All Forum Posts by: Brock Mogensen

We calculate replacement reserves in terms of a per unit ratio.  Industry norm is $250/unit per year.  Depending on the condition of the property that number may fluctuate.  On our most recent deal we are setting aside $319/unit per year.  If all of the replacement reserves dollars aren't used at the time of sale you can simply keep it, or in our case, return the money to the investors.  Never hurts to have a surplus of money in case of unseen rough times!

Welcome to BP.  I also live and invest in the Milwaukee area.  We host a monthly meetup in Waukesha, I will DM you the details if you would like to attend. 

Find a new realtor!  Don't go above the threshold of where the numbers work.  You need a realtor that is willing to put an offer in for what you think it's worth.

I second @Theo Hicks recommendation for the Best Ever Apartment Syndication book.  It's literally a text book for this game.  I've completed my first syndication and have learned a lot from podcasts, books and events. Never stop the education piece! 

Referrals are the best way to find good contractors. A great place to meet people that can give you referrals is at your local REIA.

My opinion is to go for a finance or business related degree.  Depending on which type of real estate you are looking to get into, if you can become an expert at underwritting deals you will set yourself apart. 

Consult with your mortgage broker or loan officer.  Most brokers will provide you with a rate sheet when asked.  When calculating debt service it is always smart to lean towards the cautious side and go 25-50 bps higher than today's rate.

House hacking is a great way to get started!  That's how I got started and scaled my portfolio exponentially one year later.

Haven't invested in any of the big names but as a syndicator I'd suggest researching the operators.  Ashcroft definitely has an experienced operator!

Any apartment syndicators doing deals in Wisconsin?

My team and I are in the last few weeks of closing on our first syndication.  I'd love to connect with others in the area that are also acquiring large apartment buildings.

-Brock