All Forum Posts by: Nathan Roberts

@Nitin John Abraham

The Bridge Real Estate Investing Meetup (https://www.facebook.com/searc...) and KC MultiFamily Capital (https://www.facebook.com/group...) are two groups that you may enjoy. Both meet virtually due to COVID-19 so that should be perfect for you. The Bridge Meetup is on the 3rd Tuesday of the month at 5:00 PM CST and KC MultiFamily Capital is every Wednesday at 6:00 PM CST. You can find great referrals to many service vendors on the Bridge Investing FB Group so definitely chime in. There are so many more groups out there but the ones previously stated by myself and those above will be the most beneficial for you. 

Hi @Ellie Perlman,

Thanks for sharing your insight on selecting a customer segment, the channels in which you meet them and how you should nurture them so they invest with you in the future. I'm actually learning about real estate syndication through books, events and a few mentors. How did you initially get started syndicating and why did you choose to do so? Also, do you have any recommendations or resources that I should look into for furthering my knowledge on the subject matter? I will definitely check out your podcast. Talk with you soon!

Best Regards,

Nathan Roberts

@Ellie Perlman

@David Carpio, a good deal for you will not necessarily be a good deal for another person. First, understand what your goals are so you can determine the best investing strategy for yourself. After figuring this out, come up with your investing criteria i.e. areas/neighborhoods, bed/bath count, SF, condition of properties, returns, etc. No agent should be telling you which areas to stay away from because this can be seen as steering. Instead, the agent should be going strictly off your criteria. If you say you're willing to go down to C-class properties, then your agent won't look for properties in an area with a lower class. Many investors like D-class areas because it's riskier therefore they should expect higher returns. In particular, an agent can not go into detail about the crime in an area but they can provide resources so you can interpret the level of crime yourself. D-class areas in Kansas City will normally look like a war-zone. This would include areas with boarded up homes, trash on the streets, many yards with dead grass, neighborhood liquor stores, not many local amenities, etc. Feel free to DM me if you have any questions. Talk with you soon David!

@Account Closed, wholesalers are readily available anywhere you look. I would recommend joining a few Kansas City Facebook Group. By far, this will be the easier and cheapest way to find local wholesalers. The Facebook groups you should join are below:

• Bridge Real Estate Investing Meetup
• Kansas City Real Estate Investors a MAREI Facebook Group
• Kansas City Investors and Wholesalers

There are many other FB groups out there but you won't find any as resourceful as the ones listed above. Let me know if you have any questions. Talk with you soon Pablo!

@Brett Aquila Crushing it in Apartments and Commercial Real Estate by Brian Murray is a great book on ways to invest in CRE. The book is mostly targeted at those who want to operate and bootstrap their own properties. Even though your goal is to become a passive investor, knowing the fundamentals will help with vetting a syndication sponsor. I wish I could recommend a few additional books but I just started my journey in learning about syndications. Below are a few great podcast to listen to on apartment investing, syndications, and capital raising:

• Jake and Gino Podcast
• Apartment Building Investing with Michael Blank
• Best Real Estate Investing Advice Ever

You should also set a keyword alert on Biggerpockets for the word "syndication" so you get notified when that topics comes up; this is another great way to learn. Connect with a few syndication companies, and/or real estate professionals where you want to invest. They will have resources to help you get started. 

Like @Alex Olson said, you simply just need to have enough equity (ownership) in the property to do a cash-out refinance. Your best bet is to talk to local banks and credit unions. Most lenders will only cash you out up to 75% of the Loan-to-value. Some may go above this figure but most will stay around the 55% - 65% range. For example, if you own a $100k property free and clear, some lender will give you a cash-out loan up to $75k. I would talk to a few lenders now to tell them your plans. Lending requirements change all the time so just keep that in mind during your rehab. 

@Jordan Meyer when assessing OOS markets, you should look at the current population, population growth rate, median sell price, median property values, median household income, unemployment rate percentage, etc. You should take all of these metrics into perspective when analyzing a particular market that you may be interested in. Try to connect with local agents to get market demographics or statistics. Many agents will probably sell you on their area so they can get more business; be cautious of this. Always verify the information that is given to you to make sure it's correct so you're not getting the run-around. With that said, I have provided statistics about the Kansas City metropolitan statistical area (MSA). The information below is either provided by Realtors Property Resource (RPR), the Kansas City Regional Association of Realtors (KCRAR), or City-data.com. 

Population: 492k (KC)

Population Growth: 8.2% increase in population since 2010 (KC)

Median Sales Price: $200k (KC MSA)

Median Home Value: $211k (KC MSA)

Median Household Income: $52k (KC)

Unemployment Rate: 3.5% (KC)

Housing Supply: 1.4 months (KC MSA) 

• Historically, market equilibrium has been 6 months of supply/inventory but this figure is likely about 4 months in today's market. We are in an extreme seller's market meaning there is a lot more buyers than available properties.

These statistics showcase a viable market for real estate investors. Out of state investors flock to the Midwest for cash flow, great returns, and appreciation depending on the neighborhood. Great areas for rentals include South KC, Grandview, Raytown, and the core of the city in certain pockets along Troost. 

I attended the Bridge Meetup last night that featured Brandon Turner; he stated that KC is in the top 10 cities for the most recession proof markets in the county. Keep that between us though, because we don't need our property values inflated like the East and West coast haha. 

I provided you with cold-hard facts, not an opinion. Do your research on Kansas City to find out why we are one of the all-around best markets to invest in!

@Connor Lutz your cash flow and COC return will depend on your financing, if you're going to use a property manager, the condition of the property, and so many other variables. You're probably not going to find a small multi-family less than 5 units on the MLS that meets the 1% rent/purchase price ratio because they're so highly sought after. Many people want to do the house hacking strategy with small MF so you'll be competing with other potential buyers that will ultimately drive the price up so much that it likely won't meet your return requirements. In the past 4 months there have been multiple tri and fourplexes that came on the market in either Blue Springs, Lee's Summit, or the Volker neighborhood near KU Medical Center on Stateline Road. Most of them sold for way over asking and some even higher than the comps. You're best bet is to find a MF property that is off-market so there is less competition. This will open up the opportunity to use creative financing ie; seller financing, lease option, using a self-directed IRA, purchasing subject to, etc. I wish you the best Connor!

@Tennessee Williams welcome to the BiggerPockets community. The midwest is a great region to invest in as you likely know. I have an out-of-state client living in Brooklyn, NY. He purchased multi properties in Kansas City last year so he may be able to give you a few tips on investing. Let me know if you would like me to establish that connection. Feel free to reach out if you have any questions. It's always a pleasure contributing to the community!

Hey @Steven May,

We talked a few times last year; It's great to hear that your investing endeavors are going well. This was a nice short read article/post that I enjoyed. It's always a pleasure seeing someone at the beginning of their career and watching them grow over time. Im looking forward to reading future updates about how things are going for you. Stay in touch Steven!

Best Regards,

Nathan Roberts