All Forum Posts by: Chris Fennimore

@Jens Nielsen I carry a landlord policy with replacement cost exceeding property value, 2mil in liability, and personal liability policy that covers all business related issues, that covers an addition 2million.

Thanks @Jered Sturm.  It was really great seeing a walk through of the two approaches and the returns. 

@Darren Eady, @Dale Hensel Thanks! I'll be in touch. 

Hi, quick backstory, my partner and I have 50 units in NM and have raised money with family and close friends.  We'd like to bring in debt partners on some of our places we've owned for 1 year to 6 months to free up our cash to buy more places.  

I'm going to be reaching out to my broader circle of friends, classmates, etc. and was looking for advice on how best to approach them. I've put together a prospectus that I think is pretty thorough.  We can show actual financials vs. pro forma numbers albeit for a shorter time period.  Some of them know I've been investing in real estate in my free time (read: part time job), others don't.  I want to find a tact that respect their friendship, but also shows that I'm a professional even though I don't do it full time and this is a well-thought out investment.   If anyone has some good suggestions on how they've approached things that would be great!

Thanks.

Great list @Joseph Fradelakis, as someone looking for private lenders it's helpful to know what I should provide to help give peace of mind.

@Bryan Hancock and @Don Konipol Thanks!  This is helpful and I'll reach out to a local securities attorney to get a firmer answer on what we are specifically doing.  Don, one thing that I noticed you mentioned, "raising capital from people you have an existing relationship,"  does this mean that if I continue to raise money via people I know but just expand it out to classmates from grad school, wife's friends and family, etc and they are debt partners who are getting 7-8% for a 5-7 year term, that might be acceptable?  

Even though I know it's gotten easier, I don't think we are quite ready to throw up a website and we aren't looking for equity partners at this time. 

@Darren Eady Thanks! I'll reach out to Don.

@Al Williamson, @Lydia S., @Sean Gover, @Walter Minja, @Ryan Landis, @Account Closed

Thanks everyone.  Ed, see my response above about GRT. I'm still getting the hang of tagging people.  Walter, my experience has been pretty good with residential rental business, first few years we learned a lot of lessons the hard way, but we feel pretty good about how things are going now.  Still have a lot to learn. 

@Ed Endicott you are correct, they are extremely aggressive with the GRT down here. My partner's wife got audited at her business.  Right now we are paying around 7% in GRT on property management and service providers, we look at it as part of the cost of doing business.  My partner has his broker's license, but has to pay GRT on commissions.  Overall though, while GRT is a pain,  we have found NM is good place to do business in the rental market. 

Hi there, 

My name is Chris and about five years ago my best friend and future business partner moved to Albuquerque.  We had lived in California for a long time and with the sky high property prices had never thought about rental properties.  When he got to New Mexico and told me we could buy a fourplex for the price of a broom closet in San Francisco, we got into the game.  We now have 50 units and I joined Bigger Pockets to keep learning and talking with others out there and try to learn more about how to grow our enterprise.