180 units in 12 months!

Real Estate Deal Analysis & Advice
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180 units in 12 months!

Account Closed
Investor · Member since 2021 · 62 posts · 108 votes

My partner, @Account Closed and I have been on an incredible journey for the last 12 months! We started our real estate investing business about a year ago, with the goal of retiring from our W-2 jobs within 3 years. We set a goal that both scared and inspired us. We then had to figure out how to get started...

We live in Seattle, WA. After extensive research we liked the opportunities we were finding in Cleveland, OH. So we had a target market, but with everything happening in the world it seemed daunting to get started, and there were many excuses and limiting beliefs that almost got in the way...

With the ongoing pandemic, how could we get to our target market to meet people and make deals happen? 

Retire in 3 years?! We don't have that kind of cash on hand? 

How are we going to find these deals? 

We both have full time W-2 jobs, we do not have the time to pursue such a crazy goal.


Thankfully friends helped keep us accountable. When we listed these excuses, our friends said "Oh you must not want it that badly...." OK! That lit a fire for us to just get started! Here's what we did:

  • We decided to move to Cleveland for 6 months to allow us to really learn the market, meet people and make deals happen. We can both work remotely, so we really wanted to take advantage of this time to make our dream happen.
  • We started small, by acquiring several single family and small multi-family properties.
  • We set a stretch goal to own 50 units by the end of 2021.
  • We self managed everything at first, which meant nights and weekends hustling to fix toilets and turn units. We learned a lot of valuable lessons doing this, one being that this was not a good use of our time!
  • We knew if we wanted to scale to 50 units we needed to after bigger deals. And so we started networking and meeting as many people as we could in the space, learning whatever we could from them.
  • We listened to audiobooks and podcasts non-stop (still do!)
  • We worked on our mindset, identifying and crushing limiting beliefs
  • We joined a mastermind group! This has made all the difference for us. Being surrounded by like-minded people, doing the kinds of deals we wanted to do has been such an incredible learning experience. We have constant accountability with this team and our mentors and we are inspired every day by each other's successes. We knew that joining a mastermind was an investment in ourselves that would have a tremendous ROI.

Through all of this hard work, education, and networking, we are so thrilled to say that last month we became GPs in a 151 unit deal in Columbus, OH. We absolutely blew our 50 unit goal out of the water. We were given the opportunity to join this deal because of the relationships we built in the mastermind, our hard work, dedication and our ability to bring value to the partnership. We have learned that multifamily is truly a team sport and we are really grateful for the opportunity to partner on this deal.

We are also really excited that the connections we've made have led us to become GPs in a 32 unit deal in South Carolina which just closed last week!

This is just the beginning and it's truly incredible to stand here a year later and look at all that we have accomplished.

Cheers to all who helped us along the way! (looking at you @Yosef Lee!)

What's next for us? We are working with partners on several upcoming deals. We are always looking to connect with active and passive investors who are passionate about real estate and making financial independence a reality.

Let's Make It Happen!

Javier & Amanda

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Account Closed
Member since 2020 · 983 posts · 1k+ votes
4y
The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.
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  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    4y
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    2Reply
  • Adam M.
    Investor · Member since 2021 · 10 posts · 0 votes
    4y

    Why not to continue to grow the 2-6 unit properties that often have more than double the IRR, including instant positive cash flow. With a good property manager and a bench of subs, why isn't this a better strategy than bigger buildings with far lower returns?

    0Reply
  • Account Closed
    Member since 2020 · 983 posts · 1k+ votes
    4y
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    No! No jealousy in my bones. I admitted that I did not read the original post as well as I should have, admitted that I was wrong and apologized.

    As for your your reasoning for why the original post was written, I still have serious doubts that the post was written for the sole purpose to encourage other investors. I write many posts and even question myself as to why I write, at all. There are times I feel like I have to tell people I have an X-Amount of cash on hand, made an X-amount of cash on a deal, or own an X-Number of homes, apartment and rental units. After posting those number I become aware of the issues in regards to bragging, tooting my horn, or whatever and then still try to justify why I posted the numbers.

    You are saying that the post is to encourage people. I don't see it that way. If I want to encourage people I am going to tell you both what I did and exactly how I did it. I am not going to only tell you what I did. In the case of this thread, I always request that the OP post the numbers in regards to how she and her partner did what they did.

    If you go back into my posts, you will see than I am very familiar with syndicating real estate, was a partner in two entire K-Mart shopping centers going back all the way to 1980 and I know the SEC laws very well in regards to the inability to advertise for investors. So, since the syndicators can't advertise they pump people up with their success stories and want people to beg to be part of their next deal. I don't see anything wrong with that and when that is true I also don't expect a syndicator would admit to that since they would be admitting that they are breaking the law.

    I am currently working on putting together a syndicated deal with a friend who is a broker. What has been holding me back is my health and age since many limited partners hesitate to invest their money with someone who may not be around long enough to see the deal through. The past 6 months has been tough because the COVID shot caused an inflammation to my sciatic nerve and I was out of work for 3 months and now I am back to normal. So, my broker friend is only about 35 years old and between the two of us we will put a huge amount if skin in the game so our limited partners feel more-safe.

    In this thread I ask many questions not because I am ignorant about syndicating. I ask questions because I've been around the block a million times and I have a good sense for what cannot and cannot be accomplished. I am also a very difficult person for someone to partner with because I want my deals to be super organized. I crunch the numbers a thousand times before pulling a trigger and I hound my partners to death for answers so much they can't stand doing business with me and that is perfectly okay because I can't stand working with people who risk my money because they want to be lazy while I am a workaholic trying to make things go as we would like them to.

    3Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    4y
    Originally posted by @Account Closed:
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    No! No jealousy in my bones. I admitted that I did not read the original post as well as I should have, admitted that I was wrong and apologized.

    As for your your reasoning for why the original post was written, I still have serious doubts that the post was written for the sole purpose to encourage other investors. I write many posts and even question myself as to why I write, at all. There are times I feel like I have to tell people I have an X-Amount of cash on hand, made an X-amount of cash on a deal, or own an X-Number of homes, apartment and rental units. After posting those number I become aware of the issues in regards to bragging, tooting my horn, or whatever and then still try to justify why I posted the numbers.

    You are saying that the post is to encourage people. I don't see it that way. If I want to encourage people I am going to tell you both what I did and exactly how I did it. I am not going to only tell you what I did. In the case of this thread, I always request that the OP post the numbers in regards to how she and her partner did what they did.

    If you go back into my posts, you will see than I am very familiar with syndicating real estate, was a partner in two entire K-Mart shopping centers going back all the way to 1980 and I know the SEC laws very well in regards to the inability to advertise for investors. So, since the syndicators can't advertise they pump people up with their success stories and want people to beg to be part of their next deal. I don't see anything wrong with that and when that is true I also don't expect a syndicator would admit to that since they would be admitting that they are breaking the law.

    I am currently working on putting together a syndicated deal with a friend who is a broker. What has been holding me back is my health and age since many limited partners hesitate to invest their money with someone who may not be around long enough to see the deal through. The past 6 months has been tough because the COVID shot caused an inflammation to my sciatic nerve and I was out of work for 3 months and now I am back to normal. So, my broker friend is only about 35 years old and between the two of us we will put a huge amount if skin in the game so our limited partners feel more-safe.

    In this thread I ask many questions not because I am ignorant about syndicating. I ask questions because I've been around the block a million times and I have a good sense for what cannot and cannot be accomplished. I am also a very difficult person for someone to partner with because I want my deals to be super organized. I crunch the numbers a thousand times before pulling a trigger and I hound my partners to death for answers so much they can't stand doing business with me and that is perfectly okay because I can't stand working with people who risk my money because they want to be lazy while I am a workaholic trying to make things go as we would like them to.

    Don't worry Jack, you're not the only one who see's "X number of units in X amount of time" posts and is immediately skeptical. 

    Just a broad statement here, not related to the OP who I know nothing about, but I'm seeing a lot of people in the industry "failing up" into becoming syndicators lately, which makes me nervous for those investing with them. Hopefully the tide will continue lifting all ships. 

    5Reply
  • Account Closed
    Member since 2021 · 217 posts · 190 votes
    4y
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    Ya, but at the same time... 10% CoC and a 2x equity multiple? for first time syndicators with 1 year experience... fishing in the same 100 unit+ ponds REITS do... in the low yield market conditions we've all been facing, that got even tougher in the last 2 years.

    It's not that I'm so much doubting her post as being real. It's what those numbers are going to end up actually looking like that makes me raise an eyebrow. 

    4Reply
  • Account Closed
    Member since 2020 · 983 posts · 1k+ votes
    4y
    Originally posted by @Account Closed:
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    Ya, but at the same time... 10% CoC and a 2x equity multiple? for first time syndicators with 1 year experience... fishing in the same 100 unit+ ponds REITS do... in the low yield market conditions we've all been facing, that got even tougher in the last 2 years.

    It's not that I'm so much doubting her post as being real. It's what those numbers are going to end up actually looking like that makes me raise an eyebrow. 

    Thank you very much. That is why I like to see people post their true numbers and more information. 

    1Reply
  • Antoine Martel
    Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
    4y

    What a great success story! Congratulations to the both of you. I've been investing in Cleveland for years now and don't plan to stop anytime soon. 

    Thanks for sharing!

    0Reply
  • Account Closed
    Member since 2020 · 983 posts · 1k+ votes
    4y

    Since we are on the subject of syndicating, I've been working of a database for analyzing the numbers and presenting a report when approaching investors. When finished, hopefully with the next 10 days, all a general partner needs to do is fill in the blanks and all the projections will automatically get printer in a nice neat format. The database helps the general partner to easily compare properties to seek the best deals.

    My goal is to find interested persons who would like to add what they think should be in the software. I give the software for free to anyone who asks with the request that my true identity is not posted on BP. You can send me a PM. I have about 100 software applications I developed and I give all of them away for free, but I am constantly them, so they are never completed.

    My goal with software for real estate is to have everything a real estate investor wants and needs on 1 piece of software. My software has spreadsheet type screens for analyzing single-family and multi-unit properties. I have a section I call EDUCATION where whenever I am learn something, read a book, hear at a seminar, or see in a video I put notes in the education section. I have a section where you can fill in the boxes and print all types of forms 3.e offer. I have a section where I track training videos, books and websites for everything related to real estate e.g. auctions, lead generation companies, obtaining lists, etc.. It would take several hours to explain what and how my software works. So, if you want to help feel free. I am put everything you need to know in the software about how to syndicate real estate and even though you and I may know pretty much everything, I always like to review everything to reduce the number of mistakes.

    Sorry, but I don't answer colleagues requests since I don't know what that is. I work from about 4 am to past midnight 7 days per week and sleep only 4 hours. Not because I need to. I am up because I enjoy what I do and can't sleep. So, I don't get involved with mentoring people (not that I am qualified). But, I am always looking for better ways to analyze real estate and better ways to make my software simple and clean.

    0Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    4y
    Originally posted by @Account Closed:
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    Ya, but at the same time... 10% CoC and a 2x equity multiple? for first time syndicators with 1 year experience... fishing in the same 100 unit+ ponds REITS do... in the low yield market conditions we've all been facing, that got even tougher in the last 2 years.

    It's not that I'm so much doubting her post as being real. It's what those numbers are going to end up actually looking like that makes me raise an eyebrow. 

    Fair enough.  I hear ya.  I'm always felling like "Well, there are too many buyers.  No way I'll be able to get a deal".  Until I do.  I just have to wait for those deals that have 'something' about them that causes me to be willing to pay more than others.  Some flaw.  Difficult seller.  Bad in-place financials.  Off market.  Broker who just wants to make sure they get the deal done so call me first, etc.

    2x equity isn't hard. I bought a deal 4 months ago for $37m. Put down $7m (borrowed $3m private). Got an LOI for $48m. Countered at $50m. Who knows if it'll sell (my bias is to keep it as at the moment I'm more deal starved than cash starved) but if I accepted it I'd over double my equity in 6 months.

    Why did I get such a good deal?  Well it was too big for most indie buyers like me.  And the seller was hard to work with which lowered the pool of buyers.  That, and the fact the broker convinced the seller I'd close got me the deal.   If the seller was more accommodating, or their in-place financials were more in line with market, I'd have been out-bid.  

    Flaws are your friend.

    When I flip out of a deal (which I don't often try to do as I'd rather buy-hold), my goal is to sell for at least an amount that's my down payment over my purchase price.   So if I buy a $10m property and put down $2.5m, I'll normally be willing to sell it for $12.5m.  Pretty arbitrary but that's sort of my internal 'price-to-get-me-to-sell' metric. 

    I can't think of a deal I've done in the last 5-10 years where I couldn't sell it for an amount that would double my down payment.   So if you're buying smart, her goal doesn't seem far fetched.

    Anyway -- I don't have a dog in this hunt. And I have nothing to sell (I don't have / want investors).  Just trying to encourage people to invest that might have the ability but are too nervous. 

    1Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    4y
    Originally posted by @Steve K.:
    Originally posted by @Account Closed:
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    No! No jealousy in my bones. I admitted that I did not read the original post as well as I should have, admitted that I was wrong and apologized.

    As for your your reasoning for why the original post was written, I still have serious doubts that the post was written for the sole purpose to encourage other investors. I write many posts and even question myself as to why I write, at all. There are times I feel like I have to tell people I have an X-Amount of cash on hand, made an X-amount of cash on a deal, or own an X-Number of homes, apartment and rental units. After posting those number I become aware of the issues in regards to bragging, tooting my horn, or whatever and then still try to justify why I posted the numbers.

    You are saying that the post is to encourage people. I don't see it that way. If I want to encourage people I am going to tell you both what I did and exactly how I did it. I am not going to only tell you what I did. In the case of this thread, I always request that the OP post the numbers in regards to how she and her partner did what they did.

    If you go back into my posts, you will see than I am very familiar with syndicating real estate, was a partner in two entire K-Mart shopping centers going back all the way to 1980 and I know the SEC laws very well in regards to the inability to advertise for investors. So, since the syndicators can't advertise they pump people up with their success stories and want people to beg to be part of their next deal. I don't see anything wrong with that and when that is true I also don't expect a syndicator would admit to that since they would be admitting that they are breaking the law.

    I am currently working on putting together a syndicated deal with a friend who is a broker. What has been holding me back is my health and age since many limited partners hesitate to invest their money with someone who may not be around long enough to see the deal through. The past 6 months has been tough because the COVID shot caused an inflammation to my sciatic nerve and I was out of work for 3 months and now I am back to normal. So, my broker friend is only about 35 years old and between the two of us we will put a huge amount if skin in the game so our limited partners feel more-safe.

    In this thread I ask many questions not because I am ignorant about syndicating. I ask questions because I've been around the block a million times and I have a good sense for what cannot and cannot be accomplished. I am also a very difficult person for someone to partner with because I want my deals to be super organized. I crunch the numbers a thousand times before pulling a trigger and I hound my partners to death for answers so much they can't stand doing business with me and that is perfectly okay because I can't stand working with people who risk my money because they want to be lazy while I am a workaholic trying to make things go as we would like them to.

    Don't worry Jack, you're not the only one who see's "X number of units in X amount of time" posts and is immediately skeptical. 

    Just a broad statement here, not related to the OP who I know nothing about, but I'm seeing a lot of people in the industry "failing up" into becoming syndicators lately, which makes me nervous for those investing with them. Hopefully the tide will continue lifting all ships. 

     What's helped rookies is this market has been insane.  So if you pay $10m for a property that is only worth $8m, but two years later you're able to sell it for $12m, you seem like a genius (even though you technically over paid).  Which then begs the question "did you really over pay?"

    I've seen it 10000x .  Something will be offered for $x.  I laugh and think "you're crazy.  That's too much".  Then someone buys it for $x.  I think "What a moron".  Then they sell it for $x+20% a year later.  

    So right now is a great time to have put together deals.  If you made a mistake and paid too much, the market will save you.   And I think it'll keep happening -- till it doesn't.  And when the music stops, I'm trying to make sure I'm standing by ready to be a willing buyer when most have left. 

    5Reply
  • Destiny Hodges
    Houston, TX · Member since 2020 · 9 posts · 6 votes
    4y

    @Amanda Barker wow incredible! Job well done! You guys persevered through the obstacles and found momentum to make sure you reached your goal (crushed the goal).  This is so inspiring and I wish you nothing but the best as you continue to journey.

    0Reply
  • Joshua Jackson
    Member since 2019 · 3 posts · 1 vote
    4y

    @Amanda Barker Wow what a amazing testimony. Your story gives me so much inspiration!!

    1Reply
  • Account Closed
    Member since 2020 · 983 posts · 1k+ votes
    4y
    Originally posted by @Cody L.:
    Originally posted by @Steve K.:
    Originally posted by @Account Closed:
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

    No! No jealousy in my bones. I admitted that I did not read the original post as well as I should have, admitted that I was wrong and apologized.

    As for your your reasoning for why the original post was written, I still have serious doubts that the post was written for the sole purpose to encourage other investors. I write many posts and even question myself as to why I write, at all. There are times I feel like I have to tell people I have an X-Amount of cash on hand, made an X-amount of cash on a deal, or own an X-Number of homes, apartment and rental units. After posting those number I become aware of the issues in regards to bragging, tooting my horn, or whatever and then still try to justify why I posted the numbers.

    You are saying that the post is to encourage people. I don't see it that way. If I want to encourage people I am going to tell you both what I did and exactly how I did it. I am not going to only tell you what I did. In the case of this thread, I always request that the OP post the numbers in regards to how she and her partner did what they did.

    If you go back into my posts, you will see than I am very familiar with syndicating real estate, was a partner in two entire K-Mart shopping centers going back all the way to 1980 and I know the SEC laws very well in regards to the inability to advertise for investors. So, since the syndicators can't advertise they pump people up with their success stories and want people to beg to be part of their next deal. I don't see anything wrong with that and when that is true I also don't expect a syndicator would admit to that since they would be admitting that they are breaking the law.

    I am currently working on putting together a syndicated deal with a friend who is a broker. What has been holding me back is my health and age since many limited partners hesitate to invest their money with someone who may not be around long enough to see the deal through. The past 6 months has been tough because the COVID shot caused an inflammation to my sciatic nerve and I was out of work for 3 months and now I am back to normal. So, my broker friend is only about 35 years old and between the two of us we will put a huge amount if skin in the game so our limited partners feel more-safe.

    In this thread I ask many questions not because I am ignorant about syndicating. I ask questions because I've been around the block a million times and I have a good sense for what cannot and cannot be accomplished. I am also a very difficult person for someone to partner with because I want my deals to be super organized. I crunch the numbers a thousand times before pulling a trigger and I hound my partners to death for answers so much they can't stand doing business with me and that is perfectly okay because I can't stand working with people who risk my money because they want to be lazy while I am a workaholic trying to make things go as we would like them to.

    Don't worry Jack, you're not the only one who see's "X number of units in X amount of time" posts and is immediately skeptical. 

    Just a broad statement here, not related to the OP who I know nothing about, but I'm seeing a lot of people in the industry "failing up" into becoming syndicators lately, which makes me nervous for those investing with them. Hopefully the tide will continue lifting all ships. 

     What's helped rookies is this market has been insane.  So if you pay $10m for a property that is only worth $8m, but two years later you're able to sell it for $12m, you seem like a genius (even though you technically over paid).  Which then begs the question "did you really over pay?"

    I've seen it 10000x .  Something will be offered for $x.  I laugh and think "you're crazy.  That's too much".  Then someone buys it for $x.  I think "What a moron".  Then they sell it for $x+20% a year later.  

    So right now is a great time to have put together deals.  If you made a mistake and paid too much, the market will save you.   And I think it'll keep happening -- till it doesn't.  And when the music stops, I'm trying to make sure I'm standing by ready to be a willing buyer when most have left. 

    That was two great posts! Thank you!

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Joshua Jackson:

    @Amanda Barker Wow what a amazing testimony. Your story gives me so much inspiration!!

     Thanks Joshua! If we can do it, so you can you. I think the best thing we did was surround ourselves with like-minded and experienced people. Good luck to you!

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Destiny Hodges:

    @Amanda Barker wow incredible! Job well done! You guys persevered through the obstacles and found momentum to make sure you reached your goal (crushed the goal).  This is so inspiring and I wish you nothing but the best as you continue to journey.

     Thank you Destiny!! Right back at you!

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Antoine Martel:

    What a great success story! Congratulations to the both of you. I've been investing in Cleveland for years now and don't plan to stop anytime soon. 

    Thanks for sharing!

     Wooo! Love Cleveland! What are you invested in out there and which neighborhoods?

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Cody L.:
    Originally posted by @Account Closed:
    The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

    Wow Jack, that's a lot of words just to say "I'm jealous"

    My story isn't far off.  I lived in San Diego.  Had a 'real job'.  The only difference is my 'real job' took me to Houston.  I decided to start RE as a living.  Did both for a while (real job and invested).  Got to about 200 units (?) before doing it full time.  Grew it to about 800 units.  Moved back to San Diego.  Continued to grow the company to about 2000 units.

    No, this isn't an advertisement (I don't use investors).  It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

    I say "Congrats" to OP.  Well done.  Glad you shared so others can be motivated to do the same. 

     Thanks Cody! And congrats on your success as well! I think starting out it can feel daunting and impossible. The hardest part is getting started and I know it always motivates me to see and hear how other people made it happen. If they can do it, so can I!

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Adam M.:

    Why not to continue to grow the 2-6 unit properties that often have more than double the IRR, including instant positive cash flow. With a good property manager and a bench of subs, why isn't this a better strategy than bigger buildings with far lower returns?

     A couple of reason. Yes some of the smaller properties cash flow a little bit better but you can only have 10 mortgages to your personal name, so at some point you're going to max out. With a larger property you get economies of scale when it comes to property management/maintenance - its a lot more efficient to run. Also depending on the building, the opportunity and the operator - the returns may be be a lot better than the smaller properties. Just my opinion!

    1Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Stephen Keighery:

    Amazing. I find that any events with Pete Fortunato are a must attend. Not just because he is a complete real estate genius but because the people that follow him go back again and again. This means that the attendees are very active and successful and just networking with them is worth the price of admission. 

     That's awesome. I've been able to go to a few in person meetups (finally!) recently and its so awesome to connect with others who are passionate about what they are doing and are out there making it happnen!

    0Reply
  • Adam M.
    Investor · Member since 2021 · 10 posts · 0 votes
    4y
    Originally posted by @Account Closed:
    Originally posted by @Adam M.:

    Why not to continue to grow the 2-6 unit properties that often have more than double the IRR, including instant positive cash flow. With a good property manager and a bench of subs, why isn't this a better strategy than bigger buildings with far lower returns?

     the returns may be be a lot better than the smaller properties. Just my opinion!

    I understand the mortgage limitation, but how specifically can the returns be " a lot better"? What's an example? I'm asking because every time I look at the economics of larger properties vs smaller, it just doesn't make sense unless one is a syndicator.

    THanks!!!

    0Reply
  • Christopher Dudhnath
    Member since 2021 · 3 posts · 3 votes
    4y

    Congratulations! Love this post. I'm just getting started and similarly have a 3 year goal of financial freedom away from my rat race job. I feel motivated by your experience. Thank you for sharing!

    1Reply
  • Matt Ramirez
    New to Real Estate · Member since 2020 · 14 posts · 7 votes
    4y

    @Amanda Barker

    Thanks for the inspiration!

    How did you go about finding/ joining your mastermind? I have heard good things about Master mind groups but have never looked into it.

    Thanks

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Matt Ramirez:

    @Amanda Barker

    Thanks for the inspiration!

    How did you go about finding/ joining your mastermind? I have heard good things about Master mind groups but have never looked into it.

    Thanks

    We connected with someone on BP who introduced us. There are a lot of different groups out there - just do your homework and if you decide to join one make sure whoever is leading it aligned with your values and goals!

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Christopher Dudhnath:

    Congratulations! Love this post. I'm just getting started and similarly have a 3 year goal of financial freedom away from my rat race job. I feel motivated by your experience. Thank you for sharing!

     Amazing Christopher! Make it happen!

    0Reply
  • Account Closed
    OP
    Investor · Member since 2021 · 62 posts · 108 votes
    4y
    Originally posted by @Adam M.:
    Originally posted by @Account Closed:
    Originally posted by @Adam M.:

    Why not to continue to grow the 2-6 unit properties that often have more than double the IRR, including instant positive cash flow. With a good property manager and a bench of subs, why isn't this a better strategy than bigger buildings with far lower returns?

     the returns may be be a lot better than the smaller properties. Just my opinion!

    I understand the mortgage limitation, but how specifically can the returns be " a lot better"? What's an example? I'm asking because every time I look at the economics of larger properties vs smaller, it just doesn't make sense unless one is a syndicator.

    THanks!!!

    Depends on what the value add play is for the larger properties in my opinion. If you find something that has been mismanaged by the current owner there is a lot more upside to be had, opportunities for you to lower expense and raise rents. Its important to understand that with larger properties you can "force appreciation" due to how those properties are valued (based on cash flow) vs based on sales comps which is how smaller properties are valued (1-4 units) Also really depends on which markets your looking at!

    0Reply
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