All Forum Posts by: Jonathan Heagle

Hello BP. I'm a financial advisor turned real estate investor. I started buying SFR last year when bond yields went to ~0%. I like the deals that I've done, but find SFR to be too slow and I'm interested in getting involved in multifamily syndications. I live in Santa Barbara, CA, so any investing will likely be from a distance (cap rates here are 3% for old properties).

I have devoured a bunch of content on multifamily and have plenty of connections to raise funds, but I would like to partner with someone with operational experience.  

I'm thinking that getting involved in a mastermind group will help me push the process forward and possibly introduce me to potential syndication partners.  I've come across Joe Fairless, Michael Blank, Rod Khleif, Think Multifamily, etc.  Does anyone have any experience with these groups and any opinions on which group may best fit my situation (long distance, networking etc)?

Thanks for your help!

If you're not able to find off market/value add deals, you kind of need to accept lower cap rates in this market (in residential).  That doesn't meant that you have to accept deals that don't cashflow.  Get the upside of inflation through rental and price appreciation without putting yourself in a liquidity crunch if the unexpected happens.

I agree that inflation is likely to run hotter than it has over the last 10 years, and residential housing will likely run above overall CPI for at least the next 5 with the strong demographic support from Millennials moving from apartments to single family homes, but I would not expect 5%+ inflation for very long.  If the overall level of CPI exceeds 3% for more than a year, the Fed will have to give up it's current stance that inflation is transitory.  This would cause to them to raise rates/stop asset purchases in order to reduce aggregate demand in the economy.  The likely result is a drop in stocks and other financial risk assets.  

Also, I expect the Biden administration to drop the tariffs on lumber from Canada to release the pressure on lumber prices.  This would help builders ramp up new home construction.  Coupled with a lifting of the foreclosure moratorium and higher mortgage rates (coming), supply/demand should be more balanced over time.

All of that said, I LOVE buying cash flowing rentals w/ leverage right now.  I think the next 5 years are going to be great!  And much better than owning AGG etf in your investment portfolio. 

Hello all. I'm looking to build a team in the Charlotte area. My plan is to focus on SFR rentals in Bish neighborhoods. I am buying long distance, so I need a property manager that is trustworthy and can operate with minimal oversight. I generally like to buy properties that only require light/cosmetic rehab. Does anyone have any companies that they would be willing to recommend? Thank you!

Forward looking returns in all asset classes are being compressed by the actions of the Federal Reserve.  The compression of cap rates in real estate is completely logical through that lens.  Rental properties can still offer mid/high single digit net rental yields with inflation protection and appreciation upside.  This is an attractive investment profile for investors, as compared to fixed income, and a diversifier vs. equities.

Hello BP community. I recently purchased my first rental property, located in Mesa, AZ, in an LLC. The deal was all cash and I'm looking for financing options at a reasonable rate. After all expenses, the property is netting 4-5%, so I'd love to get a rate sub 5%.

What makes things a bit difficult is that I left a well paying W-2 job a few years ago to start a company.  Most of my money has been going into that company, leaving me with depressed income.  I have plenty of savings and assets (hence the cash purchase), but I am definitely income poor.

I've spoken to a few asset-based lenders that have shaken out in the 5.5-6% range and I spoke to Midfirst bank, who has ~4% rates, but require 10 years of property investing experience.