All Forum Posts by: John Burns

@Alina Trigub Thank you for the step by step advice. I appreciate your thoughtfulness and time.

-John 

All, thank you for all your advice. We are going to start going to more multi-family focused meetups and expand our network and knowledge. That way we can meet current investors and deal sponsors and see where we can start getting in on some deals now. Thank you again!

Hello all! I am a managing member of a multi-member LLC that currently invests in SFHs using a BRRR strategy. We are early in our business life but also have full time jobs that we are contractually tied to long term, so we can't drop everything and focus 100% on growing the business. However, that all starts to change in the next 5 years.

Our long term goal is to focus on syndicating 100+ unit multi-family deals and capture both syndicating fees as well as have equity stakes. In 7 years, we would like to lead a syndication as General Partners. I think our strength is that we will be able to bring cash to the deals. Our focus on executing a BRRRR strategy now will produce the net worth that we can leverage later for these syndication deals.

What advice would you give us to get ready to transition from SFH investing to syndication from now thru year 5? I know having cash available will be key, but can't be our only strength if we want to lead deals. What skills to learn, networks to build, and experience to gain would help round us out and set conditions for success? Thank you for your advice.

Great idea. Just to pile on with affirmation, there is nothing wrong with getting BAH and rental income. We've done it for years. Enjoy NH and I hope your husband has fun as a PMS. I'm thinking of applying for next years board!

I can't give you any advice about your DTI, because the numbers are what they are. If your DTI is too high for a conventional loan, then think about other possibilities that will lower it while still meeting your goals. I would focus on finding something below market that requires light rehab, but can yield substantial rents. Once you refi a property like this out and pay back your lenders, you should build more room into your DTI for future acquisitions.

I know, deals like that are hard to find. However, they are not impossible. It doesn't sound like you are in a hurry. You have time to get to know your market, research tax records, and build some leads. You only need one. FB Marketplace can be a good place to look as well. In the meantime, talk to lenders, make wealthy friends (private money), hang out with realtors who have their ear to the ground, and let everyone who will listen know what you are looking for.