All Forum Posts by: Andrew Schutsky

+1 for cash flow here as well. If and when there is a downturn, there will always be sub markets that are better suited towards 'weathering the storm' vs. others.  There is a reason some markets are hot and commanding a premium, especially when 3+ year population, job, and income growth are well above the others.  None of us will be able to predict the future accurately and consistently, but having data on your side certainly helps to 'stack the deck' in your favor!

Hi Tina - I've had the best success with attorneys through referrals.  Do you know any sponsors in the area? I'm sure most would be happy to share who they are using.  I've also had good success through referrals from other investors in local meet up groups. 

If you're looking to scale into MF and do it relatively quickly, you're going to need to partner with others and raise capital.  Agree you should first pick your target market(s), but you're going to want to leverage other's experience and networks to get a larger MF deal done. 

I've tried 3-4 of the canned deal analyzer tools (excel based) and really like using the Michael Blank SDA.  Well worth the investment IMO - lots of work done for you for a reasonable price. 

Thanks @Adam Lacey - will have to check out their offerings as well.  Would really prefer not to manage all this through excel and email! 

UPDATE week of 1/10 - keeping the momentum!

Education - Finished "Building a Storybrand" book at the recommendation of my coach, excellent read.  Used this to refine my website and email campaign.  Just finished "Wheelbarrow profits" this morning as well.  Attended/listened to 3 podcasts/webinars. 

Brand - Updated messaging on website and email campaign.  I've been posting 2-3x a week on my social platforms (Facebook and linked in).  Also received my business cards and ordered some custom shirts with my logo.

Network - Engaged with both securities and RE attorneys (local to market).  Spoke with 2 additional property managers and brokers.  Got referrals for inspectors and contractors as well.

Deals - Booked trip to Tampa to explore the market and meet 1:1 with team members.  Underwrote 10 deals last week.  Discussed criteria with brokers (mentioned above).  Set up time to connect with key contacts during trip.

Capital Raising/Dollars - Met with 3 potential investors 1:1 last week.  Answered tons of questions - getting some traction and interest here, mainly from social media so far.  

As Brian mentioned above, there is much more to an investment other than the projected returns, equity multiple, and cash flow.  If you're considering different investments and looking to compare underwriting/risks, consider the following:

-Rent growth assumptions vs. market comps

-Speed/ramp up of rent growth - is this acheived over 6 months, 12 months, 18 months?

-Exit cap assumptions (this has a huge effect on returns)

-Expense assumptions - look at the larger costs like taxes, insurance, management fees, cost of construction/capex 

I'm not part of the core "warrior" group, but I am signed up to attend the bootcamp in February.  At just under 100 dollars, it's a bargain for the network alone.  There is also a ton of solid content over the 2 days as well.

Anyone else signed up for his event in February? 

If you can swing it, I'd lean toward the quadplex since as you mentioned it gives you a bigger "cushion" due to swings in occupancy.  Not to mention a little more economies of scale with repairs, construction/upgrades, etc. :)

Agree with others - best bet is to play it safe and have discussion with a securities attorney to review any and all investors you'd include in the 506 (b).  Too much at stake here to rely on your own judgement and/or info from the forums.  I'm all for saving money when possible, but in this case it's 100% worth the professional opinion.