All Forum Posts by: Ivan Barratt

This post likely violates SEC regs. Looks to me like your selling investments/securities.

Note: Above structure in my case would always use a PPM. Why: protect me as the developer by making sure all investors know the downside risk.

@Daniel D. check out preferred equity structure. It's basically like mezzanine debt (sits behind the first mortgage). Typically it can be paid off at a predetermined rate of return. So, for example you could offer 13% return (or whatever your investors are willing to accept) on a 24 month hold period. Once you refinance and catch them up to a 13; all upside equity above that threshold is yours.

This is a fairly common structure when you the developer have significant upside and there's capital readily available that just desires a low/mid teen's return and is willing to be 2nd in line behind first lien debt.

Berkadia, CBRE, Michael Wernke. Depending on your level of experience you have and current unit count you may be pretty far down the totem pole of buyers. Also saying the above in the way you wrote it here will likely get your forehead stamped as "I just got done with a mfam seminar..." #toughlove

All the best!

@Jaren Barnes recommend attending a couple/few weekend bootcamps first. Read books by the guys putting them on. From there I think you're gut will lead you in a better direction.  Check out Rod Khleif, Joe Fairless and Michael Blank. They're all at the top of the food chain and also doing lots of there own deals.

REMEMBER: For every one teacher there's 999 peeps you shouldn't give a dime! :)

@Dollie Thompson heavily dependent on what you're bringing to the table in terms of experience, track record, background, etc.

5% yield (250k on 5m) is too low for my money.  I only eat my own cooking since I own my own management infrastructure.  

IF I only wanted a 5% yield I'd sell all my apartments and acquire national credit NNN real estate in "main and main" locations in steady growth/mature suburbs/edge cities (example Carmel, IN).

Personally I'd want at least 12% levered yield. Debt is extremely cheap and apartments are the ONE asset class that can access 35 year amort and rate lock.

And here's my advanced list. Watch out for the rabbit holes!