All Forum Posts by: Kyle Handy

Just wanted to provide an update to this thread.  eXp Realty is a thriving real estate brokerage serving 49 states and 3 provinces in Canada.  

We are one of the fastest growing brokerages in the US, growing from 6500 agents at the beginning of 2018 to over 12,000 just 6 months later in June 2018.  

eXp Realty offers real estate agents additional opportunities to generate income in addition to their sales production.

For more information about the opportunity, feel free to connect with me. 

Courtney Thomas - I'm an agent and investor here in San Antonio. Send me the details and I'd be happy to consider or pass along to interested parties. 2102187801

@David Thompson

Thank you so much for that insight and encouragement.  I will reach out to you directly to talk further once we get a few more things penciled out.  I'm meeting with one of the investors this Friday to talk more about what we have learned in the past couple weeks since our initial meeting.

Everyone is very excited to get going, me included.  I keep eyeing deals and wishing I had the money to pull the trigger on some of them.  I believe fully in the idea that experience can be gained quickly.  I already feel that way in the SF flip side of things.  I still don't know everything but just doing a few deals has me enough knowledge to be dangerous :). Can't wait to translate this into the commercial space.  I've purchased A Whole New Business (comes in today) and I can't wait to dive into it.

Lastly, with regards to it being a team sport, so to speak, I love that!  Can't wait to create relationships and partnerships where everyone can win!  

@Logan J. - Sending you a PM

Nick Knowlton - No I haven't read that. Ordering today! Thanks. David Thompson - Completely agree. However, I'm hesitant to start my relationship off with these new partners by telling them, "hey thanks for your money, now I'm going to put it up on something I've never done before". I think they'd be a little hesitant of that as well. Probably want me to make a couple base hits in things I know while learning that side of things and hoping to hit a home run.

Thanks Joel Owens !

@Chinmay J. - Not sure which brokers I would start with.  The 306 properties I mentioned are not listed.  Just pulled from the tax records today.

@Joel Owens - That's great advice.  I'll start there by calling up some brokers.  I know $500k is small potatoes in commercial and I guess that's almost why I'm hesitant to look for brokers to find this for me rather than to just try and reach out directly to the owners of properties that match my criteria.  I figured I'd have better luck with mailing the small mom and pops directly and getting a call back than I would hiring a commercial broker to try and find a deal like I'm looking for that is likely not a big payday for them.  

Hey BP!

I'll try to summarize so this post doesn't get too lengthy.

I'm an agent and have been for 8 years. I've bought 8 homes in 8 years. Live in flipped 4 of them, flipped 2 of them, and rehabbed/rented 2 of them. (1 flip and 1 rehab/rent is going on currently). Things started slowly but have picked up in the last 6 months for me. 4 of the 8 homes I've purchased have been in the last 6 months. They have all been SFR between $100-200k ARV homes ranging from complete foundation repair to cosmetic.

My investments have done very well and now I'm being approached to start a syndication with a small group of individuals.  A good friend of mine, and two of his co-workers that are higher ups at a major investment bank here in San Antonio.  We've met and talked #'s and all hit it off.  The 3 partners all work in the investment world (stocks/bonds).  

We talked about structuring the deal so that I would be the "sponsor" and take a 3% acquisition fee and 33% of the equity after a preferred 10% annualized return was given to the equity partners.  We also talked about raising part of the funds as debt which would earn an 8% annualized return.  We mentioned doing 75% of the deal as debt and 25% as equity.  We talked about starting by pooling $500k together, of which $50k would be my own, $50k would be my friend, $100k to the 3rd partner, and the 4th would put the remaining $300k. I'd be investing my own money for two reasons.  1. So I could earn extra return and 2. so I'd have additional skin in the game).  

The $500k could increase quickly as the partners have more money to invest and other friends that would be happy to invest if the track record is gained.  I asked their motivation since I know they have other options being in the field they are in.  The partner with the most capital to invest said he's wanted to be a part of starting a business and with his position in the company he wouldn't be able to start a hedge fund as it would be a conflict of interest but real estate is fair game.  Additionally, he doesn't have to good a feeling on the stock/bond market and wants to be more in on real estate.  The other partners shared this feeling.

One of the partners has a wife that is a CPA at EY that could keep our books clean and everyone is pretty well networked (myself included). We would be looking to start an LLC, and would formulate a general agreement.

My mindset is this, if just doing $100k-200k flips a few a year, I'd be better off doing on my own and making 100% of the profits or potential losses.  Where this becomes exciting to me is the ability to scale up and do more deals quickly and/or work my way into larger deals down the road as I become familiar with that market. 

My question is basically to anyone who has done something similar to this, what advice they have and things I'm not considering that I should be. I'd love the ability to have someone who's done this before and are a step ahead that I could bounce ideas/challenges off of.

Thanks!

Hey BP!

My lease is up in May and I'm starting to look for office space to purchase around my part of town, North Central San Antonio.  I'm interested in purchasing something this time around rather than lease.  This would be my first commercial purchase.  I spoke to an SBA lender and feel comfortable purchasing something around $500k or under.  I've looked on loopnet, mls, and other internet sites with no luck finding anything for sale in my area.  What my plan would be is to find something around 2000+ sqft that I can split in two and rent the other side out (SBA lender says so long as I occupy 51%).  I only need around 1000 sqft for my real estate business. I've compiled a list from tax records of commercial property in a 10 mile radius of my home, between 1500-4500sqft, with tax values of $600k and under (306 properties).  I imagine most properties in this price range for this area to be old, fixer-upper type properties (which I'm fine with).  Would a yellow letter campaign be appropriate for trying to find a deal to these prospective type of sellers?  Also, does anyone have any commercial agent referrals for the San Antonio market that are familiar with the property type I'm looking for?  Thanks!

@Logan J.

You're using the correct logic there.  That's the exact thought process I use.  I know myself and know I don't stay in homes long so I would take the credit.  I'm a bit extreme though also and will take a variable rate that is only fixed for 5 years if it means lower rate for the first 5 since I know I'm likely selling before that time.  Same thinking there...

Only you can make that decision but you are thinking of the scenario correctly.