All Forum Posts by: Francisco Perez

@Francisco Perez

Do you have a deal under contract or are you working to put your first deal together and need this last piece before pulling the trigger.  

There have been a lot of great advice on this forum.  My first KPs came through networking and getting to know people.  If this is a continued problem, start smaller and build some momentum to gain the experience needed.  It may take a minute longer, and it will provide you with the resume to secure either lending or a KP in the future.  

Banks may be more willing to lend on smaller deals to get you moving.  Our first few started with us adding value to other operators deals that they took the lead on.  We filled in other skillsets in the process and tooks much smaller cuts to get our name on some deals. 

To find the quality of person you need, you probably need to pay a higher price tag to enter the groups/masterminds with this type of individual. Go out look for options that you didn't consider before because they were to expensive at the time. This is one of the fastest ways to propel your network growth. 

Hi Francisco, I would be interested to hear about the projects you are pursuing here in DFW and what you are looking for in a KP. I live in DFW and have done syndication deals all across Texas and Oklahoma.

@Francisco Perez

Just to clarify, your partner KP might be happy to have you run things as many KPs don’t want to be involved in the day to day. Rather the point is legally in terms of the partnership documents, they have the right to take over IF THEY find it necessary to do so. If you are doing a good job, most would be happy to have you handle the headaches. 

Hope this make sense. Arn

@Francisco Perez

As @Chris Seveney notes, this is about building relationships. 

Attend in person or virtual commercial real estate events or conferences. Join a few mentoring groups. 

Doing so will help you find the right key principal. 

Just to level set expectations, the more experience the wealthier key principal in addition to the share of the profits will also often want control of the deal since his or her name is on the loan. 

The KP might let you have day to day operational control - let you take the ball and run with it - BUT will want the legal right and authority to take control of the deal if there are issues. 

Hope this helps. 

Arn

@Francisco Perez

This will not be something that would happen overnight. You will need to build longstanding relationships with people.

Think of it another way, while you may manage everything - someone is putting up a personal guarantee based on your work and it’s someone who has never worked for you

You could be the greatest operator on the planet but without a track record / experience of working with someone then it will be very difficult

For the first deal you probably have to give up a. Lot of the management and find an operator to co operate with them and bring the deal.

I often get asked how I handle pricing my properties so here's my playbook!

1. I use dynamic pricing software (Pricelabs) BUT the software isn't going to just "work magic" for you!  It's CRUCIAL that you set it up properly from the start!

2. Every Monday I check Pricelabs to see how my property is performing

3. If my properties are occupied wayyyy more than the competition, I'll increase my price.  

If my properties are occupied less than the competition, i'll decrease my price.

This takes me about 1-2 minutes/property per week!

Feel free to drop your questions and pricing tips below!