All Forum Posts by: AJ Shepard

@Stacee Evans

You should be able to open a brokerage account and invest with it until the next deal comes along.

There are some syndicators out there that will take than a substantial amount so you may try and find some other operators to invest with as well.

@Sam Mathew

Read a lot and listen a lot. We’ve been studying and listening to podcasts for almost 2 years now. We just completed our second syndication today. On the look out for the next one.

Podcasts:

Joe fairless - best real estate advice ever

Jake and Geno - wheel barrel profits

The Michael blank - apartment syndication

There are a few more, but the information is all out there.

Hooking up with another syndicator is also another route that may get you a quicker outcome and also some vindication that you are doing the right things.

Either route is a good one!

@Garrett Ranous

Sounds like you are on the right track. Partnering in real estate is super helpful. In syndication you get to partner with seasoned investors that have been doing it a long time.

You also have the option of finding a credit partner. This would be someone that has the w2 job and wants to invest as well. Partner with them and buy some small multifamily or SFH.

Plenty of ways to skin the cat, just need to drill down and figure out which one you want to do and then push forward with it.

@Eric Koelling

There is always risk in investing. Rules change and can pose problems. We find that good screening can go a long way. It seems as though while house hacking you should have some additional provisions because you are an owner who lives in the unit. Stick in there, you’ll be glad you did. And even though they aren’t paying they still owe you that money. Hopefully this pandemic will be over soon. They keep only extending by 3 months, so at some point the music will stop playing.

@Billy Archer

I didn’t mention last post that even though I’m in Portland, I’m the Regional Vice President of NARPM in the Atlantic division. Do you belong to the association, I know we don’t have a chapter in NY, but we do have a conference coming up next year in Connecticut.

My brother and I always said if we started over we would start with 4plexes. They are a great investment with Gov backed financing and a great way to start in the industry if you have the capital to do so. As a PM I’m sure you have contacts to fix them up, buying below marker and C class then fixing them up to B+ and refinancing. Do that 1-4 times a year and you’ll go far quickly.

@Jonathan Levi

I second the residential and multifamily sector. There are plenty of syndications in that space out there that can give you that “mailbox” money you are looking for.

Where I think I would disagree with some of the thoughts already listed here is the “core” and A class properties. In a recession or a downturn there will be people that have to make hard decisions. The first thing they are going to give up is their luxury’s. We have seen that the 0bed and 1bed markets have had an oversupply in the last couple years due to new units and rents actually dropped and some issues in leasing up. The lower class, A- to C+ had steady gains with also a lot of growth in the tertiary markets. Generally these type of properties have larger units and are not as updated.

My suggestion is that if you want true mail box money, get into a B class property with high sq ft to low cost that is very close, but not in a big city. We are always a big fan of a value add component as well.

@Billy Archer

Congrats on making the step from the dark side! Just kidding, PM is essential service for investing and if you ask a lot of investors, a good operator of PM can make or break the deal.

It always starts with the first one. If you are thinking going alone at first, I would suggest start with a 4plex. This will get you started on a track record and get you experience with lending, purchase contracts and probably some stuff you know a little bit about or have heard of from your clients.

If you are thinking bigger than that, I’d definitely find someone that has taken on investors as a partner. Dealing with investors adds a layer of complication to the deal. As a PM, I’m sure your communication skills are great, and you probably have some clients that may already want to invest with you, so you are definitely a leg up. The other reason for a partner is that when you get to commercial lending, even if you have experience operating they may not lend to you because of no investing experience or not enough capital in the bank. Make sure that partner can also sponsor a deal. Start making relationships with commercial lenders and commercial brokers now if you haven’t already and have them vet your new partner.

Best of luck and don’t be afraid to take the leap, you’ve got a good solid ground you’re coming from. From one PM to another!

@Seth Grell

Getting your first rental is a great way to develop passive income! I’m a big fan of portland oregon, but you’re 60 may not be quite enough to get into that market either.

I’ll second the idea of a syndication. It’s a great way for both passive income and investing in real estate. The benefit is you have a professional that has been there done that managing the whole process. Investing out of your area for the first time owning a rental could be difficult. I’m not saying it can’t be done, just make sure you do all the due diligence needed for an investment before proceeding ahead.

@Paul Hanchard

We use appfolio investment manager. We started out using the PM software with appfolio about 5 years ago when we converted our property management systeM from buildium.

It made sense for us because it integrates directly into the PM software creating bills when doing distributions. We pull our reports or data directly from the PM software.

I agree the reporting and communication needs some work on it. I will say though, they have made tremendous updates in the past year. When we first signed on, the reporting function was nearly non-existent. They definitely are listening to feedback. They are a publicly traded company and have a lot of resources to develop the right product. If they aren’t the best now, I would bet they will be in a matter of time. They dominate the PM software realm for sure.

Very curious to hear others opinions of other software, we didn’t do a lot of research because of the integrations and compatibility.