All Forum Posts by: Brock Mogensen

Another option not listed is investing in syndications/funds as an LP. Assuming you are looking for something more hands off, investing with an experienced operator as an LP is truly passive.

Return wise, here are high level metrics I target:

17%+ IRR

2X Equity Multiple (5-year hold), 2.5X (7-year hold), 3X (10-year hold)

7-8% Year 1 cash on Cash, opportunity to get to 10% by Year 3

How much experience does the GP team have managing C-class properties? C-class is a tough game and generally only works when operations are iron clad. 

Great to connect with another local investor, I'm based in Milwaukee and invest in SE WI. Let me know if I can help you with anything.

If you're the one doing all the work you should definitely look at structuring the deal with some upside for yourself. I'll send you a DM with some ideas

Very solid niche with high demand. Build out can be pricey but rents will be higher compared to big box warehouse. I have a few spaces like this and has worked out well.

You are likely looking at a Syndication or Joint Venture model. Not a fund.

Syndication would allow you to receive "sweat equity" and fees as the General Partner running the deals. Joint Venture is when you just split equity pro-rata on dollars put into the deal. Fund is when you raise a bunch of capital up front and deploy it over 1-2years+.

Agreed. Even with a PM you need to play the Asset Manager role

Length of lease, quality of tenant, where is their rent in comparison to market, does the market have a need for that type of space, how is the roof and parking lot (?)
Most importantly do your DD on the lease and terms contained in there.

Not sure if you're talking about retail, industrial, or office here. But different things to look at for each one.

Build strong relationships with brokers to work your way into their "top 5" buyers. That is where the best deals are.

My focus has been on value-add industrial in the Midwest. 2023 certainly was a down year for transaction volume. But prepping for opportunity in 2024. 

I think it also depends on what your goal is. Cashflow build up or longer-term appreciation? The development plays can work out long-term. But with where the debt markets are on construction financing, make cashflow near impossible. 

My opinion/preference right now is a blend of risk profiles within one asset class. For me that means mix of short-term (value-add) and long-term (stable) lease deals in the industrial sector.