All Forum Posts by: Steve Lyman

Probably need to know a little more information. Are these potential investors friends and family? Did you go out and solicit to find the money to raise. If it was me, try to raise from friends and family first. In bigger deals that we do, as the sponsor, we split equity into shares per how much capital an investor is going to contribute compared to how much needs to be raised, ie. If we are raising $1M and the investor contributes $100k, they will receive about 10% equity and we will also pay them a pref, or preferred return. If you are looking to hold the property after a reposition, I would bring the person(s) on as investors, instead of partners. Partners will have voting rights to your property and can be the decision makers (along with yourself). If you don’t want that, bringing them in as a “silent partner” is the better option. Does this help?

We use Buildium and the one issue that we see with the program (otherwise, it is a great property management program) is that it makes it difficult to tie more than one bank account to a property. 

To answer your question, we have two accounts per property, an operating account and an account for deposits. Like @Brian Adams said, we budget $250-$300/door/year depending on the condition of the property. 

@Jeff B. Thanks Jeff! Yes, I am very away and have a great legal team advising in that department. 

@Andrew Schena Thanks Andrew, appreciate the insight!

Hello, Recently went under contract wth another property. I have a question regarding investors, since this is my first deal raising capital. I am raising $500k, selling $50k units giving an 8% pref annually and 9% equity (taking 1% as my acquisition costs). My question is in regards to the pref. Am I paying the 8% pref on what they initially invested ($50k) or is it 8% of net income, then after paying the investor's prefs splitting the remainder for equity? Thanks, Steve

What are you looking to understand?

Matt Dickey It's Steve Lyman! I didn't know you were a real estate investor or that you moved back to the area. We should get together and chat! I live in Milford.

Hello, I just went under contract with 52 units in the Frankenmuth/Saginaw, Michigan area. Can anyone recommend reliable and efficient property management companies? Thanks, Steve

Residential or commercial?

@Account Closed, I have not done a deal yet. I am currently working my sphere of influence of investors. 

Right now, I am doing an analysis on a property that will have a NOI around $110k in a 9-10 cap market. I have three investors that are putting up $50k each for a 12% pref (mainly because I have no track record). The three that are investing know me and know what my work ethic is like. I was just thinking of putting something together to help show potential returns for investors that I don't know as well.

Hi all,

Hope everyone is doing well! I am looking for some help when it comes to presenting to private investors. What do you guys do as far as presenting to them? What materials do you give them? What numbers are you showing them? Do you have a specific form that you show them?

Thanks in advance!

Steve Lyman

@Joshua Woolls