All Forum Posts by: Tom Lafferty

I've heard the same thing several times. I always wonder if anyone has had success with this on a larger property, say 50+ doors?
I would assume most owners are fairly sophisticated sellers and would not sell without making their desire to sell public.
Hope I'm not hijacking your post! Seems like its on topic...

Looking at syndicating an apt complex, I'd like to use rule 505 rather than 506 in order to allow a few investors that may not qualify as "sophisticated." I'm comfortable with their understanding of the risks, and the amounts they're looking to invest are not their life savings or anything like that.
Are there any reasons one would want to meet the rule 506 qualifications instead? I realize 505 has a limit on the amount you can sell, but I'm not sure if that $5 million limit is the amount of money the partnership will invest, or the actual purchase price of the property?
I will be discussing these things with an SEC attorney but thought I'd ask here too.

Curtis C., any updates on your decision? I'm in a very similar situation and have been going through many of the same decisions. Currently focused on apartments, but may do some SF as well.

I met with an EA in N Dallas a few weeks ago that came highly recommended. He is a very experienced investor himself and I was extremely impressed with him. If you can't find anyone in Ft Worth let me know and Ill get you his info

I really appreciate you taking the time to share your experience. I'm looking at c class properties. We have strong job growth here, and a lot of the tenants in the submarket I'm searching will always live in apartments. I'm not too worried about new construction because I don't think I'll be competing with them. I do worry a little about cap rate compression, as it seems it would be harder to improve operations enough to have a lot of upside if they continue to drop. I just don't want to worry so much about it that I never jump in!
Thank you again.

I made that way too complicated. What I meant to ask was how have your apartments been affected by the ups and downs of the housing market? Did they get better as home ownership declined, and worse as it improved? It seems they would be inversely related, but maybe not.

I'm looking for input from long time apartment owners who have been through a few different market cycles with apartment investments. I'm currently looking at 60+ unit properties for the purpose of syndication. Research, education, and networking have taken care of most of my questions and fears, but I still wonder about how apartments do when the market changes.

I've met several people with 2 or 3 complexes who have been investing since before the last drop, and they are doing okay. Several others have purchased in the last 2 years and they're doing phenomenal. One group I know of that bought right before the drop is not doing okay, and may not recover.

I guess I'm mainly looking for your experiences in cash flow, reversion values, vacancy increases or decreases as the market changes. Did you see improvements as home loans got tougher to get? Do you think vacancy will increase as lenders start to loosen up?
Obviously no one can predict the future, but any experiences or even predictions you'd like to share would be appreciated!

Hi Mike, and welcome. I'm in Plano as well, and looking to get into apartments. How did you get your three passive deals if you don't mind my asking?
Rudy, funny you should mention Dartmouth, I live very near there and have been looking for homes to rehab!

I thought it might have been lifestyles. We joined in January and have been extremely pleased. Ill look for you there!

Taylor, I second the Jerry Puckett recommendation. I've been looking too and found out that the MLS pretty much isn't going to happen for me. Too much competition from people (and funds) willing to pay WAY more than I would have to get it for.
As far as wholesalers go, I've talked to a few of the very active ones in my area and they wont even touch someone using hard money right now. They can simply get a bigger fee from true cash buyers as they dont eat up their margins with the extra costs. I do get emails from them occasionally, but they're clearly properties that they can't sell with one phone call to their best buyers. I'm just not willing to pay 80%- repairs as a beginner.
That's where Jerry comes in; helping you find your own deals!