All Forum Posts by: Snehann Kapnadak

Hi Everyone,

Was wondering what the consensus was around Richmond, Missouri? Hows the rental market? Job Growth and economy? Does it feed off the KC economy at all? I visited their city website and it looks like there's some development on the horizon and decent schools but I wanted to ask the BP community as well. If anyone has had any experience investing in that market, please let me know.

Thanks in advance!

@Pearly Tan Congrats on closing! Yes definitely! Shoot me a PM with your email and maybe we can meet up sometime. Looking forward to it! I'm in the same boat now about trying to move on to multifamily (I'd like to skip the duplex phase if possible).

@Scott Morongell Thanks for the insight, so did you include a section of your management team and background of the market? That's what I have but I'm wondering if it's redundant. I guess I'll keep practicing it on investors and will tweak it where needed.

Thanks @Jorjio Hopkins, I'll keep your tactics in mind as I continue practicing.

@Tony Akhigbe Thanks, glad to see I'm kind of on the right track. After you present the SDP, do you ask for verbal commitment of $X000? Or do you leave it open to how much they want to commit? I know this all depends on the deal but was wondering if people still ask for verbal commitments and if they're even useful.

@Matthew Baltzell Thanks for the boost of confidence :) I'll continue working to improve my pitch!

@Scott Morongell & @George Blower

Thank you both for the advice. I have a pitch deck and a sample deal package ready that I show investors, but I think I need to change my investor circles a bit to those individuals who have slightly higher net worths and with old IRAs/401ks. Self Directed vehicles sound complex at the moment but I'll do more research and will speak with a seasoned professional.

Great content on this chain, thanks for posting it!

Hey @Ryan Young I have no idea about your market but your numbers and plan look good at face value. Note that since this is a commercial property, you'll need 25% down, not 20%. And depending on your lender of you put say 30% down, you maybe able to get a more favorable rate. So it might be worth running the numbers with these scenarios in mind.

Also it may be worth trying to quantify the Irr and CoC returns for prospective investors. Can your deal provide better returns than stocks, bonds, commodities, etc? That's when you'll know an investor would be interested.

Hope this helps. Good luck!

@Scott Morongell Raising money is my biggest hurdle. And I'm not even trying to raise millions! I'm trying to raise under 100K from friends and family and it's still so daunting.

Hi @Jorjio Hopkins thanks for the response. Noted on not being too sales-y. How much of your SDP talks about a sample deal vs. about your company, team, and general acquisition strategy? Or do you have 2 SDPs depending on how savvy your investors are about real estate?

Here's my general process: 

1. I tell family and friends about how I invest in real estate and gauge their interests.
2. If they seem savvy enough to generally know about the stock market and basic investing, I ask them about their current returns and how they may be able to get a better return through real estate. I walk them through the numbers of my SFR & show them my intentions of scaling by getting into MFH. If they're still interested, I tell them that I've noted their interest and I'll follow up with them again with a formal plan of a sample deal so they can get a better sense of the numbers I'm projecting. I plan to use the SDP here and get a few verbal commitments if possible.
3. If they're not involved in investing yet but are curious, I try to give them a high-level overview of how REI can possibly beat the market (cash flow, appreciation, tax benefits, etc.). If they're interested in learning I tell them to look at BP haha and try to steer the conversation into #1 above.

In your experience do you think this is the right approach? Thanks again for your help!

Hey @Zach Lemaster, a year later things are going well minus the recent turnover (see my previous post). But hopefully it'll be a smooth transition to a new tenant.

I'm looking for a lender who's very friendly to out of state investors and preferably, one who can do residential and commercial loans. Mind PM-ing me his or her name?

Thanks in advance!

To add to the great lists above, here are my choices:

• Commercial Real Estate Investing for Dummies by Peter Conti & Peter Harris
• Commercial Real Estate Investing: A Creative Guide to Successfully Making Money by Dolf de Roos
• Commercial Real Estate for Beginners: The Basics of Commercial Real Estate Investing by Peter Harris
• The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing by Paul Moore
• How to Buy and Sell Apartment Buildings by Eugene E. Vollucci

Happy reading!

Excellent thread. Hope this isn't hijacking the thread but for all those who invested passively in other syndicators' deals like @Charles LeMaire , @Oleg Shalumov and @Brent Kawakami I'm assuming you guys were all accredited investors, correct? Do you have any advice on how non-accredited folks can invest passively in deals, if at all? I'm not talking about REITs or notes or anything like that. Thanks in advance!