All Forum Posts by: Steve K.

@Payton Pearson I upvoted your comment about upvoting your post, you’re welcome. 

I upvoted @Caleb Heimsoth upvote

But I think with your knowledge of the local market and with the size of your deals, I believe you when you say you are able to find deeply discounted properties that make the 40%+ irr projections feasible. So although the promote is highly favorable to the sponsor, the LP still benefits because of the huge cushion created by the low acquisition cost. Also, my impression is that you are a developer first and an investment manager second. Whereas most sponsors are investment firms first and don't necessarily do their own construction work. Thereby allowing you to implement your forced rent raises at a much more efficient price and timetable. 

I'll DM you for some more info as I've been looking to deploy some capital in an apt syndication. Thanks. 

I want to start flipping single family homes but I’m not sure of what all I need in order to get approved for a loan . Any feedback will be helpful! Thank you BP!

I’m in contact with a few syndicators. Ashcroft seems very aggressive in their deal making. I get emailed 3 new deals in the last 3 month. One in Plano, 1 in Jacksonville and 1 in Orlando. This while other syndicators have been very quiet. Obviously, we are late in the investment cycle so not sure what to make of it. Is Ashcroft overpaying for assets? Are they focused enough since they are juggling a lot of balls. They have been raising money and doing deals fairly recently so they never been through a down cycle. Anyone else with thoughts on Ashcroft? 

You mentioned that you wanted to get your equity out as it appears you are at the top of the market.  I'd like to suggest a different way of thinking about this.

Most folks know how to calculate cash-on-cash ROI. How much are you in for divided by how much you make each year. But a better metric is equity ROI: equity divided by how much you make each year. Typically equity ROI declines year over year, mainly due to equity increasing faster than cash flow. There will come a point where your equity ROI is lower than what you could make if invested that equity elsewhere. At that point it's time to get that equity out and reinvest it. Make sense?

Secondly, no one can time the real-estate market perfectly.  (Or the stock market either.)  A lesson I learned a long time ago in stocks is that if someone buys my stock and makes a bunch of profit off of it because I sold too early, well that's OK, as long as I got my profit when I sold.  In other words don't worry about timing the market, no one can anyway.  Instead rely on equity ROI to let you know when to sell/refinance.  

Oh, and great deal, I'm jealous!  ;)