All Forum Posts by: Roschelle McCoy

Hi Mason - I'm down in central IL (Peoria) and would love to see what deals you have in the Peoria area. 

I agree with @David M. - it really depends on your goals.  Are you interested in short term cash flow, long term wealth, etc.  Are you wanting to play an active part in the investing and run / manage the projects yourself?  Or invest passively and earn returns while putting your trust in others that have experience in that given field to deliver on the projected returns?  With $5M you could do both.  Get some experience in smaller projects by jumping in and doing the work, while also passively investing some money.  Passive investing can also be a great way to learn about a market/industry that you're unfamiliar with by watching what the project sponsors do and how they manage things.  

If you have an interest in learning more about passively investing in multifamily projects I'm happy to connect and chat further.  

Directed IRA and U Direct are two SDIRA companies that I'm familiar with, one of which I've used personally. There are some limitations with using SDIRAs to invest in your own deals, so do your research on that.

SDIRAs are a great way to invest in others deals, such as being a limited partner in a syndication.  This is how we've used our SDIRA.  All the money earned from the deal must be deposited into the SDIRA account, so it's not a good tool if you need the income directly, but good for building long term wealth & retirement.  

I'm an active syndicator, if you'd like to explore that avenue further feel free to reach out.  

@Ana Vhan as others have said, syndications are a truly hands off investment and there are lots of resources (books and ChatGPT to name a few ;) to help you educate on this topic.  I've invested in syndications both as a passive investor and as a sponsor (on the active management side of the syndication).  Happy to connect and answer any questions you have on the topic.  

Welcome to the world of RE investing, Jacob!  This forum is an awesome place to learn. We also have a great meet up in Peoria the second Tuesday of each month. I think there are details about it this thread. 

@Account Closed there’s a meetup at noon today at The Warehouse on State in downtown Peoria. You can purchase lunch for $15 or just attend to listen and network. 

Jared hit the nail on the head. Decide first if you want to be an active or a passive investor. Most people think of real estate investing as only being active, but there are many ways to earn income through REI without doing all the work. If you don't have the time, desire or passion to find deals, renovate/repair, find tenants, manage properties, etc, then passive investing is the way to go. There is still some up front due diligence involved with passive investing to choose the right partners that you'll be investing with and understanding the deal and market, but after that it's all hands off.

I have a team that specializes in multifamily syndications.  If you have interest in learning more about passively investing in syndications DM me.  

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Peoria.

This quaint, all-brick 4-plex offers our residents security and privacy in a serene setting. Each unit boasts 2 bedrooms, 1 bath, large eat in kitchen, spacious living room, in-unit laundry and attached garage. Neutral paint colors and laminate flooring help make the place warm and cozy, all while feeling like a place you want to call home. Located on a quiet cul-de-sac, there are no neighbors to the east of the building making for peaceful days and quant evenings to enjoy the sunset.

What made you interested in investing in this type of deal?

This property was our first real estate investment. We jumped in full force with a multifamily unit knowing that one vacancy wouldn't entirely kill our monthly cashflow. The all brick exterior was very appealing, you don't find many newer properties that are 100% brick. It's a solid building that we knew would last a lifetime. All the units were fully rented, which minimized our risk going into this deal.

How did you find this deal and how did you negotiate it?

It was listed on the MLS and we used a broker to help us purchase. We negotiated via our broker, taking into account how long the current owner had owned the property, what they had purchased it for and how much income it generated.

How did you finance this deal?

We financed using a wrap around (also called a blanket) mortgage. We had a substantial amount of equity on our primary residence that was used to provide financing with no money out of pocket.

How did you add value to the deal?

We've renovated two of the units and raised the rents for greater cashflow. We have two long term residents in the other two units that are getting steady (but smaller) rent increases. After owning the building for four years we converted one unit to a furnished rental and are now grossing 3x the monthly rent that the unit cash flowed when not furnished.

What was the outcome?

We still own this building and plan to hang on to it for a while. It generates solid cash flow and we have some really great residents that love to call this place home.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Peoria.

This quaint, all-brick 4-plex offers our residents security and privacy in a serene setting. Each unit boasts 2 bedrooms, 1 bath, large eat in kitchen, spacious living room, in-unit laundry and attached garage. Neutral paint colors and laminate flooring help make the place warm and cozy, all while feeling like a place you want to call home. Located on a quiet cul-de-sac, there are no neighbors to the east of the building making for peaceful days and quant evenings to enjoy the sunset. This is a smoke-free and pet-free building.

What made you interested in investing in this type of deal?

This property was our first real estate investment. We jumped in full force with a multifamily unit knowing that one vacancy wouldn't entirely kill our monthly cashflow. The all brick exterior was very appealing, you don't find many newer properties that are 100% brick. It's a solid building that we knew would last a lifetime. All the units were fully rented, which minimized our risk going into this deal.

How did you find this deal and how did you negotiate it?

It was listed on the MLS and we used a broker to help us purchase. We negotiated via our broker, taking into account how long the current owner had owned the property, what they had purchased it for and how much income it generated.

How did you finance this deal?

We financed using a wrap around (also called a blanket) mortgage. We had a substantial amount of equity on our primary residence that was used to provide financing with no money out of pocket.

How did you add value to the deal?

We've renovated two of the units and raised the rents for greater cashflow. We have two long term residents in the other two units that are getting steady (but smaller) rent increases. After owning the building for four years we converted one unit to a furnished rental and are now grossing 3x the monthly rent that the unit cash flowed when not furnished.

What was the outcome?

We still own this building and plan to hang on to it for a while. It generates solid cash flow and we have some really great residents that love to call this place home.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

This property has a value-add opportunity to put professional management in place, improve the curb appeal and interiors to drive rents up to market prices.The unit mix is balanced with 2 x 1’s and 1 x 1’s. Located close to two theme parks allows for creative rent strategies and multiple exit options. The Tampa market has strong population growth and migration into the area that is incongruent to the number of available housing units, leading to rental growth well above the national average.