All Forum Posts by: Bruce Petersen

@Jack Yvars, had someone ask me yesterday if I would manage their 10 unit MF (I have a management company), I told him that it would be 10% or $1500 monthly whichever is greater.

This would equate to roughly 60% of his free cash flow so there's no way he could make it work.

For any legit and experienced MF management company there will be a minimum which almost always will be non workable in the numbers especially if you have investors.

Probably more to your question though, maybe you can find one of the residents that you would like and trust to help with basics for a few hundred a month?

There are many meet-ups here in Austin.

I would go to as many of them as you can and be a frequent attendee.  Get to know who has the skills you are trying to learn and get to really know them (this is where the regular attendee piece comes in).

After you have developed an actual relationship the ask will much better received.

To find the local meet-ups I would go to the meet-up site not here, there don't seem to be many of them listed on this site for some reason.

Love the thought of this, similar done in Nashville and we recently picked up a STR management client there. Don't know how it's going to play out for the investor though.

AirBnB is charging ~25% and then our fee on top of that for management wipes out a ton of their profit.  We will see how it plays out.

Can't imagine a sponsor would need someone to manage their deal, that's kind of their job?

If you are trying to go to LP investors for that then they won't have a deal they need you to manage for them.

I consider myself a fairly smart dude but I think I'm missing something here, could be the 4:00pm bourbon in my hand? ;-)

For 200-400 unit properties where I typically buy it's tough to get much above 70 LTV / 30% down.

I started in RE investing by syndicating a 48 unit property in Texas.

I had zero experience so I decided to start at 40 units or larger because the people that were guiding me said that the rule of thumb for staff was roughly 40 units to support a PT manager and PT maintenance.

This allowed me to hire a manager that had experience so it wasn't me trying to figure it out on my own, I had a "partner" on-site that knew what they were doing.

This was absolutely the right move for me as it was a relatively conservative way to start and enabled me to scale nicely from there.  Next 2 properties were 120 units and 256 units.

Your question was posted in the multifamily and apartment board, MF is 5 units and above.  

This is not even close to accurate for anything I have ever bought.

The property I closed on Monday was 200 units for ~19mm with annual NOI for years 1-3 of nearly 1.3mm; 3x NOI = 3.9mm on a 19mm purchase.

@Danny Randazzo, yes they should be listed on the assessors website.  Enter the address in the search, there should be a spot that breaks down the total assessed value as well as the taxes due for a respective year, here you should also find the millage or tax rate:

@Danny Randazzo, neither, I know the millage rate so I just take 90-100% of the purchase price and multiply. 

Depending on the property, some times I go as low as 90% but that's only if just before purchase I know they have already gotten assessed and is at or below that 90% number though I never go below 90.

For second year I will take it to full purchase price in the above example.  I have seen more than one get reassessed above purchase price and year-over-year increases of as much as 75%

@abrahamanderson Don't listen to others that say "stay in your lane" and out of playgrounds.

This IS your lane, it's an amenity for your residents and as far a liability is concerned, reach out to your insurance provider to ensure you are properly insured and you should be fine.  Someone may get hurt but that's no reason to make bad decisions, you just need to mitigate your risk the best you can.  As for you can't get it insured, I have multiple properties with playgrounds and everything I own IS insured.

Where would YOU want to live? A project style property with no amenities or a place your family can relax and call home.  One where you don't have to drive your kids to a park somewhere, they can play where they live.  

Resist a pessimistic outlook in your business and life in general and it will serve you well.  The whole world isn't out to get you, welcome to entrepreneurship.  

My two cents.