All Forum Posts by: Ray Hernandez

@Justin R. I wanted to buy a mid size apartment because of the scalability. But all good points. I'll look around at different syndications vs investing myself and just weigh the pros and cons for the current goals I have. I enjoy growing a business as well so I may do what you did but I guess I'll see :)

thanks for the help!

@Chris Mason Good article and a very good position to be in. Gave me a lot to think about, thanks!

@Justin R. You're absolutely right. I hadn't thought about the tax disadvantage I'd be in while lending! Ok so I'm now leaning more towards buy and hold multifamily but I'm unsure about syndications. From what I've seen the returns are decent. 8% preferred and sometimes 12-15% annualized. But would there be an advantage trying to buy a complex myself and holding it long term or is syndication really the best way to go? 

@Carol C. Hey, Carol, thanks I'll check that out.

@George Despotopoulos Darn. I'd be fine doing 6 month if the return is good enough but yeah that's a lot to consider. This is overwhelming lol.

@George Despotopoulos No ones come to me for anything. I just recently acquired my capital. Trying to figure out what to do with it.

Torn between buy and hold multifamily and lending.

@George Despotopoulos Hey, George, thanks for the reply.

Hmm. I wonder what I'd be able to do with 3-6 months then.

It's sort of like comparing apples to oranges then I'd assume? I have some capital to invest I just don't know if I'd get better returns short term lending rather than looking to buy and hold multifamily properties.

I have some money to invest but just recently started thinking of being the "bank" instead. I've never looked into it so I don't know much about it from the lender's pov.

All I know is I am interested in doing short term loans so I guess that would make me a hard money lender?

Some questions I have are:

• Would 3-6 month loans be feasible?
• Can you make good money doing this if you consistently lend compared to owning a buy and hold prop?
• Is this better or worse than buying and holding or can they not be compared?

For my last question, the reason I'm wondering if you can compare the two is because I don't know if I should pick one over the other. I'd assume holding a rental property long term would be better for net worth over short term lending but maybe income is better as a lender? I don't know. I'm unsure if this decision would be based more on a "whatever fits your goals" kind of thing.

I appreciate any and all feedback :)

cheers

@Jonathan Twombly That's a good tip! But yeah, although the 50 unit may be cheaper compared to a 100+ it seems better to go for large scale multifamily to find full time employees like you said.

But if I do end up acquiring a 50 +/- unit I'll be sure to look for 100 unit complexes near it. Really good tip

@Vince DeCrow Thanks for all the info, Vince! Very interesting. I'm open to anything to fits my goals and seems fun so I'll start looking into partnering with a fund manager and learning more about all that. Know of any good articles that would provide me with more information on this? 

@Chris Grenzig Chris I cannot thank you enough for all this information. I'll definitely be looking deeper into syndicators with everything you've said in mind.

Good point about the property managers with under 50 units. With multifamily going big does seem to have much better benefits.

Thank you again for all the insight on syndicated deals. I have a lot more to consider and know a lot more of what to expect!

@Chris Grenzig Thank you for actually working all that out! It's nice to see a general road map. Is an 8% coc return "good" for a medium sized multifamily prop? Anywhere from 30-50 units?

I'm just wondering how typical a 15% coc return would be with value add multifamily properties? If getting that high of an annual return is a pipe dream I'd think syndication would probably be best thing for me with 8% preferred return being fairly common.