All Forum Posts by: Kwame Searcy

Dustin,

I am working in Florida, mostly in the Space Coast area and Orlando. Would love to connect.

I would go with a residential broker. Most commercial brokers won’t work with anything less than 5 units (technical definition of a commercial multi family is 5+ units). Even if they did, it wouldn’t be a priority for them. You want a residential broker that has a lot of connections with other investors, and invests themselves.

Scott, I am aware of the stipulations with 506(b). I know that I can have unlimited investors, I am just not able to advertise my deal publicly. Thus my question, it still comes down to networking to get in front of accredited investors. I don’t see where I said that I could not use accredited investors, but all feedback is appreciated.

 Scott this is a really creative strategy! I love it, unfortunately I live near cape Canaveral and there are no athletes here only Astronauts. 

 @Percy N. it is a tough time. We have our EMD hard at this point. We got the deal off market, but we are working multiple angles. We are looking to add more partners to help us raise the remaining capital and negotiating with the seller on giving us an extension. We are pretty far along in the loan process, they are ready to close just need this last piece.

@Percy N. honestly it was a bit of inexperience on my part. Initially I had fully confidence that I had the time and network, however it wasn't until I started having serious conversations about putting money up that people either backed out or didn't have the money. I had been working on building my network previously for about 4 months, however I didn't realize that it was a numbers game. To add to the complexity I did find partners to help me raise capital, however due to interest rates our deal kept getting re-traded requiring us to put up more capital than we originally anticipated. Also the deal isn't a huge deal (32 units).

David, see if you can find one or two local PMs and get their opinion on what the rents would be once the property is fixed up. That will help go a long way in figuring out projected income. Most of them have access to rental data in the area that you may not have.

You should also start with the people that you know. Let them know what you are working on in real estate and looking to raise money for deals. Also attending a local REIA is a good way to meet people who may have capital.

E.C.

Lots of great gems in this post, all very actionable steps to go forward and do. Would you recommend building up your list first or trying to find your first deal? I see it as a bit of a chicken and egg situation. A deal definitely helps attract investors, but have that well to go to once before you have something could beneficial. How did you and your team approach it in the beginning?