OPM for a newbie in Houston

[Joseph Ali]

A friend of mine is sitting on a lump of ~$1M+ and is interested in investing in Houston real estate. He's not looking to put much work, sweat or effort into the deal, so this is where I come in. Although he lacks experience, he is looking for Multifamily only and is wanting cash flow from the deal. 

How can I capitalize on this opportunity in this market? I am basically looking at this as a birddog deal. What would a deal structure look like when the market is bearing small cap rates, but high appreciation? I am currently working on a separate partnership for my own personal investments, and I would hate to lose out on an opportunity for experience and some extra capital for my own investments. My concerns are finding a win-win for all parties involved with tight margins.

[Cody L.]

Are you/he looking to use the $1m to buy a $1m property or use the $1m to put down on a 4-5m property?

And if a 4-5m property, who's planning on getting the loan?

But either way, in that range there are a tremendous amount of deals to be had on multifamily in Houston. Start with what's on loopnet to see what's a fit. Figure out who the "moves and shakers" are and tell them what you're looking for.

You can try cold calling owned but every owner has already been called 10000000 times. I know as I get the calls all the time.

Good luck!