All Forum Posts by: Colby Fryar

@Kash Jawed  Jens Nielsen Open Doors Capital.

You can do it either way and of course it is always best to consult an attorney.  It will also depend on the state you are in.  I found it just as easy in my state to set it up on the SOS website and it was much cheaper!

Before jumping in to an llc, I would encourage you to start building relationships with team members, brokers, finding deals and underwriting deals.  Make sure this will be a fit for you first.
 

@Michael Whitman  Congrats on the find!   It is normal to get cold feet but the main thing is to do the best due diligence you can do prior to going under contract-  "Pre-DD".  There are a lot of details that would be good to know such as size of multi, age, number of units, etc. If you have a rent roll that is great. It sounds like a duplex or smaller multi so getting detailed information for this size of property may be very limited. You will want to get a professional inspector and contractor that you trust to walk the property on the outside if you can't get in.  If you do go under contract, make sure you have ample DD period and that there are contingencies included so you can get your earnest money back.  It will really come down to the condition of the units and how fast you can get those rented.   

I think going out of state is a great idea. It will take a lot of work and perseverance, but it will be worthwhile in the long run.  You will need to research and select a market that fits your goals.   Then you will need to build a team before you hit the ground running.   There is a lot of experience on this site that can help you navigate through this.

Absolutely start with your bank.  They should be able to send you a pre-approval letter.   This is a very important document to have for any real estate agent when you are starting out.

@Ryan Klein  don't minimize the importance of cash flow.  I think Andrew is absolutely correct.  Cash flow does not build wealth, but when you are starting out, make sure that the cash flow is ample on any deals you go after.   Otherwise your investing journey may end before it starts. 

Absolutely, you can do this from anywhere.  You just need a good team in the market you are going after-  real estate agent, property manager and contractor.  This is how I got started in real estate, investing out of state in Alabama while holding down a full time job in AZ.  

@Jorge Abreu

We love seller carry as well.  On my first syndication deal, we were able to get a seller carry note for 5 years at 4% and another 5 years at 6% cap back in 2020.  Our only other option would have likely been a bridge loan for this size of property.  We are so thankful we got it.  They are much easier to deal with and there are no hurdles or lender requirements to meet other than paying the note on time every month.  They work well for mom and pop sellers that are free of a mortgage and are looking to retire on the cash flow.  They don't work so well for most syndicators and sophisticated operators in the space.  

Announcing the speaker for our next meetup, George Duke, local real estate investor. He is going to talk to us about Gator investing and short term lending, an amazing strategy which provides short term funding for real estate deals. You won't want to miss this one, as he describes how he is doing one after another of these and making huge profits on each deal.

Join us next Thursday Feb. 1st at 6 PM for the Tucson Multifamily Meetup, Firetruck Brewing E. Grant location.

We have another great Tucson Multifamily Meetup coming up next week at Firetruck Brewing Company. This month, my good friends and partners, Ray Hightower and Adrian Diaz, will join us to talk about how to invest in and take down larger multifamily deals. We will also share valuable insight on how we have garnered the attention of top brokers across the United States ! Join us at Firetruck Brewing Company, 4746 E Grant Rd. 6PM-8PM.