Trying to take the next step

5 Replies

Just a little about myself and my situation.  My name is Paul, and I am an electrician.  It’s always been my dream to own real estate.  I finally bought my first 4 years ago(duplex), and lived on one side.  I bought this as a fixer upper and it is complete.  I met my wife and we bought a house for 200,000 on acreage.  Sometimes I wish I wouldn’t have done this and bought another investment instead, but here I am.  Anyway I owe 70,000 on my duplex, but since the rehab and market increase the value has gone to about 160,000.  So 90,000 equity give or take.  I have 40,000 in liquid cash also.  As of right now after the mortgage is payed my duplex generates 900 a month cash flow.  I want to move forward and I’m very interested in larger apartment buildings.  I’d be interested in partnerships if that’s what it takes.  Anyway my question for you is where do I go from here?  Do I sell for a larger down payment?  Do I hold onto my duplex?  The market where I am in Indianapolis is really high, and there isn’t a lot of deals right now outside of the hood.  Do I expand my search area for property?  My goal is to be 100% out of the construction/electrical field, and into real estate full time. I just want to make all the right decisions so this can happen.  Thanks for reading!

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@Paul Latendresse it depend on whether you're looking for a more active or passive opportunity.

If you're interested in a more active role, you may have a hard time securing a loan for a commercial property with little no experience in the space. So, you'll likely need to either (1) find partners that can help you secure a loan or (2) gain experience via a passive role.

That being said, syndication offers a great opportunity for passive roles, learning opportunities, and gained experience in the eyes of a lender. Syndication will also provide diversity in terms of markets that you're able to tap in to if you can find a trustworthy Sponsor that operates in an MSA that you may not have direct access to. There is a stipulation with this though, in that most Sponsors require their limited partners to be accredited.

Other ways you can gain experience include; underwriting deals for Sponsors, finding and presenting opportunities to Sponsors, raising capital, or getting in to the commercial MF property management space. I'd be happy to discuss further if you're interested, and best of luck!

Yes I am interested in talking about this further. How do I find these sponsors? How do I get in with them? How do I find investors willing to deal with me? I’m definitely more for a passive income, and that’s ultimately my goal. I also don’t have a problem with managing my own property as I do now with my duplex. However I do understand jumping into a large apartment building would be stressful. Thank you for your response!

Originally posted by @Paul Latendresse :

Yes I am interested in talking about this further. How do I find these sponsors? How do I get in with them? How do I find investors willing to deal with me? I’m definitely more for a passive income, and that’s ultimately my goal. I also don’t have a problem with managing my own property as I do now with my duplex. However I do understand jumping into a large apartment building would be stressful. Thank you for your response!

 To find sponsors, connect with and ask people on BP. 

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