All Forum Posts by: Chase Louderback

Hi @Rachel Zelaya

Have we met at the Gainesville Real estate investors meetup?  

If everything else is completely tapped on the capital side then it does sound like starting some sort of fund may be the best option.  I do know of some other flippers that have just made new contacts and get great private money terms that way too.  

Best!

@Raj G.

Like @Alina Trigub said there's many ways to do the split or partnership.  Some do 60%/40% favoring the lender.  Some take on more of a hard money lending aspect and get points up front and just interest on their money secured by a lien on the property.  

If the partner having no money down concerns you, you could always ask that they put some skin in the game (if possible).

@Sam Ng those returns aren't unheard of but depending on where they are investing that's a pretty high CoC. Usually the large returns are at the resale and most people project (conservatively) around 8% CoC in this current market for value add deals. Generally, syndicators that are starting out will have to partner with an established sponsor so you could always ask if they are doing that for their first couple of deals.

I work with a syndicator out of Northern VA. I'd be happy to connect so you can see what we are doing in the business. I currently don't know of anyone else in the D.C. area that is closing deals, but I'm sure other Biggerpockets members will chime in.

Hi @Mitch Hohlen

Like Seth said, deals of that size will generally be syndicated. Depending on how you are doing the deals and how many investors are involved you may have to syndicate the deal since it wouldn't qualify for a JV (joint venture). If it is just you and one or two other investors and they are all active. Then doing a joint venture would be fine.

Feel free to DM me if you have any questions and I'll be happy to help.

Best!

@Jon S Strick

Welcome to BP.

The others in this thread have great responses.  Just think about the split as complete ownership in the property and that simplifies everything with the disbursements and equity breakdown.  @Alina Trigub 's recommended books are very good reads to get into the apartment space.  

Deals are definitely hard to come by with this market environment, but they are still out there.  Just keep working at it and I'm sure you will find something.

Good luck!

Hi Bruce,

It really just depends on your goals.  If you are planning on getting into syndicating deals yourself someday, then working with the established syndicator could be a great way to get in the game and learn some of the ropes.  That is assuming you are educated on syndication structures and what they look for investments first.

Like you pointed out, BRRR-ing a property will have more work, but probably higher returns - depending on the deals you get. It also depends how much capital you have to invest. If you are trying to grow your wealth and you have 50k to invest then you will likely get a higher ROI from BRRR-ing then syndicating. Now if you want an 18% ROI on $750k you'll have to do quite a few BRRR's and decide if that is worth your time.

@Luke Miller had a great, concise response to this and the difference between JV & Syndication.

The only other thing I would like to add is to look for seller financing.  You can structure that a lot of different ways where you may need little down or get some periods without payment, etc.   Your options are limited by your creativity and what the seller will agree to.

Syndication is essentially a fancy word for raising money from a pool of investors to buy a large investment. So syndication pools the equity of the deal (downpayment or your 5% in this example) and the debt (bank, fannie mae, seller financing) are two different things.  You can even syndicate or have a capital raise for the full amount of the property.  It is just difficult for the numbers to make sense.  

So think of seller financing like any other sort of bank debt. Seller financing is nice because you don't have as many hoops you have to jump through as you would with the bank or agency debt and you can structure the loan almost anyway you want.

If you are nervous about the cash flow then you will have to really analyze the deal to make sure it makes sense and if it still does maybe you could ask for some months without payments?  Structure a couple years interest only?  Maybe you can lower the interest rate?  These are all things you can look at and discuss with the seller.  Your options are only limited by the deal and your creativity. 

Hope that helps

Absolutely, I'm happy to help.  I have heard of some dealers bringing in mobile homes and selling them from your lot, so that's great you were able to find that connection.

Hi Scott,

Buying used/repos from dealers and selling on contract is what has worked best for our park here in VA. Some lots have also been filled by the method @Roman Tomkiv suggested which is to network with dealers and let them know that you have vacant lots at your park that can be filled by their customers.