All Forum Posts by: Joshua Rainwater

I am, looking into buying my first home which I plan to also be a multi-family asset. I want to make the most out of the low interest loans right now. I have maybe 30k in capital. I'd like to buy a multifamily property that needs little repair and can immediately begin to cash flow. I know such a property is probably rare to existent at the moment. But does this seem like an all things considered doable plan for someone just starting out? I would rather not buy a small duplex if it takes the same amount of effort to get a larger multi-family for 2 mil and 1% down. 

From the comments I think I have an elementary knowledge in terms of overview of the industry but it would be probably be useful to buy some resources (ordered Joe Fairless's book) to go deeper in understanding deal analyses and raising funds. For some reason I did not think there would be enough time to raise funds if you have found a deal and do not yet have a base of investors established. If there is time it would seem it would definitely give energy to your pitch if you were already holding a deal in your hand. Is there a decent time gap before you have to actually have the money in an account from when you talk to a potential seller?

Yes, that is correct. Thank you for taking the time to comment. I believe I was making a larger deal out of this part of the process than necessary. If am right the most you can do when you do not have all of the actuals for a property is to find similar situations and estimate on the likely expenses that come with the age of the building etc. based on this to at least create a buffer in the underwriting. I have also learned it can be useful to look over various models for expenses of similar properties in order to include those elements in an analyses. That or simply ask others about expenses who have been involved with similar properties. 

Thank you to everyone for your input here. I believe I am at the point where what I lack is the knowledge of the sequence of the steps to take to get into the game once I have built a decent foundational knowledge of the industry. I am highly committed and more than willing to put in all of the hard work, but I would like to be as efficient and prudent as possible with the blindspots that come with being a newb. If I do not need a mentor initially, then I would rather not hire one. In his book Michael Blank recommended referencing an advisor on your team when pitching a deal to help bolster the confidence of potential investors or team members. I've also heard Brandon talk about finding an active investor with experience to go in on a deal with you. However, I acknowledge I could be over-exaggerating the risks. 

With all of the detail, education and processes involved with becoming a multi-family syndicator it is difficult to know what exactly is the best step to take once I am already heavily self-educating. Wouldn't finding a mentor or advisor be the next best step to bring someone into the syndicator identity the fastest?

My assumption is that the best thing is to "simulate" potential risks as well in a sample deal. At the same time am I correct that due diligence and good underwriting can curb much of this in a real scenario? How can I create a model without having all the details in terms of operating expenses and the state of the property that come with having a property manager review the books etc. up close? What are key things to include in a sample deal that can help give as a realistic picture as possible to potential investors?

Thanks folks!

Josh