All Forum Posts by: Mark Allen Kenny

Hi @Elvin Salcedo.  I'm also in NYC and investing in South Carolina (and North Carolina).  What property types are you after?  I tend to stick with the major MSAs and also Rock Hill (which is a submarket of Charlotte).  One thing to be cautious about in SC is the property taxes.  The value is reassessed at the sale and sometimes taxes alone can push your expenses to 55% (depending on the property size).

Hi @Mike Smith,

These are all great questions! 1) Any decent syndicator should be sending you monthly reports. And those reports should include gross rents and expenses.

2) Distributions depend on the syndicator - most deals are quarterly but some are monthly. If the frequency of distributions is important to you, remember to double-check what the operator is doing (and did) during COVID. Many operators paused distributions during April/May/June because of cashflow concerns.

3) A real estate syndication is extremely illiquid. Although some might allow you to cash out to another investor, it is much more likely to have your money tied up for the entire hold period (and maybe longer). That's one of the reasons why I prefer joint ventures. There's a lot more flexibility and control with pulling your money back out.

Let me know if I can help with anything.

I agree.  One of the beautiful things about real estate is the opportunity to use leverage.  I would consider using that equity on a multifamily property and getting a mortgage.

@Serena Tillman, I started with buying small parcels of land upstate NY and flipping them. Then I flipped some SFH's in Trenton, NJ years ago. But yeah, when I was ready to start building a portfolio, my first buy-and-hold was in Philadelphia. It's a great market for cashflow.

@Eric Pritchard thanks.  The podcast is called How To Buy Giant Apartment Buildings.  Good luck!

I would focus 100% on finding deals.  Partner with people or wholesale.  There are so many opportunities in this industry.  If you do not have cash right now, you can still find a lot of other ways to add value.  

Philadelphia is not far from NYC (about 2 hours) and it's a great market.  I would first team up with a great mgmt company (let me know if you need a recommendation).  Then just do a few day trips.  Go walk some properties.  Get a sense of the neighborhoods and what property class you want to own.  After you have an idea of your criteria and what you're looking to accomplish, start making offers:)

@Eric Pritchard there are many great resources on the topic.  I would check out "Best Ever Syndication Book" by Joe Fairless as a great place to start.  I also launched a podcast recently and I interview a lot of operators who are doing large apartment building syndications.  In addition to educating yourself, it's important to surround yourself with mentors and a network of people who are already doing what you want to do.

Hard money lenders will finance 100% of the rehab.  I would partner with a very reliable and trustworthy contractor and make sure you know exactly what the rehab costs will be before you move forward with it.  Then increase that budget 15-20% just in case.  Also, talk to several realtors and get some feedback on your exit price.  PRO TIP: Zestimates should never be trusted.

@Serena Tillman congrats on the new baby on the way!  Have you looked at Philadelphia at all?  It's a short drive from NJ.  I live in NYC and got my start by buying and holding smaller properties in Philly.  You can find great cash-flowing properties there, low taxes and landlord-friendly laws:)