All Forum Posts by: Matt Skinner

This is a good article pointing out the illusive obvious that job growth alone cannot predict absorption (rental demand) of apartment units.

For example, job growth in Dalas has been strong and will likely continue to be strong for years to come.

However, I believe (and this is why I have exited this market - selling nearly 300 units) that this market has reached its peak in Multifamily.

Dalas currently has historic low vacancy, and trades at a historic low cap rate - but I believe this trend will reverse and cap rates will rise over the next few years.

Here is why: 

18,000 new apartment units will come on line in that market this year.  New construction - that really has not been present for several previous years - will increase supply to the market in a big way.

New home construction in the suburbs will also compete for occupants - and there is a seemingly endless supply of land to develop  as the population grows as there are no barriers to entry.

As home loans become more attainable, more people will likely buy rather than rent.

While I believe Texas in general will continue to lead job growth in the US, Dalas apartment investors should be cautious of a rapid over supply in the market. 

Remember: Buy low.  Sell high.

I tried it the other way one time and it didn't work so well. 

if you have no down payment and it cash flows - jump on it immediately.

Or wholesale it to me...

Great idea, actually.

Start at the city planning department and ask them if you can "store some things in your containers" on your lot, if you buy it.  Sometimes it's easier to ask for forgiveness rather than permission.  (just kidding...)

Most self storage facilities need to be zoned "industrial" but your loop hole may be a small operation without public signage.  

A zone change is expensive and risky - no one wants to look at storage facilities on a busy street.  

If your zoning allows storage, you probably just need to make basic improvements to make it compliant - (utilities, fire lanes, egress, ingress, etc) but I don't see why most small municipalities would try to regulate a temporary structure.  

If you were in LA (where I am from) you most likely would have the regulators and the NIMBY's (Not In My Back Yard) after you.  

Thank you Karen,

I just might post there.  I have a blog that we will be posting that and all our other "deal diaries" and I think there is a way I can post them on BP as well.

We are probably looking at 8 months to get the expired permits current and then we will be off to the races in pre-sales and construction.  Most likely one year to build.  

You mean what will the Equity Partners ownership percentage be?

If you are interested in investing you should email me for a prospectus.  

If you are interested in learning you should email me about that too.

To answer your question, on this one:

10% of the cost  = 10% of the profit .  

Thanks Jared,

Each house will sell for $22M.

Purchase the lot for $11,400,000

Will build each house (10,000sf) for $500/sf so the construction budget is $10M.

We close next week.  

Call, text or email me to receive a prospectus.

We will be developing two 10,000sf homes in Corona Del Mar.

I wanted to share with you this quick video to give you a tour of this awesome property.

Click here to watch: 

https://www.youtube.com/watch?v=Ls5XBHgUA0s

We have already organized $6M to purchase the lot. We still have a few $100,000 shares we are offering to our friends and associates to be part of this once-in-a-lifetime project.

Call, text or email me to receive a prospectus.

Matt Skinner

818-419-0202

[email protected]

Cool!  Let's do a group call and share each others "stories".

This is a fun business.  And what makes it fun is that real estate is a team sport.

I want to set up my investment firm like a law firm; offering some of our biggest stars partnership positions in the firm and giving the rising stars the aspiration to become partners in the firm.

My firm's primary business activity is:

• Raising private equity
• Acquiring real assets.

What entity structure would be best suited for this model?

Professional corporation?

Limited Partnership?

Perhaps another entity that I have not considered?

Any comments or questions are welcomed.

I want to set up my investment firm like a law firm; offering some of our biggest stars partnership positions in the firm and giving the rising stars the aspiration to become partners in the firm.

My firm's primary business activity is:

• Raising private equity
• Acquiring real assets.

What entity structure would be best suited for this model?

Professional corporation?

Limited Partnership?

Perhaps another entity that I have not considered?

Any comments or questions are welcomed.