All Forum Posts by: Scott Morongell

@Dane Turk there are a lot of people on here who use other people's money aka syndication or JV. You will have to determine if they're going to be active or passive in the deal. If they are passive you will need to do syndication to stay compliant with the securities law. If they are active then you can form a partnership (speak to an attorney, I am not one).

You can structure it a million different ways. If you aren't bringing any money to the table but sweat equity that still counts for something. Say you have 4 investors at 500k, each one gets 20% ownership and you would take the last 20% for all your sweat equity. 

@Sam K. we submeter in NC since you cannot implement RUBS. Submetering will cost you 300-500/unit. 

@Sara Parker many investors including ourselves look for job growth, population growth, room for rent growth, larger MSA, diverse workforce and employment, and landlord-friendly. These are just a few on a high level that would then make us dig deeper into the market and submarkets. If Lithonia checks a lot of the boxes above then it could make sense to pursue. 

@Joe Moffett having superior knowledge in the market is necessary to make a strong investment. I would suggest looking in a market that you have family or some sort of boots on the ground. A property mgmt company can help you as well but keep in mind they want you to buy a deal so they can make $$$. 

@Jeff Quinlan it sounds like you know what you're doing already. My bigger concern would be how does a $275 pop in rent take to that submarket? You could also try one of each and see how well it gets absorbed in the market. 

@Daniel Townsend this is the beautiful thing about real estate, you can structure the deal any which way. Normally the guy who brings most of the money either takes a larger split of gets a pref on their money before you as the sweat equity would participate in the cashflow or upside in the deal. For something small and simple I'd probably try to do like a 70/30 or 80/20 split. 

@Jeff Quinlan they are tough to get out of. You will have to wait it out before signing with a new vendor. 

@Victoria Coleman it looks like you are currently living in charlotte? I would suggest looking here as it's a great market. 

@Owen Barrett call up the subject property and act as if your interested in renting there. If it's a marketed deal, the OM will tell you.

@Cole Druffel I would suggest working for someone who is already doing what your looking to do. Not only will you get hands-on experience but it could lead to potential opportunities to partner with them on upcoming projects.