All Forum Posts by: Ashton Levarek

Hey guys - I am looking for ways to decrease expenses on our MF units- A little about the property: It is a Class C (we are slowly turning into a B) - and some of our current expenses include: pest control (because North Carolina bugs/pests are HORRIBLE!), landscaping & trash *this last one though we bill back so I am not counting as a true expense* An issue we have had of lately are the AC units needing to be looked at & repaired.  We don't really have the budget to add new AC units but wondering on ideas on how to cut some costs there. 

Any and all ideas are welcome and appreciated! 

Love the Feedback, thank you BP for fueling my dreams! And proving to me that it is merely a mindset issue. 

@Brian Burke- so I agree with you then, its a paradigm issue, a mindset. You look at it like climbing to the roof I prefer to address the issue like skydiving. You either jump or you don't, you pull your parachute or you don't. Massive dreams require massive action. Find an experienced syndication team, get in good with them, invest passively even, bring other investors if you have to, learn from them, partner with them. Take action towards your goal. Failure is not an option in this paradigm, because failure provides a learning experience, in other words you can not fail. 

If you want to get into multifamily do not waste your time with smaller deals. Network, Join or build a team, find a deal, raise capital for that team, bring a skill, a relationship, be a key principal. 

@Erwin Miciano - Lets talk brother. We are always looking for highly focused and motivated partners. In fact our last intern/VA just came onto our team as a partner, set to run a whole division of our business. He helped run the whole asset management side of our business and is now coming on full time. Whether you work with us or someone else - you have the right mindset brother. Keep it up.

@Omar Khan - once again it appears that this is a mindset and paradigm shift - what is small? what is big? Is it really a shortcut? Whats the fastest way from point A to point B - a straight line. Thats not a short cut, thats just obvious. Forget all that shortcut idea, a deal is a deal. The problem is not how big or small the deal is, the problem is how we think about the problem. You're worried about using other peoples money? Working with a bank IS other peoples money. What, they don't matter? Change your mind and the world changes with it. Stop focusing on how, instead focus on why and what. When you start networking with the why and what in the forefront of your mind, telling everyone - The how will emerge.

@Eric Mielke - love it brother. We do much the same. Ohio? There are some great markets out that way! We're closing on a 220 unit in Columbus this August. Love that area. Let's connect and make something happen. 

@Jordan Burnett - Love it Jordan. Could not have said it better, this is exactly how we did it - find a successful syndication team and join/partner with them. We brought talent, added value to their team/business, and then helped raise capital. But many people start by coming in as a passive investor a limited partner, then leverage their partner's experience/reputation etc. Like you said, people invest in people first, the deal and the market second. So being attached to an experienced and focused team, who's values and goals are aligned with yours is paramount.  and in other news - You should connect with my brother/partner @Chris Levarek - he's an IT manager as well but also the COO of our business and a monster at what he does.

@AJ Shepard - not hard, just takes clarity of focus, commitment to that goal, and daily action. Clarity, Commitment, and Action. We closed on 43 doors in our first year and will close on over 400 doors this year alone. Hard is relative to the mindset of the individual. Ive spent my entire career, sorry, life embracing hard and impossible tasks. Mindset is everything. 

Over the past several weeks I've had multiple conversations regarding how to get started in multifamily syndications. And the common theme, or belief is that it is best to start small. In fact, a close friend of mine even said, "We saw how successful you were, how you started with a smaller 16 unit first before tackling a 220 unit. So we thought we should do the same." To which I responded - 16, 50, 200 - its all the same except the bigger you go the more people on the team and the more specialized you get to be. The more focused you can be means the less you have to learn and do the things you hate. 

For example - If you are good at analyzing properties or developing relationships with brokers or raising capital or asset management - well that very well may be the only thing you do for the syndication team. 

So my question to you BP -

For an aspiring multifamily investor/syndicator do you think it is easier to start small, to tackle a 10-20 unit first or a 100 unit? Should someone learn everything first? Learn how to find, analyze, add value, and manage a small multifamily before getting into something bigger? Before Syndicating? 

Or should they focus more on finding the right people for the job? Should they focus on putting the right people in the right seats on the bus, as Jim Collins refers to it in the book "Good to Great"? Should they focus on networking with experienced professionals, other syndicators, thereby leveraging other peoples experience, knowledge and resources and exponentially expand and accelerate their capabilities as a Commercial Real Estate investor. 

I mean, why should I learn to ride a bike if my ultimate goal is to fly? Why think small if my goal is large? After all I don't need to know how my car works to be an excellent driver, I just need to know enough to optimize its performance (that and a great mechanic). 

Perhaps it is paradigm issue? As Steven Covey refers to it in 7 Habits of Highly Successful People. A mindset of I need to know everything myself before I am of any value to large team, or project. 

I don't know. But I do know this - "If you want to go fast, go alone, but if you want to go far, go together." African Proverb. 

What are your thoughts Bigger Pockets? 

Not against a mentor, it just wasn't the route we took - but I do recommend finding a good and experienced team to partner/join with. 

My Brother @Chris Levarek and started out in 2018 on our own, BRRRRing small multifamily deals (duplexes) and then scaled into small syndications, 13 units and 16 units. But this year we will have closed on a 220 unit and a 150 unit in OH and TX respectively and that is largely due to us building a relationship and partnering with an existing syndication team. 

Either purchase your seat at the table through a mentor ship program, go it alone/figure it out, or find a way to add value to an existing team and learn/earn that way. 

Hope that helps. 

@Rodney Robinson

Hey Rodney - I actually have a couple partners down your way that are just getting into syndications. They've been working on other real estate strategies up till now and have been fairly successful but are now growing the business to do multifamily as well. If you like perhaps I could link you guys up. 

Best of luck.

Respectfully Ashton

@Account Closed

So my brother/partner, @Chris Levarek , and I often get asked how can someone get into large multifamily investing?

They love the better economies of scale, they love the tax benefits, they love the idea of not having to be an expert on it all but just being able to focus and excel in one area, while also working on a team and contributing toward a unified goal.

But.... How do I get started in syndications for the purchase of 50, 100, 200, plus unit properties?

So after a long talk we realized that there are 3 common ways people get started... and become successful, and we've actually used 2 of these methods... somewhat effectively.

The three most common ways to get into large multifamily investing and apartment syndications.

1. Pay for a mentorship - Pros - get access to their network, professionals, and advice. Cons - Often a large deposit is needed, no guarantees on deals though - still have to do the work

2. Go it alone, self educate, learn through trial and error. Pros - Bigger returns possible, lessons learned are likely learned from making mistakes, and therefore will be remembered better. Cons - Higher risk of mistakes, failure, takes even more work, and slower to scale

3. Partner with an experienced team on an active deal, either as an active investor (General Partner) or a passive investor (Limited Partner). Pros - learn through their deal, earn returns while you learn, see everything develop in real time. Cons - still have to do your due diligence on the team, the market and the asset itself (but above all you MUST know and trust the team - cannot say enough about this - the numbers and market don't mean squat if the team cannot execute).

We actually started with #2 in October 2018, buying small residential multifamily deals - duplexes and quads. Then in Jan 2019 we completed (stumbled through0 our first syndication on our own. We quickly realized that partnering was going to help us scale much much faster, and allow us the benefit to learn from their experience, as well as pick an choose what we liked from their processes/system of acquiring a large property and executing such as massive business plan. So when a larger and more experienced syndicator saw what we were doing and asked us to partner on their next deal... well it just made sense. And now we're closing on a 220 unit, with another 2 lined up behind it.

Hope that helps.

Thanks @Andrew Hogan

Haha I've been pulling the trigger for the last 21 years my friend. Literally. Analysis paralysis, never heard of it... could go on all day about this, about fear and why we are afraid... but I won't. Short and sweet, it's all in your head. If you have a goal - Commit, and take action daily. There is no such thing as analysis paralysis, merely a lack of knowledge and fear. And fear is merely a mental projection of an unknown future that we justify through our admittance of a lack of knowledge. And knowledge is subjective, or at least the idea of how much you need to know.

 You know how you beat that - take action. Commit to your goal and take action. Then you will truly learn.

But to your second point - that is exactly what option 3 is, partnering as a limited partner, i.e. passive investor, on a syndication. But for someone looking to eventually get into running a syndication themselves developing a good relationship with the sponsor can often allow you a peak behind the current if you will. 

In fact that is one of the things we've been doing with some of our closer more involved passive investors, holding meetings each month to explain the inner workings of the whole syndication process. Win win.

After all, "If you want to go quickly go alone, if you want to go far, go together" - African Proverb

Hey @John Lyszczyk

So one of the first action steps regarding this would be to find good syndication attorney and set up a meeting. You don't know what you don't know of course so a way around all the fees for free information try and find/attend some meetups that host a syndication attorney as a guest speaker. You'll be able to ask all the newbie questions without racking up an enormous bill. @Yonah Weiss just hosted a great virtual meetup and the presenter had an awesome presentation on syndication requirements, stipulations to raising money, etc. (We actually run a meetup of our own that does much the same thing - if interested PM for details)

But that said, there are about 101 ways to structure a syndication. Each lawyer will likely have one they prefer and recommend which is why it'll be beneficial to hear more than one take on that subject. For example for our first syndication we actually completed a 504 offering because that was what our attorney recommended.... we learned a lot on that first one. (The most common offerings are 506b and 506c.) @Chris Levarek - care to weigh in on this one?

Hope that helps. 

Hey @Matthew Cooper

So obviously bringing capital to any deal will be one of the easiest way into a deal/partnership. That is one of the ways we were able to partner with another syndicator, by bringing capital to the deal. That and our goals/visions/personalities aligned.

But aside from raising capital or bringing your own capital, one of the easiest (as well as one of the most impactful) ways someone can get started is by creating a brand, sharing what you know, and telling everyone what you are doing. This makes you extremely valuable both to your business, if starting at option 2 (because networking is the most important part to syndicating), but even more so if you decide to work with a mentor or partner with other operators. 

This works because you create a network of people to work with, ask advice, get referrals, find other professionals (CPAs, PMs, Contractors, Attorneys, Etc) but you also become the subject matter expert in your circle - which makes raising capital much much easier. And if you have a large network you become indispensable.... even as a newbie in a mentorship.

Other ways to increase your value (get your hands dirty) as a syndicator is to find your niche. Find something in the business that you are extremely good/passionate about and market that. Whether that is analyzing properties, markets, creating content, teaching, podcasting, you-tubing, tracking financials, managing rehabs, building and managing a team, etc. Mentoring/partnering with someone that adds value to your business becomes a no brainer at that point. 

Hope that helps.

So my brother/partner, @Chris Levarek, and I often get asked how can someone get into large multifamily investing? 

They love the better economies of scale, they love the tax benefits, they love the idea of not having to be an expert on it all but just being able to focus and excel in one area, while also working on a team and contributing toward a unified goal. 

But.... How do I get started in syndications for the purchase of 50, 100, 200, plus unit properties? 

So after a long talk we realized that there are 3 common ways people get started... and become successful, and we've actually used 2 of these methods... somewhat effectively. 

The three most common ways to get into large multifamily investing and apartment syndications.

1. Pay for a mentorship - Pros - get access to their network, professionals, and advice. Cons - Often a large deposit is needed, no guarantees on deals though - still have to do the work

2. Go it alone, self educate, learn through trial and error. Pros - Bigger returns possible, lessons learned are likely learned from making mistakes, and therefore will be remembered better. Cons - Higher risk of mistakes, failure, takes even more work, and slower to scale

3. Partner with an experienced team on an active deal, either as an active investor (General Partner) or a passive investor (Limited Partner). Pros - learn through their deal, earn returns while you learn, see everything develop in real time. Cons - still have to do your due diligence on the team, the market and the asset itself (but above all you MUST know and trust the team - cannot say enough about this - the numbers and market don't mean squat if the team cannot execute).

We actually started with #2 in October 2018, buying small residential multifamily deals - duplexes and quads. Then in Jan 2019 we completed (stumbled through0 our first syndication on our own. We quickly realized that partnering was going to help us scale much much faster, and allow us the benefit to learn from their experience, as well as pick an choose what we liked from their processes/system of acquiring a large property and executing such as massive business plan. So when a larger and more experienced syndicator saw what we were doing and asked us to partner on their next deal... well it just made sense. And now we're closing on a 220 unit, with another 2 lined up behind it. 

Hope that helps.