All Forum Posts by: Bruce Petersen

@Tj Hines

If I can help in any way from afar let me know as head down this path.

You're right, it's absolutely better than SF.  SF will provide with a good life but MF has the ability to create life changing wealth.

MF is hard in it's own right as a syndicator but if you are looking to invest passively then the extent of your work is really about finding a syndicator you like and trust and then invest with them as soon as you like one of the deals they present you with.  

Not all deals will align with you families goals so make sure you know their exit strategy and time line; is it a value-add deal or being bought solely for cash flow?

Good luck my friend.

@Jason Carter

Accurate about loopnet however my first deal, a 48 unit, was on loopnet and we made 300+% on that one.

Get on the email lists of the brokers in town.  Just do a google search for something like "multi family brokers austin tx".

@Chris Cliff

Fantastic goal, reach out with any questions that BP members can help with.

Good luck, again.

@Todd Dexheimer

Just messaged you.

@James Charles

Each person has different objectives and goals.  For most paying off the debt is the way to go, it "helps them sleep at night". 

For me, I would never pay off, make extra payments, take out a shorter term loan, etc... for any real estate.  I can make so much more buying income producing assets than the "saved" interest by having the mortgage gone.  Many will say that if something happens and I can't earn then at least I own my home out right.  Think about it, if your lose you ability to earn you likely can't pay your taxes and you can still lose your house.  

If you have the ability to source RE deals where you can hit between 15-20% IRR that's a lot better use of the funds that you would have used to pay something down quicker or off entirely.

If you take the money you would have used to pay off or down a mortgage and instead you save to buy income producing assets, the income they produce (provided of course you have cash flow) will eventually cover the entire monthly mortgage payment for you and you now have an underlying asset that still has the ability to appreciate.

This is just MY approach and I realize many will think it's CRAZY and that's OK.  

Regarding debt, I would definitely pay off consumer (credit cards...) debt as soon as possible but not the mortgage.

Find the people around you that have the life you want and do what they are doing.  If you just want to have your bills covered find a person that has done that; if, however, you want to a BIG life you need to change the way you think with regard to finances.  Find the multi-millionaires you can and look at how they are going about it, it's usually not paying off any RE, personal residence or investments, they will always look for ways to unlock equity and put it to use buying even more income producing assets.

To each their own.

If 60 days is your goal to contract, that's attainable though tough; 60 Days to close is not likely, the typical close in MF is 60-70 days unless you do all cash which I never do nor ever would for a first deal.  I would only do all cash once you are experienced and you find something with lots of upside (value-add) that no lender would touch.

Good Luck to you!!

@Juan Cordero

Did you go to the Lifestyles Unlimited event?

Yep, gotta love leverage and CAP rates :-)

Consider something as small as laundry, while many can't get out of their iron clad service contract, if you have the ability it could be worth it to buy your own machines.

By replacing a contract on one of my properties I realized a 50% ROI on the purchase of the equipment due the increase in income because there was no longer a revenue split for me and the NOI bump was $150,000 on a ~$16,000 purchase. Small ideas like this add up to a lot of extra value.

Remember that on 6 CAP, every incremental dollar in NOI makes your property worth $16 more!!! That's powerful stuff right there. :-)