All Forum Posts by: Ken Gee

@Justin Goodin

I have never hosted a podcast, but I have been on a few.  The hosts tell me it is a ton of work.

I think they do get investors from it, but it is definitely part of a long game.

Good luck!

Ken

@Reginald Ross @Taylor L.

Agree with both comments.  This is definitely a process.  Assuming your friend does have a significant amount of experience in the space (using their own money first), then most people start out with a "friends and family" syndication and slowly grow from there.  @Taylor L.

I could be wrong, but I am not sure most people use S-Corps. to hold syndicated real estate projects, so I would look into that further. I am certainly not giving legal or accounting advice here, but S-Corps. tend to be very rigid in their requirements, more so than, say LLC's. Your friend should consult a good real estate attorney and CPA.

There are a number of seminar based real estate guys out there who teach this stuff.  Michael Blank is one of them.  There are several others.  I have not taken their courses, but we do work with a number of their students and most seem to teach reasonable strategies.  Definitely a great starting point.

I hope this helps.

Warm Regards,

Ken

Charles - totally agree.  

That has probably had the biggest impact for me.  So many times I could have easily thrown in the towel.  Looking at dozens of deals, economy in the tank, having a lender. say "no",  getting beat out of a deal...the list goes on and on.  

There are points when you have only yourself to look to for motivation.  Everyone else is sleeping...it's only you!

 Ken

@Steven Huynh

Totally agree.  The bottom line is to do as much as you can to increase credibility!

Would love to.  We don’t have to wait until July we can jump on a Zoom call if you like.

Let me know.

Ken

@Steven Huynh

Excellent points.  I especially agree with the comment about not yet having a track record.  If you don't yet have the track record, then it is becoming increasingly harder to develop one.

One idea for a new-comer might be to seek out relationships with more experienced Sponsors and try to work with them.  Each has to have something to bring to the table, but it is possible.  For example, maybe an experienced Sponsor wants to continue to increase the size of their investor circle and needs some help with underwriting,  maybe that new-comer can bring that to the table.  After a few deals, then maybe the new-comer isn't such a new-comer anymore.  

Just throwing out ideas.

Ken

@Jorge Abreu 

Agree with the survey 100%. A good approach is to try to create an amenity package that creates a "destination" for your residents.  For example, if you can put a pool, playground, outdoor kitchen, outdoor TV, wifi, fitness center, all in close proximity to one another, then your leasing agent can "sell the story" of how a family would spend their Sunday at home.  

Ken

@Bryce DeHaan

Great idea.  A good property manager will help you a lot.  

Let me know if there's anything I can do to help you.

Warm Regards,


Ken

You are right.  If you want to make it YOUR business, then you do need to know it is time consuming.  I recommend that you go slowly, learn as much as you can, find a legit. mentor or two and go for it.

Many, if not most people, find that the time demands are just too much and they actually have a career that they enjoy.  That is why passive investing in real estate is so popular.  Don't dismiss the idea right away.  You may, after digging deep, realize that investing passively is how you should proceed.  

If you do decide to invest passively, find a good solid sponsor and vet them thoroughly.  Then go for it!

I hope this helps.

Ken

@Rob Bowling

Sorry Rob.

So, when I said "under no circumstances" I was assuming that the PM did his or her job correctly and as a prudent person would. If there is an error or mismanagement, then you probably have an E&O type of claim. I don't think that was contemplated in the facts the original poster laid out (but I might have missed that - I haven't had time to read all the posts).

Let me just leave you with this thought - there are literally hundreds if not thousands of things a PM can do that might be argued by an owner as causing them financial harm.  There are just so many moving parts.  Hopefully, the PM referred to above was on top of their game and the charge-back just came through.  If not, and the owner doesn't send the money, it will likely result in the PM taking a loss for which he really shouldn't have.

Property management is an extremely tough business for this and many reasons.

Ken