My Ask of the BP community in 2019

[Ray Johnson]

My goal for 2019 is to get the Bigger Pockets community to change the way we post multifamily successes. Instead of being heavily focused on the number of doors, I'd like to ask the posters to become more focused on actual Net dollar amounts, IRR, or some other statistic that would be of good value to investors.

In 2018 there were 100’s if not 1,000’s of post along the lines of:

1) I just closed my first deal, 20 Doors in the Hough district of Cleveland (or some other neighborhood) It's a great deal.

2) What’s the best way to get to 100 doors quickly? I see a variety of this question every few days

3) My goal for 2019 is to get 400 doors (no associated Net cash flow dollar amount for those 400 doors, I guess they just want to get the 400 doors, doesn’t matter if those 400 doors lose $100 a month or make $1 per month) just get the 400 doors. 

4) Grant Cardone says getting as many doors as fast as possible is the only way to invest or you're wasting your time, How do I get a lot of doors quickly (No Net dollar metrics asked in many post like these, just how do I get a lot of doors quickly is the main question asked)

5) I just closed on an owner finance deal of 80 doors, It’s 20% occupied and I have 5 years before the balloon payment or refi takes place, I’m going to rehab all 80 units and raise rents to market rent levels. No info on how the transition takes place, what the hurdles are during the 5 year period, repositioning targets, etc..

The one thing all of these post have in common is they mention the number of doors on deals and never mention actual Net cash flow dollars, profit amounts per door, or deal strategy, some will post Gross dollars per door but that has zero value for any real insight in my opinion, we all know it's not how much you make it's how much you keep.

In my interactions with wealthy Real Estate investors, when talking about multifamily apartment deals, they discuss acquisition goals and projections in dollar value and/or IRR not the number of doors as the highlight of the deal.

I’d like to ask if the BP community will help change this Guru imbedded mindset about the number of Doors being the measurement of success. If you're going to use Doors as your main posting point, maybe you can do something along the lines of 80 Doors at $220 Net cash flow per door, or 80 Doors at $211,200 annual Net cash flow, or 80 Unit apartment deal at 16% IRR with exit on year 7.

In 2019 we need to raise the bar on some of these post to make them meaningful to everyone at all investor levels of the BP community not just clickbait for the newbies. 

[Alan Feldman]

I agree. When I analyze, it's not for doors, it's for dollars.

[Alan Feldman]

I agree. When I analyze, it's not for doors, it's for dollars.

[Ray Johnson]

@Alan Feldman Thanks Alan! Hopefully this will become the norm.

[Clifford Paul]

@Ray Johnson

I don't think it will become the norm because it's all about bragging about the doors they have. I did a quick calculation and I would need 273 doors @ $100 net a month to match what my 15 doors net. No thanks I'm trying to do more with less.

[Ray Johnson]

@Clifford Paul It's clear you know what you're doing. Most of the newbies that make these post aren't really investing, most are prepaying some cash flow, and hoping the deal works out as a long-term hold.  

The number of doors is a Guru tactic to excite the masses, draw crowds, and get the inexperienced to buy products like a 20 Unit building for $180,000 - $200,000 in a Class D neighborhood in Cleveland as their first deal.

Unfortunately you're probably right, they will probably continue to post the number of doors as the main highlight to hide the fact that they aren't buying sound investments.