All Forum Posts by: Scott Kimberly

My wife is the same way and we are weeks away from having our first child. I refuse to let that stop us from investing.

She hates finances. Hates talking about money. Its taken me literal years to work down those barriers, but it was necessary to establish our budget. I talk to her about real estate all the time, so it's common. I never try to force her to look at deals or anything, because I know it won't work at the moment. 

If your SO is anything like mine, you just have to bring it up all the time, but not in a way the demands his input. Make it normal. And point out the financial importance and benefits, but DONT skip out on the risks.

I'm curious to see how much of a myth the 1st Deal actually is.

The Myth I'm referring to is "get your first deal and it's off to the races". As a new investor, I the more I listen to podcasts (and not just BP's) the more it seems like "if you do your 1st deal, the doors will open up and you'll be able to acquire as many properties as you like, as quickly as you like".

Obviously, this sounds ridiculous and I'm also exaggerating a little bit. But, assuming it isn't ridiculous, at what point do you just do a good deal, regardless of size, just to say you've done one?

I want to be in the small-multi space to start. Anything from 2 to 20 units. However, there is a huge difference between 2 and 20. There's a pretty good difference between 4 and 6, to be honest. Is it worth it to just acquire the most affordable good deal I can in order to build that reputation, rather than try for something a little more expensive for more cash flow?

Thank you both!

My personal timeline for REI dictates that I cannot start investing right away.

Since I have plenty of time now, I wanted to practice finding good deals so that when the time comes, I will have a better idea of what kind of investment to pull the trigger on.

I want to buy small or medium multis to start, anything under 10 units. In my area, there a 4 plexes and 6 plexes that aren't too dissimilar in price. I know roughly how you go about evaluating a 1-4 unit, but I don't know if you can apply that criteria to 5+ properties. I've asked around on here and also read that you need to ask around for actual expenses and rent rolls to see if 5+ deals will work.

My biggest concern is that in practicing finding deals I will brand myself as a "tire kicker" who can't close deals. I don't want to be the guy that asks for all this information and doesn't do anything with it. Is that a needless concern? Is there some other way I can practice evaluating 10 units or less without becoming that guy?

Welcome Jalen! 

Always good to have another CT face on the site. What kind of Real Estate interests you?

Good Afternoon!

I am a newbie investor that wants to learn more about investing in apartments in CT. I'd like to talk with other investors who operate in this space and state and see what this niche is like here.

I would love to hear all about your business and strategies and learn about the properties you operate!

Thanks,

Thanks @Trevor Ewen!

Thank you all for your answers!

What would you say then is the "yardstick" one would use to evaluate a deal like that? There's a fairly easy formula for Retail, but it seems a bit more complicated, if not completely different, for syndications/commercial/large deals?

I can use the 50% rule and the 1 or 2% rules and a few other metrics for small 1-4 unit deals. What do you use for large?

Hey everyone,

I'm not necessarily looking to do these types of deals anytime soon, but I've been listening to the podcast from the start and keep hearing about syndication and private equity deals.

My question is: How does the money flow into and out of these deals? Are syndications fundamentally different than if I had one partner putting up most of the money?

I'm not just talking about raising money or getting paid. Does the 50% rule still work? Are you getting financing for these deals or are the equity investors the "bank"? If you have a property that is 200 units, are you still getting $200 a door? If you put together a deal, are you just getting fees and the "$100 a door" (or similar figure) goes towards paying investors a return?

I realize there are a lot of variables at play, but these are some gaps in my knowledge of the more advanced concepts. I wanted to ask because I am curious, I have no expectation of doing any deals like this any time soon.

Thanks!

I am wondering out loud, as well, if you cant call CPS if that couple willingly moves their children into situations like this?

Kind of a nuclear option though.