All Forum Posts by: Bruce Petersen

@Christopher Giannino, it also has to do with type of filing and total raise.

If you do a 506b you can have non-accredited (pre-existing relationship people, get with you attorney) but only 35 of them so it can come down to math in a way.  If you are trying to raise 500k then 10-25k minimum should be fine but when you start raising 5-10mm or more you will want a higher minimum to help keep the total number of investors more manageable.

The higher your minimum the fewer investors you should have which makes your job as the sponsor much easier.

The corporate lease guarantee is only as good as the tenants ability to remain solvent.  If and when the economy corrects many smaller tenants will likely go bust (I'm not in this space but it feels like sound rationale).

In a correction people will cut back across the board but the last thing to go is food and shelter so I see MF as a much safer investment. 

@Fradel Schaechter

Don't let anything stop you from this.  You said you couldn't get it done through meet-up; find another way if you can't make that work, I asked one guy face-to-face if he wanted to meet and he said yes and we were off.

Don't be overly reliant on technology, it's great but don't accept not doing something because you don't get the tech right or figured out.  What if you can't figure out FB or BP or whatever else, send smoke signals if you have to but don't ever give up or over think things.

Good luck!!

@Michael Kim

I want to address your statement that Fairless was guaranteeing 18% first year passively.  I haven't listened to podcast #227 but I can't believe any sponsor would ever guarantee anything, ever.  We all do our best based on experience and knowledge of the industry but none of us can "guarantee" anything.

I'm going to assume that he didn't "guarantee" it and now echo what @Brian Burke said, 18% is really high at least where I am buying.  Most of my deals are looking at anywhere between 10-16% IRRs.

I also live in Austin and I'm able to consistently find deals that provide an 8-10% first year investor return but I'm typically buying 200-300 unit properties.

@Gino Barbaro  Good stuff Gino Baby!!

Is there a required meal purchase?  I am on a very restricted diet at the moment so we will not be ordering food.

@Brian Lewis, yes many syndicators are on BP.  Look beside their name, most will have the title syndicator beside their name.

I would start getting into contact with the syndicators that you like by following them by direct messaging them, most are great people and are willing to have a conversation and entertain questions.  Once you find a few you really click with see if they have anything they are currently working on and see if you can join.

@James Rader, please ask you deal sponsor if the effect of his/her premium is factored into the stated C.O.C.  If it's not ask to see the actual investor return not just the return for the project as a whole.

If they can't sufficiently explain it or worse, refuse to, you must run away quickly in my opinion.

My PPMs and Operating Agreements are usually very close to the same on every deal and I use the same attorney for all of my deals. I will get the ball rolling with the attorney on accepted LOI but on occasion have set it up as a "Blind Pool" offering well before I have even found a target property.

As for LOI or PSA before money raised, I have a track record and most all of the brokers in my market know I will close so it's not a problem waiting to raise the capital until after PSA.