All Forum Posts by: Au Jia

This is awesome!

Hi friends,

I want to start put together a term sheet that can send to potential limited partners (LP/investors). 

I was hoping to find a typical set of legal documents including a term sheet, a partnership agreement, typical payout structure, etc. I searched the file repository on BP, but not sure how actionable they are. For example, the promissory note document is too short to be airtight. 

These documents will be for entry-level commercial deals such as 10+ units apartments. 

- If you are an experienced investor/syndicator, your help is greatly appreciated!!

- If you are a real estate lawyer, please send me a private message. I would love to have a lawyer review the documents once drafted.

Thanks,

Au

This is tremendously helpful! Thank you all for the reply, particularly @Greg Scully thank you!

@Alex Kessler

Suggest per property LLC structure.

Yes, you can get loans as partners with everyone’s name on it.

@Anthony Gayden

Thanks for the reply. Do you now focus on single families given that’s what’s available?

I have always been an out of state investor. California is just not doable at this stage.

Hi friends,

There is a question that I have been searching for an answer for a while.

Should I max out the fourplexes (up to 10, residential) vs, going “big” by purchasing a 10 unit+ property (commercial)?

I know it’s a deal by deal analysis but I hope to get a general direction. My goal is to have a fund if possible to invest in real estate.

Maybe helpful to think in a framework.

- Cash flow % (commercial higher)

- Appreciation potential (commercial lower)

- Expenses (usually more unit, more efficient)

- Loan complications (how much more complex will commercial loan be?)

- Total return (which is higher?)

Thanks a lot! Appreciate any thoughts.

 Hi Justin,

Thank you for replying. One coincidence is that I have some experience in investing in Texas as "out-of-state". Would you say it's best to start investing in a commercial within a certain driving distance? The benefit is to better control the renovation/operation process to learn all the necessary steps. 

Thanks so much!

 Thank you Chase. Like most of the beginners, I have spent a lot of time reading the commercial real estate investment and now I feel somewhat scared, somewhat educated and a little excited. I am curious about the best way to start. If say I have to raise some money from equity partners, would you say it's easier if I find the deal first -> find the equity money -> debt financing -> deal purchase process?

I don't know how long I typically have to do the equity raise? Is it like 3 - 6 month? 

I'm looking at starter buildings like this. (it's just an example so sorry it's not in DC area, but it is something like this). Again, thank you so much for replying.

https://www.loopnet.com/Listing/2705-Akard-Ave-Red...

Hi everyone,

Hope you are doing well!

I am a residential real estate investor based in San Francisco. With BP's inspiration and guidance, I have done a few deals by myself and partnerships in the residential market with a buy, improve and operate strategy.

Investing in commercial buildings has always been my long-term plan. However, admittedly I am new to the game. I hope to get some guidance on how to get into it. I don't have a big check myself but I believe with the right deal and approach, I am able to raise the necessary fund. If you are a broker or an investor looking for a partnership, I will be really grateful if you could shoot me a message so we can discuss further.

I look forward to hearing from you!

Thank you so much!