All Forum Posts by: DongHui Patel

@DongHui Patel there sending a letter and a post card is not that annoying people can just throw it in the trash. Calling people is VERY annoying.

What are you offering that will make them feel less annoyed? Cash offer with no contingency or are you trying to wholesale?

@DongHui Patel

1. There are numerous training and mentoring programs out there. I know many successful syndicators from the Sumrok Group. My sense is your best chance to find partners would be within that group. That’s really the primary function these groups provide.

2. Figure out what your strengths and weaknesses are.

What do you bring to the table? What value do you add to a team?

And look for partners that don’t have what you have and need what you offer.

Look for a partners that have what you don’t. 

Can you raise capital? Can you find deals? Do you have initiate knowledge of a particular market? Can you provide a healthy balance sheet that will help secure financing?

3. Once you figure out what you offer and what you need, network 24/7 to find the right partners.

4. Understand and be ready to give up control on your first few deals.

Based on your post, it appears you are looking for your first deal. Therefore it seems to me you want to find partners who have done a couple deals. Find those people and let them take the lead.

Being from Orange County, I suspect you are not looking to invest there. Being from Orange County, I suspect you have access to capital thru your personal and professional sphere. (These are all assumptions simply for illustration, they may or may not be true.) If true, then my sense would be to locate newer syndicators working in your target markets and come in from the capital side. Find operators in your target markets, folks who have done a couple of deals who have now exhausted their friends and family network of capital and are looking to expand and do more or bigger deals, these are the folks that will need your capital. (Again, my assumptions may be wrong.) Just trying to provide an example of the thought process that might lead you to find the right partners.

5. Get in the game and avoid paralysis by analysis.

We all know the market is very competitive - pricing high - cap rates low - margins are thin - deals are very tight.

Accept the reality of the market. One can wait (forever?) to find a 5% cap in a 4% cap market. One can choose to believe in fairytales and unicorns. One can certainly choose to wait for a market correction. Maybe it comes maybe it doesn’t. 

6. Folks often talk about the power of the first deal.

Find a way to get in the game and opportunities will come more and more.

Hope this is of some assistance.

@Janice G. you may want to consider investing passively with an active syndicator to learn the ropes. 

To name a few here on BP, @Joe Fairless, @Brian Burke @Tamiel Kenney @Jeff Greenberg @David Thompson and there are many others.

@DongHui Patel I agree, if you have a cleaner/emergency contact that is the most you will need in the area, after that it is fairly easy. If you have multiple ones then it gets harder to do. If you need suggestions PM me. 

Hi @DongHui Patel

Depending on your age. If youre still young, hey I think Long Beach is the only cheap coastal area in SoCal with almost 500,000 residents. The area will continue to gentrify and more and more people will move in to the city. Who knows in a few years it may even look like Venice Beach. And dont forget, the Olympics is coming to Long Beach (and LA) in 2028. So I am pretty sure the city will be so much nicer before 2028.

You need to find out if the property is rent controlled or not. Rent controlled buildings are pain in the butt I must say. LA Housing Department checks and inspects your building every 4 year and you have to pay yearly fees as well. During inspection they will find something for you to fix. Something is always not up to the code as the codes are always changing in CA. And if your tenants are not paying, well you're looking at 6 - 12 months to get them out if you have a good lawyer.

But if you're not so young, investing that 750K somewhere OOS would bring you a lot more cash flow each month. You can easily cash flow about $5000/ month or more if you find the right property OOS. And for me I dont really like multi families with more than 4 units. I rather buy several multi families than purchasing one multi with 2.4 million dollars. That's a lot of money. In the Mid West you can buy 20-30 units with that kind of money and generate 7-9 percent possibly more. You also spread your risks with smaller multi family.

At the end of the day, do what works for you best. Other people will give your their opinions but you know your situations best. Calculate the numbers very carefully and follow your heart. 

Good luck to you!

I am assuming payroll is being lumped into R&M. I usually see that broken out at least in the bigger properties I finance as a banker. There is also G&A, advertising expenses.