All Forum Posts by: Aaron Miley

Hey Alan, 

Any contract you get, make sure to have a local attorney review it! I would recommend Robert Rowley. http://rowleylegal.com/

I'm excited to see how this goes for you! I just had a loss on a property that sat on market forever, overpriced, too much inventory in the area, etc. Sometimes, it can just be your luck that defines a project.

In that price range and area, I would definitely suggest good pictures, staging, and focus on curb appeal. Make sure the walk ways are nice and clear, no gross snow hanging out in piles at the street, etc. Every little detail will help! Valley stuff is flying off the market lately so I'm betting you'll be good to go!

Just to add my 2 cents. My personal investment strategy is to buy only performing assets, such as multi-family and commercial multi-family. I'd rather rent my home and own income producing property.

As for your home being an investment, I would say that it's never an investment.  If you think about the main bonuses of owning real estate: Cashflow, Principal Paydown, Tax Benefits, and Leverage, you're only getting 2 of the 4, and the bonus, Appreciation, is negligible due to costs of repairs over time. All the while, you're the one paying the mortgage, not someone else.

In all honesty, both of your options don't seem like a good investment to me. But, because it's your own home, it's a decision on what you need for your family, not really what makes a good investment. You've only had a single kid so far, so a 2 bed, 1 bath apartment sounds like a less expensive way to spend your money.

Hey BP fam, My family and I are looking to relocate to FL to o be closer to family in the next few months. I’ve been looking through Craigslist and Zillow for something to land in, but there’s not much in the area. Our family said to work with an agent for that but it seemed unusual.

Hello everyone!

Starting off 2018, we're running a special event this month to get folks started on their first deal in 3 months time.

We'll be providing tools, resources, and encouragement to get the job done. You'll have to do the work, but we'll be there to help you along the way. 

Feel free to join the Facebook group, click here.

@Rance Brown

Yes, we're meeting on the 25th, I sent you a Facebook invite to the group.

@Ola Dantis

Thank you so much for the help with the book, now I understand the difference between CoC/IRR.

So the preferred returns and splits are the IRR, and the exit will be the CoC, which I'm shooting for AT LEAST a 2x and push for a 3x over 5-10 years. It seems possible from everything I've seen and heard about.

Thanks again!

I know I'm a little late to the party, but this thread is great as I'm beginning to need to syndicate deals to go bigger than I have.

I just want to thank everyone for the resources here!

@Eric M.

On something like that, I'll be bringing money to the table. From the research I've done and working with another investor who has syndicated before, 35/65 is pretty generous, usually netting the investors around 10-12% while I keep maybe 4-6% of cash flow. I wouldn't expect to keep sale proceeds with no cash in the deal (or non-preferred levels of cash).

Ideally, keeping cash flow above a certain level is incentive for me to manage the deal well in order to make a decent return. I don't think anyone would want to manage 118 units for $20k a year. :)

@Ola Dantis thank you for the book, I just picked it up from Amazon!

@Ola Dantis

Thanks for the reply, the "realized rate" is the cash on cash returns, which I believe is IRR. We have a lot of acronyms and terms for the same things so I may be wrong. And the 4% is an annual bonus from remaining cashflow, we'd reserve it off the top. Another deal looked better as a 6% pref with a 35/65 split for the remaining cashflow up to 16%, IIR looked about 12.5% for investors, which ended up being a better deal for everyone.

@Ian McKeown Thanks! I tend to be a doer and this particular example is already under contract, but I've analyzed about 50 properties in the last couple weeks and have been calling commercial agents all over my area and a couple areas across country that I'm familiar with.

Also, apologies for the delay in reply, computer fritzed itself and took about a week to get it fixed and sent back to me. Also, mobile app kept crashing when I tried to access this thread in particular, very unusual.