How to meet apartment sponsors/leads being out of state

[Tony Lin]

I'm a California investor interested in passive investments in multifamily units around the Dallas area. I've visited DFW recently and want to invest, but find that the one sponsor that I know is usually oversubscribed. What's a good way to meet other sponsors doing deals in Texas when I'm out of state? 

I've looked into programs like Lifestyle Unlimited but didn't go for their higher tier programs. The chance to meet potential leads are hidden behind the paywall. I've also attended some local investment meetups locally but the leads are slow in coming. Ideally I would like to get some information of the sponsors there and email them expressing interest. What's a good way to start?

[Brian Burke]

@Tony Lin, Dallas is a great market.  I would encourage you, however, to seek an investment sponsor who has a proven track record, has a history of meeting or beating their projections, has solid deal flow, and a strong management team rather than seeking a group simply because they are buying in Dallas. 

Texas has historically been a primary market for me, but I've noticed over the last few years that Dallas, while being a top-ranked market, has priced in all of that strength.  Bidders are paying more than top dollar for product.  It's a great time to be a seller in Dallas, but a challenging time to be a buyer.  I can't even get close lately, and I've tried...at least a hundred times over the last 2-3 years.

Meanwhile, there are a dozen or so markets that are strong in their own right.  And while competitive, there are deals to be found.  I've found that casting a wide net allows us to find the best deals in the best markets, wherever they happen to be.  That's why I currently have over 600 units in contract right now in excellent markets in three states--none of which are Texas.  Had I contained my focus to Texas, I'd have nothing in contract (and yes, I've been looking just as hard in Texas as elsewhere).

Just some food for thought!