Partnership.... goal for now to acquire a 50-100+ unit building.

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Partnership.... goal for now to acquire a 50-100+ unit building.

Igor Gajic
plantsville, CT · Member since 2017 · 32 posts · 9 votes
Hi guys, what would you guys suggest if you were in my shoes .. I need some help !!! I and my fiancé's brother would like to partner up and start seriously investing in real estate .. our goal for now is to get a 50- 100+ unit building and than build from there .. even if it is out of state. A little back ground: Fiancé's brother: is 21 years old works a full time job.. has 4 multi family properties and (2 of them being free and clear ) very smart kid and is a work horse ! Me: i also have a full time job, fairly new to real estate, I have 2 multi family properties with pretty awesome cash flow and I'm the process of getting my 3rd one which I am getting a good deal on and it's expected to have great cash flow as well. Eventually I would love to some day quit my job and invest full time. Both of us have excellent credit (mine in 750+, his is 790+) As of now we have $150,000+ cash available + equity. What would you guys do .. what would be process ... use our equity + our cash to invest in larger number of units buildings ? Get private loans ? How do we find deals out of state ? Thank you in advance!
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Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
9y

@Igor Gajic

My suggestion is in addition to learnings as @Kim Lisa Taylor suggests, I'd look into finding a sponsor (aka syndicator). This is someone who already has apartment buildings syndication experience under his/her belts, has done a number of them, and has worked with attorneys as Lisa. Btw, I think Lisa is a great resource/contact for you as she has a significant syndication experience.  We spoke at length at the last Dave Lindahl's event and I can certainly say that she is very knowledgeable in this field. 

The best way to lock a contract with a sponsor is by locating a good deal first and then presenting it to a syndicator to see if they are interested in joining. 

If you have any other questions, feel free to PM me. 

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  • Ibn Abney
    Rental Property Investor · Chicago, IL · Member since 2016 · 318 posts · 307 votes
    9y

    Hello,

    Sounds like a you guys are doing it right and in a great position.

    Why do you want a 50-100 unit? How many units do and your partner own, not property count? also how much equity? Sounds like a huge leap. Personally, I like that goal, just curious as to why that is your goal.

    Without the "why", all I can say is start with a plan. What does purchasing 100 units achieve for you? Are you looking for a financial number? or a % return number? Can you hit either with a 30-40 unit? or mix-use building, or a portfolio of Quads. 

    Sometimes saying I have "100 units" or "1000 units" sounds great, but can you achieve the same goal with less input? Rather than approach it with a "build from there" mindset, write out a 5yr-7yr plan and start working backwards.

    Also, at those level you have to start thinking syndication and SEC regulations, if not already.

    Good Luck!

    0Reply
  • Kim Lisa TaylorPro Member
    Attorney · Saint Augustine, FL · Member since 2016 · 242 posts · 234 votes
    9y

    To buy a 50-100 unit property, you will likely need additional money from private investors. Before you go down that road, you should get some training on syndication and multi-family deal analysis (not all deals are good enough deals for investors) and ownership. Resources for learning how to analyze deals include David Lindahl's REMentor program–where most of my multi-family syndication clients learned the ropes. Another resource is Rod Khleif's book, How to Create Lifetime Cash Flow Through MultiFamily Properties, and his associated podcast. Regarding syndication, there are many free articles, blogs, and podcasts on my website.

    0Reply
  • Igor Gajic
    OP
    plantsville, CT · Member since 2017 · 32 posts · 9 votes
    9y
    KimLisa Taylor thank you !!
    0Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    @Igor Gajic

    My suggestion is in addition to learnings as @Kim Lisa Taylor suggests, I'd look into finding a sponsor (aka syndicator). This is someone who already has apartment buildings syndication experience under his/her belts, has done a number of them, and has worked with attorneys as Lisa. Btw, I think Lisa is a great resource/contact for you as she has a significant syndication experience.  We spoke at length at the last Dave Lindahl's event and I can certainly say that she is very knowledgeable in this field. 

    The best way to lock a contract with a sponsor is by locating a good deal first and then presenting it to a syndicator to see if they are interested in joining. 

    If you have any other questions, feel free to PM me. 

    2Reply
  • David Thompson
    Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
    9y

    Hi Igor,

    Are you only considering active investing or since your ultimate goal is passive income, have you looked at syndication from a standpoint of investing in one and learning how the experts do it before jumping into something w/a lot of money and no experience?  Some things to think about.  More than happy to chat offline to share ideas.  Here's a few posts on veting sponsors; why I like large apartment investing and DIY / syndication hybrid investors co-existing strategies.

    https://www.biggerpockets.com/blogs/9145/53959-vet...

    https://www.biggerpockets.com/blogs/9145/53820-why...

    https://www.biggerpockets.com/forums/432/topics/30...

    2Reply
  • Igor Gajic
    OP
    plantsville, CT · Member since 2017 · 32 posts · 9 votes
    9y
    David Thompson thank you !!!!!!
    0Reply
  • Leah Bonner
    Specialist · Roanoke, TX · Member since 2015 · 96 posts · 36 votes
    9y

    So much to learn! Love all the info and people willing to help. 

    0Reply
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