All Forum Posts by: Andrew Schutsky

I can't speak to the requirements of a 203k loan specifically, but in my area for residential or small MF lenders are wanting 6-12 months of P&I and 12-18 months of P&I for commercial small balance loans. 

I'd suggest working this through a RE attorney vs. the DIY route to make sure you cover all your bases, even if these are friends/close acquaintances, etc.  Better safe to start vs. regrets later! 

Weekly update:

-Completed "Field trip to Tampa meeting with brokers, property managers, and partnerships/connections, it was really great and I learned quite a bit.  Sorry I missed you this trip @Joshua Adlam, but we're planning to be back in town in the March/April timeframe hopefully 

-Worked on further due diligence and capex planning for our potential acquisition in GA

-Launched facebook page for our podcast, "Crushing Cashflow" (Check us out!)

-Read Kim Lisa Taylor's book "How to raise private money legally" - great read! 

As someone who recently debated the same and decided to go for it - I'd say if you think it's something you would enjoy once you overcome the fear of getting started, then YES! My recommendation is to think really hard about how you'd like to create your own perspective and spin on commonly covered topics.  I've learned a LOT since recording my first 7+ episodes. :)

I'd also add @Todd Dexheimer knows this area very well and has done most of his deals in that area. This site is also a fantastic way to meet new people (including sponsors) as well.  Don't hesitate to PM to connect with those on here doing deals - most investors or sponsors on here would be more than willing to discuss investing. This is our passion after all! :)

Hi @Daniel L Zavala you've come to the right place for networking! In addition to the local meetups mentioned above (great source btw), also be sure to check out an upcoming conferences, these have been an awesome source of networking for myself and others. Many of these events are where partnerships are started!  

Short answer from my perspective - any activity that is not your core competency or not a valuable use of your time. This could include setting up an LLC, branding/logo, marketing, etc. If you're short on funds, look for a partnership where you can fill gaps for each other.

As both an investor and operator, to me building the relationship, trust, and establishing credibility with the track record of the team are of utmost importance. Of course the potential returns (IRR, COC, EM) will initially draw the attention of an investor, but what's more important is how they plan to balance the risks/returns such as assumptions in underwriting, how they plan to execute the business plan, and the track record of the management team.

As far as location: Personally I'm investing in areas of high growth across several markets within the southeast for some diversity. 

A few other questions to ask:

-How many units are they currently managing? keep an eye on some companies that are managing thousands of units and may not be able to provide viable oversight to all properties equally

-Are they also owners/investors? Watching out for competing interests as they may fill their own buildings before yours

-If you're planning on doing renovations/value add, will they provide oversight to the projects? Do they have experience in successfully improving NOI?

-What is their process for approving contractors/expenses? 

Also agree with Danny above - if you're looking prioritize cash flow sooner than later (next 1-2 years) buying existing will likely be the way to go. If you're primary goal will be longer term appreciation and you've got the capital to develop, development could be a viable option provided you have the means and team to do so.