All Forum Posts by: Jack Pasmore

Hey @Gregory Murphy,

Great question; definitely something a lot of investors are navigating right now.

I’ve worked with an investor in the Kansas City Metro over the past year, helping him dispose of his multifamily properties — 87 units total and all of them in the 5-15 unit range you're focused on. Insurance has consistently been a challenge. What I’ve noticed is that premiums are all over the place, even for similar properties, depending on the carrier and how the building is underwritten.

One thing that helped us was shopping multiple independent brokers upfront. I'm not just talking about the big national names, but smaller regional carriers who sometimes price these properties more competitively. I've also seen investors self-insure smaller items like water damage or theft to cut premiums down to just catastrophic coverage (not ideal), but it can make or break cash flow in deals where the numbers are tight.

In comparison to areas like Central Florida (where I’m based), Kansas City does have a more stable insurance environment since it's less prone to natural disasters. That said, the market is still feeling the ripple effect of rising premiums across the board. The trick has been factoring in aggressive Year 2 and 3 premium increases into underwriting, assuming 10-15% jumps, and including that into offers rather than trying to squeeze deals into last year's numbers.

You're absolutely right about longer days on market. I would agree with @Greg Scott , I think a lot of that comes down to the gap between seller expectations and today's reality. Insurance is just one of those line items that can't be ignored anymore.

Curious — have you looked into any master insurance programs for a portfolio? I've seen some operators bundle several small properties into one policy to bring the per-door cost down.

Would be great to connect more if you're still active in KC — happy to share more if you're interested!

Jack

@Mohamed Youssef

I Really appreciate you sharing this. spot on breakdown of the mindset shift needed to transition into multifamily.

I'm definitely in the process of scaling up right now, and I agree the operational differences between single-family and multifamily can't be overstated — especially when it comes to tenant management and building out systems to handle multiple units at once.

The partnership route is something I've been leaning into as well. Partnering with someone who already has multifamily experience while bringing capital or other value to the table seems like the smartest way to accelerate without taking on unnecessary risk.

If anything, my biggest concern is making sure I’m partnering with the right operators — people who are truly experienced, not just using clever language to appear that way (a big issue in the space right now).

Appreciate your insights!

Jack

@William H.

I haven't personally gone through Michael Blank's mentoring program, but I've heard mostly positive reviews from people in the multifamily space. The biggest value seems to come from the networking opportunities and community you're plugged into during and after the program.

That said, I definitely agree with Stuart's perspective. It's fair to be skeptical of any program that teaches people how to become GPs without addressing the balance sheet requirements or the reality that experience and liquidity are often the biggest barriers to entry. No coaching program can magically make someone a GP overnight — that part of the game is earned. I've also noticed the same language from a lot of these coaches, saying they "control" or "manage" thousands of units without ever clarifying what that really means in terms of ownership.

Personally, I think the best use of these programs is to leverage the network, education, and systems — not to expect them to shortcut your way to becoming a GP. At the end of the day, the fastest way into multifamily is to add value to experienced operators first, then work your way into the GP side through partnerships.

Let me know if you're leaning toward the program — I'd love to hear your thoughts.

Jack

@Nick Volz

Hey,

That's a great book to be reading — definitely lays out the mindset shift when it comes to passive income.

To get started, most syndications have a minimum investment, usually ranging between $25K–$50K, depending on the deal and operator. Some will go lower, but that's a pretty standard range. If you're really serious about it, I'd focus on building relationships with operators and capital raisers — those are the people who can get you into off-market deals before they hit the public.

I'm not pitching anything, just sharing how I personally incorporate syndications into my multifamily ventures. What I really like is how these partnerships let you scale faster without having to be the one doing all the heavy lifting day-to-day.

A lot of people don't realize how many syndication opportunities are out there — they just aren't always advertised publicly. The key is getting into the right circles and building relationships with operators who consistently close deals. Once you're in their network, they'll start sharing opportunities before they go out to the wider market.

Happy to share more on how I got connected with some of those groups if you're exploring that route.

Let me know what you think of Fire Yourself whenever you finish!

Jack

@Jerry Zhang

 I haven't worked directly with Pace Morby, but I do have some contacts who are friends with him or have worked with him. They have consistently described him as a great, transparent guy who's made a big impact in the creative finance space. From what I've seen, he's always been crystal clear about how he structures his deals.

That said, I did hear about an alleged lawsuit tied to his Sub-To deals around four years ago, but not sure that anything came out of it publicly. Sub-To deals can definitely be more complex in the multifamily space, especially with the due-on-sale clause and lender preferences, but from everything I've gathered, they're not inherently illegal if structured properly. Like any creative finance strategy, the risk usually comes from how the deal is executed, not the method itself.

Would love to hear if you've come across any more information on this. Definitely an interesting topic, and I know a lot of investors are paying attention to how these strategies are playing out.

Looking forward to hearing your thoughts!

Best,
Jack

@Mike Rutherford ,

Thanks for the detailed response and the pitch. Your approach sounds solid! I can see the value in what you’re doing in the rural southeast—new construction in those areas has a lot of untapped potential, and I like how you’re handling the financing with Fannie Mae assumable loans and light debt. That’s a smart play, especially with the kind of turnkey product you’re offering.

As for our 40-100 unit deals, we’re looking at a mix of syndication and private money for financing. We're leaning into both to scale efficiently. We’re focusing on Class B & C properties in select markets and working to get the right balance between operational efficiency and long-term growth. I definitely see the opportunity for us to collaborate and leverage our different strengths. We could be a great fit.

I’d love to hop on a phone call one of these days and deep dive into this together. I think there’s some real synergy here, and we could come up with a solid plan to push these rural southeast projects forward. Shoot me a DM, let's set something up soon!

Looking forward to the chat.

@Jeremy Dugan

This structure is absolutely feasible, and it’s legal, assuming all terms are clearly outlined in the seller financing agreement. Just ensure that:

• -You get a solid property appraisal at the refi stage.
• -The seller is on board with the idea of sharing equity (this needs to be documented upfront in the financing agreement).
• -The lender you work with is comfortable with this setup (particularly the cash-out portion and LTV).

 This would 100% work as long as both parties are aligned on the terms. I've been apart of transactions where the deal was structured by offering the seller a percentage of the difference between the original purchase price and the new value at refi. For example, the seller could receive a percentage (say 10-15%) of the $150K equity increase upon refi. 

This would align their interests with yours, giving them an incentive to accept seller financing in the first place.

@Mike Rutherford

Hey,

Congrats on wrapping up those 12-unit builds—new construction multifamily is a power move, and having a stabilized, cash-flow-ready asset from day one is a huge advantage. When going this route, there are so many angles that are in your favor that include, but are not limited to at market rents, financing, cost segregation, and your exit strategy options.

Our company is in the process of closing on two 40-100 unit deals this year, so we're scaling up fast. I agree—12-24 units is a great jump for SFR investors looking to step into multifamily without getting overwhelmed. That said, no matter the size of the property, the right team makes or breaks the deal—experienced management, solid underwriting, and a clear game plan determine how well the property performs long-term. I've seen mismanaged quadplexes that foreclose. It's crazy!

Would love to connect and talk more shop, especially on how you’re structuring these new builds. That's something that we're looking to break into within the next few years. Always good to exchange insights with someone deep in the development space!

Jack

@Jeremy Dugan

You're looking at this deal the right way—structuring it so everyone wins—but the way you present it to the seller will determine whether you walk away with a great opportunity or gain negotiation experience with a conversation that goes nowhere.

Here’s what I would do to own this negotiation:

First, control the frame. Right now, the seller is likely operating from a valuation mindset that doesn’t align with reality. They’re going to get an appraisal, but appraisals are backward-looking—they don’t account for potential, only for what exists today. That’s your advantage. You know where the market is headed, because you’re the one creating value here.

So instead of asking them to see it your way, you subtly lead them there:

“Here’s the reality: this property, as it sits today, is valued based on its income, and banks aren’t going to lend on future projections. I can get you cash in hand now, plus structured payments that eliminate risk for you—while I take on the work of repositioning the property to its true value. In three years, you walk away with significantly more than any cash buyer would give you today.”

That’s intrigue. That’s leverage. Now they’re not just selling a property—they’re getting a custom solution that benefits them without the headache of trying to squeeze top dollar out of a market that won’t finance it.

Now, the structure:

• You operate on today’s valuation ($448K).
• They get a down payment that works for you and satisfies their need for cash now.
• You carry the property, increase rents, and refi in 2-3 years at $700K+.
• At refi, they get a kicker—a share of the upside—making them feel like they got the better deal.

Why does this work? Because they stop thinking about "getting squeezed" on today’s price and start thinking about the bigger win down the road.

And here’s the key: You don’t chase. You present this as the opportunity. If they don’t see it? No problem. There are other deals. But deep down, they’ll know this was a smart play tailored to them.

Let them come to you. That’s how you control the deal.

@Tom Grieshammer

Props for saving $120K at 26—huge advantage. The numbers on this quad look solid, but Mt. Pleasant comes with risks, especially for your first property.

Ways to De-Risk the Deal

• Section 8 Rentals → Guaranteed income, but tenant quality can be a challenge. Check with the Cleveland Housing Authority to see if there’s strong demand for vouchers in the area.
• Property Management → Some PMs won’t work in rough areas. Interview multiple ones to ensure they can handle high-turnover tenants.
• Long-Term Viability → Crime, maintenance, and turnover costs could eat into your returns. Appreciation is unlikely, and selling later may be tough.

Challenges of an Out-of-Area Rental

• Less control over tenants & maintenance.
• Emergency costs (travel, major repairs).
• Harder to sell if the area declines further.

Better Approach?

Personally, I'd look for C+ or B neighborhood in Cleveland could offer decent cash flow with fewer headaches. This way you're targeting working-class tenants that need housing while the crime isn't as bad. Some areas have rougher spots, but this way you're going after something that could be more stable and improving.

You’re on the right track—I just wanted to share my perspective to make sure your first deal sets you up for long-term success, not stress. Feel free to reach out at any time! I'm always happy to swap notes and insights.

You worked too hard to risk $120k  on a rough investment.