All Forum Posts by: John Casmon

Hi @Susan Tan, I'm in Cincinnati and if the deal is good and in a great area as you mention, there will certainly be people looking to partner. I can send a DM if you want to discuss details but for the sake of the forum I'll share things to consider.

1. How much money do you need?
If you need a smaller amount (say $50k or less), consider seller-financing or a private loan in a second position. Also be sure to have reserves as you want to prepare for any deferred maintenance as well as any residents that may not pay rent. 

2. How much value can you create? 
If you can create a considerable amount of value you can refinance and pay off the lender and keep the asset.

3. Is it still available?
Unfortunately, if it's really a deal on the MLS, it may already be too late. These things go fast and you need to find a way to lock it up before someone else gets it. I'd suggest putting in an offer and figuring out where to get the money.

4. It looks like you're in SF Bay Area, how do you plan to manage the asset? 
Consider partnering with a local PM or another local investor. 

Lastly, it's worth noting that anyone with a self-directed IRA can lend you the money - you can even partner with your own SDIRA.

@Gova Reddy you got some great advice, particularly from @Todd Dexheimer. 

@Mike Smith syndication may not be for you. The work it takes to find a quality deal, put up earnest money, risk capital, handle due diligence, organize investors, (all before getting a dollar from investors by the way) just get to closing is incredible. Then there is managing communications and the execution of the deal going forward. That should be worth more than a 20% cut of profits and a 2% acq fee. If you disagree, it's because you don't value it the same and it just may not be the right investment for you. Nothing wrong with that, but busy professionals that aren't trying to take on a full-time job, are happy with this compensation model. 

If you are looking to work for a large, established development firm this makes some sense. It will help you learn the process and build connections and gain credentials. However, if your goal is to build your own portfolio or work with a smaller firm, a degree is not necessary. Instead, look to educate yourself through an apprenticeship where you get some hands-on training. 

This month, we are joined by Ryan McKenna of McKenna Capital. Ryan has helped investors allocate capital across 9,000 units worth over $1 billion. Ryan is going to share how he works with investors and raises capital for deals.

That's the unfortunate apart about hearing so many successful real estate stories. It makes it seem glamourous and easy. The reality is it's tough and requires a lot of work, especially on smaller properties. There are active and passive investors and if you have time and patience, being active is a great way to invest and maximize returns. However, if you are comparing it to the stock market or don't want to deal with tenants (especially with evictions), passive investing is really the best of both worlds.

I think @Jordan Burnett and @William Harvey made great points in sharing their own experiences and it may be worth considering. William touched on the tax benefits, but to re-iterate, these benefits are only available on larger commercial deals, but not small rentals. I know an investor who bought some rentals because he heard real estate was great tax shelter and he got a whopping tax bill from the new capital gains on his rentals. He did two passive apartment deals and paid no taxes the next year.

If you are looking at stocks vs. real estate, you need to invest the same way. If you are self-managing, being a landlord is akin to having a job for the company you own stock in. You are better off approaching it as a completely passive investment and then factoring in the time commitment to self-manage or consider investing more passively. 

Thanks for the shout out, @Tom Shallcross!

Think you nailed it. I don't know the group so can't comment, but the first rule to earn credibility on the internet and THIS site is to have a profile pic and enough posts for someone to gauge your intent. If you are looking to invest, there are other options that are more active and transparent in the BiggerPockets community.  

Syndications won't be dead, but I would urge you to focus on developing specific skills and consider joining a team or partnering up to make up for inexperience. This will make it much easier to see success than trying to learn it all and go at it solo in a hyper-competitive market. 

Hey @Amy Wan I saw this but it's not clear on how they are defining "certain professional certifications, designations or credentials," which still feels limited to people who work full-time in private equity. Is that your takeaway for now?

Interesting thread...

On Neal or Brad. I don't know much about Brad's program, but I know he has a large multifamily portfolio in Texas and has lots of students in his program. Some that I know personally who are successful investors. I have had Neal speak at my events and on my show. He is very insightful and data-driven. I have heard great things about his content. 

The reality is you have to gain clarity on what you are seeking to determine which program is best for you. Which leads to the debate in this thread. The reality is you can "learn" how to invest in multifamily for FREE (or at least at a very low cost)! Yup, I said it. If you want training, all you have to do is go through books, podcasts, BiggerPockets, videos, etc. 

So why pay? Because in a sea of free information, it's hard to develop an actionable plan. So if someone takes the time to share a process, it makes life easier and the chance for success more probable. The challenge that people have with paying for education is many of the programs just sell the knowledge and don't help people actually implement the knowledge to become an investor. The same way I can tell you how to lose weight, but it doesn't mean that in 6 months you'll be 20 pounds lighter. The knowledge is not usually the main issue investors face. It's not easy to find a deal and a good educator would make sure a student understands the effort it will take to find a solid deal. But the student has to put in the work and follow the plan. If I tell you to eat certain meals to lose weight and you keep eating donuts and burgers, who's at blame? Mentors are not magicians.

Are there vultures that prey on the hopeful knowing they can't actually help those people get results? Yes, and I can't stand that approach or model. The biggest thing with paying for coaching is making sure you get value and you are clear on the agreed-upon outcomes from going through the program. Knowledge is one thing, but that won't make you an investor. Make sure you get the resources, tools, connections, and opportunities to get in the game if you are going to pay for help. I would also want to know if the coach had a coach themselves. Meaning do you believe in coaching or is this just a revenue source for you? If you believe in coaching, you should have a coach yourself. 

And be honest, if you need a coach who will hold you accountable, get someone who has that approach and not just some great tips. The greatest athletes in the world have coaches to reach their full potential. If you can buy a 20-unit by yourself, imagine what you could do with the right coach. It's about you and your potential and finding the right resources to help you unlock it.