All Forum Posts by: Mauricio Ramos

@Ricky R. welcome and congrats on getting started on MF. 

MB's calculator is a great tool, and also a very dangerous one if you dont know how to use it or are not familiar with how to use excel at a medium+ level. The calculator is a LIVE excel with multiple tabs and all of them are interconnected, you may mess up a formula and you will see awesome returns inaccurately. Once you master it, its an awesome tool.

Like the other members say, you can easily find it online, however, i strongly recommend you watch the videos (that come with the calculator when you buy it for a lil over $100) so you can learn how to use it properly. Once you buy it, practice... A LOT.

Invest Differently,

Mauricio

On top of the ones being mentioned, Brad Sumrok has a great conference in DFW every few months. Look him up. Great ecosystem.

Invest Differently,

Mauricio

@Greg Allen congrats on leaving the w2 and for wanting to go with MF.

I would definitely encourage you to go into MF (12 units an up) and not into SF. There are plenty of deals out there, however, a lot of them are overpriced, so you will have to be patient and submit a lot offers.

I agree with @Derek Gibbs, the answer depends on how much time you have and what you want to do with it. Do you want to actively manage your MF, or do you want to just put your money to work and get 8-10% on your money. If its the latter, just self direct the money with a syndicator that you trust, sit back, relax and get your check in the mail every month.

Invest Differently,

Mauricio

@Angelica M Garzon congrats on the eagerness and getting the LOIs accepted. 

I am a syndicator in San Antonio TX, a few hours south of Killeen, and i know several investors that own property in DFW and the surrounding areas. 

I agree with @Jennifer Brown, high vacancy and no PM are red flags. Typically, in a small town like this, there are one or two PMs in town, so if they know where the trouble makers live, they will not want to manage the property. 

Another challenge that you will face is that you wont be able to get conventional/agency debt at 65% occupied, you will need to find a bridge loan or seller finance, which will cost you at least 9% interest.

I see that you are forecasting an optimistic return at 100%. That will never happen. If you are 100% occupied, then your rents are too low. I suggest to project your returns at 90% (that is what the lenders and buyers will do)

That said, the town is good because of the military base and proximity to the i35 corridor.

If you REALLY wanted to get on this deal (after you do more research), i would recommend that you allocate for a large vacancy during the first 18 months, clean house, offer incentives (super low rent) to a few law enforcement agents and do all your rehab and completely rebrand the property.

Remember, you can change almost everything about the property, except the location. If its in a war zone location, might as well leave it alone.

Invest Differently,

Mauricio

Hey @Account Closed. 

I definitely suggest that you reach out for some education. However, i want to attempt to answer your question about the acquisition fee rollover. Like Sam said, you would just raise less money (short by your acquisition fee). If you did your math right, at closing, you will have money "leftover" after paying downpayment, closing costs, etc. That money ideally should be your repairs & reserves + your acquisition fee. It is your job as the syndicator, to distribute that money to the proper business bank accounts and manage it. On a normal scenario, you would have the business bank account pay you the acquisition fee. In the case you want to invest your money back into the deal as LP, you would leave the money there and use it for repairs & reserves.

Title typically does not cut you a check for the acquisition fee.

Jay has a good point about the taxes, so talk to your CPA.

Invest Differently,

Mauricio

Hey @Amber A. , getting rid of the carpet is a good idea most of the times.

I personally use LVT from floor and decor, look for the glue down product and there are a few different colors to choose from, starts at 99c/sqft, very durable and looks great in almost every area of the house. Easy to clean too.

Good luck,

Mauricio

Hey @Simon C.

506b is what most popular syndicators out there do like Michael Blank, Brad Sumork and others, using private money from pre-existing relationships. 

On the other hand, what Grand Cardone does as "crowd funding" could be considered 506c where he can solicit and post on every existing platform.

Invest Differently,

Mauricio

Hello BP family,

My team and I are constantly looking at potential small multifamily deals and every now and then something pop ups in the Historic Districts, with the buildings being 1940s and older. 

Any suggestions on what to look for when inspecting apartment properties like these other than the typical aluminum wire, cast iron pipes, etc? Anything in particular about what the Historic and Design Review Commission (HDRC) might look for, specifically in San Antonio TX? 

Invest Differently,

Mauricio Ramos

@William Brien welcome to BP. Glad you are interested in the San Antonio market. 

As @Rick Pozos mentioned, you should pick a city first (or two) and focus on it/them. If you look to invest passively into syndications, you can put your money to work for you with a group that you like and trust, and not have to be very involved nor liable with the reposition. 

Feel free to reach out.

Invest Differently,

Mauricio Ramos

I second @John Archer with Lance Edward's How to make Big Profits with Small Apartments.