All Forum Posts by: Mack Benson

I think if you have to ask if you should view it then you are not in a place in your investing career to not view it before putting in an offer. Covid is pretty hot in my area but agents are following protocols to keep both parties safe. If you make an offer and something comes up in the due diligence period are you willing to be the investor who retrades because of something you should have seen in the property tour?

My first reaction is that this is business but then I read the previous posters and they seem to tug at the heart strings. With that said I think it's noble to want to help your dad but... this is business. I don't think you are out of line with a 50/50 arrangement as long as your justification is logical and you aren't trying to railroad him. If you have offers from other investors for that sort of arrangement then I think it is more than fair to expect the same from family. As long as you provide the value you think you do and can present a business case I would find it hard pressed to argue against it.

If this wasn't your dad and if you weren't his son what would an arrangement look like? If the only reason an equitable split is not an option is because you are family it would be cause for me to hesitate too.

Something you might try is come to an agreement other than 50/50 for the first purchase until you prove your worth. Another thing to consider is what the difference between a 50/50 vs 60/40 or whatever other arrangement is on the table. Does it make much of a difference in the long run? Would it be worth taking a smaller split to help out? I think you are the only one who can answer those questions based on your goals and situation.

I echo what @Andrew Hogan said about getting with a syndication attorney, @Kim Lisa Taylor at https://syndicationattorneys.c... comes highly recommended. If nothing else I'd check out the website, there's quite a bit of good info available.

A couple good reading resources are The Best Ever Apartment Syndication Book by Joe Fairless and Raising Capital For Real Estate by Hunter Thompson.

Listsource.com can be a good option for pulling data but I'm not sure if you'll be able to drill in how you are looking to. It may be worth a look, I have used them and got some good leads for my criteria. You can play around with their filters to see if it works before pulling the trigger.

I think yellowletters.com is a popular option for sending mailers, I chose to print off my printer and stuff the envelopes by hand which was pretty labor intensive but got the job done and cost a bit more than postage.

I think you hit the nail on the head about seeking out a mentor. It's tough going from nothing to apartments, even the 5-10 unit type. Being new to investing it may not be the best idea to cut your teeth on an apartment before gaining experience unless you have an experienced investor you can at least bounce ideas off of. 

When seeking a mentor you usually have a couple options. You can network in your local market and find a way to add value to someone who invests there or you can find a paid mentorship program. A lot of people on BiggerPocket scream from the rooftops that you don't need to do a paid mentorship but everybody's situation is different so I think it is a mistake to immediately discount the idea. If you want to go the local mentor route you'll probably need to hit up as many networking events which may be difficult these days.

@Peter Morgan I assumed it was a commercial loan. If it's on your primary residence I've never had any problems refinancing to a lower rate. Wouldn't hurt to ask, the worst they can say is no and then you can shop around.

I think it depends on the type of financing you have on the property. For some lenders I have talked with they are more than willing to refinance with the current rates because the term gets extended. A local lender I was shopping said they would waive their prepayment penalty if I refinanced with them otherwise they would have a stepdown penalty. If you have any doubts with your current lender you can always check with a mortgage broker to be sure what your best options are.

@Marcus Palm I think it depends on your goals and what your strengths are and if you are looking to take an active or passive role. A savings account won't pay much in interest but your capital would be quickly accessible if you want to deploy it. You could partner with a local flipper and finance it but that would require vetting them and the deal and you may not be comfortable with the idea. 

Another option would be to start networking with syndicators. If you are looking to invest in a 506(b) offering you'll want to get to know the sponsor well in advance of them getting a deal under contract so you both can show a relationship exists. On the other hand if you are able to invest in a 506(c) offering you can start checking out sponsors online, they can advertise their deals in the open but are restricted to accredited investors.

@Arion Trammell on a house hack duplex in the cities you'll probably be hard pressed to cover "most" of the expenses and mortgage with just one half rented. Are you working with an agent right now and are they familiar with inventors?

Sounds like analysis paralysis. Do you have a partner or mentor you can run the numbers by? Are you using the BP calculators or are you pencil whipping it? Is your agent an investor friendly agent and have they helped with BRRR's in the past? If they haven't heard about that idea they may struggle helping you find properties that make sense.

Today's market is tougher than when Josh and Brandon started the podcast so BRRR's aren't as easy to come by. Being able to pull all of your money out has gotten quiet a bit harder or near on impossible so a lot of people try and get as much out as they can.

I really think you should seek out someone in your market who has recently been successful in this strategy, and also make sure you are working with an agent who is familiar with BRRR.