All Forum Posts by: Blake Dailey

@Corey Collins Of course! Reach out if there's anything I can help with. You should be able to find some cheap, cash flowing properties in Dayton so I'm excited for what you can stir up. 

Hey Corey. To get started with little out of pocket you could find a partner who has the money and you act as the hustler who finds and manages the deal. You could also market for direct-to-seller leads with something like direct mail and find creative financing solutions from the sellers. Or you can find a local lender and get a mortgage and only bring 25% or so to the deal. There are tons of ways to get started, the key is to just get started. Check out Brandon Turner's The Book on Investing with Low and No Money Down, that has a lot of good strategies as well (but can also all be found here on BP with some digging). 

@Sam Epperson It sounds like you and your partner have good complimentary skills to knock this out. It also sounds like you have a syndication.

In a JV all members take part in management, whatever those roles may be. They also all sign on debt. And all would have equal voting rights, or decision making ability. This is also usually limited to 5 or under people, but that is not a hard and fast rule. It's just hard to argue that if you have 6 or more people that each one is equally involved or that all are involved at all.

When you and a managing partner team up to offer investors returns in a deal that they are not involved in the management of, you are selling a security and it becomes a syndication where you will have to meet SEC guidelines and want an SEC attorney.

A syndication is where all members do not take part in management (where you have your GPs and LPs), and all members do not have voting rights. 

There are more differences but for me these are the main ones and the easiest to use to tell the difference between the two. It sounds like you and your partner are the GPs and the 5-6 investors are going to be the LPs with your current structure.

Hold for cash flow, don't get over-leveraged, have reserves and you should be fine. Those slim deals that people were doing pre-covid are not going to work going forward. That is a lesson to be conservative, this is a build wealth slowly game. Plan for the long run and get into a deal with multiple exit strategies. And remember that equity is like your get out of jail free card. If you don't have equity you have no way to exit a deal and not lose your shirt. But if you are conservative and underwrite with sound principles you won't have to liquidate and can cash flow through the worst of times, and maybe even experience a bump in net income if rents increase like they did through the last recession.

@Vilena G. I think it can definitely still work, your numbers just have to make since to be able to refi and cash flow as a rental after that. With a 3,300sqft your rehab cost will be a lot higher than the median house because there will be more squarefootage that needs work. Run your numbers by finding the all in project cost (including holding costs and any short term lending costs) and the ARV. Then if you can refinance and get most of your money back and it cash flows I would say you could do it. But also weigh the opportunity cost of the cash flow compared to what you could make by flipping. I would rather flip and get my big profit now than cash flow $100 a month when leaving a big chunk of money in the deal due to the size of the project. Just compare your numbers and do what you are comfortable with, but it is doable.

Also, depending on your area, a house with those attributes and size could be in demand a rent high so check your local rental rates to see how your cash flow would be.

@Christopher Vincent Awesome approach! Those activities will get you in the right circles. I have also heard that helping other managing partners raise capital can be a good way to get your foot in the door. I have thought about trying that since I am trying to raise capital for my own deals anyway, it is something that can spill over if the criteria are similar enough.

@Luis Gonzalez Thank you, I appreciate that!

The quickest way to find yourself in a bad investment is to not know your numbers. Whether you invest, or want to invest, in single family, multifamily, or anything else, knowing your numbers is critical to your success.

We will have Jake Volin walk us through how to properly analyze a deal and how to consider every angle when deciding on an investment property. Jake was a Senior Underwriter for the Michael Blank team, an underwriting principle for Mission Bay Capital Partners, and most recently is still underwriting multifamily assets while completing Air Force pilot training.

This will be a technical and fun meetup so bring a paper and pencil or have your spreadsheet open because you will come away with some key metrics and actionable how-to for analyzing deals!

@Luis Gonzalez I used the VA loan. The process to get the loan was straightforward, I just had to meet the qualification requirements much like with the FHA loan.

@Justin Bush BP has those forms under the tools tab. I think you have to be a pro member to download though. I bought Brandon Turner's The Book on Managing Rental Properties and my version came with the forms as a bonus, I'm sure that package is still out there and is definitely worth it. 

You could also contact a local attorney in your state to use their forms but you would have to pay. Anything you download online should be checked over by an attorney or at least compared with one that was.