All Forum Posts by: Justin Eaton

Hey everyone! the next meet up with be a casual meeting for everyone to gather for some cold beverages and good conversation. For anyone who hasn't been to Bonesaw yet, the beer is tasty, the building is amazing, and the atmosphere is great! The December meet up will be on December 5th in Moorestown NJ and @Matt Faircloth will be presenting, so keep an eye out for that one! 

Hope to see everyone at Bonesaw!

Hey @Tom O'Donnell! Welcome to BP! I would highly suggest house hacking a 2-4 unit to start your portfolio! I moved out of my single family and bought a house hack duplex last year. I recommend this strategy to everyone, newbie or not. As @James Masotti and @Anthony Susco mentioned, I run the SJ BP meet ups, @SJREIG on insta. The next scheduled meetup is December 5th in Moorestown and @Matt Faircloth will be presenting! We may set an informal event in November also. Hope to see you there! 

Hey Brett I have a good local insurance company based in Haddonfield NJ. Feel free to message me and id be  happy to make an email intro! 

@Tj Hines man I feel ya! the first one will be the most challenging i'm sure! Shoot me a DM i'm interested to hear some of the process/ details on the 88 unit! 

Thanks for putting this together Steve! Looking forward to it. 

@Kurt Kwart thanks! 

@Daniel Kent I have heard some of their podcasts, I plan to dive into them more.

@James Masotti I do have tickets and so far it looks like I will be able to make it! 

@Percy N. Understood, the plan would be to hire an experienced PM right away for the smaller deals until it makes sense to have an on site manager. I definitely plan to look outside of my area as well. For the first 1-2 deals I planned to do something local but we will see!

@Tj Hines Thanks im looking forward to it! I just ordered the Joe Fairless book last night! I will definilty check out the Syndication School and the Syndication Show Podcast. How has your transition been? How long ago did you make the transition and how many deals / units have you closed on so far? 

@Greg Dickerson I have heard Joe Fairless on the BP podcast and I have watched some of his youtube videos. His content is sort of scattered on his youtube page which makes it hard to follow. I just ordered his book on amazon! Thats kind of what I was thinking in terms of deal structure. I will definitely check out. your content! Thank you!

@Jonathan Orr Understood with the securities attorney. I was planning on reaching out to my two RE attorneys for referrals for one at some point in the near future. In terms of being guided or someone there to "hold my hand", I definitely get it and I think if/when I come across deals where it makes sense to I can bring on an experienced syndicator to guide me in exchange for an equity share. Thank you! 

@Greg Scully Thank you! 

@Charles LeMaire Yes, cost of doors in NJ is relatively high and the landlord tenant laws are definitely in favor of the tenant. My mid to long term plan would definitely be to invest in out of state apartment deals but i wanted to get some experience under my belt with a few local deals first. I plan to hire a PM company for every building and on site management when the deals become large enough, I want to be an investor / syndicator not a landlord / PM! I will do some research regarding the loan types. In regards to the syndication  not being worth it - maybe it wouldn't be a true syndication on some of the smaller deals in the beginning of my transition. My plan is to put together a small investment fund between 3-4 people on the first couple smaller deals and structure it with the appropriate business formation type, which may not be a true syndication. Thank you! 

Hey everyone! I am looking to transition from primarily doing flip projects to multi family syndication. I would like to start with a 10-20 unit property in the local South Jersey market and grow from there. I've been a part time flip investor on the side since 2014 and I've just completed my 12th flip project. I've also done one wholesale deal, one BRRR on a SFR, one live in flip, and currently living in a house hack duplex. All of my projects have been in New Jersey (South Jersey).

I have read various books on multi family investing including The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges, Multi Family Millions by David Lindahl, Crushing It In Apartments and Commercial RE by @Brian Murray, and Raising Private Capital by @Matt Faircloth. I feel like I have a baseline knowledge 

With that being said, I feel like I have a good grasp on how multi family investing works in general and the power of value add when it comes to multi family properties. However, the syndication part I am not as well informed on. I wanted to reach out to the BP community and get some tips on how to  get started in multi family syndication deals. In addition, in the books that I have read, I haven't found too much info on how to structure the deals financially in terms of equity, cash flow, etc between myself (the sponsor) and the investors. 

Looking forward to good discussion! 

Hey man, I have a good contact at Foundation Title in Marlton NJ. Message me and ill put you guys in touch via email! Ive used him for all of my closings when I buy. 

Hey! The numbers look good on paper. What would you say the tenant class is in this area that would be renting the property? -- A being the best, D being the worst. 

1. The taxes will likely go up every year, I would research that specific area to see how much they go up on a yearly basis historically to give you an idea of what they will go up each year. Even though the taxes increase, the property should also appreciate and rents should increase each year. Taxes are just part of the game and you don't have any control of them, so I wouldn't concern myself too much with how much they will go up each year. 

2. You should have a home inspection done as part of the due diligence period. If the home inspector uncovers structural concerns, then hire a structural engineer to inspect those specific concerns. 

3. You can't use an actual hard money lender for a loan as a down payment on a conventional loan. If you don't have the cash for a down payment, you could bring on a partner and give them equity in the deal. I would say a 50/50 split would be fair if you bring the deal and they bring the funds. If you guys form and buy under and LLC, you would have to get a commercial loan and your amortization schedule would change to a 20-25 year as well as the interest rate increase of 1-2%. So this will effect your monthly cash flow.

4. The exit strategy would depend on your long term REI goals. Do you want accumulate 2-4 unit rentals? Do you want to buyer larger multi family? etc