All Forum Posts by: Larry Caper

@Stephanie P. Thank you for the thorough response - tons of food for thought. At a macro-level, I've noticed a few of the same points you pointed out for sure. However, in your experience, how much of that truly influences opportunity within an emerging market? It seems at the sub-market level (i.e., pick any emerging market), it would receive pressure from the macro-factors, but if a deal can be made and positioned correctly, the buyer should be able to withstand the chaos and take off during the upswing (keyword in that sentence: deal). It reminds me of Warren B's quote: "Buy when others are fearful". 

@Brian Garrett Agreed, commercial properties should be valued on income alone. However, if the property is vacant, how do you underwrite the opportunity to create a deal? 

@Brian Adams I will be at the game as well. When you are in town feel free to reach out.

I realize the multifamily game isn't for the faint of heart, I'm ready to roll up the sleeves. With that said, I've created a framework with personal deadlines which includes: 

• Target Market 
• Seller Personas (with Creative Win-WIn Strategies)
• Acquisition Specs (Class, Pricing, Condition, Units, etc)
• PitchBook / Marketing Package (Investors and Bank)
• Inbound Deal Flow Strategy 
• ...etc, etc. 

I'm starting to quickly realize, at some point, it'll be time to pull the trigger. I just do not want to be unprepared when talking to sellers, brokers, and bankers. So, I'm searching for any and everything that will allow me to stand out from the crowd.  

As it relates to the training course, you should! It seems like the "guru" strategy has been successful for many in this space (e.g., podcasts, online courses, mentor programs / "masterminds", etc.). Conversely, there are a lot of scam artists with little to no knowledge and/or experience which gives the industry a bad reputation. 

@Brian Adams You're a PA guy! I'm in PA from time to time to watch one of my college roommates play ball for the Pittsburg Steelers. It's nice to see a guy from PA exhibiting the positive characteristics I observed during my short time in the state: hard working, no excuses and persistent. As an aspiring multifamily real estate investor,  your story is encouraging and does not include any fancy footwork - just the way I like it. 

I've spent tons of time educating myself and I feel pretty comfortable with the high-level components. However, I would like to take it to the next-level, so I'm armed to be as creative/innovative as possible during underwriting, developing relationships, positioning the property, disposition, etc. What specific books/resources/exercises did you find helpful during the "knowledge" phase of your maturation process? 

@Tony R. Nice to see a MI guy in the forum. Please tell me you are a Spartan fan! #GoGreen

However, I love @Scott Skinger 's response, "put yourself out there and be more social...be human". You would be surprised how many people would be willing to help you achieve your goals. The tough part is finding someone who genuinely cares about your progress and growth as an investor. You may have to meet 5 people to find a valuable one or receive a referral to someone who could be of value.  

@Wiley Strahan Unfortunately, I do not have a one point-of-reference. Often times, when I'm researching and listening to podcasts, they host or guest mentions how they financed a recent or present deal. From there I take notes and do my homework to further understand the granular details behind the strategy. As you may have realized, there's a ton of information out there, but it's not all quality. Here are a few quality resources I've benefited from: 

Podcasts: 

• Lifetime Cashflow through Real Estate Investing, Rod Khleif
• Wheelbarrow Profits, Jake and Gino
• The Commit to Wealth Podcast, Juan Vargas
• Best Real Estate Investing Advice, Joe Fairless

Books: 

• The Millionaire Real Estate Investor by Gary Keller
• The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges
• How to Take an Apartment Building from Money Pit to Money Maker by Craig Haskell

YouTube: 

• Grant Cardone (Big personality, but there's truth in what he's saying)
• Peter Harris and Commercial Property Advisors (Older channel, but still relevant)

Industry Trends/News:

• Multifamily Executive Magazine
• Bisnow

@Ann Bellamy Thank you for the quick reply! I understand there are no hard and fast indicators which is why the quotes were necessary. If I were asking you in person, I would have physically air-quoted the word indicators lol. However, I appreciate your candid response. I respect the wisdom of someone who was actively investing/lending during that time versus a novice who would like to think they have it figured out. 

Thanks!

@Ann Bellamy If you do not mind, could you please go into detail of what macroeconomical trends you follow/analyze/shift through when determining where we're at in a cycle? At the most basic level, we would all like to think we know of the "indicators", but it would be nice to get your perspective. 

@Jack Davis I like the approach! We are in the same boat, novice commercial property investors looking to get into the game. There is no reason to start "small" because of the amount of time/effort to put the deal together will be more efficient and take less time with commercial properties (5+ units) vs residential (1-4 units). However, I would caution you to move forward with wisdom over emotion.

From networking and studying creative financing, there are opportunities to sidestep conventional financing and construct a deal with custom/flexible terms. Here is a list of unique opportunities to leverage: 

• Owner Carry First Mortgage 
• Owner Carry Second Mortgage
• Master Lease Option
• Hard Money
• Assume the Mortgage (Seller Keeps the Land)
• Broker as the Lender
• ...there's more

However, you from the conversations I've had with investors with proven track records, you should come to the table armed with both creative and conventional financing tools/knowledge which is how the best deals are made. 

@Aaron Hall I'm sure within the 5 day period, you were not expecting to receive the amount of feedback you've received! However, I'll throw in my 2 cents, there is A LOT of metrics, numbers, rates, etc. littered within the forum which is awesome, don't get me wrong. However, there is twice as much of invaluable wisdom present as well. 

Just to name a few themes I've read in-between the lines: 

• Be Patient. It seems like there is a lot of money on the sidelines. As you know, markets are cyclical and historically they have shown they will recover. Hold off just a little longer.
• Sharpen Your Sword. While you wait, this is a great time to double down on investing in yourself (e.g., take your underwriting to a new level, develop relationships with key players you'll leverage in the future, hone in on your ability analyze market trends/macroeconomics, etc.).
• Strategize. Like any business, identify what will make you different and document the game-plan (e.g., marketing strategies you'll employ to receive quality deal flow, document hard/soft processes you'll employ after an acquisition, play the creative financing game based on seller profile/motivation, etc).

Lots of great info here, thanks for posting.