All Forum Posts by: Joseph Bramante

Mixed dev is tough to make work, especially on 10 acres. 

@Matthew Thurman It sounds like you have a pretty common issue. No time to commit plus location dependent means you need some sort of online program.

In today market, sadly, LPs need to be more educated than the GPs since most GPs have only been doing this for a few years so chances are they don't know much more than you, but they put on a good show. You are smart to educate yourself and protect your most valuable asset, TIME. most are worries about losing money in a deal but the reality is, the industry is pretty robust so worst case is you make less profit than you intend but that means your capital is tied up in a low returning deal for 5 yrs or more vs in a better deal by a stronger GP. So to protect your time, you need to spend a little time on the front end to get educated and avoid the numerous overly rosey (bad) deals out there.

Is this deal called the waterleaf? I reviewed it recently on our Analysis breakdown. Should be airing soon. Sponsor doesn't actually disclose the fees in their Investor pkg but make you dig it up in the PPM. not very transparent. 

High fees are a tell tale sign for inexperienced operators since experienced operators would know the deal could not support that level of combined fees. Their underwriting and assumptions are too aggressive and thus they believe they have a unicorn when its really a donkey. 

 Be careful 

This deal is a PASS! This entire deal screams of money grab. What size deal is this? 

Nice unit mix. should rent well. You will need to budget for the rehab. If your 100% leased then for sure the rents are too low. 

I wouldn't worry about cap rate. If it cash flows and hits your returns, thats all that matters. 

If I were in early stage of my career and wanting to grow fast, I would do fix and flip houses until I had about $500k in cash, then passively invest most of it while I continue to fix and flip houses on the side to create more cash to invest

Your title says "passive" but all of your questions seem to be related to "active" investing. While true passive investing does require some work on the front end when vetting sponsors and deals, that should be it. 

There is a lot more to it than just market. Reviewing the underwriting in depth is something most passives just don't know how to do. Just because the restaurant is located in the best part of town, doesn't mean the food will be any good. 

And with the amount of newbie syndicators flooding the space thanks to an endless amount of weekend seminars and podcast encouraging everyone to become "financially free" by becoming an apartment syndicator using OPM (other peoples money) while getting rich on acquisition fees, its a win win situation for sponsors while passives struggle to invest in quality deals with experienced sponsors who actually know what they are doing. 

Continuously updating underwriting after every transaction for the last 10 years. 

@Cassie Wright, Jr. There should not be any different perspectives. Multi-family is 5 or more as defined lenders who enable the transaction.