All Forum Posts by: Bruce Petersen

I'm in Austin and if our schedules sync I would be willing to meet with you at one of my properties and talk?

@Account Closed

Are you guys looking for Multi-Family or Single Family?

Schedule doesn’t work but I was hoping to. 

“Hit ‘em where they are” not where they aint to butcher an old baseball saying. 

What the others have said is number one but once you have that, go to every meetup and investor gathering you can find. 

Be genuine and provide tons of value to others before you ask anything from them.  It’s a long game, take some time to develop meaningful relationships and they will trust you.  

If you don’t have experience, say so, don’t act like something you’re not, they will be able to see through you.  I had ZERO experience in investment RE and was still able to get 14 investors for my first deal, a 48 unit. 

Good luck on your journey!!

About 80%

Many have probably answered already but you don't have to be accredited though some will require it.  Most of the requirements rest with the syndicator and depends on how they register with the SEC.

Main thing for you is to do your due diligence on the prospective syndicator; 

-talk to others who have invested with them in the past for their experience and whether they would invest with them again

- ask them directly about other deals they have done and I would like to see their bio

- get to know them as best you can, does the hair on the back of you neck stand up when you are around them; are they able to answer your reasonable questions; do they seem and feel competent and confident without be arrogant?  If you don't like these answers find another syndicator.

Last I heard (2014) the industry average for true MF and not just multi-unit is ~ 55%.

As for how many you lose, that's just math.  If you have a 100 unit property the industry avg would suggest you lose about 55 tenants each year.  Across our portfolio we average about 35% with the high side being 45 and the best property  (256 unit) being below 30%.

Again, industry average unit turnover cost (factoring in lost rent, marketing, staffing and commissions to re-lease it and the actual rehabbing of the unit) on a per unit basis is anywhere between $1500-5000 depending on level of "upgrade" done on the unit.

If you staff is clicking you should not have units vacant for 6 months.  Average for turn is 5-7 days but if it's a high volume month it could take a bit of time to get them all made ready.

Same here, yes, I have invested my own capital in all deals.

Having said that there are legit reasons that some sponsors / syndicators would put nothing into a deal.  The main reason is for liquidity purposes.  If his/her cash position gets a little low they may decide not to put any of their own money in a deal.  To sign on loans, which the syndicator does, they need to have a minimum level of liquidity post close to satisfy the lender.  If this gets low they may decide not to put their own $$ in.

Ideally they would put their own money at risk as well as yours but sometimes and for good reason they won't.  I would ask why they aren't and would need to feel comfortable with their answer.  If they give an uncomfortable answer or refuse to answer I would not invest with them, there will always be another deal.

On our 120 unit bought two years ago we went from $319,090 to $721,920 and our 292 unit bought 2 months ago it went from $729,272 to $1,640,556 in annual depreciation.

We paid ~ $3000 for the cost seg survey to be done so for us and it is an absolute no-brainer.

Even with the accelerated benefits bleeding off over the first 15 years it makes total sense and hitting on what @Yonah Weiss mentioned, we are continually adding capital assets that we can then put back in to the cost seg pot.

My last comment on this and will then leave it to the experts.

@Michael Guzik said it well when he said that many don't really care and are just in it for what they see as an easy and quick buck.

My analogy is a gold rush or oil boom, everyone is chasing the hot investment sector right now similar also to the tech bubble in the late 90's.  Everyone is suddenly a property manager and many have little or no experience.

This market is hiding a lot of bad operators and management companies, when it does finally correct you will likely see a crap load of these companies disappear.

Just please do you due diligence on whoever you choose and be careful.  Bad management will ruin the best of deals.

Having said all of this, I don't know the management company guys on this thread and to be fair, they probably are very good at what they do.  There are good ones to be found you just have to find them.