All Forum Posts by: Brett Deas

If you haven't ever done it before, my suggestion would be partner with somebody who has. There are so many pitfalls out there when raising capital, so it's best to have somebody who knows what those pitfalls are. 

Put more money down. The lower LTV you have typically the safer you are.

Well first of always have reserves to cover vacancy, that is the easiest way IMO. But as long as you buy a good deal in an area with solid demographics that will have the most protection for you from market downturns. 

There are private money lenders I know who are willing to fund something that small. They are not common but they are around. If you want their contacts feel free to reach out! 

Everybody has to start somewhere. You will most likely lose money on your first flip but the first one is the learning lesson. 

Why are you looking in Colorado? What is so attractive about the multifamily market here for you? 

 Yes you do get taxed for 99% of all syndications. You can 1031 but one major issue is you have to keep the same ownership % which is not always the easiest thing to do. One would need an extremely good 1031 specialist to help with this process. 

 The two advantages this type of investing brings is 1)the passivity of it, and 2) the power of scale. The passive part means you don't have to handle any tenants or do much besides vet the deal to invest in. Also with the power of scale, you can come together with 10 other investors and buy a much bigger asset, which produces outsized returns over what 1 investor can individually afford. 

In my experience, the ROI on my individual deals have been on average with the stock market, probably a few points better. But for the ones I have syndicated, they tend to be 15%+, which is much better.

Well if the plot really is valuable, you can always go to devs and ask to partner. I have seen many people in the Denver area partner with a developer and spilt profits 50/50. But... if the lot isn't super great good devs wont go for it because they will know there are better options elsewhere. 

I would say a modification of option 1, not a mutual fund but syndications. 

My suggestion would be investing in other people's projects or more commonly syndications. Most syndications offer a yearly cashflow expectation of around 10-12% and then a backend equity growth of 50% to sometimes double over 5 years. 

The reason I am saying this is because if you were to invest today you can collect some of that cashflow (and do whatever you want with it) but then in 5 years your investment base also increase, thus leading to more cashflow if you invest it into another syndication.