All Forum Posts by: Scott Morongell

@Christian Beebe if you had a general contractor for your 48 units assuming you did a value-add play that GC may have recommendations for a good developer. 

@Larry Elwood @Account Closed I would highly suggest creating your own. If you personally can't do it, hire someone who is proficient in excel that can make it look professional. Ideally, you want to create an output tab or what I call a "tear-out" that shows all the high-level stuff on the deal. It's should be clean, visually appealing, and professional. Some of the things you will want on that summary sheet is:

• Capital Structure
• Sources & Uses
• Investment Attributes 
  • -prop name, vintage, risk profile, units, purchase price, exit price, acq date, exit date

• Unit Mix
• Debt Highlight
• Return Profile
• Return sensitivity to hold period & purchase price
• Financial Summary (by year)
• Cumulative Return on Investment

** all of this info should be already showing somewhere else in your underwriting model and you just have to link it to this new tab so it auto-updates as you change assumptions in your UW model. Hope this helps.

@Antwoinne Campbell I would try to find a few people within your network to raise or partner with for the deal. It will allow for upmost flexibility. To answer your direct question, I would try to only use the hard money for 25% as it's typically more expensive than traditional debt. I am not familiar with hard money but if you reach out to a few they will help you much more.

@Jeffrey Brown I would spend some of the $$$ you have on education and to see what part of real estate makes sense for your goals.

@Christopher Chen there are so many books out there that can help you understand the nuts and bolts of the business. Joe Fairless, Ken Mcelroy, and Jake & Gino to name a few. Depending on where you at in life I would highly recommend interning or working for a multifamily firm to accelerate the process and get true hands-on experience.

 Absolutely, pick sponsor over deal every single time!

@Mike McKinzie not much more to be added to the lists above other than patience. Getting into a bad deal with a poor sponsor will leave a bad taste in your mouth for a long time. I would suggest getting on many reputable sponsors lists and then see a deal or two come through before investing with them. You can learn a lot about sponsors when they present the investment via webinar/conference call. Happy Investing!

@Jason Newberg congrats on taking down the 12 unit. In order to really maximize your ROI for your capex is to shop your local comps. Shopping your local comps will give you a "proven" model and will show you what your able to bring your rents up to. Newer investors typically get caught over upgrading a property and therefore pushing down ROI. Plan to run it like a Honda since it's a class B asset.

Based off your 5 value add ideas and me not knowing that submarket here is my take:

-paint cabinet doors or replace doors, add tile or rustic wood for cheap backsplash option

-plank or sheet will work for flooring. Sheet doesn't last as long and can shop a bit of "unevenness" in the floors if not level. Keep in mind your business plan, if your selling this in 2-4yrs your better off going with the cheaper sheet option

-stainless steel or black depending on what that market likes

-you can either buy and rent washer/dryers to residents OR try to get a laundry company in and do split profit. They provide the machines, fix them when they break, and you have 0 money out of profit.

-common area or even a cheap dog park if you have the space for it

@Shane Boyle you may want to check out Jason Yarusi's meetup in Westfield NJ. It is multifamily focused and provides good material. Search for it on Meetup and you will find his.

@Bryan Mitchell all fantastic responses below so thank you for starting an awesome thread. I'd love to know the % of failed deal for sponsors who are full time vs those who are part-time "think they can do this as a side hustle". If you're the real deal sponsor and truly understand that you're using other people's hard-earned money to go buy real estate, I don't know if working a 40 hr 9-5 is going to help you succeed.