All Forum Posts by: Brock Mogensen

If she isn't looking to put much time into it..investing in syndications as an LP can be a great option. This is a true form of passive investing. 

Turn key investments are tough to make sense of right now. Value-add is almost required if you're looking for a 10%+ return on investment. That being said, you aren't the only one. Looking at 100+ deals to find one that makes sense is the norm right now. 

Syndication can be a great way to scale from both the LP and GP side.

I've been syndicating properties in the Milwaukee area for 5+ years now. Having done 13 of them.  Happy to provide further insight. 

I think if your goal is to be an active (but more passive) investor, long term NNN deals make a lot of sense. Finding an apartment deal that provides a good return in the Chicago area likely will be in a C-class area, and that is very management intensive. A 10+ year NNN industrial deal would be your better option. Our firm is very bullish on the industrial asset class in the greater Milwaukee area. Main thing is you want to confirm the tenant is strong, no major cap-ex (or if there is, account for it in your numbers), good debt terms, and a solid broker to help with lease-up should it go vacant.

If you're ready to commit to looking at 100+ deals to find one that works, any of the above strategies "can" work. It sounds like you are early on in the REI journey. I suggest choosing one of these strategies and spend time learning it before actively looking for a deal. As others have mentioned, investing in a syndication as an LP is an alternative option, which is much more passive.

Before you consult with an attorney, you'll want to figure out what your syndication structure is.

GP/LP, creative JV, debt LP's, equity LP's?

What fees are you charging? Are you taking a GP promote?

All questions to think through on the structure end before engaging an attorney. Plenty of great attorneys out there that can set this up for you.

Be ready to have property management and asset management dialed in. Managing C-class properties is not "turn-key".  Requires a great PM and consistent monitoring. 

Easiest place to raise capital at this stage in the timeline is going to be friends and family. People that know and trust you. 

LLC, property bank account, Operating Agreement/Partnership Agreement.

Depends on the location..like any other city.

C-D Class areas generally are going to see lower collection rates. Bad Debt and Economic Vacancy are two terms to familiarize yourself with.