All Forum Posts by: Robbie Best

Hi All,

I'm looking to connect with brokers in the KC/MO area to identify solid multi family deals, including off market listings. I'm currently interested in small to medium multi family (2-10 units) properties with value add potential. Any recommendations, connections, or introductions are greatly appreciated. Thank you!

Robbie 

 Appreciate the message, Chris!

Thanks Nicholas. That makes sense.

I suppose the issue is that there are multiple investors who want to invest and I'd like to maximize buying power to maximize cash flow for investors. If there's a better way I'm all for it. I'm looking for the simplest approach to pool together passive investor money with friends and/or acquaintances in my inner circle. At this point I'm leaning towards apartment buildings and away from SFH BRRRRs.

Thanks, Chris. Appreciate the information. What do you think is a reasonable legal cost for OA and EIN setup? Is there a simpler approach to avoid creating a PPM and subscription agreement when raising passive investor money for the purchase of an apartment building for example?

I was quoted for ~$3k for setting up operating agreement and establishing the company/EIN. Is a separate subscription agreement necessary?

It sounds like an 8-12 unit apartment building would not make sense then...any alternative ways I can go about this? The size of apartment buildings you are mentioning is likely not realistic for me at this point.

As a relatively new investor here, I appreciate the discussion.

Hey Colton, appreciate the response. I'm located in Southern California, so solid PM is definitely a concern of mine. If you have any recommendations in particular near Kansas City, MO area, I'd love to hear. Thanks!

 Thank you, Drew!

Thanks for the response, Chris! I appreciate your insights on timeline for finalizing documentation/legal and raising money. Hopefully I can get it finalized closer to 3 months timeframe. In your experience, are there particular aspects of the process that are avoidable that typically cause such delays? I'm asking ahead of time so I can prepare accordingly.

If I go the syndication route, it would be structured as a 506b since my investors are likely a combination of both, though the number of non-accredited investors will be far less than 35 (the max for a 506b as far as I understand) at this point. I'm speaking with a lawyer but haven't given the green light to move forward because I am undecided on structure. As far as asset class/strategy, I'm leaning towards small apartment buildings (8-12 units) to start. The SFH BRRRR seems riskier especially given the fact that I am out of state.

Hi Rick. Appreciate the response. To be clear, you mean the legal costs associated with drafting operating agreement and forming the company/acquiring the EIN? Or are there other significant costs you are referring to?

Perhaps a limited partnership would best suit me at this point? Main reasons as follows:

1. The other investors are not interested in managing the day to day and 

2. a limited partnership establishes ultimate decision making through the general partner as I understand. 

I'm trying to keep this as simple and streamlined as I can in terms of structure, liability, and operations.

You mention "as you build up unit size"...is there a particular point at which you recommend a syndication? What criteria do you use to evaluate when a syndication is appropriate vs. a limited partnership, for example?

Hi All! I am starting a syndication and have several investors looking to be limited partners. I'm looking at properties out of state near Kansas City right now. I have 2 asset types in mind, SFH and apartments. General strategy outlook as follows:

1. SFH - I would BRRRR single family homes, potentially near the city to have the option of converting to a short term rental. I like this strategy because if I can do this successfully, I can maximize the velocity of my investor's money (regardless of whether I go Air BNB or long term rental route). However, I have not done a BRRRR before, so this is arguably more risky.

2. Apartments - I would purchase an 8-12 unit apartment building with forced appreciation potential (i.e. light rehabs). I like this strategy primarily because there is less risk and less hands on requirement (being out of state). Potential rehabs are relatively more straightforward and repeatable between units, the income is diversified between the units mitigating impact of vacancies, and less management costs compared to STR.

For both of these routes, I am seeking to maximize cash flow for my investors above all. I would appreciate some insights as to potential pros/cons here and which strategy is better. I have been unable to move forward because I can't decide on my asset class and overall strategy. I'm a new investor with only a couple doors to my name. Of course if anyone has an alternate approach, I would love to hear it. Thanks all!