All Forum Posts by: Account Closed

@Danny Randazzo

Awesome! Thanks a lot for the reference--this is much appreciated.

@Brandon Sturgill

Very interesting--thank you for the heads-up and for the information. The long time and capital intensiveness for feedback in addition to the validity of an AVM over long time scales (when the market dynamics are nonlinear) are all important challenges to the strategy for sure.

HouseCanary (https://www.housecanary.com/) has seemed to have a lot of success in the SFH segment, but it is unclear how well Enodo (https://www.enodoinc.com/) and GeoPhy are doing in the multifamily space (https://geophy.com/).

Hello,

I'm wondering if people 1) use Automated Valuation Models (AVM) in the small-medium size mulitfamily space to spot under-valued properties by comparing the AVM price (the predicted appraisal value) to the list price (or the price you think you could reasonably buy the property at) and buying at a large difference (e.g. the Zillow Zestimate or Enodo: https://www.enodoinc.com/e-valuation.html) and 2) use any software to make a data-backed prediction of the ROI of various repairs for a BRRR approach (e.g. Enodo: https://www.enodoinc.com/market.html). Enodo predicts the amount of rent increase you could withstand for a given value-add (e.g. a dishwasher or new countertops) in all zip codes in the US. 

I have not seen any mention of either approach on BP before, but potentially someone can point me to a thread discussing the usage of AVMs for finding deals in the small-medium size MF space. Thanks!

@Jason Merchey, @Taylor L., @Alina Trigub, @Account Closed

Thank you all very much for you input and insights into co-investing in RE and the varied ways to accomplish this formally and successfully. I appreciate your additional references as well. I have multiple points of entry I can pursue further in my studies and in practice.

@Oleg Shalumov
Thanks for the recommendation!

@Aaron Stuiber
Thank you very much for your response! I appreciate your input, and I am looking forward to your PM.

I am wondering of the best way to structure a minimal boilerplate JV that can be flexible for co-investment by multiple parties at custom appreciation (equity)/cash-flow entitlements decided by initial capital down and future management diligence (owner-occupancy, property management, etc.). Can anyone recommend a lawyer for this or maybe someone has an boilerplate JV that they have successfully used in the past?

How do people invest with each other? Do they use operating agreements, joint ownership, both? What type of professional do you use to officiate this? Just a lawyer? An agent? Both? How are these typically structured? Does anyone have any examples that they could post?

What are the most common forms of creative financing?

Would more people be willing to invest in multifamily properties if they could invest with other trustworthy BP members and pool capital/lower risk? Would people be willing to do this with a custom operating agreement in place? This way, more people could easily and with transparency tap into economies of scale.

Hi All,
I am wondering what opinions people have about up-and-coming RE-tech startups that offer crowdfunding platforms or tokenized investment solutions in an attempt to solve the high barrier to entry (accessibility) and liquidity problems in real estate investing (would anyone consider using these platforms as an alternative to traditional real estate investing at any stage in their endeavors?), e.g. (to name a few):

- RealBlocks (https://www.realblocks.com/), only for accredited investors, allows for secondary liquidity from P2P token exchanges for fractions of individual CRE properties

- BuildingBits (https://buildingbits.com/), for both non-accredited and accredited investors, $100 minimum investing in individual CRE properties

- Jointer (https://www.jointer.io/), for both accredited and non-accredited investors, allows you to tokenize your property by creating a land-trust and allowing Jointer to purchase equity in your property in exchange for cash (financed by token holders/investors who are debt financing at an interest rate equal to a CRE index), while you continue to manage your property and split cash-flow and appreciation profits with Jointer. You can refinance down below the conventional 20% equity lenders are limited to

- Patch of Land (https://patchofland.com/), for both accredited and non-accredited investors, focused on up-and-coming neighborhoods, typical loan APR of 9-10% and LTV of 70%

- Fundrise (https://fundrise.com/), for both accredited and non-accredited investors, advertised as better returns than a REIT, indicates the exact properties in the investment fund, $500 minimum
- CrowdStreet (https://www.crowdstreet.com/), only for accredited investors, single property CRE equity crowdfunding

@Richard Sherman
Great--thanks for the help Richard!

@Caleb Heimsoth
Great to know--thanks for the info! Go Badgers!!