All Forum Posts by: Mike Krieg

Hi Devin, I'm in TX. As you know the market is very tight right now. Happy to discuss what I'm seeing in Central TX - Austin. 

I recently installed a Kwikset that has an app. Very nice. I can see everytime it locks / unlocks. I have codes for renters, cleaning crew, and family and friends. It's great to be able to change these codes whenever I want. I can also remote unlock the door for a vendor if I don't want to give them a code. 

Texas has gotten more difficult but it's still growing rapidly. As you know if multifamily investing you want to target areas in the path of growth. We're looking closely at the growth corridors in the metros. Of particular interest is the new tollway I130 in Austin, or otherwise called the Tesla growth corridor. Exciting things happening in that area.

Look south. The southern states are and will continue to be bright spots for investment. The migration in these states is robust. Next I'd look to network and partner with others who can help you. Think brokers, lenders, investors, etc. RE is a network business. Make a trip to some areas and get familiar with some submarkets you like. My .02! 

Sunbelt states where biz and household migration is a good place to confine your scope. Then drill down on submarkets. TX is hard these days because our taxes and insurance make many deals hard to underwrite. You really need off-market deals here to overcome that.

@Brendan Miller When I look at funds I'm looking primarily at the operator / syndicator. This is because at the time a fund is rolling out, you often will be asked to commit funds before seeing the specific deals that are yet to be acquired. Track Record is key. One a single syndication I can review and analyze the numbers, business plan, structure directly as well as the operator. Best to ask for a track record, talk with other investors with experience, and so forth. As far as minimum's, I like to see 7% projected CoC with what I can observe are conservative underwriting rules of thumb, 15%, or better IRR over the life of the deal; hold period up to 5 years.

I'd suggest Gene Trowbridges books. I haven't read this book in a while, but "It's a whole New Business." is about syndication and was helpful to me years ago when I was getting started. I'd also throw in Yardi. Get into the data of how our cities are changing and growing. Learning the data that is driving the growth is enlightening and lots of trends and forecasting ideas start to stand out. 

@Sriram Kumar Bikkina This is the best part about BP - advice from experienced investors who've "been there, done that!" I'd echo the former comments and add that there is a lot of really good education in a few books and articles as well. I've reviewed several of these expensive programs and I've discovered that ALL, of the information can be found in books. Also, many syndicators are happy to coach you along the way given your questions are brief and focused. They can also provide Investment Summaries of deals they've closed; the thesis for why they purchased the particular deal, etc. This is part of growing an investor base - educating your people. So, go for it. Lot's of free and education and coaching out there! 

@Gita Faust are they charging for ach now? I’m considering canceling all services if true.

@John Lyszczyk

Look at $DXY over the last year and it tells the story. Weak dollar, expanding 10-year yields, and commodity inflation. Gold gave the signal last summer and since then commodities have all gone up: Silver, Corn, Lumber, copper etc. in fact copper is over $4 / lb now.

This will be an ongoing situation until we see a stronger dollar.