All Forum Posts by: Allyssa McCleery

@Canesha Edwards How well-versed are you on opportunity zones? My boyfriend will be selling his company in less than 2 years and we will want to invest the bulk of the profit into opportunity zones to avoid the capital gains tax. I want to get more information on the timeline, logistics, etc. Please share any information you have :)

I agree with @Ray Harrell. If there are homeless people and they do something to your property, I am not sure how helpful a video will be. Maybe it will be useful for insurance purposes? One tip I read was to get cozy with the law enforcement in your area and see if you can work something out with them to drive by your property weekly. I tried to do this with a property I have and it didn't work out but I think that is because I am out of state and tried to reach out to the police department as a whole rather than an individual officer. You might be able to call the police department and determine if there are specific officers assigned to a particular location, near your property? You could also hire a patrol officer if that expense will show a return in improving the property. I think this would be a good long term strategy if you have a large number of units. 

I would say in your situation your best bet would be to find a syndicator in your area and try to learn as much as possible from them and find ways to add value to their business. You will gain experience in structuring deals and systems to create leads. I am getting started in this process of syndicating as well but I intend to invest alongside cash providers initially and give them a larger portion of the return in order to create the relationships/reputation needed to build up into bigger deals. The advice I have been given is that investors want to feel most comfortable with the syndicator before they vet the deal. If you haven't already I would recommend reading Raising Private Capital to give you a better idea. Also, on an apartment complex 20% down is rare. The lenders I have come across want at least 25% up to 40% but there are also "hard money" type loans for distressed apartment buildings which will lend up to 90% of the purchase price and rehab at a cap of 70% LTV so you would have to find a significantly undervalued property to get these terms.

@James Wise Thank you!

Another suggestion would be to look into Opportunity Zones in your area to avoid capital gains tax. It sounds like selling would be a better option for you if you are not planning to stay in the house and will probably not get a great return with turning it into a rental.

I agree with @Jorjio Hopkins that you will want to start with education. You should read Crushing It in Apartments and Commercial Real Estate and Multi-family Millions. You also want to be able to underwrite a deal from scratch and understand the cap rates in your area. A good idea would be to find a bigger pockets commercial broker in your area once you feel more informed about the process and then ask them for guidance about the nuances within your market such as ways to add value. 

If you contact a commercial broker in the area you should be able to pay a flat fee for them to send you over a purchase and sale agreement. 

@Mauricio Rauld Do all partners in the deal need to have the same percentage ownership or can it vary based on how much each person put into the deal? 

@Amy Wan To simply sell the security, would this require hours of consultation with a syndication attorney? Is it realistic to set up something like this with a smaller deal, say 20 units?

This is a great list. The Millionaire Real Estate Investor is a great step by step process and really emphasizes the importance of relationships and mindset. I would also recommend the "ABC's of Real Estate and Investing in Real Estate with No (and low) Money Down". These are super great for beginners. I read "What Every Real Estate Investor Needs to Know About Cash Flow" twice when I was first getting started and found it pretty hard to grasp until I learned how to underwrite a deal from scratch. Then it all made sense. I am sure this book will be more beneficial to a beginner who is more familiar with financial modeling than I was. For those interested in investing out of state, Emerging Markets is also very helpful. 

@Adam Craig Are these banks available to only those in the Cleveland area, or all of Ohio? If you don't know would you mind sending me the names of the banks? I invest in the Columbus area.