All Forum Posts by: Ian McDonald

@Tyler Kastelberg

You are correct on the pricing of high quality market data. I do have a relationship with a brokerage out of Seattle that we are currently utilizing and it has been great information to have.  We plan to build more relationships like this one in new areas of the country. Its hard to be hard work, commitment, and networking when it comes to this area.

As far as the US census, do you find that much of this data is outdated? Much of it is based off of previous years data.

I have not checked into NAA reports, but I plan to do so.  

Thanks,

Ian

Hello, I'm looking for any good information, software, websites, etc that specialize in market analysis. We are looking to identify strong secondary and tertiary markets for finding our next deal over 100 units. I've got a good start, but would rather not reinvent the wheel when there is so many tools that already exist. Regards, Ian McDonald Northern Star Real Estate LLC

Originally posted by @Ivan Barratt:

@Ian McDonald management company (and their expertise). A good management co should underwrite your operating budget. If you're lacking experience you've likely missed some expenses (payroll + management fee, pest control, bad debt, vacancy, common area cleaning, dumpster, snow removal, and the list goes on...). Not to mentioning raising rents over a 3 month period means you're throwing nearly everyone out. What's your year one vacancy number? In short there's a lot to this you probably haven't considered. Beefing up your team will help.  I learned all this the really hard way. Be better than me!!

On financing: every dollar invested should be pari passu (treated the same). If it's truly a deal the pref should be 7 to 10% max. If it's a million dollar deal then the split 50/50 split is ok. 

Lastly, watch out for the little old man that just wants to retire and offers you some seller financing. It could be a good deal but that's a big red flag until proven otherwise.  Give me a shout and I'll tell you some really good little old man stories that will blow your mind! :)

 Ivan,

It's been some time since this post and we are much more educated and further along. We are now under contract and I'd like to hear those little old man stories if you get a chance. As you mentioned, we have a very experienced PM company working with us on this during due diligence and they are just as excited as we are. 

Thanks,

Ian

Todd Dexheimer Given the capital is sufficient within the entity I would prefer this route whenever possible considering it provides a return on both the GP and LP side of the deal. Thank you.

@Omar Khan @Ola Dantis

Very good points to consider on the emotional side of the investors and understanding their view/position.  I am encountering this right now.  Having skin in the game is not the issue as this has been the plan all along (depending on how much liquidity the lender will require).  The largest hurdle right now is building all the right relationships with investors in order to bring them a deal.  In my case I have a deal, a partner, and a good team around us, but the investors are the lagging component.

Much appreciated everyone!

-Ian

@Vince DeCrow

This is how we are proposing we structure our deals.  Much appreciated for your feedback.

-Ian

@Michael Le  Thanks for the quick answer.

Bigger Pockets Members,

I'd like to ask some of the experienced investors out there how many of you put your own money into the deal on the LP side as well as acting as the GP and syndicator?  Secondly, do LP's find this to be comforting that the syndicator has their own skin in the game?  I'm sure this all depends on the deal. 

Lastly, If you do join in on the LP side do you pay yourself returns equal to that of other investors. For example your syndicating a deal and the capital raise is $1,000,000 and your bringing in 9 LP's including yourself all throwing in $100k. If the COC return is 9% i'm wondering if you would pay yourself and the other 9 investor $9k each on their intial investment.

If you need more information to answer I will fill in the gaps.

Thanks in Advance.

@Sally Saladino

Thanks for the invite. We are flying out to LA on Thursday morning or we would make over that way. When is the next one?