All Forum Posts by: Account Closed

@BOB CRANEY

"What would be a conservative unit cost to rent ratio that would signal a good deal, using a safe 50% for expenses."

That's hard to say nationally and I'm NOT an expert in the Baltimore market.

I can relate though as I live in Denver but buy in Southern US.

Going big allows you utilize, best in class, 3rd party management and there's no need to be geographically constrained. You can live where you love invest where it makes sense; we averaged 37K per door, in 2018, across 4 syndications and 245 doors.

All were B & C class with value add/upside opportunities BUT were cash-flowing from the start.

We're looking and do believe there are good deals out there BUT we're sticking to our mandates; if the deal doesn't hit the hurdles we set in-place we don't move forward. 

Hope this was helpful, don't hesitate to reach out.

Dino

@Dan Hall

Have you considered investing that 225K into a large multifamily apartment community (or several to diversify)?

That's the route I'd take.

Here's why...

Leverage the following:

1) The Like-minded Passive Equity Investors and together participate in purchasing more doors vs buying a SFR alone… (soooo many benefits here more below)

2) A Team of Trusted Operators!

Numerous doors beneath 1 roof is certainly notably less risky in comparison to a single family rental property. Having multiple doors under one roof aids to minimize the risk of unpaid rent as well as unexpected vacancy. For this reason, having more doors significantly strengthens the financial investment; the more doors the merrier!

The possibilities and scalability changes instantly when a passive equity investor partners with and rides on the back (experience and track record) of a trusted, dependable, proven team of Operators. 

The 100% vacant, or occupied, status of a single family rental is instantly leveraged into a 50, 100, 200, or 300+ unit multifamily apartment community that will throw off cash flow and appreciate while the Operators execute the business plan. 

More doors equate to less risk. A vacancy rate of 5% to 10% matters much less to the income available for distribution than does 1 door being vacant on a single family rental; when you turnover a unit it equates to 100% vacancy and absolute zero for income. Furthermore, when the Operators underwrite they should be underwriting with more vacancy than expected therefore this is already factored in to the Net Operating Income (NOI).

50 or more doors can support best in class 3rd party property management and do so at a lower cost than 1 door can. Actually most SFR owners try taking on the management themselves because professional management eats away at the NOI. Smart move? If you want experience as a property manager but if you are trying to generate more time and money being your own property manager isn't the task to tackle. Tagging on to that scalability fact is the decrease in time and closing costs one can achieve by buying 50+ doors in one transaction versus 50+ separate closings.

Hope this was helpful don't hesitate to reach out.

Dino

@William Kim 

I like your idea of going with with syndication while you continue to earn.

If I were you I'd get to know, trust, and align myself with a reputable team of operators that utilize 506b exemptions in their syndications and qualify each other.  Work on building a substantive relationship, both ways, so you can begin to analyze their deal flow and ultimately invest in their opportunities.

Hope this was helpful; don't hesitate to reach out.

Dino

@Account Closed 

There are several ways to build wealth; I'm from the school of go big with syndication.

If I were you I'd get to know, trust, and align myself with a reputable team of operators that utilize 506b exemptions in their syndications and:

A) Qualify each other and build a substantive relationship so you can begin to analyze their deal flow and ultimately invest in their opportunities. 

B) Partner with them on the active side and learn as you go you have substantial amount of capital and this may be a viable option.

Hope this was helpful; don't hesitate to reach out.

Dino

@Brian Adams & qualified sophisticated investors, up to 35 to be exact.

@Cameron All of our Apartment Communities are purchased in an LLC.

I'm part of a syndication team that's why I said "we"

@Alan Zee

I hear ya but hang in there...

With 1 acquisition, in the books, for 2019 we continue to grow the portfolio and our team!

The market is tight, and competitive, nonetheless we are sticking to our underwriting mandates and looking for the "needle in the haystack".

One benefit we have is the fact that we WANT to but DO NOT NEED to do deals. If deals don't hit our hurdles we don't move forward - it's that simple. We'd rather be out of pocket for some attorney fees, inspections, and earnest money than get into a bad deal.

We're in full operations and acquisitions mode but are very - Very - VERY patient.

Hope this was helpful-

Dino 

@Jacob Morris

Smart man!

I'm a Vet too appreciate your service!

A few tips to help you get started -

*Bringing Capital to the table is just as important as finding the deal

*Know thy partners - there are people out there looking for people that have money to invest or have a network of people looking for investments

*Learn the business - Being part of a syndicating team is a great way to learn.  If you have a network of investors they can let in on the GP side and through the issuer exemption you can raise equity for your deals.  This is a great way to learn and you'll also be doing other jobs for the team in addition to investor relations. 

*Be patient 

This allows you to add value to an existing group and it's also a great way to learn as you go!

I hope this was helpful.

Don't hesitate to reach out-

Dino

@Nick Ruffini

I am NOT an SEC attorney BUT that sounds like a slippery slope.

Find a team of operators that allow qualified sophisticated investors to participate in their syndications.

506b allows you and you friend to invest (separately &/or together) and it's 100% above board if you qualify as sophisticated.

Really get to know each-other (it goes both ways), build confidence and trust over time; learn the business inside and out and when they present an opportunity that's aligned with your criteria - invest alongside of them.

The SEC requires them to have a substantive preexisting relationship before collaborating on an investment. Allowing them to conducting a needs-analysis to better understand what you are looking for in deal specific multifamily investments & completing and SEC qualification questionnaire will help them understand your qualifications, knowledge level, and ability to make investment decisions.

Hoping this was helpful.

Don’t hesitate to reach out- message me.

Dino

Southeastern US continues to be our target!

We're finding deals 50+ Doors that have both upside and value add at the right price per door.

Good Luck with your search they are out there!!

Don't hesitate to reach out @Frank Patalano

Dino