All Forum Posts by: Austin Fowler

Dear all,

Trying out a particular style of real estate investing for the first time can be a major psychological hurdle to clear. As such, one of the things I enjoy doing is doing deep due diligence on deals and sharing those deals that pass with everyone to make it easier to take that first step. I stress that these are 100% third-party independent deals, I get no commission or referral fees, they are simply big enough deals that there is plenty of space for other people, so it costs me nothing to share the done due diligence.

Over the last month, a group of us have been doing due diligence on Zero New Boston (https://lnkd.in/g5bdR56v), Woburn, MA. This is a ground-up development coordinated by CC&F (https://ccfne.com/), an operator that has been in business for 120 years and has built over 100 million sq ft of commercial real estate. The current owner has worked in the business since 1981, and owned it since 2007.

Key features:
- $25k minimum investment
- 4 year timeline, projected annual IRR 35% and equity multiple 3.12
- adjacent to public transport, in a suburb where there is both housing demand and limited supply.
- operator has built and filled a similar development nearby
- You can find pictures and numbers on some of the buildings they have built and are building here (https://lnkd.in/gfbdvtnf).
- You can find a profit calculator spreadsheet here (https://lnkd.in/g-2m_vZA). You can change the exit cap rate in the basic assumptions tab cell H67 and see the effect on the IRR and EM in the Equity Waterfall (GP) tab cells V51 and V53. Even at an exit cap rate of 6.5% (which is pretty close to inconceivable), investors would still make a modest profit. For more likely exit cap rates, a graphic of projected IRRs and EMs can be found here (https://lnkd.in/ga_sQBG3).

Any questions about the above, please ask. If you would like to participate in a deal where you will have a community of fellow investors to share the journey with and help keep you safe, DM me.

Best,
Austin.

I'm happy to talk to people about getting set up to raise capital systematically and legally. This is something I've done for 22 years. In my case I operate using a Regulation D 506c and 506b, and operate a personally guaranteed debt fund. This effectively enables me to raise capital at 8% per annum, interest capitalizing, term forever. If this is of interest to you, DM me and I'll be happy to go into more detail. I currently manage over $10 million raised in this manner.

I have 100 direct clients at any one time, and I do one-on-one coaching with them. Becoming a direct client means opening an account with me, which full disclosure means being an accredited investor and having at least $100k ready to invest. There are no fees, indeed I actually pay people to learn, but you do need to be a person in a position to actually get started investing in real estate.

I coach people looking to get into passive multifamily investing. I manage a $20M passive portfolio and can help you begin your journey towards doing the same. I share everything for free, it's all available here (https://groups.google.com/g/scalable-property-investing), it's a community where we analyze a passive commercial real estate deal every month, keeping each other safe and helping everyone growing.

My recommendation would be a documented loan with terms you find acceptable, not a partnership.

If you can generate a return in excess of 8%, then you can borrow the down payment from private investors, or even the entire purchase price if your hard money loan was at a higher rate than this.

Would you be willing to borrow at 8%? I have experience raising capital for down payments if you are prepared to pay investors at this level.

Would you considered borrowing the down payment from friends and family? Borrowing the down payment from other people can be a powerful accelerating strategy.

There are ways of getting started even if you have no track record. You can focus on the mechanics of capital raising, the legal set up, good customer service, that's what I did when I got started nearly 22 years ago. If you're interested in chatting more, I can show you how to give your investors an 8% liquid return without you personally being the person providing that return. As time goes by and you find deals that are attractive, you can deploy your raised capital into those deals. This way you can separate the learning process and don't have to learn everything at once.

Are their people out there that are interested in setting up their own managed fund to fuel their real estate expansion? DM if you are, I've done so and have 22 years of experience doing so. Happy to share the details (for free) with anyone interested.

Best,

Austin.