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All Forum Posts by: Travis Gibson

Travis Gibson has started 5 posts and replied 24 times.

Post: Best tenant payment options?

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

I have been slowing migrating my tenants to ACH and I wonder why I did not start sooner. It makes tracking rent payments much easier. An added bonus is no more lost rent checks or money orders. I use Rentler and have integrated with Quickbooks. I get notifications of payments and not having to do bank deposits saves time each month.  I highly recommend it if you have more than 5 units. 

Post: Structuring RE Syndication ??

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

@Amy Wan @Tj Hines @Todd Dexheimer @Michael Le thank you all for your feedback. I apologize for any confusion my post might have caused.  As an investor new to MF Syndication there are a plethora of things to learn. 

I guarantee I will be posting more "newbie" questions in the near future and let me just say ahead of time that I appreciate everyone's time and consideration.

Post: Structuring RE Syndication ??

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

Hi BiggerPocketers,

As I proceed on my quest to setup my first Apartment syndication deal I have encountered some questions on how to structure the required business entities and thought what better place to ask these questions than on the BiggerPockets forum so here goes.

  1. As I understand it each property is held in its own LLC but do I need to I form an management LLC as well?
  2. Since I am participating as both as an investor and a GP should my management LLC hold the equity stake or should I hold it personally?
  3.  I have a prior relationship with all of the investors I currently have lined up so should I go 506(b) or 506(C) for my first syndication deal?
  4. Who normally pays for setting up the property LLC? If the management LLC pays is this cost normally covered as part of the Acquisition Fee?
  5.  Should I engage a Real Estate attorney in the target market or should I use someone local to my area?

Thanks in advance for your time and consideration.

Post: Should I roll my SFHs into a Multi-Family apartment building

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

Thanks everyone for your words of wisdom. For the time being I am going to keep my SFH portfolio in place and look for smaller MF deals that we can acquire with the amount of capital(around $500k) I can currently raise.

However that leads me to some additional questions.  

1.) How many doors do I really need to gain the necessary MF experience?  Would something as small as a Four Plex work?

2.) What are the pros/cons to getting a smaller MF unit in my area vs more doors out of state?

Post: Should I enclose Courtyard to add 1000 sq ft?

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16
Originally posted by @Mike Giallanza:

If there aren't any 4,000 sq ft ranches within a mile or so of this home that can act as comparables, then this may be an example of over-improving a home. It sounds like at 2,900 sqft you may already have one of the larger homes. Having said that, what would the new space add? A big great room off the kitchen? If there's one thing that may be needed, it's another bathroom since this massive 5-bed home only has 2. 

 I was thinking about creating a great room in the center and using some of the space to expand the kitchen and maybe add another bathroom. As you can see the potential to overbuild is definitely there. 

Post: Should I enclose Courtyard to add 1000 sq ft?

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

@Will Barnard Most homes in this area are either two story if there are above 2800 sq ft or single story ranch around 2500 sq ft.  Included in this remodel is: remodeling the kitchen(granite, cabinets, fixtures, hardware, stainless and tile) both bathrooms(vanities, toilets, fixtures, lighting, tile), paint, skim coat drywall(where needed), vinyl plank flooring(new baseboards), replace some interiors doors and about $10-15k in landscaping and fencing. I am estimating around $70-75k for the rehab. 

Which is why I am hesitant to drop $40k more unless I am sure the return on investment makes sense. 

Post: Should I enclose Courtyard to add 1000 sq ft?

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

I am doing a rehab and wondering if the juice is worth the squeeze to enclose a Courtyard in the middle of the property and end up adding about 1000 sq ft in the process.  Currently the property is a 5 Bd - 2 bath and about 2900 sq ft.  If I add enclose the Courtyard (see pic) then it would be almost 4,000 sq ft. The general contractor that I am currently working with quoted me in the neighborhood of $40k which seems very high but I wanted to get some feedback.  What do you guys think?

Post: Should I roll my SFHs into a Multi-Family apartment building

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16
Originally posted by @Tj Hines:

@Travis Gibson, depends on how fast you want to scale up? Building relationships with investors in your network can be a timely process. But definitely can be worth the wait if you have the patience. Is it possible to lump the SFRs together and 1031 into a bigger asset? 

 Actually I just spoke with my CPA and a 1031 exchanger today about doing just that.  I also have meeting with my primary lender tomorrow to discuss refi options.  Once I have that info I will crunch the numbers and make a decision.  

Post: Should I roll my SFHs into a Multi-Family apartment building

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

@Michael Ealy Thanks for the advise I never really considered partnering as a GP with an experienced operator. I just assumed that most experienced operators only wanted LPs who would bring capital.

How does this normally work? Would I be bringing the experienced operator into my deal as the GP or would they be bringing me into theirs?

Post: Should I roll my SFHs into a Multi-Family apartment building

Travis GibsonPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 26
  • Votes 16

@Lane Kawaoka It is interesting that you mention being close to my first syndication deal because that is part of the reason that I asked this question in the first place. I live in the area of Sacramento CA and we are definitely in a seller’s market right now.

Generally speaking you could buy a 30 unit in the Houston area for what a 10 unit will be sell for in my area.

Therefore my question is for my 1st syndication deal would it better to buy something smaller locally or go out-of-state for something that will give me more units for my money?