All Forum Posts by: Jim Biggs

Another great resource is @Craig Haskell Value Hound Academy. Joe and Adam also highly recommended. Joe has a conference in Denver this month.

Investment Info:

Large multi-family (5+ units) other investment.

Purchase price: $8,200,000
Cash invested: $2,500,000

How to Syndicate a Distressed seller property in a hot primary market when everything goes wrong.
64 unit C Class in B neighborhood

What made you interested in investing in this type of deal?

64 unit C Class in B neighborhood. Syndication looking to raise ~2.5 mil. Distressed seller. $200 under market rents. $20k under $/door. Great opportunity to fix capex and aggressively push rent to market

How did you find this deal and how did you negotiate it?

Off market broker relationship

How did you finance this deal?

Large DUS lender bridge to agency package for 75% LTC and syndicate the balance

How did you add value to the deal?

We will implement a simple business plan that address' major capex flaw that has caused a poor tenant base. Then start aggressive retenant process. 64 unit C Class in B neighborhood. Syndication looking to raise ~2.5 mil. Distressed seller. $200 under market rents. $20k under $/door. Great opportunity to fix capex and aggressively push rent to market

What was the outcome?

closing scheduled 3/10/2020

Lessons learned? Challenges?

Massive challenges associated with first syndication as GP. Even though I took 5 years of study, buying SFR and smaller multi-family on my own (think 5/10 unit buildings), and 3 years as LP, KP on several large (50/130 unit) deals; I was ill prepared for what was to come.

Who does Small Balance New Construction in Dallas? Have a project that is 5 units all in cost of ~700k but could conceivably be a larger project(more units) if needed to secure the right financing. This is a colleague that I am trying to help. They have already completed one such project that has proven concept& BP. They are looking to duplicate it but with better finance terms. Suggestions? Who are the Non recourse lenders in this space? FHA, HUD, Agency, CMBS, Bridge?? What terms should we expect?

@Justin D. Make sure your money works harder than you do! Having said that ask youself: How free do you want to be? What is your time horizon? Do you want another job? Is this a question that arises out of scale-ability? Do you prefer to be the boss? Are you ok being anonymous? Obviously, you know there is no right answer but there is a right answer for you. And your choices are not binary, You can also transfer all your SFR experience into sponsoring your own deals of putting together JV and TIC partnerships or any combination of the fore mentioned options in previous post. Good Luck and let us know what you decide.

@Josh McCallen  how did this deal go? I can tell you from the "many" deals I see hit my inbox... if you can imagine it...it has probably been done. As to @Mike Dymski point I will only say that everyone has a different "why" and criteria they are trying to meet. I come from an automotive background where we were found of saying "there is an *** for every seat". So while Mike or even I might not want to invest with those particular parameters I have seen that exact same structure from some "very large" national well know sponsors. But when I seen to word "gpplf course" you had my attention. I regret not syndicating one over the last several years when they were selling for pennies on the dollar. I hope this went well for you and would love to "hear the rest of the story".

@Account Closed feel free to DM me any property you have for sale

@William Thorn You can find an O.Z. project to recapture that 40k DM me

It seems that you are already comfortable being uncomfortable. Congratulations, I'm sure you're well on the way to success. With this platform and the generous offers from previous post I'm sure you'll make a great go at it.

Completely dependent upon the submarket and your target tenant base. In addition, will also be very dependent upon the asset itself. For instance, if your building is 50 units all 1-bedroom 1-bath next door to a very large Hospital complex that employees an above average number of traveling nurses, this would obviously dictate your business plan. As previously stated, the best strategy is to employ professional Property Management to help illuminate the particular property submarket an help flush out your business plan.

I love the idea of paid internships. I will send you a link via pm.  Great advise from all but especially @Alina Trigub First determine what you really like to do and what you hate to do. I would try as many internships as I could to begin to get a taste of the industry. To syndicate you will need a rudimentary understanding of them all. As for your studies I think the most valuable skills will be in finance and accounting type classes as it will aid you in analyzing and underwriting deals. And you will always want to understand how the capital stack flows and were your money goes.