All Forum Posts by: Account Closed

@William Moya Buy large multifamily - syndicate it with a group of partners and build a portfolio.  That $100K will never run out and you can keep acquiring properties.

@Joseph Schults @Thomas Cooper Here's a curveball...have you thought about large multifamily? (100+ units) If you syndicate it and raise the capital, you'll never run out of resources... you can continue to scale.  AND you aren't limited to the size of a property based on your liquid capital. You could take that same $100K and acquire 4-5 properties totaling 1000 + units.

You'd have to be ok partnering with others and working as a team, but you'd own % of a MUCH larger pie. 

Plus you won't have to deal with the headaches of tenants because Property Management companies are MUCH less when you go bigger - only charge 2-3% vs 10-13% in smaller multifamily.

@Jonathan Bell A broker is definitely looking to see that you're serious and have credibility. Large MF brokers are a different breed - think about what they want ... most of them are making $1M+/year in income from commissions (the good ones who are going to give you the best deals anyway). They care most about your ability to close the deal and will quickly try to figure out if they're wasting their time by talking to you.  

So... 

- Build an online brand (Company name, logo, website, company email, etc)

- Connect with someone who has experience and has closed multiple deals so you can leverage their track record when reaching out to brokers.  We did this through the paid coaching space to get us started and it helped immensely. (Before we had a partner/coach with a track record, we were submitting LOIs on deals - and many times we were the highest offer and STILL not getting it because they went with an experienced operator who they knew could close it.)

-Playing in the large multifamily syndication space (100+ units) is extremely challenging on your own.  The investment in the right coach/partner can pay off 10X and help get you there faster.

Best of luck in your journey!

@Lawrence Kutsovsky I haven't been in their program, but I have been in 2 other syndication programs - 1 that was a complete disaster ($30K and 10 months wasted) and the one I'm in now is absolutely the reason for my success.

Through the process of learning from the 1st mistake, I really figured out what it takes to be successful and how to vet a coach/program. I'll say I've heard wonderful things about the Jake & Gino program and there are many great people in the group, too! 

However, here are the reasons I chose to go with another program - 

- Ability to partner with the head of the group in ANY market (no restrictions of location)

-A mentor who is actively buying large multifamily for themself - not just coaching - mine has acquired over 3,500 units this year so far (and 13,000+ in total)

-Direct access to the head of the group to call/text/email anytime - not handed off to sub-coaches

-The program I'm in now is selective - they don't let someone in just because they can write a check - and they only add 1 or 2 members per month. This creates an awesome culture and solid partners to execute deals. (it also proves to me they're not in it to build a coaching empire and make money from coaching - they're trying to create real member success)

***I don't think there is a "right" or "wrong" group - it all depends on how you vibe with the people in the group and your standards/requirements for your mentor. Obviously having "batphone" access to the head of the group and direct partnership opportunity comes with the price tag. J&G is about 1/3 the cost of the group I'm in now, but I believe the additional resources have really accelerated our success. It's all about ROI - the money I invested to join the group will return 30X over the next 5 years (that's just on 2 acquisitions so far).

There are so many wonderful people in the BP and multifamily community that are willing to help (like so many people on this forum) - wishing you all the success!!

@Phillip Lee Contact Dugan Kelley with Kelley Clarke PLLC - he's out of Dallas and handles a ton of transactions in the large MF space all over the US (many in FL).  He's both a real estate and securities attorney and INCREDIBLE! We'll never use another attorney. 

@Samantha Lotti not at all! I'm happy to help - I wish we had someone to give us some guidance when we started. Shoot me a message and we can coordinate time to talk

@Hunter Heimer Agree with everything @Chris Levarek said.  I'll add another thought here on the importance of their underwriting and knowing the questions to ask (are they using cap rate escalator at capital events, how are they scaling in their income increases vs front-loading it, are they including the first distribution in the raise total, how much is set aside for contingency funds, etc). Our coach did an amazing webinar on this called "Tricks Syndicators Play to Make the Numbers Look Good" - I can't post a link here but shoot me a message I'd be happy to send to you. Best of luck!

@David C. You are spot on - the coaching space is crowded and confusing...and plenty of "gurus" who are building a coaching empire vs. a real estate empire. I'm not sure if you're interested in large multifamily (100+ units), but if you are, I'd be happy to chat about my lessons learned with hiring coaches in this space and what to look for or avoid.  We wasted some money and time on the wrong coach; however, when we found the right group/coach, our success took off. Maybe I can help you avoid the mistakes we made early on when we didn't know what to look for—wish you all the success!

@Michael Tempel Check out Think Multifamily's "Smart Apartment Analyzer" - it's the most robust analyzer I've seen in the industry and my Dad and I have been using it to underwrite all of our deals. The guy who built it has an IT background so I'm sure that's why it has so many features - plus he's a syndicator with 13,000 units of experience. 

For your PPM - I use SP for our investor portal, but I would never use their PPM docs because they're templated/boilerplate language that can really expose you to a lot of risks.  Check out Dugan Kelley - he is a top attorney in the syndication space and the only one we'll ever use - he's both a RE and Securities attorney.

Wishing you all the success! 

You'll see all types of deal structures as mentioned above. We typically allocate 30% of the GP to the total capital raise - but we also make sure our partners (co-sponsors) are also participating in due diligence, EMD, investor relations & communications, etc to stay compliant with SEC requirements. It's crucial that you have a solid SEC/RE attorney to keep you out of trouble - highly recommend Dugan Kelley who is both RE & securities attorney.

For vetting a co-sponsor that's participating in the capital raise, I'd ask these questions: 

- How much experience do they have raising capital? (what's their total amount raised over X years)

-What is their average raise size per deal? 

-What types of deals are their investors interested in? (stabilized that cash flows day 1 versus heavier value-add lifts)

-What is their expectation of the lead sponsor during the raise?

-How do they manage investor relations post-close & throughout the term of the project? (i.e. lead sponsor sends financial reports & detailed updates, but they should be fielding their investor's questions)