Looking to Network with experienced investors in Syracuse, NY

3 Replies

Hi,

I am a real estate investor located in the Syracuse, NY area looking to network with others regarding multifamily housing and apartment complexes.  I have capital and experience with analyzing deals.  I primarily enjoy looking not only locally but across the US and focus on studying emerging markets because I believe in investing in areas for the long term.  I am OBSESSED with analyzing deals (I look at least a few per day just for practice) and am pretty quick at being able to see what deals are good and which need to be negotiated further to become good.  I believe every house, apartment, or unit can be bought as long as it's at the right price.

Because I am in a small city in the upstate NY area, it's not easy to find groups that meet on a regular basis to help each other find and commit to goals.  I believe that working with the right people can lead to exponential growth.

My strengths:

- I LOVE and am OBSESSED with analyzing commercial deals for apartment units to purchase (I want to own 100 units within the next year all in emerging markets!)

- Currently own and operate 2 LLCs for a Real Estate business and Multi-Media consulting business 

- I own 3 single family homes that I rent along with experience building 2 tiny houses

- I understand how to create LLCs and work with lawyers to create legal foundations for partnerships

- I am able to easily work with others and am also very patient  when it's necessary (I do not operate on emotion, but instead continue to look for other opportunities while a certain one may require patience at that time)

I am looking to work with:

- Experienced investors who when presented an analyzed deal would be comfortable reviewing it and working with me on acquisition of ownership whether it's local or somewhere in an emerging market in the US

If you are interested in networking with me, please feel free to PM me!  I currently have a partner I work with and we are looking to work with others to grow.  Thanks so much!

@Nate Hurwitz  I have lived in Syracuse and will advise you to look outside your home state. New York has high taxes and unfriendly landlord laws. Both of these are an anathema to large multifamily investors. NY has some uber-successful investors but you will have an easier time focusing your energies out of state. You will, in all likelihood, also get higher returns and demographics working in your favor.

You seem like you’re a talented person, but some points to consider:

  • You have a clear goal of 100 units. What property class – A, B, C, D – and niche – value-add, new builds – do you want to target? Why?
  • What are your investment parameters from a risk and return perspective?
  • How much capital are you willing to invest? How patient are you?
  • Multifamily has been on a hot run in the past few years. Attractive past returns might not be reflective of future returns. Don’t believe anyone who is 100% convinced; best to have a healthy dose of skepticism. That being the case, what is your investment time horizon?
  • Do you plan on being an active or passive investor? You can start passive and move into active. But I would find an experienced operator to partner on syndicated deals to get your feet wet. Eventually, you can invest on your own or as part of a syndicate when you establish credibility and experience.
  • If you plan on being an active investor, apart from capital, what else do you bring to the table? For e.g. you have mentioned that you have a multimedia company. Are you good at marketing or designing marketing campaigns? Just an idea for you to consider how to leverage your massive talent set.

These are just some thoughts of the top off my head. We can have a deeper conversation if you like.

Happy investing!

Omar,

First off, thank you for getting in touch and I greatly appreciate all the questions you have given to me (they may have made my head spin a little but in a good way!). These are really great questions! Would love to know more about you as well regarding these questions (seriously, I had fun answering them!).

You have a clear goal of 100 units. What property class � A, B, C, D � and niche � value-add, new builds � do you want to target? Why? I target C properties in B areas that are apartment complexes that were mis-managed or become available. I love value add, I actually spotted a property recently that had 33 unites with a potential to raise the value to almost half a million dollars by raising the rents, however it was section 8 (all disabled or hands-capped) but in what looked like a revitalization area and I don'��t have experience with section 8. So essentially this property not only would cashflow but it would also have a huge value add proposition attached to it. I would buy with a little more knowledge regarding section 8. The only things holding me back on it are due diligence and finding a private investor for the down payment.

What are your investment parameters from a risk and return perspective?I�d like to invest with as little money down as possible however I keep a major reserve ready in case of an emergency where I would need to put it down. I have been building credit for 2 companies I own that will come in handy soon. Generally I am being very good at creating multiple methods to finance a deal because I analyze for all situations even where ones would pop up and cost a lot because as long as you can buy at the right price in the right area, there should be little risk if you'��ve got a solid process (nothing is 100% but you can come close to it).

How much capital are you willing to invest? How patient are you?  I am willing to invest the current amount I have saved because my other income streams will keep me afloat in case of an emergency (if you want actual numbers, PM me :-) !)

Multifamily has been on a hot run in the past few years. Attractive past returns might not be reflective of future returns. Don�t believe anyone who is 100% convinced; best to have a healthy dose of skepticism. That being the case, what is your investment time horizon? In the next 5 years, I would like to build enough cashflow from real estate so that I can have the option to work. I have many great years of investing (aka the rest of my life :-) ), but I would like to plant the seeds now in areas I determine will allow significant growth.

Do you plan on being an active or passive investor? You can start passive and move into active. But I would find an experienced operator to partner on syndicated deals to get your feet wet. Eventually, you can invest on your own or as part of a syndicate when you establish credibility and experience.I plan on being active at first and then move to passive. I have so much energy now that I'd like to use it towards being an active investor, however if I am able to work with an experienced investor and need to be passive in order to learn, I'��m game. I'��d like to establish credibility and experience for sure, especially when it comes to knowing brokers who find you the deals.  I respect the fact they only want to deal with serious buys and I will never approach a broker or agent for a deal where I don't have the finances to put down, however if a broker has taken the time to find a deal based on my wants I would have no problem with analyzing and raising money for it if it is lucrative!

If you plan on being an active investor, apart from capital, what else do you bring to the table? For e.g. you have mentioned that you have a multimedia company. Are you good at marketing or designing marketing campaigns? Just an idea for you to consider how to leverage your massive talent set. I bring the knowledge of analyzing deals and knowing which ones are a blip on the radar and how the numbers need to match up in several casesâ�¦but when they donâ��t sometimes it could be an opportunity! I am a designer (graphic, web, and am experienced with video editing (I have edited and designed for many fortune 500 companies and have a portfolio for my work). I know several methods of creative financing, I have built 2 houses (tiny but stillâ�¦houses!), I own a company that manages all my properties (so management experience) thatâ��s fully online and is super easy to run based on the infrastructure I'��ve setup.

@Nate Hurwitz Hope my answers can help you in some way.

1) You have a clear goal of 100 units. What property class - A, B, C, D - and niche - value-add, new builds - do you want to target? Why?

In most markets/cases, the ideal investments are C properties in B areas. Kudos to you for finding a property, running the #s and understanding the value-add.

There are a few podcasts (BP and otherwise), where successful Section 8 investor discuss their strategies. From my knowledge (not practical experience), provided you do effective screening, Section 8 is not a bad deal. This is because you are “guaranteed” a certain rent every month. This makes it easier to manage cash flow.

But with every pro comes a con. In all likelihood, you will be dealing a different class of tenant. It’s neither good nor bad, it just is. After all, why should you care if the tenant is respectful, pays rent on time and takes care of the property?

With regards to the property, would you like to discuss the property details – price, rehab estimate, your proforma (don’t look at the brokers)? Would like to understand your analysis.

2) What are your investment parameters from a risk and return perspective?

This is the holy grail! @Brandon Turner has even written a book on it.

I would suggest finding a successful mentor and/or investor in the market you are looking to invest. This helps in providing perspective, understanding the ins and outs of the local market as well as investment guidance.

As someone with experience in corporate finance (dealing with complex financial issues), I can safely tell you that financial forecasting is not the hardest job. It’s an easily learnt (but tough to master) skill. In fact, 9/10 analyses are simple cash flow models that a sophomore can develop. The harder part is developing the right broker, contractor, investors and local connections. These make or break you.

3) How much capital are you willing to invest? How patient are you?

If you are an accredited investor, you can work alongside experience sponsors to learn how professionals operate. Vetting the right sponsor is another issue altogether. If not, you can attend local REI meetings. Be warned that some are actively pushing out courses/seminars/books which may not add value.

I would suggest investing a little, to educate yourself, in the short-term, in order to save a lot in the long-term.

You’re doing great by continuously analyzing deals and working different angles. Keep that up!

4) Multifamily has been on a hot run in the past few years. Attractive past returns might not be reflective of future returns. Don't believe anyone who is 100% convinced; best to have a healthy dose of skepticism. That being the case, what is your investment time horizon?

I think we all want the option to work. You’re doing the right thing by learning. But it’s hard to wait for the right investment as one can become trigger happy. Again, I would stress focusing on education and developing the right contacts. Everything else will follow.

5) Do you plan on being an active or passive investor? You can start passive and move into active. But I would find an experienced operator to partner on syndicated deals to get your feet wet. Eventually, you can invest on your own or as part of a syndicate when you establish credibility and experience.

It sounds like you’re doing great professionally. Have you thought of focusing on your companies and truly taking them to the next level? This can help you raise capital at a faster pace than through RE investing only.

For example, because I can’t just show up and compete with you, your company has a distinct advantage. Use that advantage! While you are killing it, you can invest passively to learn the business inside out.

To be honest, there is no ONE right way. Eventually, you just have to do things to understand the ins and outs. The only reason why I proposed focusing on your existing businesses is because you are killing it in them. Remember, you can make an existing business become more successful than a new one (all things being equal).

6) If you plan on being an active investor, apart from capital, what else do you bring to the table? For e.g. you have mentioned that you have a multimedia company. Are you good at marketing or designing marketing campaigns? Just an idea for you to consider how to leverage your massive talent set.

As I mentioned above, financial forecasting has become table stakes. The value-add comes with experience: what inputs go into your financial model, project-management, property management and financing.

Your solid experience in video editing and be leveraged in helping other investors in developing videos and marketing content. This is a tangible, hard skill you can bring apart from capital.

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