All Forum Posts by: Joshua Davies

@Amul Sutaria I am in agreement with the above posts, definitely consult with a securities attorney prior to anything else. 

I would also look to educate myself as much as possible on syndication's, it can seem very overwhelming to the non experienced investor. There are multiple sources of research/education here on the forum, however I highly recommend "Best Ever Apartment Syndication Book" by @Joe Fairless. I would hold off on going any further until you read Joe's book - it propelled me into the next stage of my investment career.

Good luck and don't hesitate to reach out!

Thank you for the reply guys. I’m looking for a few different recommendations on property managers to interview.

If anybody else has a recommendation please let me know.

Thanks!

@Eric G. Thank you Eric, I will be reaching out. Appreciate your help!

Hi All,

I am a CA investor and have been investing in TN for the last year. I have been researching the Indianapolis market and have seen some healthy returns.

I have been focused on small multi-family properties, however now looking to get into something bigger. If any experts in the local area would be kind enough to share their knowledge and expertise that would be greatly appreciated.

Also looking for recommendations for investor friendly agents, brokers, lenders, and PM’s.

Thanks,

Josh

@Brad T.

This definitely depends on the area, however I would expect to pay 8-10%. There are ways you can improve your return in this area though.

For example, if a company is proposing a 6% management fee for example, you could offer them 8% fee but no leasing fee. This way your interests are more aligned, they have more incentive to keep tenants happy and avoid a consistent turnover.

There are many ways to negotiate a management fee but any strategy that aligns interests is always a good tool to have.

@Devin Radford

Hi Devin,

Purchasing a duplex is no different than purchasing any other real estate asset, you want to make sure you get a top quality home inspection. The few hundred dollars you spend here could save you thousands in the future.

Secondly, since duplex's are appraised the same way a SFH would be, be sure to double check your comp numbers, both sales price and rental amounts.

I purchased a duplex with similar numbers in TN last year so feel free to reach out anytime!

@Mike Martel I would definitely implement the BRRRR method on this property! If your research and numbers are accurate you will be able to pull out all of your initial investment.

@Matt Dabek Hi Matt, commerical loan terms can be confusing if you have never heard of them. 

The loan term maybe 5, 7, 10, 12 years, however the loan will be amortized over 20, 25, 30 years. This means that the loan payments will be based off a 20,25,30 year repayment schedule, however you will need to implement your exit strategy after the 5, 7, 10, 12 year term (whether that may be refinancing or selling the property) or the loan will be due.

Please feel free to reach out if you need more explanation on commercial loan terms.

@Jim Growfer I can’t answer that as I haven’t seen the numbers. When you say “let’s say debt is $35k” what do you mean by that? Do you have a lender quote? Do you know your interest rate? Loan term? Amortization? There are a lot of things I would need to know before I could help with your analysis.

@Jim Growfer where are you getting those numbers? If you’re reading them from a brokers pro forms then please don’t trust those numbers. These pro forms numbers are part of a “sales package” and that’s exactly what it is.

Make sure you do your research on the area, sales, rent comps, cap rates, etc.