All Forum Posts by: Brian Briscoe

BTW @Kate Zieverink McMinn - eventually, I will take my ownership interests in the larger door count and consolidate it into a much smaller door count. For me, syndicating the large numbers is a means to an end, and that endstate is enough cash flow to cover all of my expenses and more.  18 units owned free and clear would do that... though I think I'd still keep $50k in a 1000-unit syndication so I could still puff my chest out...

Following...

I'm still a ways away from full retirement (though only a year away from retiring from the USMC).

I tend to agree with @Kenneth Garrett and @Kris L.

When I fully retire, I want income-producing assets that don't take a lot of time and effort to manage.  I also want something that's easily transferable to my children when I die.  So my decision to sell or keep will be based on those two considerations.  

Retirement for me will be when the earnings from my assets complete pay for my expenses.  The military retirement pension will help -- that'll already pay for a mortgage on a really nice house and put food on the table 24/7/365.

@Kate Zieverink McMinn - great point. There's a huge difference between an $50k LP interest in one single 8000 door portfolio and owning 100% of a fourplex. Door count can be misleading.  I like @David Pere's answer, though not every conversation will lend itself to such specificity...  If you must use door count to describe this, I'd say you're safe saying ownership in 18 doors.

Another common term that's abused in the same manner is Assets Under Management.  There are some syndicators that use an "army of ants" mentality in raising money for large deals... for example, if big-time investor has a $40MM purchase price with a $20MM equity raise, they may have a dozen people working to raise money for them... It's not uncommon for each of these "capital raisers" to claim $40MM AUM, even though they may only have 1% ownership interest and no decision-making authority, which is also misleading.  Looks impressive though...

What do I claim?  I am frequently asked "how many doors do you have?" - so I typically respond with that number.  I will usually say that my partners and I have syndicated 4 apartments totaling 168 doors.  In our case, our company has 88%-100% of the GP interest in each one of these properties, though my personal ownership is only 6-25% between LP and GP shares.

End of the day - number of doors is definitely not the best metric, but it is very simple, convenient, and common.  There are many posts already that point out that cash-flow and equity are better indicators of wealth (some rather comically I'll add): @Aaron K.  @Thomas Enright @Kris L.

@KB Collins etc.

You make 50 look like 30 my friend!!

@Jim Pellerin

Or maybe some expensive ketchup, like Dijon ketchup

@Katie Miller

Let’s make two assumptions... 1. I’m starting from scratch, and 2. I have to invest it all. I.e. no vacations, cars, or charitable donations.

First thing: 6-month emergency fund invested in a low-yield fund comprised of mostly bonds. Let’s say $100k.

Second: Index funds tracking major indices (Small cap, large cap, international, etc.). Easy to buy and sell and provides additional liquidity and diversification. Let’s say $300.

Third: I like apartments. I’d take another $300k and split between several syndications with solid operators - minimum investment in each.

Fourth, and final: the remaining $300k would be mine to invest in my own real estate projects... right now, that’s more apartments. That would be $50k-100k in each of our next few syndications. In the meantime, I’d park the money in an investment account that is about 40/60 stocks/bonds - mainly to preserve capital with a smidgeon of growth.

@Patrick Froehlich

I was 40-something when I jumped into multifamily. I had owned a handful or single family rentals since I was 30-something. I found that I had to rebrand myself as “the apartment guy” instead of my current profession as “The Marine” — but as mentioned, most people in their forties have more real experience, capital, and know other people with capital.

I guess it took me until I turned forty to realize that I wasn’t getting younger and retirement was closer than I imagined.

@Andy Vaughan you’re 50!!! Never would have guessed!!

San Diego... No question. the weather, the beaches, the location...  I loved it there.  So do @Erik Orozco @Ryan Avila and @Maxwell Ventura.  My wife's favorite place is Monterey/Carmel, CA

Live in DC now - eh.  Grew up in Salt Lake City...it's tripled in size since I moved away 20 years ago...  I loved it in the 90s though. 

I see Carolinas on a lot of lists... My wife is from Columbia and we spend a lot of time there.  Even lived in NC for a stint.  I wouldn't mind living there.

Lived in Rio de Janeiro - better place to visit than to live.  Lived in Mexico CIty - better place to visit than to live.  Lived in Okinawa - that was nice.  Lived in Chile - better place to visit....  Lived in Minnesota - it's really nice in May and September.

@Nathan Gesner USAF Vet?  Either that or Army.

@Alyxandria Welch

Started with Rich Dad Poor Dad (cliche, I know)... from there, started reading books about single family rentals. Then, I bought one using my VA loan, lived there for a bit, moved out and rented it out. Bought my next property using an FHA loan, moved in, moved out, rented it out... Tried to buy a third, banks said I was over-extended and I wasn't creative enough to figure out how to make it happen...

First house broke even in bad years.  Second house (in San DIego) never cash flowed - that was a mistake.  It appreciated a ton over the 10 years I owned it...   Second big mistake was not figuring out a way to buy more real estate in 2010-2012...

A few years ago, I sold my SFR and rolled it into multifamily. Read a ton, listened to a ton of podcasts, got into Michael Blank coaching program, and have grown my portfolio to 168 units (with more on the way).... I agree with @Anthony Bowe - mentors are important.  I decided to pay for one, but I had just sold two houses and had $$ available.

I could go into a lot more detail...  as @Erica Larence-Penna pointed out, there are problems and it isn't all rainbows and unicorns... but I like it and it makes money.

@Adam Bielous 

So, round-about answer to your question... it really depends on your goals.  I started with single-family rentals, mainly because that's what I could handle.  After several years of $100/month cash flow per property, I realized it would take hundreds of those to reach my financial goals... so, I started looking into multifamily.  That plan was tailored to fit my goals, and you need to design a plan to help you hit your goals.

@Ned Carey  says SF are more profitable in Baltimore -- I'm also in MD and he's not wrong.  That's why I decided to invest out-of-state.  It's a bit more complicated when it's not in your own back-yard, but can be done.

If you're willing to relocate, you can hack a 2-4 unit building using an owner-occupant loan and get a high percentage of the deal financed.  As @Todd Dexheimer mentioned, financing for 2-4 units is more kind than >5 units, especially if you're going to live in one unit.  

As far as partnering to go a bit bigger, I think it's a great idea provided you can find partners you trust.  Finding someone with more experience is highly desirable. 

Bottom line, all are good options. Some do better than others in each area... Look at your goals, then find a strategy that fits your goals in the area you choose to invest.