Today we’d like to introduce you to Vehano Joseph.
Vehano, we appreciate you taking the time to share your story with us today. Where does your story begin?
I started my career as what I like to call a “recovering CPA.” My credentials are as a Chartered Accountant from Cape Town, South Africa. I worked internationally with Grant Thornton for over seven years, initially in the Cape Town office and later in the Miami-Fort Lauderdale office. We handled some of the largest clients on the East Coast. Eventually, I transitioned into management consulting, where I spent four years as a “road warrior,” traveling extensively across different cities for various projects. This experience was both rewarding and challenging: we tackled complex problems for Fortune 50 companies, but it was tough on my young family, as I was constantly on the road or temporarily relocating.
My real estate investing journey began out of a need to create a more robust financial plan for my family. Initially, I wasn’t certain that real estate would be the vehicle, but after extensive research on wealth-building strategies, I found it to be one of the strongest options. Influential books like *Think and Grow Rich* and *Rich Dad Poor Dad* also helped confirm that real estate was the path forward. Our first investment was a duplex in Tampa, and after using my hard-earned bonus money, I realized that I could acquire a cash-generating asset that I had full control over, unlike my retirement funds. I caught the “real estate bug” and discovered a mission in transforming mismanaged properties into livable spaces, benefiting both investors and residents.
Eventually, I found my co-founder through a real estate group. We shared a vision to create something sustainable and long-term. In the early years, we faced many challenges, operating with fewer than 100 units. But after sitting down at a conference and creating a strategic five-year plan, we scaled significantly. We brought in partners, outsourced tasks, and within five years, we expanded to over 3,000 units across five states. However, after the recent market shifts and Federal stimulus impacts, we sold a large part of our portfolio, leaving us with around 800 units under management. Today, our focus is on addressing the housing shortage by building needed inventory, particularly in the step-up home space, with our first project set for completion in November 2024.
Looking forward, we aim to address another aspect of the housing gap by focusing on first investment properties. Based on what we’ve learned about wealth creation, we see a substantial opportunity in “House Hacking”—living in one unit and renting out the other. This approach not only helps with mortgage payments but also provides affordable housing for tenants.
I’ve been married to my wife, Caroline, for seven years, and we have two wonderful daughters, ages five and two, with a third child on the way. We love exploring new areas, especially in the Georgia mountains. I also enjoy riding my motorcycle there—the scenic landscapes always remind me of our smallness in the vastness of this planet and universe.
Would you say it’s been a smooth road, and if not, what are some of the biggest challenges you’ve faced along the way?
Oh no, it has certainly not been smooth. As an entrepreneur and CEO, I’m constantly putting out fires and navigating complex challenges. In light of shifting economic conditions, we’ve had to be adaptable and pivot when necessary. I still remember the impact of the “Great Resignation,” which made it incredibly difficult for smaller companies like ours to compete for top talent in an inflated job market.
The high-interest rate environment has also posed a significant challenge, impacting debt servicing costs as well as our residents, who are facing rising living expenses. To support affordability, we have kept rents at or below current market rates and implemented tax-exempt strategies with rent restrictions to maintain affordable housing.
To quote Elon Musk, the role of a CEO is to handle the toughest problems—a task that certainly isn’t for everyone.
As you know, we’re big fans of Dreamstone Investments. For our readers who might not be as familiar, what can you tell them about the brand?
Dreamstone Investments started in the multifamily value-add space, focusing on distressed properties in Tampa, Florida. We built our reputation on identifying underperforming properties and revitalizing them. Over time, as value-add opportunities became more competitive with increased Wall Street interest, we shifted our focus to newer construction, which tends to have lower maintenance requirements and is more appealing to tenants. Our company constantly adapts to the real estate cycle, evolving our strategy in line with market conditions.
Over the past seven years, we’ve successfully exited 11 properties, achieving an average investor return of over 20% IRR, which we’re very proud of. Our approach emphasizes deep engagement with each property to identify value-add opportunities, whether through operational efficiencies or enhanced tenant experiences.
What sets us apart is our grounded perspective; we come from humble beginnings and aim to provide accessible opportunities for investors looking to diversify beyond traditional assets. We like to say that real estate isn’t a “get rich quick” strategy—it’s a “get wealthy slowly” strategy. For investors with patient capital, we offer the chance to grow their wealth in assets that meet a fundamental human need: shelter. At the same time, we improve neglected properties, adding value to the community and ensuring safe and welcoming environments for our residents.
What are your plans for the future?
As an agile private equity firm, our mission is to bridge gaps in the market by adding value where it’s most needed. Right now, we see a severe housing shortage in the southeastern U.S., particularly in single-family homes for first-time homebuyers, investors, and growing families. With so many current homeowners locked into low mortgage rates, we anticipate these properties may become rental investments, further constraining the supply of homes.
In response, we’re launching a home-building division to address this shortage on a location-by-location basis. With the likelihood of continued migrations to the southeastern states, we believe our expansion into building for-sale homes will be a key element of our future strategy. This is an exciting next step for us as we aim to fill critical gaps in the housing market.
Pricing:
- If you are an accredited investor looking to invest please reach out to us at Info@dreamstoneinvest.com
Contact Info:
- Website: https://dreamstoneinvest.com/
- Linkedin: https://www.linkedin.com/company/dreamstone-investments
