All Forum Posts by: Bobby Shell

@Jonathan G. 5-7 year hold, with the capability to of moving to 10 year debt if necessary

Everything I have learned recently is the newer investors are sitting with money on the sidelines but the wealthy are investing more into these assets. I could be wrong, but my research has shared that the experienced investors are taking action right now and investing into these deals and getting their cash out of equities and bonds. I do not trust the bond market right now with the FED buying up 1.3 billion or whatever in ETF's and the propped up equities market with their junk bonds.

With the government printing, the 33% increase in savings of American's and massive drop in consumer spending I believe rents will stay consistent and rents will be paid. This is just my humble opinion

Barrat has done work since 2015, they choose lower LTV for less leveraged debt. 5-7 year holds with ability to hold up to 10 years. (this approach is very very common for all syndicators who are seeing value add B class properties. This is one thing I quickly realized from my research)

Open door - (Brandon Turners group) has Brandon obviously, but his team which includes Brian Murray has a wealth of experience that takes the trust to another level. These guys have tons of experience and also work with conservative underwriting.

When taking into consideration the hurdle and preferred return for investors (before GP's get to eat) there should be a 2.5 equity multiple on these deals with the conservative underwriting, Lord willing we achieve more!

Each investment required 50k minimum. No ROI yet, but on average 7-8% cash on cash (with conservative underwriting).

The reason I chose both was for diversity. The mobile home parks are a fund that are within multiple states across the US. The Indianapolis syndication is a fund across multiple classes, B+, B++ and A- (this limits exposure to just say C class or B class)

I hope that helps! Happy to answer other Q's

My goals are to cover expenses first, then replace my income, and be capable of having no job by 40, I am 33 now and will always want a job, i just set a 7 year goal to achieve that so that I can enjoy time with my wife and future kids, and take care of our family and circle of friends if ever needed in emergency.

Overall these two funds were chosen because MHP's are typically more recession proof and safe. And with Indianapolis the city has never been a big boom or bust city when it comes to recessions. As it relates to corona virus, I was very interested in the fact of the Amazon expansion in this city which is being build 1 mile from the apartment complex. Fedex also has their #2 facility here (behind #1 memphis). I see a massive need for growth in shipping and logistics, this corona virus econommerce trend is not slowing down, we are just accelerating to the future sooner... The assets in this fund were affordable and most rents were under current market rents by 20%+ as well so there was room to increase NOI for these B class assets as well.

Overall I was nervous naturally because of the uncertainty of everything lately, but felt confident in my last year of research and remember feeling this same way when buying my first rental.Taking the leap is the hardest part.

Lastly, know that the "money printer go brrrr" as the internet has said, I do not think the government is going to stop stepping in to help get America through this, people are saving 33% more and incomes are actually up substantially due to government checks. Rents I believe will highly likely be paid and people will adjust to this new lifestyle and staying indoors. The next demographic cycle, in my humble opinion will actually cause more people to buy homes for privacy and cleanliness reasons (I know I am going out on a limb here saying that), but we also still have a shortage of apartments until 2030~ or so. *end rant* :)

All I have learned is that these assets are recession resistant. This capital came from selling a single family home, and i wanted to get it invested into more recession resistance assets. We will see if that stands true this time around!

The bubble is corporate debt, student debt, and other areas, by investing in MHP's I felt totally safe because if the government prints money and we go UBI this to me is a very strong asset. For the multifamily deals i made sure to stay away from the A++ and more luxury assets because those people will start to live within their means in the next 9/12 months. 

I made the leap finally this last week and wired money to 2 syndication companies and started investing in our first 2 funds. 

1. Barrat Assat Management - Indianapolis Indiana (B+, B++, A- multifamily ) - I am fond of this area because it is a logistics hub, Amazon is building a new center here and there are lots of great jobs. 

2. Open door Capital - Brandon Turners Mobile Home Park Fund - I wanted to secure an investment in mobile home parks because of many of the obvious reasons that we have all learned about (buy from mom and pop, increase rents, meter water, lots of room to increase NOI, less cap ex, rent the lot & the owner owns the mobile home, etc)

**** I have done due dilligence for over a year on MANY (15+) syndicators and are still doing due dilligence because I plan to invest with more. My goal is to get into 1 new syndication a year, and Lord willing 2 if we can afford it. It was easy to live with a fear mindset in times like these but I trusted the process and am excited to be entering the multifamily, MHP, and commercial world!

I am happy to answer any Q and share my experience with other investors to help them or add value in any way!

welp squad, ended up being about 20k in damage, and luckily we were able to get about 13k+ from insurance and the house has an offer under contract for 5k over the current listing price. If appraisal and home inspection goes well we will have some extra capital to take part in a syndication or fun and be done with single family for a bit!

In August of 2019 we got a new fridge dropped off by Best Buy. Best Buy took away our old fridge. 

Our property manager had a handy man install the new fridge.

Fast forward to today, I get a call from the Property Manager saying that the new tenant reported water leaking behind the fridge, after a deeper look baseboards are curling up, mold is under the baseboards, and they need to remediate mold and likely replace the floors!

IS this something home owners insurance would cover? Or is my property manager in trouble for having a bad installation and handy man? Let me know if you need more details! :( Thank you!!