All Forum Posts by: Adam Campbell

Hello amazing BP community!

We are thrilled to announce an exciting opportunity for an experienced self-storage operator to join our team as a General Partner (GP) in an ambitious new project in San Antonio!

With a 120,000 square foot ground-up construction project already in the works and the land secured, we are well on our way to making this vision a reality.

What We Bring to the Table:

• Substantial investment funds and a secured loan to ensure the project's financial stability.
• A wealth of experience in business operations and marketing, which will be crucial in driving customer engagement and growth.
• A shared commitment to delivering outstanding service to our community.

What We're Looking For: A third team member. Your expertise and insights into the San Antonio market will be invaluable as we strive to create a storage facility that exceeds customer expectations.

Why Partner with Us? We've successfully been involved in over $45m in real estate projects over the past 20 years.

If you are a self-storage expert in San Antonio with a deep knowledge of the local market, we would love to hear from you.

Shoot me a message and happy to chat through more of the details. Looking forward to chatting!

Adam

Hi amazing BP community!

I'm beginning my journey into syndication and would love to hear from those of you who have mastered the syndication deal details.

SPECIFICALLY: where can GPs acquire equity and fees? I've read many many many articles speaking to acquisition fees, and management fees, and built in equity percentage just because. Unfortunately these articles are lacking real world examples of how the fees can transition into equity, or simply true examples of GP vs LP deal specifics.

The articles speak to the 70/30 or 80/20 split of the cash flow after the 8% preferred but I'm more interested in how equity is split between GP and LP from the onset

Might anyone be able to share a few examples of how you have structured acquisition fees and management fees and equity through non tradition contribution?

Thanks in advance!

Adam

Hi @Joseph Saez - the great news is that you are trying to figure out how to buy this property instead of letting the 20% stop you.

A few creative options come to mind:

BRRRR a fixer up - this may take 6 months to a year but with one or two flips you could reach that $65k mark. Additionally, you could hold onto that flip for a couple months to add to your cash pile. (make sure the property cashflows and goes up in value after your rehab)

Purchase the home with an investor with an exit strategy. Potentially there is a creative way to give the investor a larger equity chunk so that when you sell your home they get a majority of the sale. Or rent a room to a family member and the investor get's that monthly cashflow. I haven't run the numbers on this strategy but maybe there is a way for yourself and an investor: win win

Look at a lower cost home. A lot of people don't get into a half million dollar home until their passive income can cover the mortgage and bills.

Good luck!

Hey @Jonathan Diaz - with the right systems, managing properties is not hard. My initial thoughts are below - let me know if you have any questions. Good luck!

Benefits of managing your own or others' rental properties:

• Learning hands on

1. ○ if you are new to the real estate investing game this is one of the best ways to scale your knowledge quickly
2. ○ One of the first rentals I managed I was too lenient with the tenant and allowed them to get three months behind on rent (huge lesson to learn)

• Learn how screen tenants properly

1. ○ Developing a formal application process will teach you what to look for in a good tenant
2. ○ You'll have more data behind the types of properties and the type of tenant related to that class

• Collecting rent

1. ○ Would you like to physically go to the property each month, collect rent via Zelle, collect rent via apartments.com/Cozy?
2. ○ Understanding how to be efficient will naturally push you into a rent collection system which is organized
3. Other items I recommend setting up before starting to manage:

• Develop a list of handymen (electrician, plumber, HVAC, painter, etc)

1. ○ Go on yelp and find the top 10 in your area
2. ○ Call all of them, interview them, get a general quote
3. ○ Have their contact information ready to go BEFORE a problem happens

• Produce a one sheet of contact information for your tenant

1. ○ Your contact information
2. ○ The utilities contact information
3. ○ General notes on the property
4. ○ Emergency info

Two final tips:

• Make sure you have the following in writing with your 'friends'

1. ○ Your management fee and how/when you will be paid
2. ○ What is expected of you as the management company
3. ○ What is expected of your 'friends' as the owners

• Don't let your emotions cloud your business decisions

1. ○ My example above of letting someone get three months behind on rent
2. ○ They were an older couple, extremely nice, and easy to get along with. I let those personality traits effect my ability to evict them quickly as being late on rent is a NO NO!

Hi Chris, welcome to the wonderful world of real estate where we get to solve problems like this everyday. That's what makes it fun.

You are off to a great start getting pre approved to know what "amount" of property you can afford. I am also located in California and invest out of state because of the high sunshine tax California imposes.

Just because you are pre-qualified for 1.2million doesn't mean you need to find a million dollar property. I just did some quick math and you'd have to charge ~$6,000 for the second unit on a million dollar property to break even on the mortgage. There are better cashflow deals out there!

PRACTICE RUNNING THE NUMBERS: Run properties from different neighborhoods, cities, states through either BPs rental calculator or one of your own to get property details such as cap rate and cashflow. Through this exercise you will see what areas match your criteria of property and then compare that to your criteria of where you'd like to live. Maybe the numbers look good but you don't want to live there.

Since you know the Colorado area, search for a duplex in the neighborhoods you know. Do these neighborhoods attract strong tenants? What are the average rents in the those areas? Do those neighborhoods have properties that are in need of work or well kept?

Review the rent prices and neighborhood ratings of other cities you've visited.

You should now have a small range for the purchase price and this will help you easily move through properties to know whether they work for you or not.

House hacking is a great way to get started. Consider purchasing a more affordable duplex, live in it for a year to get your feet wet and see if you like real estate. After that, scale your real estate business as fast as you can.

Cheers!

Hi everyone! Hope you are having a fantastic week, finding great deals, and helping each other grow.

Wanted to get your opinion on deals located in Class C and Class D neighborhoods. I've been finding some great deals in terms of ROI and cash flow but boarded up houses down the street make me a little nervous.

Does anyone have experience with Class C and Class D neighborhoods? What have you learned? 

CoC: 20%

Building Class: B

6 Units

Neighborhood Class: C/D

Currently fully rented

Let me know if you have any other questions - would love to chat about it. Cheers!