All Forum Posts by: Tyler Kastelberg

@Todd Dexheimer

I think you're right - the wildcard will be immigration.

Peeling back the onion one more layer ... do you have thoughts about the regional impact of reduced birth rates and/or immigration? 

Said differently ... We've seen a flight to coastal cities with major businesses planting offices in the Southeast and Texas. Is there enough macroeconomic evidence to create a hypothesis about the impact of birth rates and immigration on midwest vs coastal markets?

@Taylor L. @Bjorn Ahlblad @Bill B.

The US birth rate has dropped for a 4th year in a row. Will this hurt multifamily real estate over the long term? 

If yes, where, when, why?

If no, why not?

"The United States’ birthrate fell for a fourth consecutive year in 2018, bringing the number of people born in the country to its lowest level in 32 years, according to provisional figures published on Wednesday by the federal government. It said the fertility rate in the United States also fell to a record low."

https://www.nytimes.com/2019/0...

@Ben Spiess @Matt Jones

We have a number of samples from our days as a consultant that I'd be happy to share. I can't figure out how to attached them here, so send a DM if interested.

@Mark Benevento

With all the disclosures about me not being a legal professional ...

I'm pretty sure you can use a standard purchase agreement from a realtor to do this.

@Renee Yarbrough

I see all of what you mentioned on a weekly basis in our space.

It's easy to see this operating model would have success in a place like San Francisco. Do you see this as applicable in driving cities like Nashville?

@Kent Leach

Best of luck with your raise!

For many new sponsors, the fundraise is the primary focus. However - the "fun" part is building an operating team and implemented processes to run the property.

Keep us posted.

@Joel Owens

The leasing model really only works if you approach it first as an operating company.

Writing individual leases for hours at a time would be silly.

@Niv Levi

Full disclosure: My business supplies the real estate industry with pre-vetted freelancers, so I'm a bit bias.

I don't think hiring a third party consulting company to do your underwriting is worth it ... for all the above reasons ... AND they're expensive.

However, I think you're on the right track with interest in building a team.

If you're like 80% of other real estate investment companies in the US, you have the need for support but can't afford a full-time analyst to join your team. Your best bet might be to lean on talented freelancers.

Surround yourself with quality support staff who can provide you the necessary information in the proper format to give you the power to say "go" or "no go" on projects.

@Kane Warner

Advice #1: Go to college.

Why?

College is the best place to start building your network.

Advice #2: Work for free.

Contact your favorite real estate content creators on BP and other channels and offer to work for free. Keep your eyes open, and you'll learn from their successes and failures.

Advice #3: Build a business (maybe while in college).

Investing requires money.

Without money to invest, you won't be able to create the passive income that you desire.

... that's where building a business comes in. The most successful real estate investors build businesses that fund their investments. Business can be real estate related or completely unrelated.

College is the best place to meet like-minded individuals. Network, take risks, and don't be afraid to walk down the path less traveled.

@Matthew Ringer

All caveats about not being informed on the market aside ... I'd expect a new build of that size to be running at a 35% opex ratio. When modeling, I'd expect the opex ratio to increase over your hold period as repair and maintenance costs and turnover costs become more relevant to your operations.