All Forum Posts by: Colby Fryar

I'm assuming you have underwritten the deal and like the numbers?  If not, that is the first step. I think finding lenders should not be a problem.   I would reach out to the broker to get his recommendation and they may already have a quote.  Finding investors:  that is the million dollar question.  First of all they need to trust you and you need to have an established relationship in accordance with the 506b rules. Also, it helps if the deal has good returns, which might be questionable at this point, although I know nothing about the market or the property you are investing in.

Bottom line is that if the deal works, I would recommend that you go in with a partner or under someone that has experience doing larger deals and potentially syndications.  

I think education is great but at some point you have to jump in and get started.   I also agree with Julia.  I think mentorship is so under-valued in this business.   It changed my life- I can honestly say that.

@Frank Newsome typically there is not a good separation on areas for Section 8.  You can have Section 8 renters typically in any area.   Of course a lot of depends on the specific market you are in.  I would have to imagine that you could have section 8 renters anywhere in Detroit. One thing to keep in mind is that in some markets, including mine, you cannot segregate against Section 8 renters.  I don't why you would want to anyway, since the income is guaranteed.  We have had very good luck with Section 8 renters as long as you do the appropriate background checks like normal.

@Chad Verde what are you looking to learn about?  Depending on what it is, it's probably not necessary to have someone local.  For example, I know a lot of investors that understand the Houston market intimately and do not live there.  Also, it is likely more important to have someone that understands the asset class you are interested in.  

@Rafael Ro have you thought about passive investing in syndications?  Sounds like you have a lot on your plate my friend!

Anywhere but California my friend!  Even New Mexico is better and that is a big stretch.

@Alex Longinidis First of all, congrats on your first deal.  Sounds like you have taken on a big project for your first one, but that's how we learn. On the job education!  By the sounds of it you are going to have your work cut out for you. 

I'm assuming it is vacant?  If it is, I would do whatever I could to get good paying tenants in there right away,  If it is vacant, you are going to be running through cash like water through a sieve.  In any event, I would be glad to assist in any way I can as I have been through what you are likely about to go through.  Please reach out with any questions.

@Shayan there are a lot of steps to go through here.   First of all, I'm assuming you are familiar with the area and the demographic.  Also have you done any pre-dd-  driveby, discussions with broker, property managers and other real estate professionals about this property.   Assuming you have done those, understand the area and the demographic and hopefully have some idea of the financials for the property, then you need to underwrite the deal.  

If you do not have experience with this, I would highly recommend getting advice/assistance from someone that you trust in the business.   If not, pay a coach or mentor to help navigate through the process.  So many people think they can jump into this all alone, but they end up paying a heavy price most of the time.  Let  me know if I can be of any help to you. 

I would walk the property (if you can) with a trusted contractor, but get the opinion from several.  I have seen costs vary widely from contractor to contractor and you want to go in with all eyes wide open.  Some will give you costs based on no permits, which will likely be lower.  Assuming you are sticking to code and getting all the necessary permits, your costs could be higher than you anticipate.  It is very hard to give an average on this.

Great Post-  I appreciate you saying what a lot of the Gurus fail to explain: that this is a long term process and in a lot of cases we don't see the benefits for years to come.  I know we all get caught up in the frenzy and the excitement of large deals and great cash flow, but there are no get rich-quick schemes in this game.  In many cases, it takes a few years to really start seeing any appreciable cash flow, but it is the relationships we make, the learning and overcoming challenges and obstacles every day that is the true rewards in this business. Congrats on your growth and your vision!