All Forum Posts by: Tony Lin

Yeah one deal may have multiple people trying to raise money for it. Some mentor program work like this and give students a way to participate in the deal by helping to raise funds. 

Each person is allocated a certain amount of money to raise. Maybe one guy has finished raising his quota and the other still have spots available. 

It really depends on what you negotiate with the KP. I've seen anywhere from 3% ownership to $50k cash to zero incentive since the KP gets to earn Fannie Mae/Freddie Mac loan experience. 

All depends on what the partners are looking for. 

You might qualify for Freddie Mac SBL (Small balance loans). It's a pretty good program for primary markets. Should check it out. 

Would a 3hr flight be considered close? I own some large multifamily properties in Dallas and don't feel it's very far. I go the guerilla route and fly red eye to start the day at 6am in the morning. Work and network nonstop until next day afternoon and fly back to the Bay Area. It's super efficient and I usually have time to visit my properties, meet brokers, talk to my property management company, scope out new properties, and have happy-hour cocktails with my business partners :)

Dallas has been doing pretty well last few years and have a pretty diverse economy. At 100k new move-ins a year it's growing quite nicely and easy to manage. 

What size of property are you looking at? 

Agency loans (Fannie/Freddie) are doing about 4% for a 12-year term, 30 year amort, 1-3 years of interest only, non-recourse loan with up to 80% leverage. 

Old capital podcast and conference are a good place to learn. Also, attend meetups in your area, maybe a weekend training seminar offered by a mentorship group. Then to get real hands invest a amount in one of the syndications and see how the operate the property. 

It's how I started out and the knowledge gained was even more valuable than books. There's nothing like talking to folks who are actively running the deals. I started recording my meetups so if you're interested those are a great information to review as well. 

You can find ppl to talk to on meetup.com. Go to local mixers. Real estate seminars etc. to find ppl who have similar interests as you. 

It really boils down to your time and ability to network. To find large multifamily deals you need to get to know the listing brokers really well, and meet as many listing agents as possible. To get funding, you need to once again meet as many investors as you can and build your network. 

But why should people sell to you? Why should people invest with you? All this comes down to experience. Either you use your own money to start on some small projects to build experience, or you invest into other people's deals to gain knowledge and experience even if you're not one running the show. 

Legal? Or not legal? :)

You're not going to get 1% rent to purchase ratio here. It'll be more like .4%. You can probably do ok with house hacking and be able to have that offload some of your mortgage, but I would expect you would still be running negative cashflow to make it happen. Add the tenant-friendly regulations it's really not a great state to be a landlord. 

Or you can do what some ppl are doing under the table. Get a big house then rent it out to 10-12 junior software engineers with bunk beds. These are called hacker homes and they're quite popular on the peninsula. They're usually well decorated with small housemate community events to bring ppl together. You can get 800-1k per person but I won't comment on the legality of that. 

I had this situation before and ultimately passed on the land. It's great to build on it but in a way you're creating direct competition for your existing properties. You'll most likely be building class-A buildings as well and that may not be in a class that you want to be competing in when you're buying b/c properties.