All Forum Posts by: Alejandro Antonio Taylor JR

Hello everyone,

Have a question in regards to engagement with a real estate lawyer and the risk of being sued by investors if an investment in a Multifamily property.

Part of an engagement letter with a real estate lawyer reads like this:

“Attorney makes no guarantee whatsoever as to the investment outcome of the proposed venture, and Client is advised that Client may be sued for damages by investors under many theories of law should the investment fail, even if all securities compliance matters have been correctly implemented.”

The question I have is can you still be sued by investors if all correct paperwork and subscription agreements and liability waivers are agreed upon and filled out, investors are completely informed and aware of the investment they are getting into and the risks involved and all securities matters are correctly implemented?

I understand any investment comes with risks and you must do your due diligence when investing in a property to minimize theses risks. What else can be done to minimize these risks?

Thanks in advance for any help and hope all of you are well.

Thank you guys for all of the great info. Very beneficial and I really appreciate. Wishing all of you nothing but the best and hope all of you are staying safe and positive during these times.

Hey guys,

Hope all of you are doing well and staying safe and positive during these times.

I was posting here to see if any of you guys knew the best way to find draft “Letters of Intent to Invest” to get commitments from investors to invest in Multifamily properties with my company. My partner and I are currently in touch with a securities attorney but would like to take a look at some examples of these letters of intent to have a good idea of exactly what we should be looking for. Thanks in advance for the help.

Hey guys hope all of you are well and are staying safe during these times.

I had a question about partnering with investors in large Multifamily apartment investment deals. I wanted to know what is the best way to have a guarantee that investors who commit to investing a certain amount of money follow through with their commitment to come up with the funds once you put a Multifamily deal under contract? I’ve seen a lot of investor examples where an investor finds and puts a deal under contract and then starts to search for investors. I know you should already have some some relationships with investors lined up beforehand but what is your guarantee or security that these investors will come up with the money for the downpayment or the guarantee they will come up with the money on time before closing. If it’s just a commitment by word of mouth for example there is no guarantee and an investor could change their mind and then you’re not able to come up with the money for the deal. The idea that came to my mind when speaking with a real estate lawyer would be to create an escrow account where investors can place their money in even before a deal is put under contract. That way once you do find a deal you’re guaranteed to have the money to be able to close on the deal. That sounds like the ideal way to do it but not sure If it’s the best one. Any thoughts would be appreciated.

Thanks everyone for the valuable information. We are looking for properties with a cap rate of 6% to 10% and a cash on cash return of 8% and up. We are not looking for long term holds but looking to hold properties for 3-5 years and the sell. Property sizes we are looking for are between 100 and 350 units. B and C grade properties would be ideal as well as properties in strong and stable economic areas. Target markets we are interested in are markets in Florida including Jacksonville, Orlando, Tampa, Ocala, Gainesville and Tallahassee. We’re also interested in markets in Austin, San Antonio and Lewisville, Texas.

Hey guys hope this reaches all of you well and you're all staying safe during these times. I am currently finalizing my business plan for my Multifamily real estate investment business I am planning with my Dad. We are planning on investing in large apartment buildings in Florida and Texas. One question I had is what is the best strike price you should look to offer a seller when purchasing a Multifamily property? I know the value of the property is the NOI divided by the cap rate. I figured it would be around that range. I have seen examples where buyers offer much less that that value and end up getting their offer accepted and closing on a deal. An example would be a buyer found the value of a property to be $5 million and he ended up offering $3.8 million and closing on the deal. Thanks in advance for any help guys. Best regards.

Tony

Thanks guys for all of the great info and help. I’ve spoken well with my father about things. We’re actually looking to invest in Multifamily properties of 50 units or more. These are the types of properties my Dad has experience working in as head of accounting and financials of a property management company that manages these types of properties.

Will make sure to look in the Jax area and also other nearby areas like Orlando, Tampa, and probably even Georgia. I’m sure a good broker will be able to guide us.

Thanks again and wishing all of you nothing but the best.

@Erik Hatch

Thanks Erik,

I’m partnering with my father at the moment and looking to invest in a 20-30 unit property for our first investment. We will most likely look to add other investors to the deal. Really looking to get our first deal done and grow from there.

Hey guys,

What would you say are the best places to invest in Multifamily apartments in the state of Florida? I am based in Jacksonville, Florida and am looking to make my first investment by the end of March 2020 in a property of around 20 units or more.

Thanks for all the input guys. My Dad who I am partnering with has thorough knowledge as he is the head accountant of a Multifamily property management company. He has vast experience of the due diligence, the ins and outs, financials, and accounting of apartment complexes. I want to make sure I’m fully knowledgeable as well. As you guys know knowledge and wisdom is key in real estate investments and life as well. Thanks again and Happy New Year everyone.

Tony