All Forum Posts by: Sam Rust

@Jeffrey Donis I think you need to clearly define what the end goal is for your platform, I'm assuming you want to connect with passive investors and grow your capital raising capabilities? 

@Tina Thornton I would second @Stuart Grazier's recommendation, Byron and Katie are excellent attorney's and have experience in the syndication/commercial RE world.

@Max Bradshaw I would recommend doubling down on the SLC market, breaking into a new asset class and market simultaneously is a tough proposition. Your local market is growing, and the benefits of being local are immense. Chasing yield in other markets is certainly appealing but to get into a 4-10 unit in most decent markets you'll probably need to raise capital; folks are more likely to invest if its a market you are local to and can manage within a short distance. 

Congrats on your current success, best of luck as you seek to scale!

Thanks @Carl S. and @Logan Hassinger, that is very helpful information! 

I know several folks looking to move their self-directed IRA's to another custodian that is used to working with real estate syndications, can anyone recommend anyone in the DFW area that might fit the bill? Thanks!

@Sherman Dunn I look at Fannie/Freddie financing on a recent purchase, but ended up using a local credit union. The terms were much better through the credit union, 1% lower interest rate, 30 year term, 75% LTV. the advantage to the federal loans is the ability to take out non-recourse debt, but for us the other perks outweighed that value.

@Eric Tonnemacher I'm based in Colorado and don't have an intimate knowledge of your market, but guessing based on your proximity to Boston I would think you will have a hard time finding a deal with an amazing CoCR. The good news for you is that appreciation is likely on your side. Whatever metric(s) you chose to emphasize, make sure you find a good deal!

Best of luck!

@Kevin Ferguson I think both routes are good options, depending on largely on your personal network and willingness to dedicate lots of time to daily action. As several folks have already attested, starting as an LP is a great way to start; I went straight to syndication and was able to recently close on a $7.5 million property in Colorado. 

My syndication was a 506(b) offering and I had enough people in my network that both had money, and trusted me with it, to raise a bit over $2.1 million. I spent 9 months learning as much as I could through books, podcasts, and free meetups, then applying that knowledge to find and close a deal.

Both routes are possible, it just takes looking in the mirror and deciding which way you want go!

@Craig Hunter It's a bit difficult to offer an opinion without a bit more background on your goals for this investment, its actual location, etc. It looks like it cash flows, but it also looks like you are gaining any equity on the front end.

Best of luck!

@George Aplicano You've cited the physical specs of the deal, but you really need to dig into the T12 and rent roll to figure out the property worth, for either yourself or your potential buyers. That analysis should be the starting point for your negotiations with the seller.

Are you planning to wholesale, or hold the property?