Executive of the Month: Christopher Stout, principal of StoutCap

Manhattan, NY How did you get started in real estate investing?
I got started in real estate investing in my early 20s when I purchased my first rental property. At the time, my main goal was to save money and build wealth by investing in a tangible asset that I could see and touch. I saw real estate as a way to create passive income and build long-term wealth–I never imagined what it could become. Even when cash flow was low and slow, I believed in its power. Basically, what I was doing in getting started in real estate was following in the footsteps of people who I wanted to emulate.

Over time, I realized that real estate investing was more than just a retirement plan–it became a true passion and obsession for me. I started to see the true power and potential behind real estate, and the significant opportunities it provides for creating wealth and generating passive income.

Real estate investing has become my sole focus and has proven to be an asset class that offers endless potential and opportunity. I’ve dedicated myself to learning and growing as an investor, constantly seeking out new opportunities and strategies to maximize returns for myself and my investors.

In my opinion, real estate is one of the most powerful wealth-building tools available, and I’m committed to helping others achieve their financial goals through this asset class.

What is the genesis of StoutCap?
StoutCap was born out of my passion for real estate investing and my desire to help others achieve their investment goals through this asset class. My journey in real estate investing started over a decade ago when I set out to save money to buy a two-family home in New York. What started as a mere retirement plan turned into an obsession, as I realized the true potential and endless opportunities of real estate investing.

Over time as my network grew, I began accepting investments from friends and family for my development projects. I leveraged these investments to grow my portfolio, and realized the strong demand for real estate investments among accredited investors. This led me to create StoutCap, a multifamily investment company that provides individuals with the opportunity to invest in high-quality apartment properties across the United States.

Our investment approach is centered around our expertise in the multifamily space, and our ability to identify and acquire high-quality properties, with a focus on creating value through strategic renovations and property management. We strive to offer strong returns to our investors while ensuring the highest level of transparency and service throughout the investment process.

We take pride in our commitment to our investors and are constantly looking for ways to improve our offerings and investment opportunities. Our team of experienced professionals is dedicated to creating value for our investors and delivering the best investment experience possible. We believe that real estate investing is a powerful vehicle for building long-term wealth, and we are excited to continue to grow and expand our portfolio to provide even greater investment opportunities to our clients.

Currently, we are also increasing our position in single-family homes for rent, and we will be developing large single-home communities in the Southeast region. We are doing our part to help solve the nationwide housing shortage.

What are your views generally on New York’s political and regulatory environment around real estate at the moment?
As an investor in the New York City real estate market, I have significant concerns about the current political and regulatory environment. In my view, the policies being pursued by New York City officials are creating a challenging environment for property owners and investors, which is ultimately hurting tenants, as well.

The changes to rent stabilization laws in 2019 have been particularly problematic. While the stated goal of these policies is to protect tenants and make housing more affordable, they have had the opposite effect. Property owners are now incentivized to only provide the bare minimum of maintenance and improvements to their buildings, as there is no longer any financial benefit to making upgrades. This means that affordable housing in New York City will continue to deteriorate, which is bad for tenants and property owners, alike.

In addition to the changes to rent stabilization laws, the eviction process in New York City is also problematic. In some cases, property owners are treated poorly for attempting to evict non-paying tenants, and the burden of proof is often on the property owner to demonstrate that they have followed all of the rules and regulations. This creates a significant disincentive for property owners to take on new tenants, as they may be stuck with a problem tenant who refuses to pay rent.

The current regulatory and political environment in New York City is creating a significant housing shortage, which is driving up costs for tenants and making it difficult for property owners to operate profitable businesses. While I understand the need for regulations to protect tenants, I believe that the current policies are overly burdensome and are having unintended consequences. I hope that city officials will work to create a more balanced and reasonable regulatory environment in the future, which will benefit both tenants and property owners.

Are there any projects that you are particularly excited about right now?
At StoutCap, we’re currently focused on investing nearly $40 million in multifamily real estate projects outside of NYC. We’re expanding our business into more investor-friendly states in the southeast which offer favorable tax and regulatory environments coupled with strong population growth, driving demand for high-quality housing. Our past few investments in Alabama and North Carolina have seen major success, and we are expected to close on our next investment within the next two weeks, which will bring our AUM well over $40 million.

What do you see as the biggest challenge for the real estate industry right now?
Locally, the biggest challenge is regulation. Nationally, the biggest challenge for the real estate industry right now is the supply shortage. We are undersupplied by millions of housing units across the United States. This shortage is a direct result of the housing crisis in 2008, which set us back tremendously. The scars of that crisis are still lingering, and it will take some time to dig our way out of it. Another concern is the uncertainty in the capital markets. Uncertain times lead to people freezing their holdings. This further leads to a frozen real estate market. Real estate transactions create tremendous tax revenue for the government. We see as the government starts to try to get involved, it hurts them and others in another light.