All Forum Posts by: Brian Geiger

It depends but a mentor isn't the supposed to be a substitute for hard work. Your mentor can guide you in your acquisition and managing of your asset but ultimately you will still need to put in time and capital into finding investors and putting together your team. 

I agree with @Jaron Walling.

You have to know the story behind why they are selling in the first place. I read something a while back that south Florida is home to two worst counties for multifamily real estate. You really have to evaluate the numbers and story behind the sales. 

https://www.globest.com/2020/09/08/2-south-florida-counties-rank-high-nationally-for-2q-rent-declines-296-224224/?slreturn=20200825083003

I added a link as a start but you should speak with a PM whenever you are looking to go to a market where you suddenly see sales. It could mean caution rather than opportunity,.

@Juan Rosa

From a tax stand point, rentals and the BRRRR strategy is the best option. You have so many tax saving options compared to just fixing and flipping properties because appreciation is hot. You will pay taxes on your flip income. Taxes that you wouldn't pay if you just stick to rentals.

You can't do a 1031 on fix and flip income but you can with BRRRR. You can't claim depreciation with fix n flip but you can with BRRRR. With rentals, you can definitely reduce your taxable income on non rental income hint. W2.

To me rentals and BRRRR works for me because i can save a ton in taxes plus my cash flow can be non taxable due to depreciation.

Awesome work. Very inspiring to read thus

Read Biggerpockets books and listen to podcast. Find your niche and find a mentor.

@Will Allison.

I can certainly point you in the right direction. It ultimately depends on your ending goals. Are you wanting to hire people in your business or pay yourself a salary? 

Most people will give you their opinions but ultimately you want to talk to your local business attorney regarding this. You also want to speak with an accountant as well. Instead of asking this question on bp where you are likely to get unprofessional advice, you should look for those two team members and run that question by them. 

I always recommend people to go on Avvo.com https://www.avvo.com/ where you can find affordable business attorneys in your area. On avvo, you can ask legal questions and a business attorney will most likely answer it for free. 

As for accountants, I would ask for recommended accountants or ask investors in your market about REAL ESTATE FOCUSED accountants. Try meetup.com or ask on here in the Texas forums but I really think the question you asked should be asked to your lawyer and accountant. 

The answer to your question depends on your goals and what guru you follow. If its Dave Ramsey, he will tell you to pay the debt off before you do anything else. Most investors would pay the debt while simultaneously investing in RE. Ultimately its on you.

I agree with odie. Can you provide more details.

@Tucker Cummings,

Here is how I would vet sponsors/investors of any deal:

1. Check the track record. I want to know the returns on those deals and what strategies led to those returns. What I am looking for is consistency and not just on and off good returns. If a sponsor/investor does not have experience, I want to know who is on the sponsors team and are they working with someone who is experience in the investment. I would usually vet the person with experience's track record. In addition, I'm more likely to invest in a sponsor with out experience's deal if they have experience running a successful business.   

2. Check references: I hear this one a lot but more and more private lenders are not checking references. I normally check with three (3) references before lending any money. Again, someone who is not experience, I would see who they have on their team and if they have business experience before I lend money.

3. Underwrite the Sponsor's deal: I would get all the details of the deal and either get a professional underwriter to underwrite it or if its a niche im familar with, I would do the underwriting myself. A lot of times its not the sponsors but the deal that is bad. However if the sponsors want to bring in private money, they should do a better job underwriting and if the sponsor had not taken to effect certain risk (market changes, political events, migration loss, etc.), I'm going to pass on the investment. 

4. What is their brand and thought leadership platform like? This isn't a requirement but I big plus.

5. Have to be full time in the investment deal in order for me to invest with them. I don't want someone who has a 9-to-5 job and trying to invest in RE. They need to be full time in the business. 

6. In Syndications, I like performance based metrics. What this means is that I want to see the private investors make money before the actual sponsor make money. With that said, I want to see preferred returns around 7 % or higher to the private investors that are cumulative, equity splits between 70 (private Investors) -30 (Sponsors) or 60 (Private Investors)-40 (Sponsors). I'm not interested in 50-50, 90-10, and 80-20 splits because there isn't any incentive for the sponsors to do well in the deal. Once these metrics are met, I'm for the sponsors making money in the deal. 

I hope this helps.

@Mapuna Finau

Youre in the right place. This is the perfect resource where you can learn about investing in RE. Listen to the podcast and read the books. You will find every thing there is about investing in RE. If you have any questions feel free to DM me,