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Updated over 8 years ago on . Most recent reply
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I wanna join a larger apartment deal.
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- Santa Rosa, CA
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@Justin Turner, just putting it out there that you have funds to invest will likely yield you a ton of PMs to your inbox. There is a more important question than where to find investment sponsors, however. The real challenge is selecting the right sponsor to work with. Whomever you select, be sure you do thorough due diligence on the potential investment sponsor and thoroughly review their offering materials to determine if the investment is properly underwritten and suitable for you (in other words, the business plan is in alignment with your objectives).
It isn't uncommon to see lofty projections, unachievable returns, missing track records, insufficient expense budgets, aggressive economic vacancy projections and high rent growth forecasts. You need to be sure that you are well-versed in the fundamentals of multifamily underwriting at least to the extent that you understand the investment and can spot the deals that will never perform as projected. I wrote a few articles on this that are on the BP blog, just search for "Multifamily Myths" in the search box.
Best of luck!