All Forum Posts by: Joseph Bramante

Hey @Joseph Bramante, 

I appreciate the advice. I'll look into those forums for Single Family and see what value I can extract. As for crowdfunding syndications, are commercial lenders okay with having the down payment come from a syndication? 

Best,

Mike

Joseph, either you are joking, or I am misinterpreting what you are saying, otherwise I can't disagree with you more. If what you are saying is true then nearly everyone on BP is wasting their time, as they aren't buying apartment buildings with at least 150 units in them. I know some very successful investors that completely disagree with you, and I think that Ken McElroy and Grant Cardone would disagree with you as well, as I'm pretty sure that neither of them started off buying 150 unit buildings. Now Ken McElroy only has like a billion dollars in assets, maybe you know more than he does. What's funny is that many people, in my experience, do quite well only buying single family homes. I know a guy who owns over 500 houses, and he's been doing this for like 30 years. I myself have done well investing only in singles and small multis. If you are buying 150 unit buildings, you're competing with larger companies for $60 million+ deals in many markets. I think it's great if you can do business in that space, but that's extremely limiting, and I would guess that the cap rates are probably lower at that level, especially now. I've got a deal right now that I'm looking at that's 1/10th of what you're talking about, that is offering close to a 20% IRR, including high-quality management.

@Troy Whitney Read Sam Zells book "Am I being too subtle" He talks about buying smaller deals as well. In this market there is great value in the 10-100 unit range. That is an are that many investors like Joseph scoff at, but the truth is there are a lot of good deals to be found and competition is less. Right now investors in the 1-6, maybe 8 unit and the 150+ unit are fighting tooth and nail for deals and are battling for the last penny to be found. The beauty of the 10-100 unit range (especially the 15-30 units) is that there are a lot of mom and pops and retiring folks ready to sell and willing to sell with financing or a portion of financing to the buyer. There has been a lot of poor advice in this thread

Joseph - are you saying that you recommend that if an investor wants to invest in say a 20-30 unit building out of state, that they manage it themselves?  I live in Seattle, and own 11 properties in Philadelphia, and have a project/property manager that I work with.  I give him free rent in one of my multis and he runs around for me.  Not all of my properties are cash cows, but as a whole, my portfolio performs decently.  Most of the properties I have bought have needed extensive work and in a number of cases, full renovations.  I bought them all site unseen.

My business partner are now looking at syndicating one or more deals in a totally different state.  It seems to me that the key is having the right management in place, rather than being able to drive to the property yourself.   A good management company makes all the difference.  I assume you don't disagree.

Whenever I say "manage" I am referring to "asset management". There are two types of management. Property Management and Asset Management. One school of thought is to learn everything there is about property management, get all of your certifications, and manage all of your properties. In my opinion, its a slower way to grow since you are very distracted with the day to day of property management and can't focus on managing the asset. These individuals tend to slowly acquire properties and grow their management company. They tend to be micro managers so running the day to day works for them. They put on their asset manager hat when it is time to buy a property, raise capital, or refinance/sale, but are typically not well versed in the underwriting of properties and strategies. The other school of thought is to hire an experienced property manager on a contract basis, typically 3-5% of the gross receipts of the property, and let them take care of the day to day while you (the asset manager) are reviewing reports, setting and tracking budgets, and doing the overall planning for the property. You might visit the property a couple times a year but spend most of your time working remote. You are well trained in underwritting, have extensive network of lenders and investors, monitor the market for rental trends, and responsible for the financial planning of the property (when to sell or refi). When your property management fees exceed the salary of a regional property manager, thats when you either A) fire the mgmt company and bring it inhouse, or B) buy the mgmt company

Hey @Joseph Bramante,

Currently my credit score is 750+ and I have $10k plus that I've saved so far for investing. I'd love to leverage my credit score and the money I have to get into multifamily properties. I'm not sure if I should find another market in the state where prices are more affordable for me to start or do it locally and try to find partners. What would you recommend? 

Best,

Mike

*P.S. I think multifamily syndications are really interesting! Would RE crowdfunding count as a type of syndication? 

hello, me and my husband want to start investing in multi- units. What is the best way to get financing? My husband isn't a handy guy? So I need to network of people

Hi all,

I told my  story on a recent BP podcast 238 and I have not invested in a syndication and have only used family money and a few of my personal friends have invested on one of my latest 21 unit apartment complexes in Painesville, Ohio.  I have been treading slowly in regards to syndication etc...

Right now I have 109 front doors in 7 apartment complexes and 7 single family in NE Ohio.  I would highly advise anyone interested in investing in true multifamily to get David Lindahl's Multifamily Millions.  The apartment complexes that my PM has followed those methods in that book have done wildly well in about 2 years of ownership for the longest owned complexes.  Some of these complexes we have owned for a year or less and we have repositioned them nicely so far too.   I don't belong to David Lindahl's organization and have no ties to them.

I would also agree that your PM is soooooooooooo important to implement your plan.  I do have a day job, play hockey twice a week, coach baseball, and DO have time to manage my PM.

"Whatever the mind can conceive and believe it can achieve."

Napolean Hill in his book Think and Grow Rich.

Swanny