All Forum Posts by: Matt B.

@Matt B. I have a critical path that maps out the entire predevelopment process and the budget & cash flow that goes to fund it.

Let me know how to get a copy to you if you’d like one.

"Anyway, I am interested in this topic and was wondering if anyone had any recommendations on books/topics in this area. "

Haven't taken the program, but have sold land to developers.   They can tell you want they want in a package (density, allowed use, walkscore, etc.)

Biggest issue is getting govt go-ahead on a project.  They could tie the property up for a year waiting for that.

“Don’t tell me what you think, tell me what you have in your portfolio.” ― Nassim Nicholas Taleb

I have sold the marginal properties, refinanced the good ones with prudent debt and terms, have cash flow, and am sourcing and buying property with built in value add.  My inner oracle has me focused on all potential economic conditions.

Just a heads up that there have been thousands of similar BP posts for the past eight years predicting the next recession.  It will happen at some point...or it won't.

@Litan Yahav, I agree with Zach, that often times the terms are interchangeable, and at a high level can be synonymous with the GP.  But when you dive into the legal side of the documents, the general partner is typically a specific entity that is commonly unique to that offering.  Groups will do this for legal protections.

The sponsors are then commonly the people behind this entity GP and are defined.  From the syndicator may be the "household name" of the group or the people.  

Operator, personally, I only refer to the operating partner or lead GP.  There are many syndications with several people or groups raising capital for the same deal.  But the operator, in my eyes, would only be the people/groups that likely sourced the deal and fill the asset management function.  Anyone that is a capital GP, and maybe with some basic IR roles, is not an operator.

Sam, happy to discuss. I bought the course and SDA just over a year ago and it is a great 101/102. The SDA in particular is excellent and a tool I use every day. Also, my partner and I are actively looking in Bloomington - we should talk.  All the best.

@Sam Epperson I've been consuming Michael Blank's content for about 60 days now...,it is extremely helpful. It sounds like you have been educating yourself but I'm not sure how much of Michael Blank's content you have consumed. Here is my approach and thoughts:

-I've listened to 80% of his podcasts. There is a ton of content within every podcast. Additionally, you can review the show notes for my content and also follow up with a lot of his guests. I've only reached out to a couple so far, but the community has been extremely helpful

-I purchased his Syndicated Deal Analyzer (SDA). I've been using it for about 45 days. It is top notch and the only tool I use unless I need to do a really quick analysis on a small property. With the SDA you have access to about 30 of his past webinars where he analyzes the OM and walks through the SDA process. These are roughly 30-60 minutes each and include Q&A (live when first done)

-I joined his mastermind group for $9 (I think it was) for the first month, $49/month after, no commitment...very active and lots of information

-I've watched a lot of the short videos on his site that cover specific topics that I have questions on.

-I have reviewed the outline of his course and I feel like it is exactly what I'm looking for...specific details on the nuances of apartment syndication investing. There are a lot of things that I think you/we will have a hard time finding on BP or elsewhere. There are even more that we things to learn that we wouldn't even think about. 

Overall, experience is the best teacher but I think education like this makes sense to speed up the process and learn from others. So far I have spent about $150 with Michael Blank and I feel like I have received thousands of $ of value (way more information and value than you would get from a week long conference, for example). 

I'm literally buying his course today. They offer a discount/credit if you have already purchased the SDA since that is included in the price. I just received that link and I'm going to buy it. I plan on watching it over the next week, I would be happy to share my specific thoughts on the course, just let me know.

Scott 

@Amir Estimo our syndication group has made a few popular videos about underwriting that you can watch and learn from. You can find the videos on my blog. Good luck.

Whoa the holidays are about to get a lot more interesting.  Be a good reality show!

I'd probably go with an LLC lending entity.

Pete Tam,

Always be careful about doing business with a friend. First things first, you both need to sit down and begin talking it over. Everything you wrote needs to be addressed.

You really do need to create a formal partnership agreement to be sure that you both abide by the terms. It needs to be detailed and specific, it should cover all possible situations: Death, separation, disagreements, arbitration, how it is being funded, how it will be distributed, split of liability, split of work, split in case one of you becomes incapacitated etc. All of these and more need to be addressed.

Write down a list of what you come up with and BOTH of you sit down with an attorney that neither of you have a previous relationship with (very important).

-Steven