All Forum Posts by: Enrique Huerta

I use DealCheck. Worth every penny.

Hi everyone, I've been a member of BP for some time but never introduced myself and felt now was a great time to do so as the uncertainty of the real estate markets is creating significant opportunities.

Historically, I've been a multifamily investor and to this day continue to seek new acquisitions for our company's portfolio as well as the opportunity to provide preferred equity to multifamily investors, but I am now interested in acquiring a dozen or more single-family residences to create some cash flow and capitalize on the pricing changes in several markets. 

If you're a broker, owner, manager, or lender in any of these markets, or are an investor who would recommend your market, I'd love to connect with you and discuss both single-family and multi-family. I have a decade of multi experience but now would like to buy up SFRs. Everyone wants to move to multi and here I am moving to SFR LOL...what a time to be alive!

Any BP members selling real estate in the following areas? Birmingham, AL; Little Rock, AR; Columbia, SC; Greenwood, SC; Memphis, TN; Kansas City, MO; Or any other market with 3 bed homes under $100,000??? If you're a BP member selling elsewhere with good rental inventory, I'm open to connecting. 

Please DM me! 

I’d love to collaborate and find ways to work together. I have a small fund to buy single family homes and the markets above are of interest. Let’s make some money despite market conditions!!! We can close quickly and would love to build a repeat buyer model.

Crexi, Loopnet, and Brokerage Websites. 

The best deals come through connections so be sure to make contact with brokers and stay on their radar.

Thanks for sharing your thoughts. Many investors (even experienced ones) don't even know what YOC is. I agree that it is much better than a cap rate and even other standard metrics in determining a true value-added business plan. The most sophisticated investors focus on YOC over anything else for the reasons you've outlined.

Messaged

This would be a valuable tool/service, but I think it would be more beneficial as a subscription. Perhaps your thought of buying reports or "credits" (5 for $100) is a good one too but I would have the following questions:

-Where is the pricing, rents, financing info, expense info coming from?

-What is the turnaround time for 1 report?

-Is this a calculator you will provide or does someone send you an address and you put it together?

-Does an excel sheet accompany the MIPA to create further analysis?

Architecture and Construction Project Management can be very valuable to an investment firm in the areas of Design, Renovation, Construction Management, and possibly even Asset Management (assuming you're #s oriented).

It may behoove you to find investors that seem to be active but maybe their renovations can use some help (be gentle and thoughtful when telling someone their product can use some upgrades haha). 

It would be a good idea to attend conferences, meet-ups, and other similar events to network with investors. As you're meeting people, listen closely and without expectation. If you hear someone say, I love X, Y, Z but could use some help with my design, construction, project management, etc. then you may have found someone you can ally with on projects. It's always good to just listen, learn, and when the right "mentor" or opportunity comes along, you'll know.

Also, don't be shy about learning new skill sets or focusing on adding value in other ways. If you love architecture and construction PM, then by all means offer that up as a way to add value. You can also learn skills in underwriting, deal sourcing, fund raising, financing, etc. The possibilities are endless so it's up to you to do the preliminary work of answering the following questions:

-What is my real estate goal? 

-What asset type (multi, single-family, retail, industrial, etc.) do I want to invest in? 

-How large of an investment can I make? Where would I like to make the investment?

-What function(s) do I want to oversee and how do I want to contribute?

With those basics answered, you can then go out into the world and when you see the opportunity, you will know.

At the risk of sounding like a broken record, you must find a way to add value to a "mentor." Also, don't be trapped in the old thought of thinking a "mentor" is this elusive, powerful, all-knowing individual who will change your life. That does not exist, but what does exist is a lot of like-minded, creative, thoughtful, and helpful people who are motivated to succeed and help others succeed. As others mentioned, take inventory of you. What are your skills, interests, and ways you can add value? I've had several mentors in my life and at different points in my life. 

I've had mentors for sales, for investing, for capital raising, for speaking, and for personal training, etc. It's all dependent upon what you can offer and what you need. Pay to play is OK if you want to hire a "mentor" or "coach" but you can also find local investors and offer to help them. In helping them with something they need, they will mentor you in the process of you helping them. Also, don't ask them what you can help them with. Research them, talk to them, and read between the lines. Gather the pain points and then offer a solution. 

If you have someone in mind and don't know what steps to take, add some context to this thread and I'm happy to help you with next steps to move that relationship forward.

I think @Nathan Grabau hit the nail on the head. The decision to invest in a fund or syndication boils down to what you do with your time and capital.

If you have a high-paying job with no time to invest actively, then it may make sense to invest in a syndication or fund structure. Of course, you don't want to blindly invest your money into either deal structure without understanding the sponsor, their track record, their fee load, the property, the business plan, and the risks involved as well as the market, timing, and location. This of course shows that even as a "passive" syndication investor or fund investor, you still have to do your homework and due diligence to ensure you preserve and grow your capital appropriately and responsibly.

If you have more free time and even more capital to invest, then bypassing syndications and funds to invest in your own deals may be a good idea, IF, and ONLY IF, you're ready to roll up your sleeves and work to find, fund, close, and operate these deals. 

I forgot who said it but I heard a podcast where the guest said that many people leave their jobs to invest in real estate to seek out financial freedom, but they unknowingly end up with a job (real estate investor). Instead, if high-income, they can keep their "day job" and put money into syndications passively until their passive income grows. You can also do this on the side but recognize the real work and time involved.

So, with that said, what is your goal? Do you want to make a bit extra money? Start a company? Just have a small portfolio or larger portfolio? 

It's always good to start with the end in mind and why you want to invest before blindly investing in a syndication, fund, or even just buying a property. 

What is your goal @Moris Reyes? Why are you considering syndications or a fund? What other options do you have or have you considered?

@LaMancha Sims, that makes sense. I appreciate you asking the question.

Personally, as mentioned, I am bullish and will be seeking good opportunities in 2023 and beyond. The first few months of the year will be slow, but I think as the Fed decides to stabilize interest rate policy, that will cause more folks to transact and allow opportunities to appear. Additionally, as loans come due, many groups may need to recapitalize or sell to continue operating their assets/businesses. There will be great opportunities in the summer and beyond imho.