All Forum Posts by: Charles LeMaire

I feel this query is a bit vague; you have not specified details about the deal (2 or 100 doors), your roll in the deal (sponsor or investor), or the analysis of the deal (what assumptions were used).  Is this really a syndication or is it really a partnership?

I have gotten into 37 deals from 16 units to 350 units as a passive investor.  I trained with Brad Sumrok, who taught me well.   I looked over a broker's proforma for a deal for a friend and found 12 deal killers - the 99 year amortization was the funniest - I suggest that friend get in a group and learn what he was doing. As a Prop Mgr, you may know all you need, but from your question, it is hard to tell.

Charles LeMaire

@Danny Tran -- I started with Brad in 2010.  I volunteer at the R2R (Rat-race to Retirement) week-end events (he does not pay me).  Brad gives a great overview of how it all works in the 16 hours, but there is more to learn.  Clearly, he has more training, that is what he does -- and he is VERY GOOD at it.  If you were not aware, there is a pitch to join his network on the second day.  It is a soft pitch, no hard sale.  

Once in the network, the rest is up to you; there are no guarantees -- it's a parking sticker, not an assigned space. 

He hits on the various ways to get into MF: buy it yourself, find a MF and get investors to fund the deal, and be one of those investors.

My wife and I choose to be passive investors.  We took about 6 months to get into our first deal (160 units in Irving, TX). 

I have three criteria: 1. you have to have time to get involved.  2. you can not be to shy to meet folks.  3. you have to have some money.

The next R2R is next week-end: Nov 10-11 2018.  He does three a year: March, July, Nov.

Regards,

Charles LeMaire

@Jordan Decuir -- There is no closure on this thread.  Did you go? Did you like it or hate it?  Did you join?  Did you run? You have to put an ending on the story.

I am a Sumrok student, started with Brad in 2010 (he does not pay me!).  My wife and I find him to be a great help to our financial well being.  He provides training (I started knowing almost nothing) about investing in Multifamily mostly by syndication and has a vast network of sponsors and investors.  We choose the passive investor route and have invested in many deals with his other students.  Paul B (above) and I are in a few deals together.

If you didn't go, there is a into week-end coming up: Nov 10-11, 2018.  He does three a year, March, July, & Nov.  

Regards,

Charles LeMaire

At 57, knowing almost nothing about RE, my wife and I visited a local RE mentoring group.  After listening to the SF and MF presentation (we choose the MF syndication path), we joined.  

Our first deal was 160 units, followed by several more each year.  It took about 4 years to break-even and now 8 years later at age 65 and retired, with 35 deals (10 have sold), we have pulled out more than double what we put in and we are currently still in 3800+ doors (remember syndication; we boast with door count, but only own a small percentage of each door). 

I applaud anyone that goes it alone, but it was very nice to have a guiding hand along the way.  I'm sure there are a lot of good coaches; We found Brad Sunmrok and feel he has been a great help to us.  

Disclosure:  I have been a long term member of Brad's group and have volunteered at his events many times.  He doesn't pay me!  He charges to join - he is not a charity!  

As a suggestion, consider attending a Mentor pitch.  I work with Brad Sumrok and have done quite well.  He has a week-end event Nov 10 & 11 in DFW.  It is a good primer and you will see and hear from many how they have succeeded.  

To the 'Don't Pay a Mentor' crowd, I say it is just a way to slip in to high gear.  And yes, it is not an absolute requirement.  

Regards,

Charles LeMaire

$0.02 worth:  Agency loans typically have larger prepayment penalties which effects the business model (likely longer hold times).

Stories about the first deal.  Sure, OK.  I assume you want the horror stories - please realize, almost all deals have a bump or two.  You learn to manage the bumps.  This was the first of 35 deals, so clearly I am still investing.  A great mentor helps.

I became one of 3 KPs on a 160 unit deal in the DFW area with about 20 passive investors.  All seemed fine for about the first 18 month, but then I got an emailed letter on Dec 23rd from the lender that we were in default (informational - unbeknownst to me the sponsor was hiding from the bank.)   I called the sponsor who said "Don't worry about it".  I started collecting contact info and contacting the other investors.  With in about a week, I learned that there had been a similar letter six month earlier.  One of the passives was a sponsor on another deal; he offered to be the replacement sponsor.  With a bit of work, he and I got all the passives on board, we met, we voted, and we removed him as manager.  

I was on the agency bad boy list for about a year, but ultimately the deal was saved, and we ended up making a 18% annualized yield. 

The replacement sponsor has gone on to do many deals and has written a book - he didn't mention me!!!!!  The original sponsor does not send Christmas cards...

BTW, there were signs and we should have acted sooner.  It is a learning process.

@Hsiu-Ping Peng:  Welcome!  My $0.02 is to find a group.  CA is not the most landlord friendly state, so I suggest you may want to make contacts elsewhere.  I am also a tech guy, started RE in 2010 at 57, retired this year.  With no prior RE experience, my wife and I met Brad Sumrok, joined his group.  We invest passively in Multi-Family (apartments). He operates out of DFW and has students across the US.  In Nov (10th & 11th), he has a week-end Rat-race to Retirement.  It has some rah-rah, but also a great deal of content on how it all works.  If you have any interest, send a message,The summary is 35 deals passively, 10 sold, 4 are up for sale - more than doubled our net worth.  Brad moved us from a 'Coach' retirement to a 'First-Class' retirement.  I will be happy to go into more details -- I gather there is a message mechanism, I am also new to BP.  

Regards,

Charles LeMaire 

I had the pleasure to hear Grant Cordone speak at AIMNATCON (Apt Investing Mastery Nat Conv - a Brad Sumrok event).  GC is one heck of a speaker!  

I had not heard of GC until about a month before the event when an investor friend's son mentioned him.  So I googled.  

* 5000 doors and $1B in assets.  So that sound a lot like $200K a door.  Not the arena I intend to play in.  

* On his website he listed a couple dozen example deals and what the intend to distribute, around 10% plus or minus.  He did not list any big money from a sale, so no idea where that goes.

To put that in perspective, I am a passive investor in MF syndications.  I have invested passively in 35 deals, 10 of which have sold.  Currently, I am in 3850 doors in the remaining 25 deals (a small percentage of each - it sound pompous, but that is the way we express it).   The average annualized (investment weighted) yield has been 30.9% (This is like the bank CD's APY).  This includes the distributions and the sale of the property.  The normal Cash-on-Cash seems to be about 8%-10%, so the big lump is at the sale.

As I see in, in GC system, Grant gets rich and the investors do OK.  I work with Brad Sumrok.  He teaches folks to be Sponsors - they can get rich pretty quick.  As a passive investor, I am constrained by what I have to invest.  There have been about 60 millionaires created in the group (including me) in the last several years.  Brad is not a charity; he charges a fee for training and mentoring;  like all GYM memberships, if you don't use it, it wasn't worth it.  

BTW, I have not had a down deal yet.  

Regards,

Charles LeMaire

Donovan - I suspect you may have solved your problem by now, but if not, I think I second the comment by Damian above.  I also live in DFW area and am mentored by the same fellow (I think).  

My mentor is Brad Sumrok.  We started with him in 2010 and got into our first passive deal in 2011.  Have done 35 deals as a passive since then, 10 of which have sold.  

Regards,

Charles LeMaire