All Forum Posts by: Jordan Northrup

Hi Sam, thanks for the note! I came across A.CRE as well! I've used their "all in one" model. I've found it to be helpful.

Stuart, I agree with everything you said 100%. 

Stuart, I'm not ignoring anything. I'm fully aware of the need to source and execute opportunities in a way that provides value to the investor. The entire point of the thread was to evaluate the statement that I've heard many heavy hitters utter on the BP podcast and in BP books. I'm asking if the statement is misleading, that's all. The premise of the statement is that if you can find an incredible deal, the money will find you. I haven't done a syndication, but I suspect that it's much harder to raise $10M than it is to find a good deal. Do you agree or disagree?

To your point, someone may be experienced in deal sourcing, underwriting, and management, but lack the charisma or extensive network to raise multiple millions at once. Both things can be true at one time. It doesn't mean that the operator is ignoring their own abilities. Ability and experience come in many forms. Are you suggesting that an executive in corporate America doesn't have the ability to manage a team, leverage those with experience, and deliver value for the shareholders? Of course they can. 

Thank you Dimitrius. In your opinion, what is the best forum in which to raise money? Does one post on BP, social media, friends and family, personal business connections? What is the best way to raise and hold the money while you search for a deal? Do you create a separate LLC to be the Fund of Funds (per SEC) and have investors contribute while you seek to place the capital?

Thank you Gents, I really appreciate the sanity check. 

Hi Taylor, thank you for the honesty. I felt the same way, but didn't trust my gut because of my inexperience in this area. It seems like raising millions would be very difficult regardless of how good the deal is. I expect that one would need lots of things moving in the same direction (network, SEC docs, platform) to raise that kind of money. 

Do you have experience here? 

I've heard multiple multifamily syndication sources say that if the deal is good enough, the money will find you. Thus, focus on finding a great deal and raising the millions of dollars you need will be easy. Does anyone have experience here? Do you find this to be true?

Hey Evan, solid advice man. I spoke to the wholesaler today and told him my thoughts. He's fairly new and this is his first "deal". After speaking him, I have a very bad taste in my mouth for the seller and what he's trying to do. I think he's trying to get a sucker to buy his mistake. 

I just came across the Velocity Banking concept a few days ago. For context, I have a high net worth, high W2 income, and a diversified investment portfolio in real estate, e-commerce, and another sector of industry. 

My home is worth $650k and I owe $300,000 on it. If I take an 80% LTV 1st lien HELOC, that's a loan of $520k, which will be reduced by $300k to pay off my first mortgage.

So now I have a "mortgage" of $300k. Then I switch my lifestyle in that all my monthly expenses (around $5k) go against the HELOC. All my W2 and business revenue go against the HELOC as well....I'm estimating it to be somewhere in the $18,000 - $22,0000 a month. Less expenses, that's a net of $13k-$18k principle reduction each month. And that doesn't take into account by using the available $300k in equity to buy more investments which produce more income which goes to more principal pay down.

So again, I'm trying to see the downside here. What am I missing?

Hi Evan, 

My thoughts exactly. What the owner paid for it and what he's on the line to his investors for has no bearing on what I would pay for the property. I can certainly calculate my stabilization costs and an NOI that would hit my target returns.

Regarding the property itself, the hotel is in a military town with lots of professional and tourist traffic. IN fact, I was stationed in this particular town for a time and I know the property. I've never stayed in it, but have gone past it hundreds of times. The wholesaler is telling me that the city would like to keep it operating as a hotel. I don't have any experience in running a hotel, nor do I live close by to keep an eye on it. If this deal were to go through, I'd rather fix the place up and let a hotel chain operate it.