All Forum Posts by: Steve Smith

Let me know if you would like to discuss or I can be of help.

Good luck!

Randy, 

Look for the longest track record with consistant earnings (c/c and/or IRR depending on your goals). Sean Cook/Paul Kaseburg says this is the absolute biggest thing you can do.

Think about it, all proformas are 'guesses or stories about the future'. The only thing that investors care about is their returns. I know, past performance is no indicator of future performance. However Buffett and Munger have always said, they buy companies that have very long term solid track records (predictability) that are on sale. I want my operator to have gone through the last recession. There is amazing wisdom that is gleamed only from time. I have spoken to over 300 operators or their investor relationship department and I am amazed the the huge difference that I see and hear from those that have been around the longest.

I hope this helps. Syndication is like getting into any other area of RE investing. It is NOT passive. You must read, study, and think to get the most benifit.  Start with those books. If you don't have much time bet Brian's and listen to the audio while driving, walking, working out etc. You will be amazed at what you learn.

I agree with Paul. Buy Brian's book. Buy it from BP (wish I had) so you get the audio download and a very long check sheet of what to ask the syndicator.  

Another book that is right up there with Brian's is Investing in Real Estate Private Equity: An Insider's Guide to Real Estate Partnerships, Funds, Joint Ventures & Crowdfunding. By Sean Cook. I have read this book three time, listened to every podcast that Sean has been on multiple times. He worked both sides of large institutions and Family Offices that managed CRE (mostly MF) in the Billions.

I have invested in over 30 syndications. I wish I had both of these books at the beginning of my investing. 

Class A duplexes paying on time in TX. All of the MF syndications I am in have been running in the mid 90%s.

August and September will start showing the real economic impacts due to the Feds unemployment running out. Unless of course they extend it.

What are your goals for the properties? To cash flow (higher cap rates), debt pay down, or appreciation? I am an investor in a hard money company that operates in nine states. We fund primarely fix and flip, new construction and investor SFR rentals. We underwright so that if we have to take the property back that it is of the right quality and right area that we can rent it out to quality long term tenants and have price appreciation. We even created propietary software to determine this down to the block.

In the beginning I bought C class, now I have all A class duplexes. The cash flow is not as high, however, the tenants are far better and my property manager is far better, they like good properties too :)

Jack, I agree with being uneasy about your choices. I do not have hard numbers but from overall the tenants I got that fit my 'best in class' standard were the ones that not only paid on time, but no drama, damages and left the place in great condition. Many of them I was willing to go back to them after the first year of leasing and give them a lower rent rate for the next few years to keep them around. Turn costs are the heaviest costs so I am willing to lower rents by $50 under market when I saw how long my average vacancy was for and how much the lease up and turn (rent ready) costs were. If it cost $1,000 to re-paint clean etc. and was vacant five weeks, it was well worth it to lower their rent by $50 a month for two years (1,200 cost) to avoid the cost and hassels.

Anthony Geraci out of Irvine California. Google him. He has been a great help and resource

Thank you!

Does anyone know any good CA. RE attorney(s) with experience in the area of hard money lending and notes?

Thanks!

Steve

Try Jeff Brown. He has LOTS of posts here on long term retirement strategies.

AKA Bawld Guy