How to know a good/real deal

[Olivia Gulledge]

Hi. I've been talking to someone I met on a real estate online networking call. He and his partner are closing on a 180 unit apt building right outside of Houston, Texas next week. I am still very new to real estate but feel this is a really great opportunity to invest a relatively small amount of money (in the grand theme of things) and really learn from people that know what they are doing. This would be my first step in realistate. I, of course, am a little apprehensive to put a lot of money down and am a little unsure if the deal is good and if the company is reputable. Based off my research it seems sound. But is anyone willing to check out the deal and see what they think?

[Bruce Lynn]

@Olivia Gulledge   There are all kinds of deals out there, but typically it seems apartment syndications require you to have accredited investor and most seem to require $50,000 minimum investment.  Occasionally we see $25,000.   My suggestion before you invest in any kind of apartment syndication deals is to attend one of the conferences.  There are many 2-3 day conferences that review what to look for, how to do your due diligence, etc.   Well worth the investment which is typically less than $1000.   There are also several books out there about syndications....read them before you invest.

One thing most people suggest is to not only look at the deal but also the sponsors.  Make sure they are experienced, check up on them, not just what they say or have on the website.  I find there's a lot of BS out there in apartment investing that make people sound a lot more experienced than they really are.   Probably one measure is how many exits have they had....and how long have they been doing this....how many deals have they done.

Good luck and best wishes.