All Forum Posts by: Brock Mogensen

Low income housing experiences much more tenant turnover, more maintenance, and lower rent collections.  Overall much more work on the property and asset management side.  At the end of the day, it's all about making the numbers work.  You don't want to overspend on unit upgrades that won't provide value back to the numbers..in my capitalistic opinion.  That being said, there is great opportunity in the low income housing space. You just have to account for higher Op Ex, more turnover, and lower collection rates. 

Sounds like you're in a good position. I'd suggest starting with learning more about the REI space. Spend some time listening to podcasts and reading books on the fundamentals. Simultaneously start attending local real estate networking events. Building your knowledge will help you understand what a good deal looks like. Attending local meetups will build your network of realtors, bankers, etc..all things you will need to buy your first deal. That process should take 3-6 months. Then you will be much more confident to pull the trigger when a good deal presents itself.

Another option would be to partner with another investor to pool capital together. You could either do a Joint Venture (JV) structure as an active partner. Or invest in a Syndication as a limited partner.

It starts with defining your long term goal in real estate.  Are you looking to just build a small portfolio to enhance your retirement?  Are you looking to go all in and make real estate investing your full time career?  The answer to those questions will change the strategy you should pursue.  For me, I wanted to go all in and make it my full time career. Syndication is a great way to do that.  If you want to build slower, the house hacking model is a great way to do it and to even start out.  House hack a new 2-4 unit each year for the next few years.  That equity will build up and allow you to scale slowly.  Lots of options..just have to figure out what your long term goal is!

I suggest starting with investing in your real estate education.  That could be free or paid courses.  Most of my education was from books and podcasts.  Simultaneously start building your network.  There are plenty of local real estate meetups in most markets, attend at least one a week. If you go all in on the education and network piece for 6 months, you will be amazed how quick you progress.  After that you will be much more confident to pull the trigger on a deal.

It is not very common to see syndication deals with 1031 money allowed. There are some operators that do it, just have to find the right one. The reason most syndicators don't allow 1031 money is because it complicates the legal setup of the deal. A TIC structure is required, which changes lots of things on the legal documents.

Updated event registration link

https://us02web.zoom.us/webina...

Third party property management will eliminate a lot of the weekly tasks.  And if you can target larger properties, that helps as well for economies of scale.  Forming a partnership with a few other investors to buy larger properties is a good strategy.  Just need to make sure everyone in the partnership has the same long term goals.

Capital Club Syndication Series is a series of educational webinars to help investors learn about private equity real estate investments, both for investors looking for access to deals, and for operators looking to learn how to structure a syndication, find deals, and attract capital.

On this webinar we will discuss tactics for finding commercial deals.

That is definitely a solid return.  But sounds like you don't get to participate in the upside of the deal.  There are tons of syndication firms out there.  I suggest first defining what market you want to invest in (if you have a preference).  Once you define the market you can narrow down the number of sponsors that buy deals in that market.  Build relationships with a few different operators. Vet their track record and integrity.  And when you see a deal you like, with a sponsor you trust, you'll know you did your due diligence.