All Forum Posts by: Andrew Hogan

Condo for appreciation or SFH for cash flow on possibly appreciation. Just depends how much work / time you want to put into it. If you can lock in a new condo during the initial phases it's usually an instant jump in price by the time you get your keys.

I'm happy to see that Indianapolis is #4 on one of those charts but not on others so that we can continue to fly under the radar for a little bit longer 🤫

@Garan Kama did you end up finding a good broker and doing any deals?

To get the best multifamily brokers in the area, you'll need to have a bit of a track record. They can usually sniff out newbies pretty well so perhaps you can ride off of your coworker's experience or find additional partners who have done multifamily before.

All the best!

Such a great cause! 

Congrats @Jay Hinrichs on all your success thus far.

Question: are you constantly accepting new donations and when you have enough for another home you use those funds?

gotta love the tax-basis step up @Steve Vaughan! Hopefully that rule stays the way it is.

@Monica Marker many real estate syndications have a 3-7 projected hold. They tend to offer greater diversification and lower down-side risk if you're with an experienced group. Then when it sells, you can cash out, buy your dream home, and hopefully have some leftover to keep playing with tax efficiently  :) 

It's easier if you qualify as an accredited investor. Those offerings are called Regulation D 506c, if you don't qualify, there are still some groups that offer what's called a Regulation D 506b and allow up to 35 "sophisticated" investors who are not accredited.

@Ockert Kruger

I'd recommend looking at large brokerage reports like Cushman & Wakefield, CBRE, Berkadia, etc. for your area. These will tell you the "market cap rate" 

Anytime you're buying a property there should also be an assumed cap rate. 

Then it's a matter of projecting how much you can decrease expenses and increase revenue. Either one of those improves your NOI.

Examples using the NOI equation: 

Increase NOI by $1 on a 6 cap = $16 increase in value of property

Increase NOI by $1 on a 5 cap = $20 increase in value of property

Increase NOI by $1 on a 4 cap = $25 increase in value of property

It's a game changer for sure! Opens up so many doors once you qualify.

In my opinion this is the government's way of trying to protect investors but it's one of the reasons why the wealth gap is widening -- access to high-quality investments.

Meanwhile they'll let Uncle Joe go blow his last 50 dollars on the stock market... doesn't make any sense to me.

@Mark Pinkston

Depends on how much appreciation investors are looking for.
Typically the more appreciation (participation in the upside) the lower the preferred return.

There are also options where investors are content with capping their return at 10% if it means they're getting consistent monthly distributions and great tax advantages that come with owning real estate.

Working for the BEST multifamily operator in the world! :)