How can small-scale real estate investors leverage innovative development strategies like ADUs to compete in high-barrier markets?

In this episode of Skip the Lines Podcast, Jonathan Mitchell sits down with Matthew Pace. Matt is a seasoned real estate developer, investor, and founder of Pace Properties. With a background from MIT and extensive experience in multifamily property development, Matt shares valuable insights into the world of ADU (Accessory Dwelling Unit) development and real estate investing in high-barrier coastal markets like San Diego.

The discussion dives deep into economic trends affecting real estate, the importance of strategic partnerships, the risks and rewards of different financing structures, and how real estate professionals can mitigate risk through effective debt management. Matt also shares personal stories of lessons learned from past deals, emphasizing the value of resilience, strategic thinking, and smart investment choices.

If you're interested in real estate investing, ADU development, or scaling your portfolio, follow Matt Pace on social media and explore the opportunities Pace Properties offers. Subscribe to Skip the Lines for more high-level real estate insights and share your thoughts on this episode’s question in the comments!

Highlights

00:00 Introduction Jonathan welcomes Matthew Pace
01:07 Economic Trends & Real Estate
02:35 The Power of Execution
04:59 Finding Stability in Real Estate
06:40 The First Big Break
09:59 The Importance of Communication
12:29 Lessons from Entrepreneurship
16:26 Scaling Up Through Strategic Investments
18:40 Why ADUs?
23:41 Challenges in Construction
29:10 Mitigating Risk in Real Estate
35:56 Raising Capital & The Investor Mindset
42:48 Balancing Profit & Quality
47:53 Building a Long-Term Portfolio
53:29 What Sets Pace Properties Apart?

Quotes:

"Real estate is an execution business. If you don’t execute, you don’t survive." – Matt Pace

"ADUs allow you to blend development yields with stable long-term investment returns." – Matt Pace

"Partnerships are about alignment. If incentives aren’t aligned, it’s not a real partnership." – Matt Pace

"The biggest risk in real estate is debt. If you don’t manage it properly, nothing else matters." – Matt Pace

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Connect with Matthew Pace!

Website: hhttps://pace-properties.co/

LinkedIn: https://www.linkedin.com/in/pacematthew

Connect with me!

Instagram: https://www.instagram.com/jonathanmitchellre/

Facebook: https://www.facebook.com/profile.php?id=100088499808533

Instagram: https://www.instagram.com/jonathanmitchellre/

Facebook: https://www.facebook.com/profile.php?id=100088499808533

LinkedIn: https://www.linke