All Forum Posts by: J Scott

Hey Jason,

Happy to help if I can.  We own about 750 units in Houston.  Feel free to reach out to me.

Assuming you did everything correctly up until this point, hopefully your contractors showed up the day of closing or the next day to start renovations.

So, unless you have someone else doing it for you, you should be managing those contractors, ordering materials, and carrying out your renovation plan.

 Preferred Equity, maybe. Common equity is going to be a good bit higher.

Can you share the BP calculator report for an example property you're looking at?

Returns will correlate to risk. Without knowing the asset class, the exit strategy, information about the property, the operator, location, the operator, etc, it's impossible to answer your question.

Do a search for House Flipping Spreadsheet. Highly recommend.

Created by @David Robertson here on BP.

 First, thank you so much, Nathan!

Here's an additional resource that might be beneficial:

https://www.biggerpockets.com/...

 Actually, if he does a syndication, which is what he seems to be talking about, he doesn't need any of these things on his own.

The typical syndication will use other people's money for all of these things. For example, it's very common for syndication to bring in someone known as a Key Principle -- this is someone who has the net worth, liquidity and experience to sign on the loan. They receive equity in returned for this.

Likewise, it's not uncommon to dole out equity for the risk capital -- earnest money, due diligence cost, etc.

And of course, the main purpose of a syndication structure is to bring together passive investors to provide the equity needed for the down payment, capex, closing costs, and other capital needed to complete the project.

Long story short, while it's always nice to have access to your own capital, it's not necessary when doing large commercial projects.

Looking to transition to multifamily investing? Whether you're looking to buy smaller multifamily (10-50 unit) on your own or with partners or looking to learn how to syndicate 150+ unit deals by bringing in passive investors, you should check out the program that was rated #1 by the Apartment Owners Association of America (AOAA) and RENT Magazine for 2022...

Our students have purchased and syndicated tens of millions of dollars in multifamily on their own, and have partnered with me and my team on hundreds of additional units.

Learn more here: www.ApartmentAddicts.com

Have questions?  Let me know!