All Forum Posts by: Austin Fowler

Hi Chris,

I'd rather explain everything one-on-one, because then I also get to ask questions of the questioner and learn something too. The goal here is networking. Call it a tease if you will, but I want to get some face-to-face time with people.

Best,
Austin.

Dear all,

I'd like to share a creative finance strategy that I have used to scale to $10.5M of client capital under management and $21M of assets on the books. These assets encompass 33 houses and a $5.5M stake in 2000 units of multifamily across AL, AR, CA, FL, IL, IN, MA, MO, MS, OH, OK, PA, TN, and TX, and also cash, stocks, and renewable energy. I'm extremely open and willing to share everything that I do. So let's get a conversation going!

Looking to network with people that either have large portfolios or want to build a large portfolio.

Best,
Austin.

Dear all,

I currently own 33 houses and a $5.5M stake in 2000 units of multifamily across AL, AR, CA, FL, IL, IN, MA, MO, MS, OH, OK, PA, TN, and TX. I'm looking to network with people that have either built large portfolios or wish to build large portfolios. I'm also getting into fund management, currently manage $10.5M of client capital with $21M of assets on the books including cash, stocks, and renewable energy in addition to the real estate. I'm extremely open and willing to share everything that I do. So let's get a conversation going!

Best,
Austin.

Dear all,

Thanks for all the DM questions! I'll gather answers in a single email.

1) What kind of deal is this? You wire funds to a company that is in the business of building buildings, they create plans, get permits, raise additional capital, supervise construction, supervise filling the building with tenants, sell the building to an institutional investor, and if everything has gone to plan then there will be a significant profit and they wire you back more money than you put in. The whole process takes several years. 4 in this case. This is, after all, a 7-storey 250-unit multifamily apartment building projected to sell for $183 million.

2) What is the equity multiple? For every dollar put in, the deal is designed to generate the equity multiple dollars out. In this case, with an equity multiple of 3.12, if you put in $100k, after four years the deal is designed to give you back $312k.

3) What is the IRR? Internal rate of return. This can be a little tricky to calculate when capital is returned throughout the project, and it is expected that a little capital will be returned at approximately the six-month mark, but for this deal it is pretty close to just the compounding annual return.

4) What are the risks? Primary one would be a deep recession leading to an inability to fill the building with tenants willing and able to pay the projected rent. Mitigating factors, this is a suburb where occupancy rates are high, rents are growing, and multiple innovation-based businesses are attracting young workers to the area.

5) Are YOU investing in this deal? Yes. I'll be putting $1 million in.

6) Can I contact CC&F directly? Yes. Absolutely. They have a contact form and phone number on their website (https://ccfne.com/).

7) Why are you sharing all this? Why not? A lot of work went into finding, checking, and negotiating. I've already made my commitment and had it accepted. If I can give others a way into the commercial real estate development world at the cost to me of a couple of emails, it's my pleasure to do so.

Best,
Austin.

Dear all,

Trying out a particular style of real estate investing for the first time can be a major psychological hurdle to clear. As such, one of the things I enjoy doing is doing deep due diligence on deals and sharing those deals that pass with everyone to make it easier to take that first step. I stress that these are 100% third-party independent deals, I get no commission or referral fees, they are simply big enough deals that there is plenty of space for other people, so it costs me nothing to share the done due diligence.

Over the last month, a group of us have been doing due diligence on Zero New Boston (https://lnkd.in/g5bdR56v), Woburn, MA. This is a ground-up development coordinated by CC&F (https://ccfne.com/), an operator that has been in business for 120 years and has built over 100 million sq ft of commercial real estate. The current owner has worked in the business since 1981, and owned it since 2007.

Key features:
- $25k minimum investment
- 4 year timeline, projected annual IRR 35% and equity multiple 3.12
- adjacent to public transport, in a suburb where there is both housing demand and limited supply.
- operator has built and filled a similar development nearby
- You can find pictures and numbers on some of the buildings they have built and are building here (https://lnkd.in/gfbdvtnf).
- You can find a profit calculator spreadsheet here (https://lnkd.in/g-2m_vZA). You can change the exit cap rate in the basic assumptions tab cell H67 and see the effect on the IRR and EM in the Equity Waterfall (GP) tab cells V51 and V53. Even at an exit cap rate of 6.5% (which is pretty close to inconceivable), investors would still make a modest profit. For more likely exit cap rates, a graphic of projected IRRs and EMs can be found here (https://lnkd.in/ga_sQBG3).

Any questions about the above, please ask. If you would like to participate in a deal where you will have a community of fellow investors to share the journey with and help keep you safe, DM me.

Best,
Austin.

I'm happy to talk to people about getting set up to raise capital systematically and legally. This is something I've done for 22 years. In my case I operate using a Regulation D 506c and 506b, and operate a personally guaranteed debt fund. This effectively enables me to raise capital at 8% per annum, interest capitalizing, term forever. If this is of interest to you, DM me and I'll be happy to go into more detail. I currently manage over $10 million raised in this manner.

I have 100 direct clients at any one time, and I do one-on-one coaching with them. Becoming a direct client means opening an account with me, which full disclosure means being an accredited investor and having at least $100k ready to invest. There are no fees, indeed I actually pay people to learn, but you do need to be a person in a position to actually get started investing in real estate.

I coach people looking to get into passive multifamily investing. I manage a $20M passive portfolio and can help you begin your journey towards doing the same. I share everything for free, it's all available here (https://groups.google.com/g/scalable-property-investing), it's a community where we analyze a passive commercial real estate deal every month, keeping each other safe and helping everyone growing.

My recommendation would be a documented loan with terms you find acceptable, not a partnership.

If you can generate a return in excess of 8%, then you can borrow the down payment from private investors, or even the entire purchase price if your hard money loan was at a higher rate than this.