this week as we chat with Wayne Courreges about how to make your property management more efficient!
In This Episode
- Wayne’s background and origin.
- Wayne’s first rental property and the lessons he learned along the way.
- What it takes to create effective asset management.
- How to build creative ways to increase value and attractiveness to residents.
- Wayne’s piece of advice to accelerate your wealthy strategy.
Hey everyone, and welcome to today’s show on Wealth Strategy Secrets. Today, we are joined by Wayne Courageous. Based out of Central Texas, Wayne leads the investment lifecycle and investor relations for CI Partners, a multi-family investment firm focused on the Southeast United States. His current projects include a 98-unit build-to-rent development in Lafayette, Louisiana, and he recently went under contract for a 101-unit property in Houston, Texas. Over Wayne’s 15-year commercial real estate career, he has worked closely with dozens of real estate professionals, executing property repositioning plans totaling over $60 million. Wayne earned his MBA from the University of North Carolina Business School and served in the US Marine Corps—Ura! His background in commercial real estate, passion for leading teams, and desire to increase his investors’ and team’s wealth pushed him to start CI Partners. Wayne, my friend, welcome to the show!
Thank you, Dave. I appreciate you inviting me. This is a special show for me because I’ve done 30-plus podcasts as a host, but not on the other side. I look forward to being a guest on your show and appreciate the invitation.
Yeah, you bet, Wayne. It’s always great to have a fellow Marine on. We share green blood and have a lot of stories and things in common. Let’s kick this off. It’s pretty awesome that you were in the Marine Corps and your last name is Courageous. Can you tell us a little bit about the origins of that?
Yeah, we were talking a little bit before the show. It’s a French name, originally “Courageux.” If I go to a fancy clothing shop, they might pronounce it as “Courageux” because there is a fashion designer in France with the same name, although not part of our family. One of our ancestors wanted to make it sound more American, so they took off the accent, and it became Courageous. I had a lot of fun in Marine Corps boot camp with that name. The drill instructors would say, “Oh, you want to be courageous? Good!” It could be fun and sometimes intense. I remember one recruit had a big Superman logo on the back of his calf, and the drill instructor went crazy when he saw that. I was grateful for him because it took some of the heat off me.
Very cool. Tell the listeners about the really cool story related to the French-American Legion.
Yeah, our family history is unique. We have served in the majority of American wars since the American Revolution. My dad and my grandmother were really into genealogy. When she was alive, she did a lot of temple work for the Latter-Day Saint community and was deeply involved in the Mormon culture and religion. Part of that is genealogy work, and it’s amazing what they do. Through that, we traced our lineage back through many generations, and the background is incredible. When my grandmother passed, my dad and his sister, my Aunt Suzette, continued the genealogy work. It’s not directly related to your show, but it’s fascinating to know your history and be proud of the roots you come from.
Yeah, for sure. I think it’s very cool to have such a rich family history. Our last name is Walcott, which is originally Wilcutt, primarily English and Dutch. One of our ancestors, Oliver Wolcott, was a signer of the Declaration of Independence. We’ve named one of our sons Oliver in his honor. It’s fascinating to track family history and see those connections.
Tell us a bit about your journey into real estate. How did you transition from the Marine Corps into real estate and start building wealth in that area?
My family doesn’t have any background in real estate. Both my parents had long careers—my dad worked for Roadway Express Trucking in sales, and my mom worked for a hardware door lock company. We were middle class, very blessed, and I didn’t have a tough upbringing. In high school, I dated someone whose family was very wealthy in real estate, which piqued my curiosity. I remember asking her dad how to become wealthy, and he said, “To have wealth, you have to own real estate.” That really set the spark for me.
While in the Marine Corps, I bought my first single-family rental in 29 Palms when I was 19 years old. It was an $80,000 home, two-bed, one-bath. I didn’t use a VA home loan, just a conventional loan. I rented it to a good buddy of mine and his wife while I was stationed in Okinawa, Japan. Around 2006-2007, I decided to sell the property, but it had been destroyed by kids. I called USAA for help, and they guided me through the insurance claim process, which was a lifesaver.
The lady who sold me the property had a hard time renting it out. I discovered she had listed it in the MLS for Palm Springs, not 29 Palms, which was a huge oversight. That taught me a valuable lesson about finding the right property manager and double-checking things. Nowadays, with websites like Zillow and Realtor.com, it’s easier, but back then, people depended on the MLS for listings.
After the Marine Corps, I joined a Fortune 150 commercial real estate firm. I wanted to get into development, but they had an opportunity in property management. They sold me on the idea that starting in property management could lead to opportunities in brokerage, development, project management, and more. This laid the foundation for my entire career, working with owners on their strategic operating repositioning and thinking like an owner. It has been a rewarding journey in commercial real estate.
Yeah, that’s awesome. It is interesting how these journeys sometimes begin with a small seed and then blossom from there. I can picture 29 Palms; I spent many months out there. It was a tough duty station, but I understand. So, that really leads right into your forte around asset management. Can you talk to us a little bit more about what it takes to do asset management effectively? What makes you a superior operator on the asset management side?
Well, I think everybody has different personalities and strengths. Early on, I mentioned I wanted to be a developer. Developers are very transactional, just like brokers. They have a task—they’re developing a property, making a lease, or selling a building. It’s very transaction-oriented and then onto the next task. On the asset management side, I didn’t realize this about myself at first. I joined property management because I needed a job out of the Marine Corps, and I wanted to be in commercial real estate. I wanted to be part of one of the best commercial real estate companies worldwide. It was like getting my foot in the door with a great company and learning as much as I could. It’s been 15 years.
What I’ve learned about myself is that I’m not a transactional person. I enjoy the day-to-day operations, leading teams, and getting to know the people on both the resident/tenant side and the property management, engineers, and maintenance teams. I enjoy developing strategic operational budgets and capital plans, looking long-term at what the property really needs. It’s important to consider the feasibility of the property from a mechanical, electrical, and plumbing standpoint, but also what makes sense from an investment standpoint.
There comes a point where you can spend so much capital, similar to your house—you can renovate a lot, but at some point, you’re spending money because you want that thing in your house, not because it’s going to sell for more than the next-door neighbor. In commercial real estate, it’s all about net operating income and cap rates, so it’s a lot different. Our revenue and values are based on the revenues.
From an asset management perspective, I think like an owner. How do we increase revenue, decrease expenses, or do both? Understanding the competitive stack is crucial. I’ve enjoyed it. There are many people in certain masterminds we know who are transactional, and that’s fantastic—we need transactional people. I’ve found that while there’s a lot of money to be made transactionally quickly, I enjoy the asset management piece. We’re all different, and from a team standpoint, we all bring something different to the table.
Yeah, absolutely. That’s a great point, and I think it often goes unrecognized how different skill sets are needed across various aspects of commercial real estate. From investor relations and raising capital to asset management and property management, each area requires unique skills. It doesn’t take long running a business to realize you have to stay in your lane and double down on your strengths. Interestingly, that’s counterintuitive to what we often learn in school, where the focus is on improving weaknesses. In the real world, success comes from focusing on strengths and partnering with others to fill in the gaps. It’s great that you’ve been able to identify that.
Yeah, and in smaller deals, you may be able to go at it solo, depending on your net worth and situation. But as you scale and take on large multi-million-dollar deals, thinking you can do it all yourself becomes unrealistic for most people. You need help and team members to get things done and execute the project from purchasing to implementation.
For sure. Tell us about some of the creative things you’ve implemented. One of the aspects I love about being an entrepreneur and working in real estate is the creativity involved. Everything from pet parks to new gyms, electric charging stations, and valet trash service—what creative strategies are you using to increase NOI and enhance the property’s value and attractiveness to residents?
The first thing with any business plan is understanding a SWOT analysis—strengths, weaknesses, opportunities, and threats. It’s crucial to treat every property like its own business and understand what the competitive set is doing that you’re not. For multifamily properties, it’s important to know what really matters to the residents. Investing in technology and upgrades is great, but if it doesn’t drive income or align with the market demand, it’s not effective.
For Class B multifamily projects, people want a safe, comfortable environment where they can feel secure and let their kids play. I have three kids, so I’m passionate about creating a family-friendly atmosphere. Green spaces, playgrounds, renovating the pool area, and providing clubrooms or clubhouses for birthday parties are essential. Pet parks also add value if there’s space for them. I find that taking care of families makes them more likely to pay a bit more for that safety and comfort, leading to higher renewal rates.
Technology is also significant. While I’m not focusing on Class A bells and whistles, providing safe, functional, and comfortable spaces with Bluetooth capabilities, for example, can be very appealing. My mentor James Kosami once said, “Don’t look at it like you’re living here; look at it from the perspective of the residents.” This advice helps in tailoring the property to meet the specific needs of the demographic.
From an expense side, creativity comes in sharing resources. As we acquire more properties in general areas, we can share labor, have one office person, and share maintenance staff. Bulk purchasing for major capital projects, like replacing HVAC units, can also reduce costs. Leveraging the purchasing power and relationships of our management companies helps reduce expenses.
Going back to basics is crucial. Annual bids, ensuring the right scope, and competitive pricing are essential. On the insurance side, managing risk and exposure impacts value significantly. Ensuring safety measures, like having someone at the bottom of a ladder during maintenance, might seem minor but are critical in preventing accidents and lawsuits.
Yeah, those were really great points, Wayne. I really love that you’re connecting with your tenants and understanding what they need. In this market, are you seeing a huge surge in expense costs right now?
Well, it varies by market. I typically focus on Austin, San Antonio, and Houston, unless I have strong partners doing well in other markets. In Texas, taxes and insurance are significant concerns. We keep a close eye on both. We have strong strategic partnerships with tax consultants who know the markets and players in specific cities. It’s relationship-based, and while you might think you can fight your taxes, relationships matter.
Insurance is key. When you find and underwrite a deal, always get an insurance quote. It can be a shock, especially in Texas. Sometimes you think you have a great deal, and then the insurance quote comes in much higher than expected. It’s crucial to do due diligence and not get surprised. Insurance brokers usually go to the same major carriers, so it’s not like one group will get a significantly better deal.
Taxes and insurance are two areas you don’t have much control over. Even if Houston hasn’t had a storm in a couple of years, other coastal cities like New Orleans impact the overall insurance rates, and everyone feels it.
Payroll is another tough area. Finding good people is competitive, and you have to pay well and take care of them. Make them feel part of the team and the bigger picture. Show them they will be rewarded for implementing the plan and what’s in it for them. I’m passionate about taking care of our people.
Expenses are pretty standard when underwriting, such as $400 a door on repairs and maintenance, $200 on administrative expenses, etc. Once you acquire the property, you find ways to cut costs strategically. But you have to be mindful—cutting too many expenses can make the property look bad and lower the service level, which might not be the best approach. It’s essential to see what works for that particular property.
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Can you tell us a little bit about the Houston MSA? I know you’re based in Houston, Wayne. A lot of our community is on the East Coast or across the country and may not be as familiar with the Houston MSA. It conjures up images of flooding issues and industry domination. Tell us what’s going on in Houston right now. What are you seeing?
Yeah, I mean, so from a Houston standpoint, it is a massive MSA. It’s one of those cities when you drive through, it feels like it never ends. There are massive four- or five-lane highways. A lot of people won’t even touch Houston, thinking it’s all oil, oil, oil. Yes, there’s definitely an oil element, but people don’t realize that it’s also the world’s largest medical center. There’s a large port. I always joke when those ships are stuck in California, “Hey, Texas is open. Just loop around, and our ports are open and ready for business.”
If I recall correctly, 27 of the 52 Texas Fortune 500 companies are based in Houston. You’ve got a lot of diversity there—think about the medical sector, the Port of Houston, oil, major league sports with the Rockets, the Astros, and the Texans. There’s a lot of entertainment, conferencing, and numerous hotels. There’s a lot of growth. The airports—there are two major airports in Houston. All this to say that the city is one of the most diverse.
I live in Bryan-College Station and have a property there, but it’s close to Houston. When I lived in Houston and went to work, checking on properties, it’s so diverse. I don’t know if you’ve been to Houston, but you’ve got amazing food, amazing people, people respecting each other. Every city has its ups and downs with crime and such, but for the most part, when things are tough—when there’s a major flood or something happens—Texans come together. Houston comes together, and I think it bodes well for investments.
You mentioned flooding, and that’s a crucial consideration for investing in Houston. I won’t touch a property that’s in a flood zone. It’s a simple search on the FEMA map. Before a broker sends me info, I go to the FEMA website. If it’s in a flood zone, I email back saying, “Thank you, but I don’t look at properties in flood zones.” That’s step one in investing in Houston. Step two is due diligence—has there been any flooding at the property in the last five to seven years? If not, it’s done pretty well. I should probably extend those years longer because, from 2012 to 2017, living in Houston, we had the Memorial Day flood, the Tax Day flood, Harvey, and different parts of Houston flooded. If a property has been through all these storms and done well, it’s a good sign.
That’s why I targeted The Gallery Apartments in Houston for about 19 months through an off-market search. I really learned that area, went door-to-door to nearby properties, and understood what has happened with flooding and such. It’s definitely an important subject. Whenever people are going into these markets, find somebody local who has been there a while. Sometimes having local knowledge and people with experience in that market is huge.
Yeah, no, those are really good points, so thanks for sharing that. From a wealth strategy perspective, Wayne, if you could give just one piece of advice to our listeners about how they could accelerate their wealth trajectory, what would it be?
One piece of advice. One thing I would say is don’t get into real estate unless you truly have a lot of passion and grit to get through the ups and downs of this business from an active investing side. I see too many people going to these conferences and having no money, or the money they do have, they put it into these conferences, getting excited, thinking they’ll get rich tomorrow. They think anyone can do it because they follow certain steps. Real estate is ruthless. It’s everyday trench warfare—going out there, finding properties, raising capital, working with lenders. It’s an ongoing thing.
That said, if you don’t have passion for real estate, that’s okay. You can still invest in real estate passively. I highly recommend passively investing in real estate. But you don’t have to invest everything in real estate. Invest in what you know and are knowledgeable about—whether that’s taxes, cryptocurrency, or something else. Whatever excites you and makes you an expert in that investment vehicle, that’s where you should focus.
Diversify though. If you’re great at evaluating companies and stocks, maybe put the majority of your funds there, but also invest passively in real estate. See how that works for you. Understand the tax advantages of cost segregation and other benefits. Keep in mind that with real estate, your money might be tied up for three to five to seven years, or even longer, so you need to be knowledgeable about that.
For anyone looking to grow their wealth, find something that truly excites you. An investment could be starting your own business. Not everyone has to be in the stock market or real estate. Your life and personal business are about revenue minus expenses and cash flow. Whether your cash flow is $500 a month, $50, or negative $100, find a way to invest consistently. Over time, it grows, and that compound interest builds true wealth.
Bet on yourself. Invest in yourself—through education, starting a business, or other means. It’s not a one-size-fits-all answer. For me, real estate is my passion. I’m always thinking about it, looking for opportunities. If someone’s mind is on massage therapy or another business, they should invest in themselves and pursue that passion. When times get tough, passion and enjoyment in what you do will get you through.
In 2007, when I got out of the Marine Corps and the market crashed, I didn’t have money. Looking back, I wish I had money to invest because everything was at a discount. Right now, people are concerned about inflation, but think of everything as being on sale. If you don’t need the cash immediately, consider discounted stocks and real estate. Opportunities are all around. When people are running away, it might be a good time to charge in and find opportunities.
Yeah, really great points, Wayne. I think you’re right—there’s so much frenzy in the media, and it’s all so sensationalized. They make you want to live in a bubble and not leave the bubble. But you’re right—savvy investors are licking their chops right now. They have dry powder and are saying, “Hey, there’s going to be some opportunities here.” You name the asset class, and there’s definitely going to be some opportunities. One of the traps, and unfortunately, we all have fallen prey to this, is where Wall Street and Corporate America make you think that the only answer is to put your money in 401ks and pay down your mortgage.
But they make so many false assumptions—they assume the market can only go up. In reality, it can go sideways and down, and the only people making money are those brokers because they’re making money under assets under management. Whereas in real estate, all of this is performance-driven. As you said, you’ve got your capital tied up in a project for five years or so, and you’re only going to get compensated if you meet the business plan. I love that model, right?
Well, too, I don’t think people should go into real estate investing passively into one of our deals if this is their last $50,000. This is one of those things where you look at your hierarchy and needs and your foundational items. For those like my podcast listeners, most are W2 and have access to a 401k. If anything, max out your 401k to get that maximum match. Not to say do the full $19,000-$20,000, but at least get that match—it’s free money. It’s consistency, a long-term strategy, and understanding where you are in your journey. If you’re a cash flow person wanting to leave your job and have passive income, look for passive cash-flowing deals.
Where I am in my life and career, I don’t need the cash flow today. I’m looking for three-year, five-year investments that double my money. At some point, I’ll shift to reduce risk and look at different real estate investments that provide more consistent cash flow. It’s okay for your strategy to change through life. Just stay diversified and enjoy the ride, whatever you decide to do. Real estate is not the only thing that can grow your wealth. It’s worked for us and our investors, but there are definitely other options.
Awesome, Wayne. I really appreciate you coming on the show today. Thanks for your time. I know you’ve got a ton of things on your plate, but it’s great to connect. If folks want to reach out to you and connect or follow you, where’s the best place?
Yeah, Dave, thanks again for having me on your show. I really appreciate it. For those listeners, please go to cipartners.com. I’ve got an ebook out there that goes into passively investing in real estate. I also have a lot of info on the website with blogs and podcasts. We can reach out for a call to build a relationship. This is a relationship business, and I’m happy to be a resource for you, Dave, or anyone out there listening. I appreciate the time.
Excellent. Thanks again, Wayne.