All Forum Posts by: Patrick Menefee

@Jason Ma I would challenge the premise of your question. The location isn’t a determining factor between syndicate or buy on your own, it’s just one of the criteria required to identify your goal.

You’ve identified you want 30 units, what else? What’s your target cap rate, cash flow, etc.? Is it more important for you to be in a specific market, and shape your strategy around that? Or do you just want a 30 unit and don’t care where it is?

Then think through the strategies based on your criteria. You can syndicate or go solo on any property regardless of the price or location. Sure it’ll probably be more expensive in California than in Indiana, but all that does is inform how much money you need to raise and not define the way you find that money

The point is, get specific about what you want and go for it. You can always change it, but if your only goal is a number of units and you don’t set any other criteria, you’ll never make progress because you have too many options

As for Raleigh, I’m not familiar with the market except that I know it’s generally good. I’m in Charlotte and haven’t yet looked into the Raleigh area...I’m certainly interested though!

@James York welcome! As far as meetups and networking goes (tagging @Natalie Kolodij too plus anyone else interested), I host a meetup usually on the third Friday of each month in Charlotte when there’s not a pandemic. We also have a large community of 100+ local investors who chat regularly to share ideas, best practices etc. via a GroupMe and Slack chat so if you’d like to get plugged in let me know!

@Josh Stack i missed all this before and need to do some catch up reading, but i love it! I’m heading back out to Gastonia in the morning to continue rehabbing my fourplex out there, and I’m incredibly excited for what’s in store. What do you have put in the area? I’m definitely looking to expand my portfolio with Gastonia rentals

The trending topics are flooded with concerns based on current events, and understandably so. However, life goes on! What’s going well for everyone??

For me, I have a couple great successes

1. A deal fell through in a very shady and frustrating way earlier this month. It was extremely lucrative, but i was going to be highly leveraged on it. I’m now thankful it didn’t go through, my portfolio is much less risky, and my reserves will go much further!

2. Social isolation is still in effect at a property I’m rehabbing, and not traveling weekly for my full time job gives me time to save money by doing my own work! I can now do much more of the painting and flooring install that will ultimately save me thousands!

3. Time to focus on branding!! I can now spend more time building my network, adding to my website, creating valuable content, and setting myself up for success in the future because of the current situation!

Many millionaires are built in times of crisis, and there are tons of great things happening despite the negative! Share your stories!!

@Travis Kremer I’ll offer a slightly different perspective in light of ongoing events. How’s YOUR current position if you move forward? Are you putting all your cash into this or do you still have plenty of reserves? Can you afford to cover in the case of multiple vacancies or multiple non paying tenants? Can you afford below market rent?

I agree with a lot of your assessment on the market...this is different than a normal economic downturn due to the fact that businesses in otherwise good condition are longer receiving revenue. With that in mind, what are your options?

If you buy in cash, holding costs are lowered and a single tenant may be able to cover the cost of utilities to hold the property. When this turns around, you’re easily in the black

If you get a loan, i imagine the cash you save will provide ample liquidity to cover a significant period of no income

Ultimately the question is twofold...can you cover the holding costs on an otherwise solid deal (assuming it was truly solid) until things improve? More importantly, ARE YOU comfortable doing so? If yes to both, proceed. If not, re-evaluate

Best of luck!

@Dina Boyce sorry!! I just realized i never got back to you. PM coming

@Christopher Park ok got it, thanks. That’s where i was at too, just wanted confirmation that my lender wasn’t blowing smoke or had different criteria

@Alan Mills I’ve been looking into this a lot lately and there are a number of options. Primarily it means networking your *** off to find a mix of private money, credit lines, hard money, and some of your own capital in order to make multiple purchases and scale while still adhering to the seasoning (at least for the options I’m pursuing)

Unless you’re flush with cash to make every purchase that way and use delayed financing, the likely option up front is to use hard money. This will still require a down payment, but that can be sourced from a credit line, private money, etc. plus maybe a little of your own money. It’ll allow you to grow and transact enough to qualify for better terms and less down

Combining different funding sources doesn’t eliminate the seasoning piece on the refi, but does allow you to keep buying until you refi and can continue the cycle

@Christopher Park on the delayed financing piece, am I correct in saying this requires a true cash payment and not a HML or private money?

I talked to my lender about this but he said it only works with a 100% true cash purchase

@Jason Ma i love the goal, just get specific. Is your goal to buy the 30 unit on your own? Syndicate a deal to purchase a 30 unit? Partner with someone to purchase it?

Each of these has very different tactics. If it's to buy on your own, then using the SFH route to build capital for a down payment is a possible tactic. If your goal is to syndicate a deal, your reputation and networking are the most important and maybe the experience of buying a number of units will help get you there. If your goal is to partner with someone on it but not syndicate, then you need to figure out how you'll fit into the deal and add value and network your *** off to get there!

There are plenty of options, you just have to get specific in your goal. You have a goal with a timeframe, just narrow down the goal a bit to inform your tactics