All Forum Posts by: Adrian Fajardo

@Brian Choi hello! and good for you to get started on the LP side. I think most investors who want to syndicate should do a couple of LP deals first.

First things first, a lead GP is different than a KP. This is a very down-the-road topic but the idea is what is your main goal for jumping into real estate? I know a very successful GP whose ultimate goal is to become a KP. The reason is that he wants to spend more time with his kids and fly his plane. All his involvement in the deal is put his balance sheet on the line and get a fee for it. That's the dream for him.

I also know amazing lead GPs who find it fun leading teams and enjoy challenging projects.

I guess the answer would be to try a couple more LP deals then be a co-sponsor on 2 or 3 deals to see how each role plays out. You don't know what you don't know. You might want a position but once you are there, you end up not liking it.

I hope this helps and I wish you the best of luck in your investing journey!

 I admire your consistency and persistency (don't know if that's an actual word but it rhymed lol). It is better to take action in any market cycle it just has to be a different one for each kind. I apologize if I come off as a nay-sayer. 

Do you know who are the major players in your market? Is there a way you could potentially remove a task or 2 from their plate?

@Wendell Butler allow me to answer with a question, can you confidently say, there are no deals that are closing in Charlotte, NC?

As you said, it is up there in terms of growing markets in the US. There are deals being traded and you just don't know about it.

Also, consider where we are in the market cycle. This isn't necessarily the prime time to sell. If I was an intelligent property owner, I want to sell for the most bang for my investors.

Only a distressed seller would want to sell right now. If the seller isn't willing to budge from their price then they are not distressed.

I hope this helps!

@Preston Gagg All great points mentioned above. I use @Brian Burke's book like a textbook. I don't read it once, I actually refer to it over and over! And I'm an active investor (GP).

Here's the quick and simple truth, if you're truly wanting to be a straight passive investor, getting to know the sponsor to where you can trust him/her with your life is the single best thing you can do. 

Yes, you can do all the research you want about the market, deal and PPM. That would require a lot of time which I assume you don't have if you're a TRUE passive investor. 

There isn't a shortcut to anything worthwhile but if you can only do 1 thing, it is the point I mentioned above.

I hope this helps!

There is a trend to what @Tom O. and @John Teachout are saying. Underwriting is objective. You can employ "creative" strategies when there is motivation from the seller. If there isn't any motivation then move on and find a deal where the seller has the motivation to sell. 

By the way, here's a tip for finding motivation. The seller is showing that the price avenue is "Access Denied". Try another approach then. All you have to find is how to help the seller get what he or she wants. Only when there is rapport and you solve their problems then you can go back to the negotiation table and talk about a lower price.

But if the seller has debt on the property, then you can only go so low.

I hope this helps. I wish you the best in your investing journey!

@Tyler Todhunter I hope these 2 points answer your question.

1. To @Brian Burke point, just as long as your debt doesn't force you to exit, why do you care if the current market Cap is higher than when you bought it for? Those who are forced to exit become motivated sellers! The kind of sellers that provide good deals.

2. There is no excuse for not buying a good deal. Figure out if your business plan can decompress the cap rate high enough where your target returns are met when it is a good time to sell (even when Cap rates have risen). The investors you used in your example got hurt because they bought at retail prices and banking (no other strategy) that rising rents will be good enough to give them the returns they seek. 

I wish you the best in your investing journey!

@Pete Harper I am surprised the day where prices are where they are in Killeen in such a short span of time. I agree with your assumptions. I think sticking to your lane (underwriting) is always a good safety net. I don't know what strategy (if any) people are using to justify their prices when buying in Killeen but I know what are mine. Like the great Oracle from Omaha used to say "Be fearful when others are greedy and be greedy when others are fearful". Huge transfers of wealth happen during a downturn. 

I wish you the best in your investing journey!

 Good on you for investing in yourself. Most of it is knowing your market well. Once you get the overview in underwriting, just keep doing it over and over until you can get a database on what rent and costs are in your market. I wish you the best of luck!

@Guy Idan I applaud you for recognizing that getting a mentorship isn't a cost but an investment.

I do not have any valid opinions about THAT particular one but here are my thoughts. Regardless of who you choose, what any one of them will teach is more or less the same thing. It's only the packaging or the branding that changes. What you will learn has been done over many years by thousands of investors. If a mentorship program has figured out a new method (that only they know) then I would be very curious and check it out myself. Not to say Joe Fairless doesn't know anything. He's done extremely well.

Bottom line, don't limit yourself to that community. Shop around and interview several people from different communities. 

I hope this helps! I wish you the best of luck in your investing journey.

@Brian Plajer The answer is neither one. It should start with the investor (You). 

To those that say "Partner", it is difficult to partner with someone who has nothing to bring to the table (experience, knowledge, or capital). Even if you can bring capital to the table, most experienced teams would already have a preferred source of funding that can deliver when called upon (experienced). 

To those that say "Deal", how do you know how to value a property? In other words, how do you know what a "Good" deal looks like? Underwriting is a valuable skill.

When an investor starts by helping him/herself, both deals and partners will take care of themselves. What I mean is, that education is key. Experience will come in reps and is provided in partnerships. When you immerse in a community like Biggerpockets or meetups and also learn on your own time, that is a sign of someone who wants to develop and do this for the long-term. In turn, that attracts experienced investors because they don't just want another guy/gal who's looking to "close" on something (I'm not claiming you are one of those).

I hope this helps! I wish you the best of luck in your investing journey.