All Forum Posts by: Jeff Wallenius

@Taylor Witt you can easily spend around $20K to setup your syndicate, and I would echo what you said above, make sure you have a knowledgeable securities lawyer set this up for you. There is no "ah gee I didn't know" when dealing with securities so you need to ensure your covered and your investors are also covered. 

Our syndications are currently investing in bulk single family, with multifamily to follow. Your question on a minimum is pretty broad as it all depends on the structure, your goals, volume, operating costs, etc. Sorry I can't nail down a dollar figure for you and best of luck with your setup!

@James Hong we invest in Oklahoma City, several cities in Alabama, Kansas City, Mississippi, Ohio along with the markets you suggested above. On the other hand cash flow is hard to define, what's more important to identify is where you can find a rock solid team with unmatched customer service. A attractive real estate market can be easily offset by a bad operator and they are out there. In regards to timing, what specifically is your question? 

@Timothy Metra I'll admit, I did not read all the replies on your thread prior to posting so my apologies if I am covering what someone already said. From what I'm reading, your contractor position could be pulled at any time without advance notice. If you have $10K in the bank, keep it there! This is your fallback money to survive while potentially seeking out another position. Your obviously energetic about real estate and that is fantastic! You have a long investing career ahead of you, and there will always be deals to be had, however I can't in good faith, tell you to go out an invest those dollars into an investment your just educating yourself on. Continue on your real estate brokers license, and seek out a mentor. Find a investor that has achieved what you want to pursue. Start investing there, in time spent with that person, make them coffee, ride around when they run errands, I don't care what you do but learn from them!. Eventually you'll be in a better position to invest (could be sooner than later) both financially and also on a knowledge basis, at that point you'll be in a position to provide value to your mentor. Maybe you'll have the energy and drive to do the "dirty" work for their business, or the leg work on deals, regardless you'll be able to pay them back so to speak. That's my $.02. Great job starting young and keep grinding.......you'll be successful! 

@Kaz M. and @Account Closed were both of you able to find a provider for what you are looking for? We invest in Indy on a retail and turnkey basis with a high volume vendor that we have been very happy with. Happy to provide additional details if your still looking for a solution.

Aloha @Aaron Cayabyab! If your looking to buy in your area I would try and live in one of the units and purchase as an owner occupied. You'll get better down payment terms and it's a nice way to get into the multifamily space. There are some value add opportunities throughout the nation if your looking for other areas as well.

@Scott Ewell if your going to invest in a buy and hold investment property how involved do you want to be? If your looking for a retirement supplement I'm going to make a broad assumption that your not looking to manage properties on a day to day basis. I don't think there is one correct answer for your decision you do have to determine your investment goals. If buying SFR I would make sure you buy in the B and above class neighborhoods, which will provide a stable investments without the constant turnover and headaches that a C- and worse will provide. You'll pay a higher price, but as a retirement supplement you want a smooth ride I assume. With multifamily you may be able to buy into a higher class property but most likely your down payment puts you in a slightly lower class property type versus SFR. As @Tamiel Kenney stated above, you can get into a syndicate and let the proven professionals deal with the issues. This is a great option for avoiding headaches and letting knowledgable, proven operators work to your advantage. The drawback is your level of control will be minimal and ability to liquidate difficult. Obviously you mentioned buying property, but there are other options to achieve nice returns in real estate without individually owning the properties. I made a lot of assumptions in this post, so you know what that means.......

@Marty Joyner there's some good information on this post in regards to buy and hold and vacation rentals, so I won't beat the dead horse. Here's my $.02 on your third option. Investing in a crowdfunding site has some drawbacks and Mark Kenney did a nice job of covering a few. The fees charged are sometimes charged to upload your funds into their system, this is money right off the top. Many of these projects are long term meaning your money is tied up for years, which may be what your looking for, but real estate investing is an opportunity game and life sometimes does require liquid cash to recover from unexpected events. Where are my dollars invested? I may sign up for a project, but whats the breakdown of funding and is each dollar accounted for? Rather than rattle off some potential negative aspects of syndicates in my eyes, I'll rattle off what I believe it should look like.

Transparency: Look in privileges to the bank accounts, I want to know about every dollar going out and coming in and the profit breakdown. 

Shorter Terms: I'll commit to a longer term investment but if an event arises in my life where I need liquidity, I want to know I can get my money in a timely manner. 

Investors paid first: I put my hard earned money at risk, I want to be paid first from the profits with managers being paid on the performance of the asset invested in.

No Fees: Managers should earn their money, I don't need my return diminished with junk fees.

Diversification of investments: Spread my investment around, minimize my risk.

Minimized exposure: I like investing in many small deals versus one large. If a project goes south, I still have several projects or investments carrying the portfolio.

Multiple exit strategies: Tell me your plan A, B, and C on how we recover from adjustments in the market or individual project. If you have only one plan, I'm out. Having done fix and flip for many years, the project never goes exactly as planned. Usually these are minor glitches but I want a fall back plan, always!

With all that said, I will not be constantly checking in on my money, as I don't have time and I do want to be a passive investor. I do want to know these pieces are in place when investing and verifiable, these syndicators have to earn my trust!

Wow, that sounds pretty needy as I reread it, but this is what an investor deserves. PM me if you want to know where to find this type of syndicate, this investment model does exist.

Great job educating yourself before jumping in, your ahead of the game in that regard. Best of luck!

@Christine Herbert find a solid turnkey marketer in that area with a proven and verifiable track record. We've done a few projects in Orlando and can provide references if you are in need.

@Garrette Becker and @Blake La Grange the key to finding good property management for turnkey is having property management in house, meaning the turnkey provider performed the repairs, placed the tenant and then manages the property. If they do not do their own property management, it needs to be held very close otherwise a turnkey provider has no inventive to provide quality work and to place the best tenant they can. As far as turnkey multifamily, if at all possible try and seek a value add purchase as you can maximize your investment capital to its full extent. @Sean Tarpenning is a fantastic option in Kansas City. If your looking elsewhere, PM me, I'd be happy to assist.

I do, I'll PM to discuss further as I don't want to hijack the thread.