All Forum Posts by: Michael Gilman

Thanks for flagging Justin. The landlord lobby should be louder. 

Don't get me started on  misguided legislation. Late fees were an effective tool for encouraging timely rent payment. In one class C building we noticed late payments increase exponentially when the legislation came down even though there was no change in economic/employment situation for the tenants. 

As  you may be aware, one way to evict someone for nonpayment of rent is to base it on non-renewal of lease or anything other then non payment of rent (we don't even mention non payment as a grounds now and have been successful). For some new tenants (depending on building)  we are not doing year long leases specifically because of this. 

Depreciation can and typically should be passed through by the sponsor with passive investing. What I mean is active investing can deliver much higher returns then passive

If your goal is to leave your w2 job, I think you should be actively investing (including JV) vs passive. You should be able to generate higher returns (all else being equal) and that will supercharge your ability to leave your job. Speaking for our passive investor base that are individuals vs institutions, most don't want ot leave their w2 or don't have/need one.

With respect to notes, I would recommend being active here as well vs investing in a passive fund for the same reason.  For example, setting up the systems/network to source distressed notes.

Everyone is always trying to find the top market and piling into the perceived top ones and compressing cap rates to the point where some of these markets are no longer even cash flowing and its a speculation play. This is all well and good, but understand it for what it is.  I have yet to see anyone do a risk adjusted return analysis on markets. 

If you are just starting out I would encourage a more local approach even if you are in an expensive MSA. Typically an hour drive outside of these MSAs there are plenty of deals to be had. Even if there is no organic rent growth you can increase NOI through operational improvements (i.e. energy efficiency).Note, that for the first time in decades there is actually organic rent growth outside the major MSAs in markets once considered backwaters.

+1 Best Ever Apartment Syndication Book by Joe Fairless.  Lots of great podcasts as mentioned in this thread. My fav is Michael Blank's

Without speaking to a specific property, old properties are where the value add typically is. We love class B and C antiquated product. Lots of room to increase NOI through operational efficiencies (such as energy) without even having to increase rent. Try to keep it post 1978 to avoid lead law application but no reason to shy away from pre 1978 either.

Don't underestimate driving just a few hours outside your MSA for a much different real estate market - a couple hours outside most MSAs you can start seeing properties start to cash flow much better. That said, I and many other shave  started out of state investing  for higher cash flowing markets and I think it's a great way to start as a safe investment. 

Nice one!

I am working with a capital partner with appetite at scale for SFH to Multifamily with heavy value add potential (ability to increase NOI by 20%+ after value add) and no dollar limits. Capital partner can purchase at fair market value. Wholesale fee of 1.5 - 2% per assignment.

Initial northeast target markets: NH, VT, CT

Please don't hesitate to reach out directly. 

Hi Mark, we just expanded into Denver and I am looking around for meetups etc as well. I know there are a few Denver based ones on here, but I am not sure which ones are going strong and support Virtual so it would also be great to have some of the other  long tenured forum members weigh in.