All Forum Posts by: Dylan McCabe

@Christopher Nemlich

Aside from all the great feedback, I agree that you need to sift through your options with some sort of system.

I would connect with local sponsors, as mention by @Brian Burke.

Then, I would connect with local brokers to ask for feedback on the buyers. No need to mention the buyer by name, but you can take a broker to lunch, mention there returns you’ve been offered, and ask the broker if that’s realistic in your market.

In Texas, a lot of out of state buyers are over paying for deals, so they are going to have a very hard time executing the business plan and securing investor returns. You can ask a broker about things like that.

Brokers work with buyers all day long, so they are a great resource.

We typically require 50k minimum but look for investors who can invest at least 100k.

We are launching a Multifamily podcast soon, and I plan on doing a show on “questions you should ask your syndicator”. Our goal is to give investors a truer behind the scenes look at Multifamily investing.

@Brandon Aylesworth

I think a great way to get started is to find a local mentor. Someone you can learn from who is already doing what you would like to do. 

Cash is not the biggest hurdle to get into multifamily. The biggest hurdle is knowledge and experience. Finding a mentor will help a great deal, and you will avoid many mistakes people make. That's how I started and I'm so thankful I did!

I tapped into my personal network from church, work, and Linkedin to ask around about multifamily. I finally found someone through a mutual friend. I reached out via Linkedin and asked to have lunch. Fast forward two years - I am now in multifamily full time, buying properties from 200-500 units in size. 

I know you asked about zero cash down, but I believe the real answer is surrounding ourselves with the right people. Hope that helps!

Of course! We run our own model to analyze our deals. I have about five different models I've gotten from large lenders to Michael Blank, to the one we use in-house. 

@Michael Ealy I agree with you 100%

We purchase 200-500 unit multifamily properties in Dallas TX and surrounding submarkets. 

We Always buy based on proforma, not actuals. Everyone from the lender to the buyer is using the proforma, sales comps, rental comps, and true value add strategy to form their valuation in this market.

Our number one goal is to find true value add with a clear upside. That often means the current cash flow is poor due to various reasons:

• Loss to Lease
• Vacancy
• Poor management
• Over-spending on renovation
• Not charging fees to residents
• etc...

As long as the upside is there and the story is good - we are interested. 

I'm with you -there are several "thought leaders" saying you buy based on actuals - but it really depends on the market and each case by case situation. A sophisticated buyer with experience looks for opportunities. The actuals matter, but they only tell a part of the story.

What meetups do you guys recommend for apartment building investing? We sponsor multifamily deals, and I would love to connect with local sponsors and investors. 

I want to start our own meetup eventually, but I'd like to see what others are doing well first. 

@Zach Lehman

House hacking, as others have said, is a great way to start and give you a place to live for free. 

If you want to get into multifamily, the returns are great with the right deal at the right price. But you have to be comfortable with a 3-5 year hold. 

In the Dallas TX market, most sponsors offer their investors an 8-10% prefered return on cash and a total IRR in the high teens.

We are finding off-market deals through our connections with brokers and investors - so we are getting good deals, even in a very competitive market. 

Hello all,

We are looking into the Waco TX market. We are looking to acquire a 300+ Class C apartment community. I'd love to hear how market conditions in Waco have affected your ability to execute your business plan. 

@Chris Salerno You know what is rarely mentioned? Capital Calls. Yes, they should be avoided with the right business plan and execution of that plan. But things don't always go as planned. The big PE firms deal with this regularly, but the small sponsors don't mention it much. It would be helpful if you added that issue to your book!

@Chris Salerno

Here's a few I have read, and as @Joseph Firmin stated I'm sure many people have already read them.

1) Rich Dad, Poor Dad (of course)

2) Best Ever Apartment Syndication Book by Fairless

3) Raising Private Capital by Faircloth

4) Wheelbarrow Profits by Jake and Gino

5) The Perfect Investment by Paul Moore

6) The Richest Man in Babylon by George Clason

7) The Book on No Money Down by Brandon Turner

8) The Book on Rental Property Investing by Brandon Turner

9) Crushing it in Apartments by Brian Murray

My favorites so far are the top three...

@Michael K. Smith

We focus on Class C assets in the Texas markets. As others have stated, it truly depends on location, culture at the apartment community, market trends in the area, etc.

Class C properties typically offer a clear upside with the right business plan. However, we have turned away from deals because the area and community was too high risk. But we have put offers on apartment communities within one mile because they were lower risk. 

We also focus on social services that change the community for the better. We want to retain the good residents and get them to tell their friends about the great services we offer. We also have to deal with problem residents. It's all part of it.