All Forum Posts by: Andrew Campbell

It takes 3-4 weeks to get a PPM finalized and ready to send out, at least from our SEC attorney.  So we prep them to let them know its coming, but agree with the advice you don't want to spend additional money until you are certain you are going through with the purchase. 

You also need to look at the overall timeline and work backwards from closing--how much time are you going to need to raise the money, allow investors to review the docs and get funded.  It all needs to be happening relatively close together and be coordinated so docs are ready when investors are ready. 

Good Luck!

How much does the template cost?  We have an SEC attorney that focused solely on doing PPM's, and work with a different attorney for entity creation, contract negotiations and closing help.  Our PPM's have been running us under $7k per deal--not insignificant but doesn't break the bank either.  

As has been stated already, you don't want to skimp on the legal side of things with either the SEC or your investors. 

Good luck!

Finding investors is all about building relationships. Most investors are evaluating you as much as the specific opportunity. If you are trying to build your own list of investors, you need to be out there, consistently, meeting with people, following up, showing them potential opportunities.  Over time they will see you are consistent, you are trustworthy and will start to invest.  

Be open, honest, transparent, available and most of all consistent. 

Good luck!

You've got to be careful looking at current numbers--particularly as you look at bigger properties. If you are just getting started, you don't have the scale of the bigger groups who may be on a master policy and have a premium much lower than what you'd qualify for.  Brokers love to put those numbers out there, but they won't be achievable for you. 

I view our Insurance agent as a strategic team member--anytime we start to get serious about a deal they will run reports, even help us pull comps and get creative about what the right coverage is. 

We've also been using $250/door as a rule of thumb, but I believe those numbers are going up this year based on the amount of loss/claims incurred last year with the Hurricanes in both Texas and Florida. 

Good luck!

@Elliot Vann. I think @Benjamin Seibert nailed it.  What are your goals?  

I agree with the consensus here that experience is the best teacher. And you already have a great story working with your RE license and a Property Management company.  If the ultimate goal is to buy and syndicate deals, you don't NEED an MBA to do that.  How much time will it take (and money) to get the Masters degree--and how might you further your cause if you used that time (and money) instead of getting the Masters?  Could you buy your first rental and rehab it?  Will that put you further ahead of where you want to be?  Only you can answer that. 

Good luck!

Reed Goossens is another Aussie living in the US and doing apartment deals.  He can walk you through his process and steps you need to go through to start investing in the US. 

Good luck!

@Gulliver R. Sorry, I'm not familiar with the laws/requirements in Indiana.  Are you using a 3rd party manager?  Our management team helps us file the paperwork, so a good firm should know what is/isn't required in their area. 

Good luck!

@Gulliver R.  In Texas we have to follow @Brian Burke's advice and file a DBA. We just did this for a property we closed in November. We rebrand all of our assets--I recently wrote an article about why we do it.  We typically do it from Day 1 rather than wait, just to streamline operations and let the community know things are changing. 

Good luck!

We put money into all our deals as well, and always on the LP side.  That money is treated the same as any other LP money.  

Agree with @Bruce Petersen that you don't have to as a sponsor and there are many reasons they might not.  But if you are just getting started (which is sounds like you are) I think it will be a challenge to find investors if you don't personally have skin the game.  That said, you can get a little creative there.  For example--do you have immediate family putting money in the deal?  We usually do, and I tell investors that I personally am putting $x into this deal, and that my immediate family (brother, dad, etc) are putting in $y.  

At the end of the day, you need to show alignment of interests between the GP and LP--putting your own money in the deal is probably the best way to show/prove that. 

Good luck!

You can't really do it while they are occupied.  Given the other two options, it really depends on your business plan and goals for the property.  If you want to flip this quickly, you could try and buy people out of their lease or pay them to move out early.  But in general I would agree with Michael and let their leases lapse and then update the units on a turn--that what we do anyway. 

Good luck!