All Forum Posts by: David Greenberg

Hi.

I've read some of the historic posts on vetting checklist for Syndication opportunities, but I was wondering if you also need to have the documents reviewed by a real estate lawyer?

Any idea on the approximate cost? 

Thanks.

David

Thank you for all of the helpful advice. 

I've actually start to seriously consider investing locally due to the demand of high quality assets and regional growth despite the higher cost of entry. 

I've definitely noticed the trend on BP/podcasts that lower priced assets may offer higher cash flow/cap rate, but come with higher risk. I'm in a position where I can be more selective and don't necessarily have to be "scrappy" to try to get ahead. 

Great advice on starting to post deals...will be a good way to develop my process and gain analytic experience with hopefully some helpful feedback as well!

Also really appreciate the comments about focusing on what works for my lifestyle and personal interests. That makes good sense and something I'll continue to evolve.

As it turns out, I have a friend-in-common with one of the most successful principal commercial brokers in region whom I hope to take to coffee/lunch. My #1 question is going to be:

What is your dream type of property and location that you wish you could routinely have available for easy leasing?

We'll see how it goes.

Again, many thanks for the responses!

Hi all. 

I'm a mid-career professional with secure W-2 and established equity-based retirement portfolio who's interested in diversifying into RE. 

Am currently doing my due diligence and self-education thru a variety of content/sources but am struggling a bit to define my niche/buy box. 

Specifically, residential MF seems very approachable and a "safe" way to begin small as the financial risk of a duplex/4-plex is relatively small. And while many here at BP have scaled residential, it seems like a lot of management...either of tenants or the PMs managing all your tenants. Risk is spread out but at the cost of lots of moving parts that only increase as you scale.

Versus starting with small commercial (property price under $1M). Perhaps small retail strip, medical office or flex industrial. Not as approachable as there is much to learn about the due diligence/contracts/responsibilities of various parties. As well as concentrated risk...fewer tenants that could result in much higher carrying costs during vacancy/lease-up. Maybe I'm naive, but it seems like there's potential to scale into larger properties with few management moving parts vs apartment complexes. 

I feel like I'm leaning towards CRE, but have only a basic understanding of the subtypes/process/risk. Yet I drive around and look at all the buildings and businesses and think: Someone is collecting rent on that place!

Couple other details about me: Live somewhere expensive, so am targeting various mid-west locations. 

Also, have yet to talk to CPA, but am more interested in equity growth (due to my W-2/tax bracket) vs cash flow currently. Would plan to transition to a cash flow focus 10+ years down the road as I wind down my professional career.

So I'm taking my time to learn without being overcome with analysis by paralysis, but am still in the early stages. I try to find and evaluate deals using my remedial buy box and analytic skills on Crexi just to get feel for what's out there. I'll admit it's both overwhelming and a tad confusing still!

Any advice on how to help narrow down my strategy would be greatly appreciated including how to juggle equity vs cash flow goals that will evolve over time.

Glad to have found and become apart of this community. Thanks in advance!

Check out BP podcast episode #1085 from Feb 19th. The guest Dion McNeeley discusses his "Binder Method" of raising under market rates that's pretty novel and actually makes a ton of sense. In a nut shell: he collects comps/regional data in a binder and shows it to the tenant proving that their rate is undermarket and that they will pay more if they go elsewhere. He then asks them what a fair amount would be to raise the rent. Sound like he often accepts their suggestion or even LOWERS it by a small amount. His goal is to raise the rent but to also keep a good rent-paying long-term resident in place. It's not about squeezing every last penny out of someone.

I believe he may follow this with some type of ~5% raise every 2 years. 

Might check it out and see if it makes sense to you and your management style/goals.