All Forum Posts by: Joshua Davies

@Wei Jie Yang I definitely agree with what @Oleg Shalumov said about the 1% rule. That is a rule I follow with small multi-family properties, and if the property doesn't meet that rule, I won't waste my time analyzing. 

You can meet this criteria in various markets across the US, and picking a market requires some analysis of data and statistics. 

Good luck on your investment journey!

@Fernando Rodriguez I would definitely recommend learning as much as possible. It is possible for education to make up what you are missing in capital/experience.

Attend as many local meet ups as possible, read as many books as possible, and listen to as many podcasts as possible. If people see that you are passionate about investing and go to great lengths to make it happen, an experienced investor may be willing to bring you into a deal, or even agree to be a partner/mentor in a deal that you bring to them.

@Dean Fiacco for point #1 I honestly think the best way to go is form relationships with a few brokers (you don’t want to limit yourself to one broker). As mentioned above, offering a consulting fee/bonus at closing can definitely help.

#2 you will definitely need to speak with a securities attorney. The SEC has strict regulations, and it is best to consult a professional prior to raising any money from private investors (even if the money is from friends and family).

@Kingsley Edemidiong are you interested in small multi-family (under 5 units) or are you looking at small/large apartments? Either way, the first thing I would do is educate yourself as much as possible.

it will then help to identify a niche and start analzying properties, you can never get enough practice.

Read every book and listen to every podcast. I would also attend your local REI meet up and network with people who are already doing what you want to do. In this game, networking and relationship building is absolutely key!

Feel free to reach out!

@Joseph Biscoe there is a ‘Network’ tab at the top of the page and if you click on that you will see ‘Events’. This will tell you all of the events/meet-ups going on in your area.

There are also various other sites not connected to BiggerPockets where you can search the topic of the meet up you want to attend.

@Joseph Biscoe I would recommend attending your local meet up groups and meeting as many investors as you can. If you don’t have a local meet up, you can always start one!

By creating and building relationships with successful investors, you will open up avenues for future partnerships. I would recommend spending as much time as you can learning about real estate investing. If you can present yourself as somebody who is very knowledgable but lacks the experience/capital to invest, you may find a partner who will be willing to invest with you.

Good luck!

@Troy Vincent I would recommend to first ask for seller financing. If the seller is not willing to do this, I would bring a partner into the deal to fund the remaining down payment, and possibly the renovation costs. You can then reward them for this by guaranteeing a certain return on their money and a chunk of equity in the deal.

There are many ways to structure a partnership, I would do a quick forum search on this topic and you will get a ton of great info!

@Davere Currie I would recommend to start attending local meet ups and meeting as many investors as possible who are doing what you want to do, relationship building is absolutely key in this industry!

Once you have built a solid relationship, you can potentially ask them if they would be interested in partnering on a deal. Also, spend this time learning as much as you can, that way you will be bringing knowledge to the deal if you are missing the capital/experience.

@Mary K. The 6 months reserves relate to PITI only (Principal, interest, taxes, and insurance) and that will hopefully be considerably less than your total rents, assuming you purchased a cash flow positive property! I believe this reserve limit is set by Fannie Mae.

Also, you could look at commercial lenders/local banks, as they will have various requirements. I have a duplex out of state that is financed on a commercial loan with a small local bank and they were much much easier to deal with!

@Erik Schneider I highly recommend the ‘Best Ever Apartment Syndication Book’ by @Joe Fairless

The book has an incredible amount of information! Even if you are not looking to syndicate a deal, you will still learn a ton about the multi-family space in general.