All Forum Posts by: Logan Freeman

@Christopher Olsen, I'm a fan of NNN deals, so long as you do your due diligence in the deal structure and tenant placing. As this kind of deal allows you to be very hands off in regards to management, it's crucial to strongly vet potential tenants to not only solid credit history, but money management practices as well.

additionally, some potential setbacks to NNN include locked in rent (which you can't raise with inflation); losses incurred by the tenant company will impact you; and any negative publicity of the tenant company can be bad for business or your personal reputation.

Before jumping in I'd strongly encourage you to discuss all your options with your attorney, so you're not surprised by anything. 

congrats @Kyle Kelley! Curious about the market, what're are the key demographics and trends that attracted you? Are there other existing commercial properties, or much development happening in that area? 

@Greg Gangle

Several financing strategies you might consider are: 

>seller financing: especially in this current economic downturn, as many distressed property owners are finding themselves unable to maintain their properties or payments. You can use a tool like driving for dollars to identify your ideal properties and reach out to the owners. Try to find sellers with no mortgage

>hard and private money lenders ... OPM (Other people's money). You can look to network with these types of lenders on BP as well. a good article explaining the function and utilities of each is: https://www.biggerpockets.com/blog/hard-money-private-money-difference

>Search for foreclosures on the BP site under the "find deals" tab.
Just a few of the many approaches you can take to finance that next property. Good luck! 

@Danzel Williams, good for you! Yeah if you start with the reading list that @Charles Carillo provided you'll gain much knowledge. If you've not already done so I'd recommend you establish your "why" for investing, i.e. what is the main reason you want this? Knowing your why is going to keep your head in the game when the going gets tough - especially in the tumultuous time we are now in. Both the books The One Thing & Atomic Habits are excellent (non real estate) tools for creating daily disciplines to achieve small goals building to large-scale accomplishments. 

Ultimately there is no better teacher than experience, so seriously consider investing in the market now, and you'll learn more than you ever could from all the books available. Best of luck to you! 

Hi Carl, good for you for branching out into syndications! I'm curious what factor(s) led you to your decision, and what ultimately helped you feel "ready" to take the leap? 

While I'm not in your market, I think I can help you by asking you to provide more specifics as far as your requests, i.e. what type of contacts are you looking for (contractors, lenders, PMs, etc.). My main advice would be to do your due diligence in verifying that your partner(s) and/or the sponsor is trustworthy & transparent, and that you feel confident in their contingencies, and also that they have a track record in getting their investors their money in a timely, professional fashion. 

Best of luck as you Go Bigger Faster! 

Hi @Ron Singh, great and important question. You can - and many people do - automate the management component of your investment, using sites like cozy. At the end of the day, your question of who you can trust is a shot in the dark. this business is very much built on relationship, so your best bet is likely to identify a reputable company that is transparent, that has existing relationships with trustworthy GCs, and has in place property managers to oversee the day to day details for you. Best of luck! 

@Account Closed, have you considered the KC market? Among some of the reasons to consider KC are our low cost of living, vibrant job market, low mortgage rates (4.02% for 30-year fixed), steadily growing rental rates, etc. Additionally, KC is recognized as one of the nation's top emerging tech and entrepreneurial hubs with strong economic upside. 

Many buyers are being scared off due to the current pandemic, but if you can stomach it and maintain a long term mindset towards investing, the prudent investor stands to capitalize on lower prices while the majority sit on the sideline. 

If you are interested in learning more about OOS investing in KC, I'd be happy to speak to you about your personal goals, budget, etc. Very strong passive investing opportunity. Feel free to dm me and we can connect. Best! 

In general I agree with the consensus that it's still too early to definitively understand or predict what the buying opportunities will be as these events play out. 
One thing I'd note, even as REITs go down, the value of the underlying assets is not diminished. Debt is cheaper, so it’s important to take advantage of opportunities with a buy and hold mentality. Asset prices aren’t appreciating, and the real estate market takes longer to respond to changes in price than does the public market. As such, we’re seeing the same price of assets as before, but with cheaper capital.

There is true upside here for the long term investor. It’s likely that we’ll see favorable loan terms well after this present crisis has subsided, as currently we’re locking in rates at 3.15% for retail properties. Now is the time to buy and hold for long term wealth building.

"It's hard to make predictions, especially about the future" - Yogi Berra 

I agree with the predominant sentiment that while we can try to take away lessons from the last recession, this time will likely have a different impact and will require a different approach to weather the storms. 
At the peak of the last recession, foreclosures boomed and the need for multi-family "workforce housing" increased dramatically. Vacancies went down, rents stayed flat or, in some cases, increased. 

@Laurence Obi, in addition to the books and podcasts recommended by the other BPers, have you gotten well versed with using the BP buy-and-hold-calculator/new. probably the best tool for you to search and analyze properties and get good at estimating costs. If you're curious in estimating ARV, then I'd recommend J Scott's guide (also available on the BP site) Good luck!