All Forum Posts by: Daniel Reyes

 Hi Allyssa,

If I may - the historical data Ian is referring to is the T12 (trailing 12 month income statement). This should be provided by the seller.

All the best!

Daniel Reyes

InsightBay.co

Hi Amanda,

Great question, thank you for posting! You might employ many research methodologies when learning your current market. From the Google searches, to conversations with brokers, to perhaps census data. The CCIM Institute offers a market analysis course that many are unaware of that teaches market analyses inclusive of political and legal analysis (course # CI 102). Another good source of economic data (can be turned in information) may be your local EDC, or economic development corporation or chamber of commerce.

Please feel free to reach out to me if you have more questions.

All the best to you!

Daniel Reyes

InsightBay.co

Hi Josh,

Thank you for posting! There are standard/basic calculations you can use to quickly analyze the viability of a deal, they're referred to as "back of the envelope" calculations. Bruce Kirsch's program GetREFM is an industry standard in financial modeling. Also, Spencer Burton offers underwriting models via his website "Adventures in CRE". Generally, there are standard figures investors review. That is the "science" part. The specific assumptions and such will be the "art" that you add in your due diligence process.

Please feel free to reach out if you have any more questions.

All the best to you!

Daniel Reyes

InsightBay.co

@Jon S Strick

Hi Jon,

Great question! The answers provided are all appropriate, with the splits and such varying by scenario. Before formally presenting a deal to an investor, it is best to have already consulted with a securities attorney and prepared a private placement memorandum.

With regard to presenting an opportunity to an investor, I would recommend having done 99% of the due diligence work before looking for a specific interest in the deal. This means all of the underwriting, financial/physical/operational reviews, as well as discussed the deal with consultants (tax, insurance, etc.). This way the focus of the investor meeting is how the vetted deal fits into their agenda, as opposed to discussing nuances about the property.

Of course, it is preferable to have an investor database already established for yourself. This should include some form of risk profile so you know if they would be interested in a development deal vs a value-add deal, for example. This is done by way of meetings and conversations.

I wish you all the best, Jon! Please feel at liberty to contact me if I may assist you further.

Daniel Reyes

InsightBay.co

@Shweta Patel

Hi Shweta,

Thank you for posting!

Real estate financing has the ability to develop into a creative mission. In this scenario, you may like to consider reaching out to the owner directly and see if he/she has an interest in seller financing. If there is an agreement, the paperwork is done and the debt is arranged.

All the best to you! Please feel at liberty to connect.

Daniel Reyes

@Alyssa Knox

Hello Alyssa,

And welcome to BiggerPockets! We are glad to have you with us.

The biggest challenge is to get started anywhere, as there is much to learn, so you can do this.

A good place to start is, in a sense, with yourself.

1) What kind of real estate?

2) Why?

Smaller questions of course, but this will help inform your strategies.

Notwithstanding these, you may find value in joining a real estate networking circle and studying your market of interest.

Please feel at liberty to contact me or reply should you have any more specific questions.

All the best!

Daniel Reyes

@Neil Henderson

Yes, very good I agree.

@Jess White

Hi Jess,

This is a great question, thank you for thinking it up!

All of the above answers are excellent perspectives. Generally, diversification in real estate, specifically, is a process of risk allocation. A savvy investor (in real estate) will “diversify” by buying across asset type and market, for example.

Diversification is a response to risk profile. Your risk profile will be contingent upon your overall resources, strategy, and goal. This is assessed more easily on a personal/individual level; there is great skill involved in tactfully developing a risk appetite profile for let’s say a pension or institutional fund, or even a potential private investor. Risk parity, although more commonly applied to stocks and bonds, is a studied portfolio management theory that you may find interest in and find you are able to glean knowledge that transfers directly into real estate.

Take care! Thank you for asking such a good question 😉.

All the best to you,

Daniel Reyes

Hi BP friends!

The process of acquiring and disposing of multifamily communities has the ability to overwhelm even those who are not particularly faint of heart. In addition, such step-by-step lists are hardly ever volunteered.

For those who are new to this process, what is the BEST way to formulate an acquisitions/dispositions checklist?

My take is- start to track everything sellers/buyers request on each deal and put it on a spreadsheet or Word document.

Thank you for your feedback!

All the best,

Daniel Reyes

@Jay Helms

This is fantastic! I appreciate how specific these objectives are. Thank you for sharing, Jay!

All the best to you,

Daniel