All Forum Posts by: Randy Glenn

One last thing, since you're going into a partnership. Have your attorney draft an operating agreement that everyone is on. It should outline everyones specific roles and set expectations up front. 

I'd also consider on how executive decisions get made... will it be majority vote out of 3? Can one individual be granted the final say on all issues (maybe they have more experience, dedicate more time, etc) 

When it comes to these situations you need effective decision making with SPEED. That is what will save you tine and in turn money. A system to make decisions is crucial so that no one feels slighted or screwed over. 

However this happens, it should be outlined from the beginning if possible.

Happy to chat on KC! Biggest thing is building a team then having a criteria. It's easy to go after every strategy or niche. Once you narrow down a strategy then you can pick certain areas to look in. From there offer on deals and do your due diligence 

Im assuming you are investing remotely with these locations? 

So some of our clients invest remotely with us. We have established relationships with them and they trust us when we bring a deal to them or when we advise them on the next course of action with their current investments.

Couple things I would say to you on this strategy. 

1. Have explicit metrics to go off of. Clearly define what the minimum and maximums are for your downpayment, purchase price, cashflow, NOI, CapRate, asset class, total number of units per building, etc

This will give you clarity as you scrub deals. Stick to your criteria and don't make emotional decisions.

2. I HIGHLY recommend you get boots on the ground that you trust. I would be going to the city and meeting with the PM you're considering. They should be well versed on how they manage the asset, deal with tenant turnovers, and have a robust plan for maintenance. They should have good reviews and good recommendations. 

3. Join the local REIAs in the areas that you are considering investing.  Ask the locals their favorite geographic locations to invest, who the players in the area are, recommendations for PM's/Contractors/Realtors/Lenders/etc

What is drawing you to these markets? Why not do it in your own backyard?