All Forum Posts by: Austin Johnson

man, THREE of you guys are going to start up airbnb arbitrage? that's hectic. You're right that $12k wont get you started. LLC is a must if you're working with several partners the way you are.
I love the ambition. I love the real estate focus and drive to do SOMETHING. I would have a meeting. figure out what your vision long term is, figure out what your partner's long term vision is and see where they overlap, where they butt heads, etc. see who wants to do this long term vs a quick profit. from there figure out what avenue you CAN do long term. this reminds me of me when i first tried to get started. I said I would be a wholesaler! then I'd get my real estate license and whole sale and sell! i can do all this and save money till I get enough to buy a apartment complex. repeat repeat repeat! my problem? shiny object syndrome. don't get shiny object syndrome. find what you want to do, figure out what needs to happen to get there and work on that. day by day by day. i wouldnt jump into airbnb arbitrage as a temporary towards something else.

 I mean... I'm an agent too. I don't want to bash your agent but I get 'trying to close a deal' vibes from this. 
personally I wouldnt try to force an FHA loan into a non-FHA approved house.

yes, massive crash incoming. sell all your properties to me.

I believe the rule of thumb is 100 units. once you hit 100 units, you hire a full time PM and a part time Maintenance guy. obviously if you're the PM, don't hire a PM,lol. but 100 units is when i would begin looking. that's enough in theory to keep them busy.

step 1: talk to him. step 2: listen step 3: come back and inform us what he says.
we can play hypotheticals all day. up till the point you ask how he feels about the offer, it's an endless cycle of if's. call him, say you were curious to hear his thoughts on owner financing, when he asks what you mean, share these details. if he is reluctant, spell out the pros of doing it and then the cons. (pros, no lump sum payment, secure tenant over the next 5 years, perhaps 10 years if financed correctly. cons; you can leave and build your own building and leave him with a freshly renovated storage unit that looks like a mechanics shop)

9/10 chance he gives you some sort of answer sooner than someone online can give you. 

why would I syndicate on a 350 unit and get a small split instead of investing myself on a smaller deal?
because real estate is a team sport. if it took me 5 months to close a 350 unit with a team, helping all my investors, helping all team members and developing an awesome community. I can rinse and repeat the process again and again and again while developing friendships and partnerships and contributing to the community at scale.

now, why would I do a small deal myself? and rely 100% on my own capital, my own credit score, my own experience to get the loan, my own liquidity to qualify? then be tied up with one deal till i can save up enough for a second deal. then a third. then a fourth. how long will that take? 
in order to tackle the beast that is large multifamily, the bank requires a lot of experience, liquid capital and overall networth. what if I don't have that?
I hope you're seeing the difference and im not just blabbing,lol. 

I wouldn't do that at all. you're wanting to put it under contract, upgrade the units and pray the seller doesn't back out with a free upgrade (and sell for full price). it seems very sketchy to me.

what data specifically are you looking for? 

Multifamily. and honestly I'd place a wager of $100 you can learn everything by reading a few books. that being said, do multifamily. speak to any multifamily investor and ask them what they wish they could do. most of them say they wish they could have started in multifamily sooner.

$56 a month for insurance? 

with that to the side, it looks like a solid deal! what's keeping you from pulling the trigger?
edit: I also adjusted vacancy to 5%. that's my standard rule of thumb. it still cash flows