All Forum Posts by: Andre Jernigan

This question here is one that I think is on quite a few people's minds. I am hoping that by me commenting on this it could potentially bring the thread back up and bring some life to the conversation.

I am actually in this scenario right now and am trying to figure out the best way to present a business plan for my partner and I. He is the one bringing the capital and is very interested in both getting started investing in real estate as well as helping me get started as he knows that is something that I want to do and am passionate about. He was in a similar position with respect to the businesses he owns now and had capital partners/ investors help get to where he is now and wants to give back. However he wants to focus on continuing to grow his businesses and does not have the time to necessarily do all of the behind the scenes work. I am the one who will have the time, find the deal/deals, further continue to educate him on the real estate industry, has the connections with other investors and sponsors, will be handling/managing everything in that regard, etc. I have been spending the past few weeks trying to figure out what is fair and what would even be a good starting point to even open up negotiations.

I think this is a topic that isn't necessarily covered enough in detail outside of your standard 70/30 or 80/20 LP/GP splits on syndication deals. I would really be interested to hear and to see what others in the space would say and or think. Great question David.

Welcome David! I know from personal experience that the first post is the most difficult and I also know the feeling of wanting to say everything you want to all at the same time so don't mind the length at all! I am also glad to hear of someone else my age looking to get into investing.

BP can provide you with an absolute wealth of information as you can see by all the great advice already given here. As @Drew Wiard said the FWREIA page can provide so much more when it comes to looking locally here in Fort Wayne so I am glad to see that you joined! I know with everything going on they aren't hosting the meetups in person so you won't get to experience that just quite yet. But let me tell you they are incredible!
@Craig Sloan also mentioned something that was recommended to me as well by someone. Taking the time to create a life plan with your wife and finding a way to add it to the plan as a whole. After my fiancee and I did that we became a bit more clear on what the end goal looks like and have developed a plan to get to that point. There's something about having some sort of road map to a goal that makes it that much more realistic and tangible.
If you have any other questions this website and the FWREIA community on facebook are both welcoming groups of like minded individuals that are willing to give any advice where they can. I think that's part of why I love real estate as much as I do and am in the middle of transitioning to the sector.
Best of Luck!

@Kay Kay Singh Out of curiosity are you looking to syndicate 3 yourself with 500 doors total? Or are those separate goals?

@Hud Floyd That's no problem at all, congrats again. If you are pursuing syndications in the Midwest I know a broker/investor in Kansas City that has been doing amazing things out there. If you are interested I can DM you and try and get you two in contact.

@Shiloh Lundahl I have come across a few different instances where I have seen an investor utilize lease options in their strategy. I'm curious to know what did you initially find interesting about the strategy that made you guys want to implement it?

Everyone here has already stated some good thoughts and reasons as to why people invest in apartments. I also agree with @Stephen David Smith Jr. with respect to the idea of appreciation. When it comes to residential appreciation is based on factors completely outside of your control. Commercial properties can literally give you the ability to force that appreciation through rental increases are in decreasing expenses through more efficient management and operations among other things.

I would also agree that investing in the Midwest and other markets is a great idea especially if living in NY or the west coast as well. Obviously as you know, the prices here in the Midwest are cheaper than either coast which is why is why there has been an influx of capital from investors from coastal states such as CA and NYC.

That's awesome! I'm curious with Taylor up above, is this your first syndication?

@Jeff Greenberg You know, now that you mention the abundance mindset and applied it to CRE and the those in the stock market, you make a valid point. It makes me wonder if the difference is the stress levels between the two industries or if it is something as simple/complicated as the difference in cultures between the two worlds. I will say that initially I was confused as to why people were so willing to share information and ideas in real estate. I think it is this culture and sharing of an abundant mentality that further attracts me to real estate investing and others that discover it as well.

@Alan Dunlap that makes sense. Well congrats on taking that first lunge in those 90 days! Did you happen to get the intention journal Brandon put out as well?

I have also started looking at understanding how to invest using an SDIRA and how things work out. Like you said I see it more of a preservation play as well when it comes to turn keys. I’ve heard a lot of good and just as much bad about turnkey investments but haven’t taken the time to really look into them. 

@Jeff Greenberg You know It’s funny you mention insider trading. As I started learning more about how real estate investing works, I started to see the crucial role networking plays. I then found that those with a greater network often had more access to deals and resources that others didn’t, which based on what I learned as a finance major would very much so be frowned upon in the stock market. My assumption them is the key to networking early on is finding a way to add some sort of value to those you wish to learn from.