All Forum Posts by: Robert Rixer

Definitely read up on house hacking which is what you are trying to do. Can't comment on St. Pete but I can tell you with today's interest rates and sticky higher prices, house hacking is very tough to make happen successfully in most places in the country. Keep learning and happy investing!

I always knew promote to mean the split the GP receives at the end because they are being "promoted" to perform well and reach this level which means the previous performance hurdles (such as returning capital and pref) were achieved. Could be complete lore but it works for me.

Yes you have it right. Good on you asking questions like this - even tho they are basic, there are probably a lot more people out who are also uncertain about these kinds of things.

I've been getting 6.5 - 7.5% at local community banks. Another investor I know got 5.5% agency debt recently. 10% sounds like private/hard money.

There's no black and white rule of thumb but if you're on the GP side, no matter the split, I'd say it's fair to claim it in your portfolio. Where I would draw issue is a syndicator claiming properties in their portfolio when they are only a Limited Partner (specifically in marketing material). It's misleading in the very least but I see it more often than you'd think. So long story short, you're good.

Read this book: The Due Diligence Handbook for Commercial Real Estate by Brian Hennessey. Most boring book on the face of the planet but over the years its probably saved me millions.

https://www.amazon.com/Diligence-Handbook-Commercial-Real-Es...

My advice is get your real estate license and hang it with a specialist multifamily brokerage firm. Great way to learn the business, your local market and also make cash which you can use to buy  buildings. Then when a great deal comes along you'll feel confident investing yourself in it since you would have seen so many other data points. Way better investment than any "seminar".

It would be hard for anyone on here to speculate with any degree of certainty. However I will say financing 95% at today's high interest rates with 33% of the units not generating income sounds like a tough hurdle to overcome in this market, even if you're pulling in strong W2 income.

Go with your gut. If it doesn't feel right, trust your judgement and move on.

These higher rates need to stick around for longer, for the health of the market and the overall economy. The longer they stay high, the more investors who thought it was a good idea to buy 3% cap buildings on cheap debt a few years ago are going to get bled out. And hopefully that means more deals  for the sound investor out there.