All Forum Posts by: John Blanton

@Rashaun Forrest

Can't go wrong with

-Best Ever Apartment Syndication Book by Joe Fairless

-The hands off Investor by Brian Burke is a great breakdown of how deals are run and how to evaluate them as an investor, but a ton of insights that are great for sponsors as well

-Multifamily Millions is great

Others that aren't specifically MF 

-Millionaire Real Estate Investor by Gary Keller and Crushing it by Brian Murray

Podcasts

- Best Ever Real Estate Show and Syndication School

-The Real Estate Syndication Show

-Cashflow Connections (not specifically MF, but love Hunter's content)

Good Luck!

@Brian G. I would consult with an attorney as I am by no means an expert. 

From my understanding if it is a smaller group investors with some being only capital partners it usually is not an issue for a JV. Participation is also a bit ambiguous, having a weekly conf call with the team regardless of how active could constitute as 'active' participation vs actually running the day to day. When it starts getting hazy is when you add more 'passive' investors to the deal.

In your example of two parties finding, funding and running the deal as a JV it appears to be fine if the one partner is more relied on solely for capital and the other for running the deal, but again I am not an attorney and I would consult one prior to making any final arrangement/ contractual agreements.

I have a few securities attorneys I can refer if interested.

One clarification point in regards to registering with the SEC to sell securities can be quite expensive and time consuming.

As to why they have created some exemptions, two most notably being used by real estate investors the 506(b) and 506(c). I won't get into the details of them here, but this is a link to the SEC registration exemption page --> https://www.sec.gov/smallbusiness/exemptofferings

@Joe Potenza it can be hard to put overall parameters as there are many factors that go into an investment criteria especially when you factor in overall risk

Some basics I hear commonly-->

6-8% preferred return

12-16% IRR

3-5 year hold or refi

$25-50k min equity contribution

These are very high level depending on geography, asset class and asset type they can vary greatly

At the end of the day it will depend on the return profile expectations of your individual investor base that will determine the return profile of each offering

@Richard Tavetian There are so many great options here are some that I really enjoyed/ learned from-->

-Best Ever Apartment Syndication Book by Joe Fairless

-Multifamily Millions by David Lindahl

-Crushing it by Brian Murray

I know not specific to MF or MHP, but one of my all time favorites

-Millionaire Real Estate Investor by Gary Keller

Hi @Schuyler Witt, the best suggestion is a multifaceted approach. The market is in a strange place right now with all that is going on and the lending markets being more strict on their requirements. Lending is starting to open up a bit, but that is driving down transaction volume for the time being.

As for your strategy, building relationships with brokers, using ListSource to locate target properties, and direct outreach to sellers (cold calls, direct mail, etc). Overall, there are still many more buyers than sellers in the market and there is a lot of capital waiting on the sidelines to gobble up opportunistic deals. 

In my opinion, discounting any strategy right now is difficult as the competition is still so high. My best success has come with a combination of methods.

Best of luck! Happy to help if I can

@Matt Berklacy foundation issues aren't always fun, but painting them with such a broad brush is a bit tough.

It is really going to come down to the severity of the issue and the cost to repair. If it is piers and integrity of the structure that can get costly, but if you are getting the property for a price that works it can still make sense.

If it is lesser like replacing joists and subfloor that is pretty common in the central Durham area as many houses are built pre 1970. Costs to make those repairs don't tend to cost and arm and a leg.

It all comes down to ensuring you have enough room in the budget to hit your personal return target.

Now if the cost to repair along with the purchase price caused the deal to decrease your return target, then at that point yes I would consider it a deal breaker.

Hey @Kelly McMillan I had good success on some pretty serious foundation issues on a project in Durham and had good success with Triangle Reconstruction. I would check them out.

Good luck!

Even local banks find that type of loan very risky, assuming may be challenging in this current climate. 

That being said I did a lot of research previously and was able to secure a business line of credit across 3 properties at a 65% LTV with north state bank.

I would try them as they are good to work with just not sure they could do it on a single property but worth checking. 

Good luck!

Thanks @Lance Lvovsky appreciate the insight!