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All Forum Posts by: David Thompson

David Thompson has started 7 posts and replied 875 times.

Post: Anything for sale? I'm looking for deals

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Hi Jean

Are you only interested in actively owning or managing parks or would you consider a limited partner role to start so you can earn and with intention learn more about how professional syndicates deliver solid returns in this space?  I love parks and find a lot of folks just don't really get the model yet but would like to learn more and participate alongside folks that really know how to find and operate them well.  More than happy to share ideas.  If active and seeking more of a GP role I can connect you to folks as well seeking capital on their projects.  Big players have moved into the space (talking institutional) but there remains room for the smaller, nimble operators near term to continue to grow and pickoff some deals.

https://www.biggerpockets.com/blogs/9145/62927-6-r...

Post: Commercial or Multifamily?

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

https://www.biggerpockets.com/blogs/9145/53820-why...

I talk with a lot of investors.  I focus on several niches including MF, self storage and manufactured home parks.  These 3 offer some of the best historical returns and future prospects in commercial investing space, while holding up well in downturns.  That said, the core of what I work on is MF apartments because investors all lived in one and get it.  I get the most requests for these types of deals.  Only 10% of folks nationwide rent a self storage unit and fewer are living in manufactured home parks.  I still like these latter areas for other reasons but MF is just easier for folks to think about.

Post: Invest in Others' Projects vs Have Your Own Projects

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Elle,

Honestly, most folks get really good by working with or participating in deals w/experts to start in whatever niche they are seeking.  Observing, asking questions and being "intentional" with your investments so you can earn and learn in a safer environment is an angle worth pursuing.  Most folks won't give you $ w/o experience and credibility.  Some of the worst advice you will ever get is if you have a good deal, money will come.....not happening !  It takes a good market, deal and experienced team to have the solid underpinnings to start raising capital.  Couple articles on vetting deal sponsors and raising capital.  If you go the latter route, seek legal counsel and understand the compliance angles w/this approach.

https://www.biggerpockets.com/blogs/9145/67627-rai...

https://www.biggerpockets.com/blogs/9145/53959-vet...

Post: Finding investors for syndication

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Hi Dennis,

Friends, family, co-workers, whatever it takes to start.  But if this is to be a long term business for you, I've synthesized what I've learned on raising millions in this space to 5 essential points that may help you.  If you can think bigger than transactional and more along the lines of a long term sustaining business, you'll be going in the right direction.  Reputation is everything in this business so my #1 advice is partner with experts.  Learn and develop your reputation off the experience of others.  Then, you can do your own deals later when you have built that confident, trusted investor base since you then become credible.

https://www.biggerpockets.com/blogs/9145/67627-rai...

Post: Help me understand the advantage of multi's

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Hi Chase,

Couple articles you might find of interest, just did this blog yesterday on accelerated depreciation (cost segregation). Another comment, in 2009 the MF apartment loan delinquency rate was 1% vs 5% for SFR nationwide. I use this as a powerful "risk discussion" w/investors especially at this stage of the cycle. I was recently on Rod Khleif's podcast and he mentioned that in 2009, he lost a boatload w/his thousands of SFR portfolio while his MF is the only thing that held up.

In MF at its essence: less risk, more scale, forced appreciation, accelerated depreciation, commercial valuation model make it a more attractive business model than SFRs.  

https://www.biggerpockets.com/blogs/9145/70451-acc...

https://www.biggerpockets.com/blogs/9145/53820-why...

Post: Long distance investing (Dubai)

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Hi Tiffany,

You could also start out passively investing in larger MF properties through a syndication. Most of these deals require accredited investor status (google definition for U.S.) and allow you to be limited partners. Syndications are run by professionals who acquire, renovate / re-position and improve operational efficiencies. Deal size necessitate that general partners source down payment and renovations costs working with limited partners (investors) to help fund the opportunity. Returns can be very attractive typically ranging from 8-10 CoC (8% preferred returns common) and 16 - 18 % IRR over a typical 3-5 year hold.

Good syndicates that focus on long term relationships with investors look to be very transparent and educate investors in this area and on the market / deal itself.  Frequent monthly communications on project's progress is shared with investors so that you can actually learn while you earn.  You can invest from abroad and I think that is what makes syndication a great avenue because for many some of the best markets and deals are not in their geographic area, providing diversification and ease of management oversight since you are not having to do the work.  I have a lot of investors that realize they don't have to give up their active side, but having some syndication positions makes a ton of sense to them to access scale, professional management, different geographies, etc. Couple articles you may find helpful. 

https://www.biggerpockets.com/blogs/9145/53820-why...

https://www.biggerpockets.com/blogs/9145/54830-inv...

https://www.biggerpockets.com/blogs/9145/65780-syn...

Post: Mobile Home Park Syndications for non accredited investors

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Tony, 

More than happy to share ideas on this w/you on that.  Why I like this niche below...

https://www.biggerpockets.com/blogs/9145/62927-6-r...

Post: Best Multi-Family Syndication Coaches

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Most programs target end to end syndication and charge a boat load.  I would suspect that many students never put anything into meaningful action after the excitement from the seminars or coaching programs wane.  It can also be overwhelming to many as its really a team sport when they are balancing full time jobs, families, etc.  I'm sure there are a lot of programs that are fairly similar in nature.  However, very, very few put you in practical, "think apprenticeship type" opportunities to learn alongside experts doing large, syndication deals enabling you to rapidly grow your experiences , knowledge and credibility in a safer environment (less bruises and broken bones) without damaging your pocket book and reputation doing bad deals in less than stellar markets. 

I like what @John Casmon summarizes, do as much homework on yourself as you do on what the coach is offering to see if a match.  Forget focusing on "who's the best"...that really is not the most effective way to go about it.  Be more intelligent, introspective than that.  If I ask the coach "how can I help you" is there a way, path to partner even if its a small role on the team.  Do it for the experience and what you'll gain in your business as a result.  Will the investors I bring to the deal be my investors?  Will I grow my knowledge base across all areas of the business?  Is this a person I can work with from a personality perspective who wants the best out of me and willing to give their time, energy and passion?

Post: How do I find Syndication deals?

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

Hi Troy,

Deal flow looks pretty good in the TX markets currently.  Reach out if you'd like to share ideas.  It's always good to start w/what you are looking to achieve, if accredited or not, etc.  Experienced sponsors (team), strong diversified markets (pop/jobs ahead of natl avgs) and conservative  underwritten deals are what you want for instance.  Here's a quick top ten tips on vetting sponsors that might be a good start.

https://docs.wixstatic.com/ugd/fa41db_121a65362da1...

Post: 13 of the worst S&P Performers this year are REITs

David Thompson Posted
  • Investor
  • Austin, TX
  • Posts 933
  • Votes 1,127

@Zach Quick agree w/your comment. The buyer of value add syndicate properties are typically REITs. They are looking for properties that are stabilized (they don't want to do any renovations, turn around strategies for the most part) and are looking for yield. Safely leveraged they are targeting the 8-10 yield. Value add players are targeting 8-10% CoC and 16 - 18 % IRRs over a 2-5 year hold. Slow motion flip. Totally different strategies and expectations.