All Forum Posts by: Scott Morongell

@Alfred Derrick the downside or risk if that if you haven't done either a house hack or new build it is a lot to bite off. I would suggest that you continue to scour the mls and create relationships with wholesalers to find off-market opportunities. Turn over enough stone and don't be in a rush to buy. This will give you the best opportunity to see deals clearly and make a strong investment. 

@Amber C. could you provide more detail?

@Kyle Leeyaw not sure if you know Seth Fergusen but he's a Canadian in or getting into MF deals here in the US. Could be a guy to reach out to and collaborate with. 

All depends how you structure the deal. You can probably find a private money lender that would be more willing to hold a second position on the note. You could refi and buy out the private / hard money lender or leave them in with a small %. All things are negotiable in real estate :)

Correct, assuming that works for the hard money lender.

@Jason Thomas more doors = better ratio and protection!

@Ivan Barratt A lot would determine on who the sponsor is, and where the deal is located to determine which option I'd prefer. My short answer is to get your cake now. Take the cash flow and reinvest in other deals or businesses. Your overall returns with the approach as an LP would most likely beat the 22% you'd be speculating on. I would also strengthen my argument even more for cash flow now if there are A&B shares in the deal and the lower 15% sat first in line on the capital stack with the "A" share capped at 25-35% of total cap stack. It's the closest thing to guaranteed money since the deal would only have to cashflow 2.5-3.5% / year for me to not miss a distribution.  

@Wesley Williams the ultimate reality is that not every real estate purchase makes money. She either has to come out of pocket or deed it over to you. You make money in real estate on the buy so it's imperative you pick the deal up at a good basis.

@Tim Carlson you have come to the right place for help. I will start off by saying yes a mentor or coach will help you a lot but is certainly not for everyone. If you have time on your side and flexibility in your schedule I would suggest finding a local firm that you can intern or work for. This will teach you the business in a hands-on way that no coaching program will do. If you do choose the coaching or mentor route, keep in mind that 99% of the "gurus" that you will stumble across have been in the business only throughout this last upswing and haven't been through multiple market cycles. Those same "gurus" also make more in coaching than they do in real estate. They teach their students enough to be dangerous but not enough to do deals on their own so the student 9/10 times brings the deal back to the "guru" to help close it taking most of your deal you worked your tail off for. In short, they are creating bird dogs with their programs throughout the country. 

@Sebastian Roy you should create a simple excel spreadsheet for: what your buying it at, where your bringing rents to, and then figure out how long it will take to hit the 25-30% for a refi. For conservative future projections, you may want to assume the market will be worse with higher interest rates.