All Forum Posts by: Brian Robbins

@Michael Keller seems to me the builder is the wildcard.  I didn't see what you are paying for the lots but at $65k per home that's only $65/sq. ft.  That's pretty tight for a contractor to make any margin.Checked out the builders reputation in the communities he has built in?  Has he committed to build as many as you want at that price? I think he may lose interest after building a couple at that price point. If they will be valued at $95k why would he not just build them himself and pocket the $30k? Maybe bring the contractor in as the third partner. Let him leave his profit or at least 50% of his profit in as ownership, let him grow a small portfolio for himself, and give him a reason to keep building for the two of you.

Cheers,

@Jim Macedon why don't you consider investing with a syndicator.  They have experience, they handle most of the risk, they handle 98% of the hassle and they arrange the financing.  If they are able to get agency debt then you know Freddie or Fannie thinks the deal has a very high chance of success (Freddie has not had a single deal anywhere in the US go south in 3 years).  It is not uncommon for syndicated MF deals to net the investor an 8% cash pref and a total return of mid teens or higher and if the syndicator uses accelerated depreciation you will get a K1 with depreciation expense to offset most if not all of the income for first 7-8 years.  After that 1031 into another property and start all over.  Beats 2 am. backed up toilet calls....:)

@ David K.  the size of the property definitely affects the rate charged.  @John Warren was right about the 100+ deals. We just closed a 125 door townhome asset in Lexington KY and are being charged 3.5 %. However we could get that down to 3% if the asset had been 250 doors.  I know other syndicators that routinely get 3% fees on their deals.  Good luck!

Welcome to BP  @Michael Shea ! Charlotte is a smoking hot market market for MF investing. It is definitely on our strike list. You are on the right track.

Dr. Brian

@Craig Devine I recently wrote a book for small business owners and professionals on MF investing.  Its on Amazon (Done! The professionals guide to double digit returns, multi-generational wealth, and a worry free retirement).  You are on the right track!  I wish I had understood the power of multi-family real estate 20 years ago.  Good luck!

@Gabriel Miller check out the Texas A&M real estate center (https://www.recenter.tamu.edu). Look under data and you can see the population trend for any county or city in the country.  They obviously focus on the Texas markets but have lots of info on other areas of the country if you dig in.  I recently wrote a book (Done! The professionals guide to double digit returns, multi-generational wealth, and a worry free retirement) which just went on Amazon 6 weeks ago that has a fair portion dedicated to choosing an area to invest in MF. Colleague request me and I will send you a complimentary digital copy of the book.  

@Steven Mayer and @Veronica Pepin I wrote a book on picking markets, submarkets, and multifamily syndicators.  I will send you a complimentary digital copy if you will rate it on Amazon.  The title is "DONE! The professional's guide to double digit returns, multi-generational wealth, and a worry free retirement."  PM me if you want a copy.

@Bill Goodland I wrote a book for medical professionals just like yourself:  "DONE! The professionals guide to double digit returns, multi-generational wealth, and a worry free retirement.  When you get paid $75-$100/hr does it really make sense to be fielding leaking toilet calls at 2 am?  When considering location I suggest utilizing geographic arbitrage...(love the sound that word) and locating where you are happiest/making the most money and then investing in locations where it makes the most "Real Estate" sense, ie...Where are the jobs going? Where is net domestic migration headed? Where is the organic rent growth spiraling up fastest? Where are the Landlord laws and taxes favorable?  Which real estate markets are linear and avoid the cyclical ones. Imagine the lifestyle you want....Let a professional syndicator manage your real estate investing and you focus on maximizing your professional earnings. Leave the toilets, tenants, and trash to a PM company.  Maximize the training you have worked so hard for! 

@Wougi Heap Of Birds we just closed on a 125 door townhome community in Lexington, Ky in December. Our timelines included: Accepted LOI, 10 days to PSA (actually took 13), 30 day Due Diligence period, 30 Days to close, with up to 2 (15) day extension periods. One extension period was used (when requested we had to put more $$ hard). We also had to put $$ hard up front to secure the deal. While it was tight, that timeline was more than adequate. Savvy sellers in this tight market will likely get squeamish if you push for timelines which are much different than the above.

@Andrew Campbell the article on re-branding was dead on.  Leaving behind all the bad reviews online alone can be worth the price of the re-rebrand!