All Forum Posts by: Connor Stark

Hi BP,

So my partners and I are looking for some more insight to the Kettering OH market. We've started to reach out to a couple brokers in the area, but I wanted to leverage Bigger Pockets as a resource as well. 
I'm looking for any insight to the future growth of this market. I noticed that Dayton/Kettering and other surrounding areas have a population trend that is very slowly declining, but for the most part stagnant. I don't know too much about the job market there, so any insight into potential growth would be great. 

If anyone knows of any property managers within the area, I'd appreciate an opportunity to connect. As we refine our search for properties, I'm sure they will be able to help answer tougher questions we develop. 

Jamie, I came across your reach out for potential property managers. Did you get in touch with any? My group is looking to invest in OH, but want to be sure to learn more about the market prior to acquiring something.

I'm by no means an expert in the blockchain and cryptocurrency world, BUT I'm very intrigued by the nature of it and how it can be such a polarizing topic when trying to understand its value and utility in the future. 

I know some advocates of specific real estate coins have harped their utility as revolutionary. Companies such as Meridio - Meridio

and RealBlocks - RealBlocks do seem to have a unique space and value. Do you have any opinions on the emergence of blockchain technology within the real estate industry? Do you have any sources you've learned more about this topic?

We structure our syndications (after a bit of other steps such as preferred return/return of equity) with a 20% promote to the GP (which sounds similar to the role you're taking on), and then 80% to the LP (which will include your equity contribution). 

In a simplified way, this plays out as follows - 

$100,000 profit, with an 80/20 split, and the GP putting in 10% of the equity

GP = $20,000 + 10%($80,000) = $28,000 

LP = 90%($80,000) = $72,000 

Hypothetically - If the project required $200,000 of equity. GP put in $20,000 or 10%, and the LP put in $180,000 or 90%. The returns would look something like this...

GP Return = $28,000/$20,000 = 140%

LP Return = $72,000/40%

I'm not too familiar with the product out in that market, but I wouldn't be upset for a property to be pushing out a 22% cash on cash. No headache and great returns. Then again, I'm used to LA where majority of duplexes are listed at prices that involve coming out of pocket a significant amount each month.

To reiterate what a lot of others have said. I think the most important thing is to build a team that you can really trust within your target market. My partners and I acquired our first 27 unit in PHX. We visited the city multiple times prior and set up as many meetings as we could in our allotted time to meet with property managers, contractors, agents etc. We're working on building an efficient team that works as its own system of checks & balances. The goal is to bring a lot of business to all parties involved so if this is portrayed to them hopefully they feel very incentivized as well.  

My partners and I are in escrow on our first multi family property in Phoenix, AZ. We are looking for some guidance or recommendations on how to accurately find the ARV.

To keep it short and sweet, here are some of the metrics:

Purchase price = 2.1mm

All-in cost = 2.81mm

Current GSI = 163k

Pro forma GSI 260k, NOI =174k

For now we've been using a 6% Cap as a way to estimate the ARV. We've asked agents for comps of other sold properties, but we're curious if anyone has solid input here.

The majority of the building consists of studio units and the numbers we used for our proforma/construction costs were fairly conservative.

Thanks!

I'm constantly working on trying to keep myself motivated in my professional real estate career. I like real estate, but my main desire that keeps me in the industry is to achieve financial freedom to do the things that I'm very passionate about. 

Are there any creative ways that you keep yourself persistent? Driven? Motivated? With a sense of grit?

In my eyes it depends on the side of real estate, your target client, and then there's usually a threshold once you've reached your "returns" start to diminish. 

If you're an agent, you want to be clean and professional in almost all cases. I've done a decent amount of work in South LA, and other low income areas, and honestly I feel more confident wearing a nice short sleeve with normal pants and presentable shoes. I believe showing up to certain areas in a very expensive suit and car could be a disadvantage, the fact of the matter is some people have a sort of grudge when it comes to others who might have more money than them. Now if you're in Beverly Hills as an agent, don't get caught not dressing the part, and if you don't have nice sports car, you should have a good reason lined up for why. If you're an investor, I think it's little more cloudy. You can get away being more liberal in your appearance if the knowledge is there.
 

Who/Where/How have you raised money from partners & investors? What have you learned to be the biggest determining factors of success when it comes to raising capital for a project?