All Forum Posts by: Graham Dersley

@Graham Dersley - This is really not a topic to be covered in a forum post. Analyzing RE syndication deals is a complex task- but can be honed, practiced and improved with experience as you see more and more deals. When I started out a few years ago in the space I was pretty lost- I still dont claim to be an expert- but now 90% of the deals dont get past my initial sniff test. The other 10% may get a deeper look, with ones that I eventually go for generally taking me 10s of hours of DD before pulling the trigger.

There are many topics to get an understanding of- Investment structure, product type (office, retail, multi family etc.), strategies, capital structures, evaluations, fees etc. to mention but a few. IMO the first and foremost check is evaluating the Sponsor- In these kind of investments you are betting on the sponsor more so than on the deal.

I highly recommend the book "Investing in Real Estate Private Equity" by Paul Kaseburg under the pseudonym Sean Cook. It covers all the basics in clear concise explanations.

Thank you for the input and the advice on the book. That's exactly what I need. I'll be studying up!

0 Votes

Can someone walk me through how to analyze a potential investment on a site like Crowdstreet? For example, there is this deal available to invest in the adaptive reuse of a historic property: https://app.crowdstreet.com/properties/kex-mp/

Target investor IRR is 20.1% but these numbers are optimistic projections, right?

Are we mainly looking at prior performance and the business plan of the developer? For those of you with experience investing in these types of deals, what makes you choose one over another?

1 Vote

There are rumors out there that the expenses involved with a turnkey company take a lot of the profit out of a deal. I'm sure that's not always true, but what would be a "good" deal to shoot for using a turnkey company? Let's say I have $50k to invest, and I'm open to single family, multi unit, or small apartment options. Could someone walk me through what a good buy and hold result looks like?

0 Votes

Thank you Jay! This is why I posted - we used a contractor that came highly recommended to renovate our personal residence and it turned out to be a very difficult process working with them. They tried to add all sorts of change orders, did less than what was in the contract, etc and I can only imagine if I was out of state and unable to personally be on site to question everything it would have been a lot worse. Putting together this team - it seems like if you make one bad hire everything could go south very quickly.

2 Votes

Just listened to the recent BP podcast about out of state investing (prices are too high in my area for good cash flow). David Greene talked about finding a real estate agent, contractor, property manager etc in a town that you're interested in, and once you have a great team you can use modern technology to make remote investments.

I've also been reading about turnkey investments, such as through a company like Memphis Invest. This seems to involve less work, and it seems to me possibly less risky vs. somehow picking a bad contractor and getting screwed since I'm not able to be on site. With of course the drawback of being more expensive, so less potential return?

Seeing how I'm new to real estate investing and don't have great prospects to invest locally, what do you all see as the pros and cons about how to get started with investing in rental properties in other markets?

3 Votes

All Forum Posts by: Graham Dersley

Graham Dersley has started 2 posts and replied 5 times.

Post: Crowdstreet deal analysis

Post: Crowdstreet deal analysis

Post: turnkey vs. putting together my own team (new investor)

Post: turnkey vs. putting together my own team (new investor)

Post: turnkey vs. putting together my own team (new investor)