All Forum Posts by: Joseph Bramante

@Joseph Bramante 

I was going off this "Rarely do multifamily properties have a single owner. They are usually a partnership or syndication of several investors. Sometimes up to 35 investors. When I first started, our investors were able to join our syndications with a minimum investment of $10,000!" 

I guess I should have asked, how much were you paying back then? $800 seems negligible, I wasn't sure if you had a prefered return + equity 

Redgy

@Joseph Bramante thanks for the reality check on the amount of capital needed for a purchase of that size. We listened to a few of Robert Kiyosaki's books and he made it sound like we could do no money down be being a little creative, and we could also do non recourse loans and we assumed that meant the bank wouldn't require huge capital reserves. Ignorance on our part. How big do you have to go before lenders will give you non recourse loans? Is it just a matter of having a good track record, and it doesn't matter how big the loan is? We didn't know about the prorating for depreciation, that helps a lot. Thanks for the recommendation for finding a syndicator. Will definitely look into that. 

Im a student at Rowan University in south jersey. It is a growing state school that recently had millions invested. Im determined to turn a small single family home into a student housing investment. I was thinking if i could find a four bed room close to the school it would yeild 4 rental payments each month. Assuming I have sufficient funds to buy a single family home in a c+ neighborhood, what would my first steps be realistically to pull the trigger. Thanks!

@Joseph Bramante Awesome, we definitely lucky to have an amazing community. I don't know where I would be without BP 

My question to you is " how much are you paying someone on an 10k investment" even at 8% the return seems negligible .

Redgy

I am new to the real estate market and I am interested in purchasing a multi family in the near future as a buy and hold property (not owner occupied). My wife and I have two very good income jobs but I am interested in purchasing the property with 0 money down. I do not have a private money lender that I can borrow from. What options do I have with purchasing the property with 0 money down and not borrowoing from family

I was initially interested in MF syndications as meeting the minimums in most is not an issue. However, it seems I did just enough research to turn me away as I'm not an accredited investor. It's interesting to hear that it's not an absolute requirement.

Are most Sponsors that work with non-accredited investors new to syndications? If so, how do you make yourself comfortable with investing with someone who may not have a lot of experience? 

The main reason I do not invest in Multi family is the exit strategy. If I have a multi family I can sell it to another investor. Sometimes you can sell at the top of the market if you have the right complex in the right area. However you are selling to an investor. Just like everyone here on BP the investor wants the best deal possible. If I have several SFR properties I have several options. I can sell to another investor or I can put them on the market and sell and the top of the market to an end user. Someone buying the house to live in the house. I have found I can typically get more doing this because unlike an investor sell there is much more emotional attachment by the buyer. I have done several single family syndication deals and these have worked well for me.

With that said multi family does work well for some investors just like commercial property. Just figuring out all the ins and outs of Single family is hard enough. That is why I focus just on SFR. One are of expertise and I figure I will make less mistakes. Someone else can be the expert and invest in Multi family and commercial.

@Joseph Bramante I'd say I have more 'roadblocks' than anything stopping me. Nothing is stopping me at all. 

Re: My own sponsorship business: I am building this now. I'm building an investor list, and I have access to multiple capital raisers who are looking for deals in the $20MM range. There, I just need to find a deal. Working on it. I run a Richmond VA Multifamily Investors meetup. I also post a weekly newsletter for Virginia Apartment Investors. Anyone interested in either can reach out to me via PM.

Re: My participation as an LP in more deals: I don't know enough sponsors who offer 506(b) deals. That's all. I trust the sponsors I have invested with, but I won't put all my eggs in one GP basket. That, and I'm prioritizing using my capital for my own GP deals.

Thanks for the thread...!

Here are my challenges with buying multi-family apartments.

1. Finding multi-family apartments that want to sell at an investor price.

2. Finding financial backers for that apartment once found (although this one seems like I might have figured out through various networking meetings I've attended).

I am always looking for MFs, but in my hot market they are few and far between. The ones I stumble on are generally in neighborhoods I wouldn't walk through alone during the day, and the remaining can not cash flow sufficiently. Financing is not the issue, but mere supply. Always looking!