All Forum Posts by: Account Closed

@Justin Frank I appreciate the website compliment, thank you! Please reach out- I love talking multifamily and would be happy to help anyway I can.  It took us a few mistakes to finally find the right path and I'm always happy to share our experience to help others get to their goals faster.  Cheers to all of our success!

I agree with @Justin Frank on mentorship helping you accelerate your success. You can certainly spend the time to try and figure it out on your own, but that path can also be very expensive and take a lot of time. Trying to take down large multifamily properties typically requires a team - and you can gain access to a lot of resources you need through a mentorship group. It took us being in the wrong group with the wrong mentor to eventually find the RIGHT one that aligned with our values - and the culture of any group is imperative to your success. These types of groups are definitely not cheap - full membership/access to the main "mentor" and the group is typically $30K - $40K for the first year then it drops substantially after that... BUT it's a no-brainer investment when you compare it to the money you can make in your first deal. Our first deal returned us 9X the membership cost... and we plan on doing many more deals this year!

@Ben Sears My vote would be large multifamily syndication! While I haven't done flips or SFR, I know a lot of people who have transitioned from both of those successfully into apartments. I started looking at RE through smaller multifamily and quickly realized that your capital doesn't go very far, it becomes difficult to scale, and I didn't want to deal with the headaches of property management. The way we (my Father and I) found a way to go big, fast was through apartments. We believe in mentorship- find someone who is doing what you want to do and hire them to teach you the same. This is exactly what we did ...took us finding the wrong mentor to eventually find the perfect one, but after we did we closed on our first large multifamily deal a few months later. We're underwriting 3 off-market deals now and anticipating being under contract on another property soon! Our mentor has over 6000 doors, and our mastermind group is super active - lots of other syndicators like my Dad and I that are at a run-rate of 800+ units per year. Just an idea for you to consider for explosive growth! :) Happy to help any way I can- reach out if you have questions and best of luck in your investing journey!

Last year it was not having the right team or mentor in place... and trying to balance launching a multifamily investing business + a 2nd business at the same time! Blessed to have found a great mentor and closed on 173 units in November- grateful! Still a challenge to balance the work flow of 2 growing businesses...but love the organized chaos :) 

@Mike B.

Hey Mike! What I do may not to be what you're looking for...but I was where you are a couple of years ago and remember the frustration of trying to buy the mid-size deals (25-50 units) and figure out a way to scale after we (my Father and I) sunk quite a bit of capital into one deal.  We realized this strategy wouldn't get us where we wanted to go very quickly.

We did quite a bit of research, eventually found the right mentor (can offer advice in this area, too), and dove in to apartment syndication - and never looked back! 

We chose apartment syndication over retail because of recession-resistant nature of B and C class value-add type projects.  My Dad has been a professional trader and money manager since the late 90s and based on current market conditions we know there's a crash coming at some point- what typically gets hit the hardest is retail and A-class apartments.  So we found our sweet spot buying B and C class value-add apartment buildings in solid markets - and our investors love this strategy.  When you underwrite it correctly, and purchase it at the right price, we are confident we can weather any market condition which gives our investors peace of mind. 

It sounds like you understand the syndication concept so I won't bore you with the details...but I do want to touch on returns ... typically a 5 year project with a refinance at year 3, 90-100%+ total return, 10-13% cash on cash returns annually, and minimum 15% IRR + a ton of tax benefits (up to $40K in write offs for every 100K invested). <--these are investor returns... the returns are even higher when you are the syndicator or a part of the General Partnership putting together the deal and managing the asset.

I'm a part of an amazing group out of Dallas (Think Multifamily - Mark Kenney is our partner and mentor), and our group is pretty active- we've done $250M+ and 4300 units in the last 12 months alone. The group is made up of people who are trying to create great cash flow and build wealth through apartment investing - and there's a lot of different ways to get involved and join a General Partnership (and a much better use of capital).

Happy to help any way I can... again, this may not fit your goals or be the path you're wanting to go down, but I wanted to throw another option out there for you! 

Best of luck in your investing journey! Happy to help any way I can.

@Austin Mudd Hey Austin - Here's another idea that may not be one you've thought of ...

 One way you can create extra cash flow is being a capital raiser on big apartment syndications. If you have the network of investors in CA who don't mind investing out of state, there's plenty of opportunities. My Dad and I are syndicators (mostly Texas properties) and we brought on 7 capital raisers on our last deal to raise $3M - each raiser earned a piece of equity in the General Partnership and participated in both acquisition fees and cash flow. Just wanted to make sure you're thinking of everything - and I certainly agree with @Nathan Gesner as there's plenty of great opportunities to source a deal and partner with others who can help you take it over the finish line.

 I've been in your shoes of wanting to go out on my own- actually quit my VP job in Corporate America 2 years ago to start 2 business (real estate being one of them). I wish I'd started at your age! :) 

Anyways- best of luck in your journey! Happy to help any way I can.

@Grant Gibson Check out Think Multifamily - Mark & Tamiel Kenney out of Dallas, TX.  My father and I are a part of their group of syndicators - pretty active with over $250M and 4300 units acquired in the last 12 months alone.  Steady deals that perform well and a solid reputation in the industry.  Feel free to reach out if you have any questions - happy to help anyway I can. Cheers to your success!

@Lamont Marable SO kind of you! Thank you! Glad we're connected.

@Jack Hemion Congrats on the new home and getting started in RE investing! I can provide some perspective on the Syndication/Crowdfunding... I'm a Commercial Multifamily Investor/Syndicator - some also call that an "Active Investor".  

My Dad and I have a financial market background- he's been a Stocks/Commodities/Currency trader and Money Manager since the 90s. We started seeing quite a few shifts in the market about 3 years ago and it's become increasingly difficult to make the returns we were used to providing for investors.  We started looking at diversifying into include hard assets a few years ago and naturally gravitated towards multifamily (current market conditions & the interest rate environment are providing double-digit return opportunities in certain markets which is a bonus).  

  We started with a condo-conversion project of a 6-unit brownstone in Chicago and quickly learned that it's difficult to scale with smaller properties (really anything under 50 units).  That's when we found the Apartment Syndication strategy and partnered with Mark & Tamiel Kenney (Think Multifamily) in Dallas - we closed on our first 173 units about 5 months after joining their group and we're currently underwriting a couple more deals to submit LOIs soon.  Our goal is 1000 unit acquisition rate each year.

You'd want to figure out which side you'd want to be involved on...as a Passive Investor you can sit back and experience great cash flow and returns... as an Active Investor there's certainly more work, but you get a great team in place and can create awesome cash flow + build wealth which would help you offset some of your wife's income.  

Just a Multifamily syndicator's perspective - happy to help any way that I can! Best of luck in your investing journey :)