All Forum Posts by: Josh Oaten

@Justin Goodin

When you take on investors you provide them with a preferred return (Most of the time). We give say 8-10% CoC return. We purchase a property that has value add potential and do this over a 5-7 year period. When you distribute gains, the investors get there 8-10% preferred return first. Anything that is left over is then split, usually around 70% to investors and 30% to me the syndicator. So for me to get paid, I need to be making sure that I am increasing the properties NOI and cashflow above that 8-10% return.

EG 

- Year 1 the property is returning 10% CoC (I dont get paid anything from the cashflow for that year)

- Year 2 the property is returning 13% CoC (The investor gets there 10% and then the other 3% is split between us)

Check out @Omar Khan blog on the topic, im sure it will help https://www.biggerpockets.com/member-blogs/10776/78309-the-promote-how-the-real-money-is-made-in-real-estate-private-equity

@Dale Gwynn

Don't base any of your calculations off the brokers proforma. The numbers are usually averaged out from peak cycles and comps are hand selected to make the place look like it's worth more than it is. Get the rent roll and T12 financial statement and go to work on that. I'm sure you will find major differences in the numbers.

@Art Gonzalez

Easiest way to make your list is too get recommendations from the multifamily brokers you are dealing with.

@Kyle B.

I would suggest a couple of things.

1. Why don’t you try seeking out investors in your market that are currently doing what you want to do. BiggerPockets is a great place to find investors and then offer them your services for free. This will help you learn, build a network and credibility

2. Figure out an investment criteria. How will a broker know what to look for for you if you don’t even know what you are looking for.

3. Attend local real estate meet ups to network. Another source for #1.

@Ryan Mitchell

Get educated with as many books and podcasts on multifamily as you can. Then post questions and comments on here like 5 times a week. When people reply follow up with them and offer to assist them for free to learn. You being a contractor, I’m sure you could offer some great assistance with this.

@Rafael Esteves

Like what has been said above, what you are missing is that most of these are value add deals. We look at a preferred return for investors of 8-10% and a ~15% IRR. To achieve this requires a lot of work on our end in increasing the properties overall income production and value.

@Jamie Garcia

Reach out to Reed Goossens. He buys multifamily in Texas but is based in LA. Reed may be able to connect you with people he knows trading in LA.

@Charlotte Dunford

If the numbers make sense and you have the team in place then go for it!

@Account Closed.

I noticed that your are from Jacksonville, FL. Omar is based in Dallas, TX and buys apartments complexes in both Jacksonville and across Texas

@Frank Bonzai

Im not sure on the averages and what not, but I would be surprised if you didn't get at least one if you were to do 500 calls per month which is are 16/day for 6-12 months (same 500 owners once a month)