All Forum Posts by: Brock Mogensen

Welcome to BP and great to connect with another local Milwaukee investor

Love to hear it. This is the same way I got started as a syndicator.

Underwriting is such a key part of the process!

It's not easy to work your way into a GP role, especially with a team that already has experience/track record.

Some things to think through..

How many deals has the team done together?

What is each person's role/superpower?

Is everyone on the same page with the long-term goal?

Milwaukee is a great cashflow market with opportunities in that size range.

$50k with 75-80% leverage can get you a solid B-class duplex.

Just want to make sure to understand the location within Milwaukee you are investing in, that it is truly B-location

Real estate agents main priority is to make a commission, always remember that. There are great agents that will give honest advice on the deal but at the end of the day they want to get paid.

Trust but always verify. And generally, the best deals are those that transact off-market.

Don't worry about the LLC. Define a strategy and go all in on educating yourself and executing.

If you are going to do a debt structure, you will need to be in the 10-12% return range to investors. No savvy investor would take 7% with zero upside. That being said, both structures work well. A lot of it depends on what the deal can support as well from a return perspective.

Prior to talking with an attorney..

Do you already have a good understanding of what your GP/LP structure will be? Offering preferred return? What is the promote structure? What fees are you charging?

And are you confident in underwriting deals under this structure? Much different than a traditional acquisition.

I always suggest having this down before engaging an attorney. Additionally, the attorneys work doesn't really start until you have a deal lined up.

Feel free to shoot me a dm to discuss further. I have some resources I can send you.

Good question to think through, and it might just depend on what market you are brokering in. Certain markets have better growth potential than others for each asset class. Personally, I prefer industrial but have been involved in plenty of multifamily as well.

Love Flex Industrial! We are also focused on this space in Milwaukee. Specifically in the Class-B (20k-150k sq ft) assets.

If you are going to go down the path of being a GP/Operator of syndications, you need to be all in. It's one thing when it's your own money on the line, but when other people's money is on the line the stakes are higher. That being said, syndication can be a great way to build a big business that has plenty of opportunity for automation/outsourcing to one day become less involved.