All Forum Posts by: Brett Deas

Good luck finding a good builder that isn't already too busy. The returns are awesome however, mostly its and appreciation play but the more units you can build within reason the more it cashflows with current rental demand being so high. The re-sale on these things are super great because every new house hacker is looking for multiplexes but there is no inventory. 

Nobody ever does the same thing with mid-terms and tenants know this. Do what works best for you. 

One strategy that I had a friend do is he bought the very first house in the development with all the basic design choices, nothing to crazy. But as the rest of the neighborhood was built the appreciation he got is insane. He average something like 10% a year and still did even through the covid boom and bust. Most of the time he Refi's out and turns it into a rental with the appreciation bonus for the next place. 

I have done both. For the loan it was set up through a lawyer because that is honestly the best and safest way to do so. 

One thing you have to realize before doing that is you are essentially leveraging 100% of the property, in all terms that is very risky. 

But since you know understand that start with the friends and family round. That is where everybody starts and truly all you need if you're not raising millions. One thing I will say is that if you are not comfortable yet going to your friend and family then you shouldn't be raising from strangers yet either. That is a step that a lot of people try to skip but never ends well. 

 Yep, even with high interest rates we are starting to see multiple offers again. 

Rent demand is still insane in the Denver area. The most recent stat is 2.3 new jobs for every 1 unit of new housing. We had a shortage before so we are just seeing that expand. 

I invested and then also worked for one for a few years and I would say I was very impressed with the behind the scenes but also let down. In my opinion most sponsors don't show their true value to the deal for the investors and explain through their payout structures well enough. Getting to see and then putting together all the numbers there is so much that goes into it and explaining it to fellow sponsors is pretty easy but no one really communicates it the investors well. 

Something you can also do apart from an attorney, Is go through a title company. That is how I do all mine. They can charge the filing fee (which you always have to pay) but not much else. 

My favorite question that I get asked as a sponsor is when and how have you failed. I also think it is the biggest question whenever I vet out other investors.