All Forum Posts by: Adam D.

Watched it. Yup that's exactly what we're talking about here. Owning, repairing, and managing all my properties myself it's tough to imagine sharing ownership. But to scale at the level of Grant, and many of the people in this thread, that's just what it takes--great video thanks! 

Read the articles thanks David. I will continue to learn about syndication. It's probably what I'll end up doing down the road. Any other good resources on the topic you recommended? 

 Just got done listening to the Bigger Pockets podcast you were on. Ordered the books you suggested as well. Have you ever had a 1031 not go through and have to end up paying capital gains tax on your profit? 

You mentioned on the podcast that you had a deal where the previous owners lied about the details of deal. How have you avoided making similar mistakes with other deals you've done? Any other big things to look out for in your experience when purchasing larger multifamily?

How were you able to do no money down? Do you mean the equity from your other properties covered the down payment or you literally didn't have to put anything down on the properties? 

This seems like a good plan for my situation. I've looked at the equity of my properties compared to selling them and I think the most profitable option is to not sell the properties and use the equity to purchase a larger multifamily. 

I think I'll do something similar at least for a few years. It makes a lot of sense, and the option is always there to do syndication later on. How did you find your packaged multifamily deals? How would you recommend finding deals for someone who is just getting starting in commercial multifamily? 

@Michael Le @Todd Dexheimer @Michael Swan then why do single family and small multifamily even exist!? Is it so people like you guys can trick people like me into buying your properties so you can 1031 exchange into apartment buildings!? I've been bamboozled :)!

Seriously though, after learning about commercial multifamily it seems silly to do anything else. I always thought a large multifamily property with an on site property manager would be the idea investment but never understood how anyone could afford to do it. I think I'm starting to wrap my head around it. 

@Michael Swan at this point I would be more than happy to 1031 my current single family homes and duplexes but I've always been worried about the time limits. How does one sell their current properties then find an ideal multifamily investment before the 1031 exchange time limits run out? Am I making this more difficult than it actually is? 

@Brian Burke Did you have any reservation with "sharing" your investment with other investors through fractional ownership when you first started scaling? 

I've used private money, hard money, and land contracts short term but my strategy has always been to eventually own 100% of my real estate after refinancing. The idea of fractional ownership seems watered down to me. Don't you end up getting less a return if more people are involved? I think maybe I'm stuck in the single family and small multifamily mindset.

What are the advantages of a syndicate compared to buying smaller multifamily with 100% ownership?

The most helpful one I've read so far is Crushing It In Apartments and Commercial Real Estate by Brian Murray. Pretty thorough. Even has an overview of the underwriting considerations from the OCC handbook in the appendix. Gives you a sneak peak behind the curtain. Shows you where banks developed their underwriting criteria. Which will really come in handy as you prepare your own finances for multifamily financing. 

I also just recently read the Perfect Investment by Paul Moore. To me though it seemed like one big pitch for his investment firm and another mentoring program he advocates. But if fractional ownership or syndication is of interest you might find it helpful. Lots of good info on why large multifamily is the way to go but it sounds like you're already aware!

Wow Chris, sorry you're having to go through this.

Use your best personal judgement here but knowing the little I know about the situation I would assume it's an empty threat. This person seems used to getting his way by bullying people. I would keep the security deposit, make sure you list all the expenses/damages, and why you are keeping the deposit then send it all to him in written form to cover yourself. Maybe include the fact that you've been in touch with the police concerning his text threats. Then let that be the end of it.

I doubt an individual like this has the motivation or resources to travel across several states to follow through with his threats. If you've done all the above and are just getting this text message out of the blue I would simply not respond. You are not being paid to manage this person if they've moved out of your property. Don't waste anymore time on them than you've already had to. 

I've had nightmare tenants myself and I know it can be extremely stressful to deal with. Keep your chin up, learn from your mistakes and move on. Onward and upward my friend.

I'm looking to move into commercial multifamily in the near future and curious about a few things. With there being several barriers to entry, coming up with a large down payment being one of them, I'm wondering how many of you have done it. I don't think I'm interested in a real estate syndicate or fractional ownership.

I have a few properties of my own (a few single family, duplexes, and small multifamily) with some decent equity between all of them, but not nearly enough to provide a 25% down payment for a 2-10 million dollar multifamily property. 

What are some methods you've used, or heard of, for coming up with large down payments on commercial multifamily properties? Can private money be used for the down payment? If so, how does borrowing a down payment effect the rest of the deal? Can deals be structured in a way where the down payment is lowered? What do you recommend? 

Any ideas would be appreciated!