All Forum Posts by: Paul Moore

@Duncan Hayes.  In my experience, one of the distinguishing differences b/w a B and a C class property is the ability to effectively implement value-adds. Of course, this is very subjective, and others may have a different definition. But in general, I would say that even if you improve most C properties, you are dealing with a tenant base who has limited finances and you are limited by demographic factors such as crime rate and income in the area. 

But many B class properties, in my world, are in areas that have the potential for a commensurate rent increase based on upgrades. So there is more ROI potential from appreciation.

Furthermore, the hassles and risks for a newer operator are generally higher in a C property. I think the skill and experience level needed may be higher. 

That is my 2 cents. Good luck! 

Hey @Dale Snider.  You already heard from @Carl Fischer above. I wonder if he could get this done more quickly.  We have really enjoyed working with his firm, CAMA Plan. 

I would like to hear @Jay Hinrichs comment on this post.  I know he has experience in this area.  I seem to recall that syndicating debt has the same SEC rules as equity.  

There is another structure I am researching that has one PPM (private placement memorandum) with two classes of equity that can "imitate" mezz debt and common equity. That may be something to consider. 

Now that you say it that way, @Will Barnard, that makes total sense.  I agree. 

@Carolyn Dawson. Though I would love to see you get started, I agree with @Hai Loc that you should hold off and get some training first.  There are courses you can get or attend to learn all about this asset class. Then you will be armed to evaluate these deals correctly. And you may meet a partner who can work with you as well.  

@Alexander Burkard: Lots of great advice here already.  On a practical level, if I could go back 30 years, I would skip residential and dive straight into commercial real estate investing. 

It is a very tough time to find good deals in multifamily. But I will say that Michael Blank/Nighthawk is locating more deals than most these days.  And he is a high-integrity individual with a great team. 

I agree with @Greg Dickerson and @Ronald Rohde on this.  This is risky, and you should really understand what you are getting into. I have some info from attorney Mauricio Rauld on this if you want to reach out. 

Hi @Nick

It is a great book - I think it retails for over $500.  I may know of someone (another Brian) who would sell there's for less.  PM me if you are interested. 

@Account Closed's point, you could also find an investor partner to go in with.  Best wishes!