All Forum Posts by: Ronan Donnelly

Hi @Diego Ojeda, why are you aiming to build out of shipping containers versus more traditional construction? Have you modeled out whether the up front cost savings with using shipping containers cost you in the long run as a result of lower rents?

Take a break from time to time ;)

@Ryan Proffit, modular is definitely the way more construction will be done in future so it's a good idea to check out the space. The construction should be of more consistent quality given it is repeatably produced in a controlled factory environment. Not entirely relevant to this conversation but check out some of the high end pre-fabricated options: https://www.re4a.com/residential

Hi @Bryson Scott, congratulations on successfully executing a tried and tested strategy of creating equity and improving cashflow by renovations and improved management. This strategy works from a single family home right up to $100m+ commercial multifamily.

One of the beautiful things about real estate is that if you succeed you have got a number of options for getting your capital back, e.g. refinancing, selling, 1031 exchanging etc.

My suggestion would be to figure out what your objectives are in relation to real estate. You may want to manage a portfolio yourself or you may feel comfortable building up a team to scale up. Alternatively you may want to be passive and invest in syndicates. Figure out where you want to get to and model out a few scenarios to see what the fastest way to get there is. Good luck!

@James Bradin, I am sure that you could find a broker to help with comps since you will potentially use the funds to purchase another property. 2 years of seasoning is more than enough. Commercial (5+units) will be valued off NOI, for 4 units or less they will likely look at in place leases. Good luck!

Hi @Jon Hinkle, here are some thoughts:

1) Raising money post stabilization - you would have to target investors who are interested in cashflow assuming that post stabilization there isn’t a ton of equity upside. Those type of investors would almost certainly want a higher return than you would pay on a mortgage so it doesn’t make sense for you

2) If you have stabilized the property and improved the NOI you could do a cash out refi to get most of your capital back but you would still maintain a cash flowing asset. You could then use the cash out refi to fund the down payment on another commercial asset.

3) If you think you would rather sell the original property, at a higher valuation you could always 1031 into a larger asset and do a rinse and repeat of what you did originally

4) From an investor perspective I think it would be challenging to find private investors that would be willing to fund a cash out refi at a rate that is lower then you already have, if at all.

Good luck!

Real estate investing affords so many different options for making money with the downside being that it is extremely easy to get distracted by the latest shiny object. I agree, it's critical to pick a strategy and focus on that exclusively until you have reached your objectives. 

Hi @Joe Krug, crowdsourcing platforms exist because there is no efficient market mechanism which matched capital with deals. So you can think of the service they provide as some kind of aggregator who earns a fee based on transactions alone which aligns the platforms interests with volume, possibly at the expense of outcomes. It is also true that there are many successful syndicators who do not use the crowdsourcing platforms because they can raise capital themselves, less expensively.

I would look to partner with people who's interests are more aligned with yours, i.e. an outcome versus a transaction fee and this is how direct investing with a syndicator is typically structured. Feel free to DM me if you'd like some suggestions on how to due-diligence individual deals, sponsors etc. Good luck

I have had a generally positive experience with section 8 tenants and in most cases they have been better tenants than the non-section 8 renters. There is a little more overhead when dealing with the local housing authorities but it's worth it.

With my investor hat on I would definitely prefer to exit early if we have hit or exceeded IRR projections. That way I could take the proceeds and roll it into multiple other deals which would diversify my risk and also enable me to continue compounding returns.