All Forum Posts by: Eric Grunfeld

Hi @Eric Grunfeld, I agree with @Zachary Inman post above that you need to look at the operator first, market second, then deal last. You are going to want to do very detailed due diligence before stepping into any deal. In order to do that due diligence I recommend the following 3 resources...

First of all I would want to direct you to @Ian Ippolito Private Investor Club. This is part of his Real Estate Crowd Funding Review. @Ian Ippolito is a master at due diligence.

You should also check out Jim Pfeifer’s Left Field Investors. Jim is very active on BiggerPockets and he has a community of people dedicated to performing due diligence on passive commercial real estate investments.

If you really want to dig deep, you should get @Brian Burke’s amazing book on due diligence called The Hands-Off Investor. BiggerPockets published this detailed manual in 2020. This will give you incredibly detailed information on performing due diligence on passive investment opportunities.

Happy investing!

@Eric Grunfeld

@Bryan Mitchell

Thanks for the shout out Bryan.

Eric, looking at your past posts, you have looked or started to look at several different Real Estate investment avenues.  Versus discussing Self storage, here is my recommendation for you.

1.  How much cash or collateral at 65% do you have?

2.  How do you plan to finance?  100% cash, 20% SBA, 25% conventional, 40% conventional.

The two items above determine the size of the project you can tackle.  If you have $50,000 and do a 25% conventional loan, then you can do a $200,000 deal generally speaking.

Now that you have narrowed your project size down, determine a type of real estate investment.  At this time just pick one.

Now look up on Loopnet and find a similar investment or on a Realtors listing.  Do a costing to build such a location.  Do a profit and cash flow stream analysis.  Do this for about 5 different properties.  Keep doing a post on each one, on here and have people analysis your approach.  Don't worry about buying it.  Don't worry about knowing how to do this.  Just do it, even if its on a napkin and share. Key, is you want to start.

After you have done, that, reach out on here for suggested courses, training seminars, etc that fit the type of investment you're interested in.

After that you need to "Jump In".  Pick a small deal and run the numbers and as long as you have Low risk exposure, just do the project.  Yes, you will fail.  Make sure its small.  But, you will learn more than reading and asking.

The above will get you started down your real estate path.

 Eric - Look at the operator, the market, then the deal (in that order). 

Operator:

- Look at the track record, full cycle deals, experience, team, investor base, and competitive advantage. 

Market

- Look at the population/rent growth, rent/income, job sectors, schools, and other fundamentals and match them with your criteria

Deal

- Look at strategy, full business plan, if they've done similar deals before with similar assets/markets, are the sponsors local to the deal, risk profile, headwinds/tailwinds, etc.