All Forum Posts by: William Costello

Hi @Freddie Williams alot of owners are looking to move out of Cook County ie Chicago because it is not landlord friendly and with rising taxes unfortunately. Chicago is a great city and hopefully one day it levels off with the mass exodus from Illinois. Have you thought about investing in Indianapolis or Indiana? 

Congratulations on the success so far @Sam Silverman, what markets have you invested in syndication wise? What are your goals for 2022 in real estate? 

@Brandon Allenczy good question, since your offer is contingent on seller financing your offer would not be competitive in that market. Off market deal could be a possibility.

@Gabriel Craft I would deploy into a major fund that aligns with what I was looking for in the multifamily space. Great question

@Ned Carey as an LP?

@Nick Belsky great point, also some syndicators have more "skin" in the game because they believe in the investment that much

@Evan Polaski good point, thanks for sharing your input

The main reason why investors prefer real estate syndication is access and time to deal flow. Not everyone has time to search for deals and underwrite hundreds of properties to find the perfect property. Instead they rely on real estate and investment firms who take the time to find deals, underwrite and have knowledge about the property. With getting involved in real estate syndication, investors have access to deal flow and the ability to invest in real estate without the hassle of finding the deal and executing the business plan and doing the asset management.

The result of the cap rate calculation is important because it provides investors with a lot of information about the value of the property, the risk in acquiring it, and its potential return. For example, a higher cap rate indicates a higher potential return, but it also indicates higher levels of risk, which means that the price an investor may be willing to pay is lower.

For example: An investor was considering purchasing one of the two properties.

Property 1: $100,000 NOI / $1,000,000 Purchase Price = 10% Cap Rate.

Property 2: $500,000 NOI / $6,250,000 Purchase Price = 8% Cap Rate

When comparing these two potential purchases, it is safe to assume that Property 1 carries more risk because it has a higher cap rate. Conversely, this means that Property 2 has less risk, which makes it more expensive per dollar of NOI produced. In other words, the relative safety means that an investor must pay more for a lower return.

@Lisa Beard from past experience it is great to find a good 3rd party property management company. They handle the day to day and relieve alot of the headaches that may happen. Until you are able to build out your own property management group it is a good resource to have. Congratulations on your move into the multifamily space