All Forum Posts by: Vincenz DeCastro

@Jay Chang #263 w/ Bruce Peterson and #324 w/ Michael Blank. Good, clear, encouraging, and informative at various levels. Check them out!

@Bryan S. I agree. I've had friends in a similar situation and after they spoke with a couple of their affluent family members and close friends who understand the value of investments. Afterwards, experience and advice from someone they trust or in a position they want to be in definitely helps. Just remember, the conversation is never "you vs me" but "you and i vs the situation and options at hand". Best wishes and congrats!

@Charles Seaman @Mike Vann Thanks for the insight! Definitely learning a lot. Fun times! As I expected, that was the direction I find myself lately as I slowly moved forward, looking to partner with an experienced sponsor whether it be in Austin or other markets. Currently networking around BP and REI meetups feeling out different people.

@Greg Dickerson @Alina Trigub "Looking to purchase and reposition an apartment complex via syndication as my first deal." Thanks for the response. Raised a decent amount of money (but more is always better) from my network and was originally looking at class B&C properties with 20-80units around $2-3million to slowly add-value to units around 5 years holding it. After loan discussions, will likely need a high net worth sponsor. But lately, I may have to adjust these goals as Austin is a tough market and I don't want to bet on appreciation especially on a first deal. Plus as mentioned, partnering up may adjust my search. In regards to my credibility, I can only answer subjectively. But objectively, I've met various personas in different professions ready and willing to meet and chat with me so I guess i'm doing enough to get the conversation going.

I'm currently in the slow but steady process of approaching my first deal. Looking to purchase and reposition an apartment complex via syndication as my first deal. As of this moment, I am making progress across several short term goals simultaneously:

- analyzing deals I receive from brokers regularly. 

- securing financing via my network. Any suggestions on syndication deal calculators (which would also help with my presentation in raising money)?

- speaking with various local lenders about commercial loan packages 

- initial discussion w/in the next couple of weeks with a real estate attorney about the process and possible entity formation. If not now, when should I be thinking about forming an LLC?

- persistently learning via multiple sources including books, podcast, REI meetups, etc.

From this quick overview, any suggestions on what I should be doing now/next to achieve my longterm goal? Thanks in advance for the helpful responses!

@Joe Scaparra Are you still searching and looking to purchase around the Austin area? Or are you searching new markets?

As said, Austin does not appear to be a cashflow city anymore. You can buy and hold for appreciation if you're comfortable with that. House-hacking is the best way to go if I were you. Domain is a great area as well. Good luck with the move! Feel free to PM me as I'm always looking to meet with fellow investors in area. 

@Mike Krieg That actually confirms a recent Austin market trend report I had recently read. I guess that's what a lot of my analysis has been hinting at, Austin is likely not a cash-flow area at least in regards to large residential REI. That or I need to get more creative in finding deals.

Thank you everyone for the valuable insight, advice, and perspective!

@Caleb Bryant Great point. I'll have to discuss with some locals at my next REI meetup what numbers they are coming across and using to underwrite around town.

@Omar Khan These are true facts. From what i have come across and learned, cash flow is best for these properties and betting on appreciation is a risky place to invest on. Plus I'd like to be able to pull some money back if possible for the next deal (BRRRR). I may start spreading out my search to other markets for more potential cash flow.

@Fernando Landeros a couple of brokers at this time and using MLS and loopnet every so often, even if its not a deal to close on, using them as practice to continually analyze properties

@Charles Seaman Texas is competitive around these major cities. Not construction experience at this time but not looking to do major repairs on first deal if i can help it. Will be using my own capital and syndicating the deal to obtain funds and have a good amount of reserves. Have been connecting with people and potential partners with more experience to help along with the process. Yes i'm new but I have to start somewhere and after evaluating my options, this deal is meaningful place for me to consider starting at.

@Omar Khan Thanks for the insight. Austin would be convenient but I have been looking as far as Georgetown to New Braunfels. Looking to start looking in San Antonio and DFW just expand my options. 

Long story short, I'm new to the REI world and have been steadily approaching my first deal. I've been analyzing multifamily commercial listings seeing apartments from as little as 8 units to as much as 200 units throughout the greater Austin area. I persistently come across an overwhelming amount of properties advertising 100% occupancy with minimal-mild value-add repairs to be had. In analyzing, I would often calculate a 10% vacancy into my expenses (shout out to Michael Blank), estimate repairs, adjust rents, and usually wind up with very little in return in regards to cash flow and ROI. The ARV leaves a good amount of money in the deal when refinancing which is not ideal in regards to growth. Curious to know, assuming these occupancies are high and stable, if people are purchasing matured properties with slim margins as so and if they are able to attain good ROIs within a 5yr period. Seems easier to invest in bonds. Thoughts?

I'm looking to reposition smaller sized apartment complexes as I am aware that there is a lot of value to be had from properties with a higher rate of vacancies and underperforming mgmt to begin with. I plan to just continue hunting down more promising deals to analyze and offer on if promising but was wondering if what i'm seeing above is typical in the market. 

Thanks in advance! You all rock!

I'm in! Excited for the meet-up. @Bruce Petersen, great podcast. Looking forward to meeting everyone!