All Forum Posts by: Rusty Pollard

@Greg Dickerson thanks for your input and the info. We will certainly consult with a professional as we get closer to rolling on this one. Appreciate it!

Hi BP Nation,

My question is fairly simple. I am part of a team who is just getting things together for a project where we need to raise $2m for the land and an additional $5m for the equity portion on an apartment building project. The deal itself is a great project and I don't anticipate any issues with raising the funds as most of us on the GP side have raised money for other projects, but none of us have ever had to go the formal syndication route. 

My question for you today is due to the fact that we haven't settled on a syndication attorney yet--we're still in the initial phase before we go through that process and potentially have one on retainer. Here's my question:

How do we handle the partnership or compensation of the folks doing the leg work for raising the money? Certainly, if someone who is already on the GP team raises funds they will have that in their favor as the GP pie gets cut, but what if we have another colleague who has contacts (who we don't currently have a relationship with) who are interested in coming in on the deal? Are we required to bring this colleague in for a cut of the GP pie? Are there restrictions to just giving this colleague a fee for bringing folks to the table? I was doing some research and came across Rule 3(a)4(1) but I did NOT understand it. So here I am, asking for input from the collective knowledge of you folks. :) 

Appreciate your insight!

@Daniel Whitmore

Hey Daniel! The portfolio I run is spread all over the Wasatch Front and I am based out of Orem. Your initial analysis was spot-on. The Wasatch Front has become quite overpriced for the traditional value-add investor's approach and multifamily is often sold for double what generally fits my criteria.

With that being said, appreciation has been strong and people are still investing here as they see the growth and economic future of the area being strong. As far as areas to avoid, that really depends on your personal criteria and what tenant base you're looking to work with. Happy to chat more and help you get further down the path of purchasing a property!

@Stanford Neal Mead Happy to help you crunch numbers in person or on the phone. I'm in the area (Wasatch Front) and like to help people get started. Let me know!

Welcome to BP! You're going to find some great resources here. I grew up in the Colorado Springs area and currently do real estate next door to Pueblo, in Florence and Canon City while I live out of state. Let me know if you need any contacts!

Thanks so much for the input!

Hello everyone, I've got a house with a walkout basement apartment under contract with a wholesaler and scheduled to close next week. I have it locked in for $245k, the rehab will be around $30k, and ARV should be north of $315k. we're planning to occupy upstairs and rent downstairs. Downstairs should cover most of the mortgage as it should rent for around $1000. I have seller financing lined up for the first 8 months, and I am planning to refinance as soon as the rehab is finished to capture the increased value and reduce my cash outlay. The complicated part is when we move into this place I will be leaving my comfy W-2 job and going to a new job with a much smaller salary but good potential for commission. Will this make my refinance harder since I just changed jobs and an making less money (salary)? Am I overlooking any creative options as far as this situation goes? I thought 203k may be an option, but I was steered away from it while talking to my mortgage broker. Thanks for your input!

I've had good luck in Florence, which is just down the road from Canon City. Even though it's fairly close, Pueblo is its own animal and I won't be buying and holding properties there anymore (it's probably fine for a quick flip). I'm looking for apartments in Canon if you come across any!

Good for you for taking the leap! I'm at a crossroads in life where I'm trying to plan the jump (sometimes I feel jumping before I'll fully covered by passive income might be a little premature for my family's situation) instead of just jumping and figuring it out as I go. Good luck!

Luck more often comes to those working hard to make things happen! Networking is absolutely key. Congrats on the find!

I have a duplex in the St. Paul area and some of my partners are very active in that area. Feel free to reach out if you'd like to chat or if you need someone to bounce ideas off of.