All Forum Posts by: Dominic Mazzarella

 That's a very solid, actionable response. Thank you Brian!

Hi Kylie,

I definitely know that finding the right business bank account can be challenging, but here are a few suggestions based on your what you've told us:

1. For Wire Transfers: Consider Mercury Bank or Novo. Both are digital-first banks with minimal fees, and Mercury in particular offers free domestic and international wire transfers for most account holders. Novo also integrates well with various business tools, which might streamline your operations.
2. Business Credit Cards: If you’re looking for a solid credit card option, Capital One Spark Cash Plus offers unlimited 2% cashback and no foreign transaction fees. It’s a great option if you want simplicity and rewards. Additionally, Chase Ink Business Preferred offers competitive travel rewards and may pair well with their banking services.
3. Bundled Solutions: If keeping everything under one roof is critical, you might explore Silicon Valley Bank or First Republic Bank, depending on your location. Both cater to businesses with high transaction volumes and often customize services for clients who need frequent wires and robust credit options.

Ultimately, your choice might depend on the frequency of foreign wires versus domestic ones and how much value you place on credit card perks. If wires are your top priority, Mercury is hard to beat. For rewards-focused credit cards, Capital One or Chase Ink (I use this one, among others) might fit your needs.

Hope this helps narrow things down. Good luck!

Great response, Dennis! To add to your excellent points, it’s also important to consider the tax implications of a 401k loan. If it isn’t repaid, it can be treated as a taxable distribution, which adds to the risk. Additionally, don’t overlook the opportunity cost of pulling money from your 401k—those funds could have been compounding in the market.

I’d also suggest stress testing your ROI by running scenarios with higher expenses or lower rents to see how resilient the investment is. Lastly, having a reserve fund is key to offsetting unexpected costs, especially with reduced cash flow from the loan repayments.

Hope this helps, and congrats on tackling creative financing!

Hi Eric,

Great question—estimating operating expenses can definitely be tricky, especially for items like maintenance, CapEx, and make-ready costs that vary widely between properties. Here are a few strategies that might help:

1. - Leverage Industry Benchmarks: Many investors use a percentage of gross rental income as a quick estimate for operating expenses. For multifamily properties, this is often around 40-50%, but it can vary depending on the property's condition, location, and age.
2. - Analyze Comparable Properties: If you’re working in a specific market, reach out to other landlords or property managers with similar assets. They may be willing to share insights about their expenses, which can serve as a baseline for your estimates.
3. - Build Relationships with Vendors: Getting quotes from local contractors or vendors for common maintenance or repair tasks can give you a clearer picture of recurring costs. For example, ask about typical costs for HVAC repairs, plumbing issues, or roof work.
4. - Use Historical Data: If the seller has accurate financials, their expense data can be invaluable. Just make sure to scrutinize it for any underreported items or inconsistencies.
5. - Set Conservative Estimates: For CapEx, maintenance, and make-ready costs, consider building in a buffer to account for unexpected expenses. For example:
   • CapEx: $250-300 per unit per year for older properties, adjusted based on age and condition.
   • Maintenance: $500-800 per unit per year, depending on property class and tenant turnover.
   • Make-Ready Costs: $1,000-2,000 per unit for turnover, depending on the scope of work required.
6. Resources and Tools: Utilize tools like BiggerPockets’ Pro Calculator or other underwriting spreadsheets that have built-in assumptions for these categories. They can help you cross-check your estimates.

It’s always better to overestimate expenses than to underestimate and face a shortfall later. Hope this helps, and good luck with your next deal!

I would ask this, when raising capital for a real estate syndication, what strategies have you found most effective for building trust and credibility with first-time passive investors? Are there specific tools, presentations, or approaches that help them feel more confident in taking that first step? Thanks!

@John Jacobus

Thanks for the reply. I looked at your site and noted your contact info.

@Jack Martin

Hi Jack. I realized after making my post that this probably isn't a very active topic on this forum so I decided to just do some old fashioned digging. I did find your contact info and read about your company. Very interesting read. I am compiling this list because I'm working on a project that would be very beneficial for syndicators in this space. I will definitely reach out to you in the near future. Thank you for replying.

Hello everyone. As the title implies, I am trying to find a list of active MHP syndicators in the US. No specific geographic region is important. Any information would be helpful. Thank you.

@Dominick Dahmen 

No problem. I made the switch from the financial sector to MHP investing and I haven't looked back. I don't see why you couldn't partner with some people you know in order to secure financing but you will need to disclose everything if you  go with a traditional lender. Also, be careful with your current job as most finance companies strictly forbid outside investment with clients.  

Most traditional lending companies will not be happy at all about borrowing money for the down payment but if it's from a partnership that's different. 

If you have no money for a down payment or only a little bit of money then you're going to have to get creative. This could mean doing a lease with option to purchase, highly leveraged seller financing, JVing or syndicating. Most of these would be difficult to pull off without any credibility in the industry. 

Perhaps the most wise option for you would be to find a really good deal and then find a partner or two willing to invest. If you find a good deal it shouldn't be very difficult to find the money. Honestly if you find a great deal, just put it under contract and post on the forums or talk to people you know about the deal and if it really is good you'll be flooded with people interested. Most people looking to invest in these types of deals will want off market deals that are 10 + cap but they may have other metrics that are important to them such as IRR or CoC return.