All Forum Posts by: Andrew Hogan

Agree with Evan here -- easy to say, and hard to continuously pull off if 1031ing the basis of your biz plan. 

Also, repeat clients and word of mouth is always the best way to grow a business first -- those are our two largest sources of capital. Paid advertising is a factor but much less so than those top two.

Be careful with referral bonuses as there could be penalties for "paying" for referrals. There are some semi-recent "finders fees" that allow for some of that. We don't pay for referrals but they come naturally from family/friends naturally sharing as they are happy with their investment.

All the best!

Agree with Randy, syndications are a game changer. Just depends how hands-on you want to be or not. 

 No! REITS are another form of paper/stock and don't get the tax advantages that you could achieve through owning actual real estate / hard assets vs paper.

Look up "syndications" - These are private placements where a group of investors pool their money together to buy bigger and better assets than they could buy on their own. 

The challenge is qualifying since the SEC usually requires one to be an 'accredited investor' (1M Net worth or 200k of income for the past 2 yrs)

Welcome to Indy! There are a lot of cheap deals inside the i465 loop but I'd stay in the nicer areas like Zionsville, Fishers, Carmel, and Noblesville... Happy to connect and add value.

 Too often I hear of investors settling with mediocre 1031 replacements in order to kick the tax can down the road a little longer. 

Sooner or later, Uncle Sam will get his piece. You can still achieve significant tax depreciation benefits AND buy higher-quality cash flowing assets with less downside risk and value-add potential.

 A syndicated fund. 

Your current 'Return on Equity' isn't terrible assuming a $1,700/mo net cash flow.

($1,700 x 12 mo) / $240,000 = 8.5% Return on Equity

I've seen worse :)

What I see a lot of investors do is get into multifamily passively. That 240k+ could be spread across 1,000+ doors with a proven operator and aim for a 2x+ multiple every 3-5 yrs while you spend our time doing other things.

I've also seen "HELOC Arbitrage" where someone reinvests the 3% HELOC for a 10% return and they profit that 7% spread.

Good luck

Pleasure to connect Robert. We've done 1B+ in transactions with large Multifamily. 

Welcome to the game :)

If you qualify as an accredited investor, that opens up a lot more possibilities for you... e.g. partnering with a group that can mitigate your downside risk and diversify your capital vs only having that invested into a few doors.

After 10 interest rate hikes in a row from the Federal Reserve, we have now had the first pause. 

If you expect them to quickly revert back to all-time lows right away, think again. 

There likely won't be any rate cuts anytime soon (likely until late 23/ early 24). 

What does this mean? There is still a lot of pain to be felt by property owners who have been letting skinny deals past their DD standards. Bad for them, good for those who can capitalize on the opportunity. 

It also means that the music will soon stop for all-time high short term money market yields and investors will have to search elsewhere.