All Forum Posts by: Ryan Daigle

@Liliana Tepan yes! NC, FL, TX and AZ have some amazing metros with great momentum.

Hey @Account Closed, congratulations on finding what sounds like a great deal! That's often the hardest part of this process and can really help with things down the line.

As others have mentioned, PLEASE make sure you have somebody that has done it before take a look at your deal and make sure you know where all the risks are. Hopefully you have people in your network that you can ask a favor of w/o strings (I'm in NC and would be happy to take a look if you DM me).

Otherwise, I wouldn't let the size scare you off. There's not a huge different between a 20-unit and 50-unit. Either way you're going to be learning a TON on your first deal!

Hi @Shaum K.. I believe we've invested in the same syndication! I live in the area and was happy to get a piece of something in my area I could drive to.

If your priority is cash flow then it's going to be very hard to find anything that compares to what you're getting in the syndication (around 8%). This area has just had too much appreciation recently to get that kind of cash flow unless you're looking to do a heavy lift like a wholesale purchase and rehab.

Something else you might consider is being a hard money source for flippers in the Raleigh area. You provide the loan at 12%+ to the folks on the ground doing the heavy lifting. Less risk and time involvement for you, though I'm not sure how much capital you have access to.

Hope that helps!

Hi @Liliana Tepan there are many factors that make up a good market, including population growth. I've downloaded census data for the last 8 years and aggregated it here:

https://docs.google.com/spread...

You can see which MSAs have strong and consistent growth as well as those that are actually accelerating in growth to identify up and coming areas.

@Daniel Lozowy great question - there are so many different distinctions between the classes that it's hard to really nail down a good definition. There is no one size fits all classification, but I've found the following to be instructive:

• Rent: Top 1% in your area is A+, top 5% A, top 20 B, etc...
• Age: Brand new construction is A+, under 2-3 years A, 5-10 years B, etc...
• Tenants: High income white collar is A+ down to unemployed section 8 in C
• Neighborhood: Resort style is A+ down to war zone at D

At the end of the day it's a judgement call (freshly remodeled but 30 year old property in a great neighborhood is probably a B), but this framework can help with that determination. Hope that helps!

@Joshawn McFadden completely dependent on how you are intending to manage the property and the screening process. If you have professional PM that has dealt with HUD before and is on top of getting quality tenants in place it can be a good arrangement. If you take your eye off the ball, however, it can be an administrative and tenant nightmare. Just be aware of the effort it will take to do it right!

Hi @Chance Charlton. I operate in the Triad as well as other NC metros. In our markets the two best bets are brokers and direct to seller. A few things will pop on loopnet or CREXI, but those are pretty picked through.

I use Michael Blank's SDA to underwrite deals and find it to be pretty thorough (though it's only as valuable as the information you enter).

Let me know if you want some pointers as you start digging in to local multifamily!

@Ben M. seems like the main sticking point here is not the structure of the deal, but the amount of leverage. Why not put in the operating agreement that you cannot exceed a certain LTV? You retain full operational control as the manager, but the financing ground rules are codified in the OA so your investor is safe knowing their priorities are accounted for.

Then, if there's an opportunity to refi at some point, and it doesn't go beyond the LTV your investor is comfortable with, you can do it.

The issue is not to refi or not, the issues is leverage. You can have both! The beauty of partnerships (and this biz in general) is that each property/partnership can have its own rules.

Hope that helps.

Hi @Trevor Woodlief, welcome to the biz! Sounds like you've got a leg up on most and are already well on your way.

Not sure if you're a podcast listener or not, but there are a lot of really good podcasts that interview syndicators, talk about their deals, how they raised money, what operational issues they ran into, etc... I created a list here if you want to pick and choose a few to get started.

Also, I operate in the Carolinas and would love to touch base if you're open. I'll DM you.

@Kumar Gaurav you CAN do that, but ask any lawyer (not me) and they'll probably try and dissuade you. The value of having different lines of business contained within different LLCs is that if one of your software consulting clients sues you, they can't access your real estate assets (and vice versa). If they're all bundled in one LLC then any liability incurred by one line of business exposes all of them to forfeiture.

So... I'd recommend against it.