All Forum Posts by: Matt Aquino

Congrats @Taylor Shuff ! 

Finding deals that pencil out for a good return are tough in this market. And Tennessee has been pretty hot. 

I think finding a mentor is a good idea. But I might recommend finding an experienced partner who is willing to do the deal with you is a "2 for 1" type of deal.  That person can help walk you through the process and act as a mentor along the way AND they'll be invested in the deal so the level of attention, examples to talk through, and speed of learning can't be matched through a more traditional mentorship. 

Finding a deal, finding a partner, and finding investors -- those are the magic sauces of multifamily. Can't say its easy. But when you find the right ones (of any or all of those), it'll make the whole multifamily game a LOT easier.

One of the best ways I found to learn was to be signed up on investors lists for LP opportunities. And go through the process of reviewing the deal.  This allows for a few things:

1. You should always ask for and get the underwriting if you're looking to invest with someone

2. You get to see how deals that are already under contract were underwritten and what assumptions they used to get to the returns they're showing

3. Its a forum which you can challenge and ask questions to the GP about the underwriting and its assumptions

4. The numbers are placed into an investment summary deck so you get to see how it all fits and flows. And that additional context will help you think through scenarios that could be shown in the back-end underwriting

It's pretty timely but our group is doing a virtual session on this exact topic. We have a syndicator doing an online walk through of one of the most popular underwriting sheets used amongst multi-family investors. The session is this upcoming Wednesday. If you're interested - Send me a message. 

Hi @Jorge Morales

Looks like a pretty good opportunity/deal to me based on what you provided. A few questions or additional information come to mind for me.

1. Whats the location? Is it a high cap rate or a lower cap rate market?

2. Since you have access to the VA loan and are considering the house hack, your return on cash is going to be really high (nearly infinite). Obviously many non-financial considerations need to be taken as well, but it seems like an excellent way to get started for a buy and hold.

3. Whats never in the numbers and I'm a huge advocate for is that this property would "get you in the game". Your first deal doesn't need to be a homerun and by these numbers it seems like a good reasonable deal.

But your first deal buys you an education. You get much more than just the financial returns. It will give you EXPERIENCE in the transaction, as a landlord, dealing with city issues, learning how to model/budget, etc. and how to operate! Also it gives you a ton of CREDIBILITY ! Once you get that first deal under your belt, now you can talk with other investors and have stories/experiences to talk about and share. This will catapult you into new circles, new conversations, and you'll RE education will grow at a crazy pace. I'm a huge advocate of getting a decent first deal fast, rather than sitting around waiting for a "perfect" financial deal with massive juicy returns. In the current cycle we're in, those are awfully hard to find. Especially for newbies.

Lastly ... if you want to learn a ton more about underwriting. Our group is having a virtual session with Ryan Diagle who is going to do a live walk through of a popular underwriting spreadsheet which is widely used in the multifamily space. I think this would be perfect for someone like yourself to understand the numbers, what to consider, how to model it, etc. etc.

Its this upcoming Wednesday. Message me if you're interested in it. 

Hope to see you there and hope the above helps! Good luck!!

@Taylor L.

Thanks for sharing your knowledge and experience on this topic in the thread. 

As the syndicator what is required to accept SD IRA capital into a deal? Does accepting SD IRA funds add additional burden to the sponsor? (I did see you mentioned that sponsor will have to provide fair market value of property if requested)

Thanks @Justin Goodin @Kim Meredith Hampton @Jeffrey Donis @Brian Pownall @Evan Polaski

Helpful responses. 

I ended up sharing on my personal social media page (no mention of projected returns). As expected it generated some inflow of DMs of people congratulating but more importantly being curious and asking about it.  Social media is such a powerful business tool

Hi All - Curious if anyone could pass along guidance which they've received from their attorneys regarding the "dos and donts" of sharing information publicly regarding a deal once its closed ?

For example - sharing a post with the name, pictures, location of a building you closed on to market the successful closing to a LinkedIn , Instagram public page. Would it be allowable to also include projected IRR on the project publicly?

Sharing our successes obviously is one of the best marketing tools we have , so I'm curious what you can, can't, and shouldn't be doing regarding the SEC regulations, etc. 

@Denise Piazza @Justin Goodin @Jackson Babcock @AJ Shepard @Senate Eskridge

Thanks for the interest everyone.  Lets try it like this. 

I'll reach out to you each individually over the next two weeks. Just do an introduction and gather your thoughts on what you would find valuable for this and what areas you'd like to and/or be able to contribute.  Then I'll syndicate the feedback and responses and touch base with the group with a proposal. Then we can collectively give feedback on that and see if there's something worthwhile for us to collectively give a try. 

Hi BP multifamily investors!

I am an investor in several deals and now syndicator (closing first deal this month) in multifamily apartment communities. 

Like many in this community, I'm always looking to improve and gain experience and exposure to best practices. 

I'd love to see if any other syndicators out here would be willing to get together (call, email exchange, or in person) and cross share some deal examples/case studies that have either been executed on or passed on.  Particularly interested in underwriting, investor presentations, and investor update type of materials. 

My hope is that by sharing it creates an opportunity for each of us to 

1) connect & expand our network  and talk over deals - which we all love & geek out on!

2) see others materials as best practices - how its designed, presented, what information is included

3) get some deal practice for some of the lesser experienced syndicators - see the types of assets and deal terms which are working, different deal structures, etc.

let me know if interested and I can work on connecting with each of you individually and if others are open to it, then maybe collectively we could connect & share

Looks like this thread was started awhile ago and regained some momentum in this past year. 

I'd love to re-start the conversation on building an investor & capital base prior to having a deal pipeline or specific deals. 

Like many I started RE investing in local small duplexes, then I grew into investing as a LP into larger multi-family & land deals out of state through syndications.  My goal has been to become more active on the sponsor side. I continued to build my knowledge base and network which has led me to two partnerships. One of those partnerships we're about to close a deal in Greenville SC on a 40 unit value-add apartment where I was able to help fundraise, do the underwriting, prepare the financial analysis, and do all the presentations, work with the lawyers, etc. 

I provide all that background to essentially come to the topic of .. my true value add/strength for syndication deals is the underwriting, analysis, investor relations + access to a high net worth network for raising capital.  

I want to solidify and continue to expand that network/investor base.  I am thinking it will require branding myself or a company for the purposes of building awareness of the type of deals I can provide investors access to, what value I can provide them (education, networking, a trusted person to guide them through RE syndication deals). 

Would love to hear about if others have approached this branding & building of an investor base from this angle?  Typically syndicators attract investors with live deals or an impressive track record of past deals.  Instead, how have some approached building a brand and network around essentially an "investment club" type offering. 

@Annie Dickerson @Raymond Ebbeler @Bryan Hancock

I would second and be interested in others thoughts on this topic as well.

For syndicators looking to break into a new market which is not a drive away. What strategies, practices, steps, have others taken which helped them network with the local brokers & deal makers.  What helped you gain traction in that market?  What actions led to giving you credibility ?  How often were you visiting just to establish the foundation, network ?