All Forum Posts by: David Thompson

Most value add apartment owners do not hold onto their properties very long. They add the value / re-position, then re-finance once the NOI is much stronger, pulling a ton of cash out for themselves and investors, or lock in long term or move out the LP investors giving them a solid return and keep a cash cow long term. I've never seen a greater business model than apartments.

I wrote a top 10 lessons learned in raising $1m in two weeks in this forum about week ago. No. 1 lesson is credibility. That credibility comes w teaming up w an experienced partner. IMO you have two paths. Start small and build on your own or go big faster by teaming w experts. Find something u can do for them like raise capital leveraging their credibility and choice selection of a top market and great deal.

Hang,

In Texas, I prefer Dallas and San Antonio right now.  Austin is a bit out of reach and Houston needs more time to settle w/the oil challenges.  If you are out of state and lack connections here, I would advise taking a look at some apartment syndication deals in these two cities.  Experienced operators targeting relative value- add opportunities to re-position class B/C apartments of size in good areas of town experiencing changing demographics.  I spent time looking at some properties recently, doing analysis and although you have to be much pickier and patient, they are out there  As a passive investors, you can enjoy solid cash flow and some upside.  Scale is important and hard to do just starting out and w/o connections.  Find syndication deals w/sponsors that have track records that practice conservative underwriting.  Hang out in apt forums and you will run across them.  

John

Still finding relatively reasonable value and cash flow w large apt in strong markets where people, jobs and rents project to continue for next 3-5 yrs. 10% CoC, +20% IRR, attainable. I believe small apt market is saturated w small operators looking for deals. Scale is key w fewer folks financially able and skilled to take down 300 unit opportunities enabling more upside. Best way to play that is passively thru good syndicate deals. I personally think prudent to look at a hybrid approach and invest in various strong markets passively in deals difficult for small investor to do actively while saving active funds for your local bread n butter deals, flipping, buy n holds of SFR.

Im aware of good passive opportunities if accredited and interested, PM me. Otherwise wish you the best w your local strategy.  Sounds like you have a good formula.

Steve, likewise, PM me for info / direction.

Brian

I have a good commercial broker in San Antonio that does most of the 100+ unit deals in that town.  Im actively collecting data on that market as well.  Our team is also actively working the north Dallas area taking down a 320 class B property there currently.  PM me for info learned.

Hi Ido,

Welcome to BP ! I have some good friends here in Austin from Tel Aviv and doing real estate investing that I can introduce you. I have a couple ideas for you. I would look at some passive and turnkey options. My first idea is if you are accredited there are some good apartment opportunities run by syndicates. I currently have one going on in Dallas which is a great market. I can PM you on that opportunity. Regarding single family and smaller multi-family such as duplex, fourplex I have some insights on solid deals in Houston and San Antonio that I can get you some information on and you can decide if its something you want to do. In these latter situations, the investment comes with property management so its great for out of state or foreign investors to participate. Lastly, if you are more of an active player, it will take more time but their are relationships you can build w/others to JV, etc, just more difficult to get in on and make sure you vet the partners and their track record.

Texas overall remains a solid market primarily due to influx of population and job growth coupled w/relatively lower cost of living than natl averages. Companies are relocating to Texas from higher cost coastal regions (east/west) reducing their labor costs and the state is very favorable from a business environment as well.  

Brian,

I believe you posted this on the wrong site.  Any comments from your lessons learned in raising capital is of course appreciated.  You have a lot of great experiences and others can learn as well.

Thanks Sajju and Brandon.  Sajju, I'm sorry I can't provide the video call for our investors to you.  Essentially though, you should have your top folks from the sponsorship on the call.  The general length is about 30min, take them thru why the market, deal and team makes this a solid investment. Allow questions at the end to be emailed to one of the sponsors.  Everyone is on mute except the sponsors.  Sponsors read questions and answer.  Its best not to have open lines that could pose problems as you can imagine.  We record the call so that those that missed can hear it later at their best time.  Hope that helps.

Lawrence,

What books on MF investing have you read?  There are some great books out there.  Your question if very open ended and depends on so many factors.  These discussion forums are great for specific questions but thinking some of these books might help if you are new to this area:  Go to Amazon and check on:  Steve Bergen (the complete guide to buying and selling apts); Dave Lindahl has two books on MF investing and emerging markets.  That will get you started.  Then come back w/some questions we can help you with.