All Forum Posts by: Brian Pownall

Just finished closing a nice 138 unit deal in Austin with a great group of investors! Was packing some thank you gift boxes last night and thought I would ask the BP crowd what gifts their investors have enjoyed the most. See what I ended up with below.

Arn nailed it. Seeing some C class marketed around 4 in TX. Very likely it could be marketed aggressively but also not surprised. 

What size and type of multi specifically?

Below is a hypothetical screen shot of various line items in a typical NOI calculation. As Bryan mentioned, debt is not included. Hope this helps you out.

Second that @Jim Pfeifer and the group are a great resource. They even have a list of vetted sponsors that was invaluable to me at the beginning of the year as I was searching for potential sponsors to invest with.

Congratulations, an exciting time indeed. I would echo what others had said in that the two best open sources are Crexi and Loopnet. In addition, you can do some research on top brokers in your market and many of those will have a site that you can create an account and get on their distribution list.

As for broker relationships, always be honest. If you have no expectations of submitting an offer tell them you are looking to practice UW to become familiar with the market and process. As you grow, begin to expand those conversations to tours, comparing underwriting, and eventually LOIs!

@Andrew Schutsky has done recent research on top brokers in the KC market and I am sure he would be happy to share.

Only caveat I would add is for many a freedom number may also include some "fun money" to support you and your family's short and medium term goals beyond just paying the bills.

Very nice Donato, I also got more involved in multi during 2021. Biggest piece of advice I have is to find ways to add value to others in the industry and hit the ground running. You will learn multitudes more by active experience (whether this be UW, broker relationships, capital raising, etc) vs. listening to podcasts and reading books.

Congratulations exciting month ahead. Definitely make sure you have a strong attorney and CPA. In addition, for the raise even if it is close friends and family I would recommend using a software system like Syndication Pro, AppFolio, etc. Will make your life a lot easier.

The eternal question, and a good one at that. Rules of thumb are useful but also often result in your screening something out that deserved a better look. For example, a struggling property may have a very low going in cap-rate give but once stabilized the purchase price makes sense and you can deliver a strong IRR.

I would suggest you grab a free underwriting template and set it up with some rules of thumb on the expenses (or ratio), loan, etc. Then within 5-10 minutes on any property you can quickly update a screening table with your PF rent plans, tweak any assumptions, and see if you are anywhere in the ballpark vs. guidance.