All Forum Posts by: Colton Hahn

 Couldn't have said it better! Rising rates = less buyers. Less buyers = more renters. More renters = higher occupancy. Higher occupancy = higher demand and higher rents

Hey BP Fam!

Warren Buffet recently did an interview (seen here) in which he gave this interesting quote: 

""Apartment buildings are another asset that Buffett wouldn’t mind owning at the right price.

“[If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check. It’s very simple,” the legendary investor says.

Whether the economy is booming or in a recession, people need a place to live. And with real estate prices rising to unaffordable levels in many parts of the country, renting has become the only option for many people."

What is everyones thoughts?  I tend to agree with the number of renters increasing which will drive up occupancy and rents.

Depends on your goals. Do you want to actively manage the properties? Then put money into self managed. Do you want to keep making great returns with minimal effort on your end? Then stay passive. 

 What are you looking to accomplish? Do you want to own real estate outright and manage it actively, or do you want to invest in real estate passively? Thats the first step :)

Depends what your goals are.

Is your goal to actively manage a property and generate cash flow? Then look at a property with 2-10 units that you can make work in your area. 

Is your goal to passively invest, then look at sponsors with a proven track record and a plan that aligns with what you are going for.

 That is a hard question to answer in a post like this, a syndication is a partnership between a GP (the one running the deal) and LP(s) who are passively invested and do not make day to day decisions. 

Return structures, fee structures, the profit split, distribution expectations, communication expectations,etc all vary company to company and even offering to offering.

Often times you must be an accredited investor to invest in a syndication, which means 200k income individually (300k jointly with spouse) for 2 years or 1m+ in net worth (not including primary residence)

Though there are syndications that do not have that requirement, the returns are usually lower from my experience.

We exclusively do multifamily in the midwest, and have found amazing cash flow opportunities and have an audited track record of 31% IRR for our investors. Indianapolis, Ft. Wayne, and Des Moines, Iowa are areas that we love.

 As someone who works in Investor Relations at a syndicator the questions I get these days are related to debt, hearing our companies history/track record, and asking questions about why the market we are buying in is the right one (questions about cap rates, population growth, job growth etc) 

Agree with the other posts here. Passive losses only offset passive gains from my experience and knowledge :)