All Forum Posts by: Account Closed

@Jeffrey Donis That's great! You are right on track with why you want to get a mentor.  We invested substantially ($30K) in a mentorship group that did not go well at all - we spun our wheels for about 9-10 months until we decided to look elsewhere.  The good that came out of it was figuring out exactly what we didn't want - and what we knew we needed to be successful.  We found the right mentor and he's the reason we've been successful! We closed on 173 units and then another 236 units that is closing in 3 weeks.  

Based on what we experienced, here are a few things you should evaluate when looking for a mentor: 

-Will they partner with you? (this is a MUST) In any market - as long as they agree with the underwriting and have confidence in your leadership. (*in any market is crucial because some mentors will only partner in one area which creates too much competition amongst their students)

-One-on-one coaching directly from the MAIN mentor (NOT a sub-coach). Many mentorship programs are growing quickly and they can't keep up with the pace so they bring on "sub-coaches". You absolutely want direct access to the Mentor who has all of the experience. We can text/call/email whenever we need ours and he's super responsive.

-Culture of the group - this is established by the leader. Look for integrity, character, and a standard that's required of all members in terms of how you do business and treat one-another. Your success depends on the reputation of your group - make sure you like their reputation. Our mentor only accepts a few people a month at the most and he screens everyone to make sure they're a great cultural fit. The importance of this and impact on your success is often overlook and/or underestimated.

-How is their existing portfolio performing? Make sure their investors are raving fans and the properties are on-target or exceeding target.

-Is the entire group active? or just a few people? You want a group that's very active and high-quality people who are driven to make it happen.

Hope that helps - feel free to shoot me a message if you have more questions. Best of luck in your journey - it's going to be a wild but very fulfilling ride! :)

@Christopher Campbell Hey Christopher - congrats on your success! Here's a curveball... that $450K could go A LOT further in a large multifamily vs smaller.  We got into large multifamily syndications a couple of years ago after we bought a 6-unit and realized it was difficult to scale a portfolio.  Our next purchase was 173 units and another 236 units we're closing on in 3 weeks. The returns are so much higher and it's easier to scale because you don't have to outlay so much capital for each property.  For example - that $450K could be split up as earnest money on 2 separate deals that are at least 200+ units each.  Just one of those properties would generate more than $40K/year in asset management fees alone - not accounting for an acquisition fee (typically 2% of purchase price) and the money you'd make from a re-finance. One deal could conservatively generate $400K+ over the term of the project and require much less capital up front. It takes a team to take down deals of this size - and there's certainly a learning curve, but with the right mentor it can be done! Something to think about since you have a good amount of capital to start.

@Aaron Kyle Kinslow We found syndication a couple of years ago and decided to get involved on the active side - but if you're just looking for great returns and tax benefits without having to dealing with any of the management I would certainly recommend passively investing. There are SO many opportunities available from syndicators out there...I'd probably recommend starting with defining your criteria of your risk tolerance and desired returns. I'm a part of a group of about 100 syndicators and our deals are typically 5-6 year holds with 100%+ Total Return, 10-13% Cash-on-Cash, and 15%+ IRR (8% preferred return and 70/30 LP/GP splits). Some of the deals are already stabilized and will cash flow in the first few months and others are bigger value-add plays that will take a year to stabilize and see the first distribution. If you want to pursue it further or have questions feel free to shoot me a message. I have some recorded webinars I can send you- they are a series from our partner who has 8,000 units in his portfolio that walk you through how a syndication works and what to look for. Best of luck in your journey!

The BEST mortgage broker in the industry is Brandi Shotwell with Reno Capital - we'll never use anyone else! She is exceptional.

Hi Jeffrey - I'm not familiar with Peter's program but I do have experience in hiring multiple mentors until I finally found the right one.  There are some key things you'll want to look for depending on your goals - are you looking for large multifamily (100+ units)? 

Hi Bruce! Is your question from the perspective of a passive-investor or as a syndicator? From what I know it's more advantageous to be a passive investor vs active in Lifestyles deals.

Agree with all of the above here! I would also add how important it is to ask specific questions on their underwriting (cap-rate escalator, contingency, economic vacancy, etc).  Many of these factors will determine if the deal will actually perform and/or weather a storm (i.e. Covid). Here's a link to a helpful webinar series our coach did a few months ago "Tricks Syndicators Play to Make a Deal Look Good"

It will give you some great questions to ask and things to be thinking about when evaluating a deal. Best of luck in your journey!

https://thinkmultifamily.com/tricks-syndicators-play-replay/

@Keegan Dsouza Depends on the size of the deal but I can give you a few examples ... on a $8.4M deal with a $3M capital raise, 8 total partners in the General Partnership & 30+ investors / on a $14.5M deal with $5M raise, 11 partners in the GP and 60+ passive investors. This could vary if you have a private equity partner bringing substantial capital to the deal. You'll typically see a deal split up as "lead sponsors" (usually 2-3 max) and "co-sponsors" (5-10). Leads are in charge of the deal - making the management decisions and executing the business plan. Co-sponsors are typically bringing investor capital, signing on the loan, or putting up EMD. There's a lot to consider when syndicating large multifamily - if you have more specific questions feel free to send me a message. Happy to help!

@Melissa Bains Love meeting a fellow Texan! :) I'm in Think Multifamily with Mark & Tamiel Kenney. They specialize in large multifamily (100+ units) - something to be aware of as you'll want to align your goals with your mentor's expertise. Congrats on getting started in the multifamily world! 

Hi Jose - have you thought about large multifamily? (100+ units) Definitely worth looking into - we started looking at small multifamily (6 units) a few years ago and quickly realized it would be difficult to scale and use up a lot of our capital.  We syndicated our first 173 units and are now closing on 236 units in a few weeks.  It takes the right mentor and a team to take down properties of this size, but we've found it's the ideal way to build wealth and scale a portfolio. Feel free to shoot me a message if you have more questions and best of luck in your journey!