All Forum Posts by: Charles Seaman

@Linda Wright There will definitely be an upsell and you'll need a lot more than what you can learn in 3 days, but it will provide you with a good foundation.  So just think about what you're looking to get from it.  If you want to get a good foundation, then it'll likely be an excellent value for you.  If you want to inbox me, I'd be glad to answer any questions that you have on it.

@Amber Boskers Here's my thoughts on the scenario you proposed.

1. Is it a JV or syndication? If it's a JV, then I'd cut the acquisition fee out.

2.  It seems like there's enough cash based on the budget that you detailed.  Why are you concerned that there's a shortage of cash?

3.  The debt is 81.25% of the purchase price.  This is reasonable for a well located, stabilized asset.

4.  The rehab term that you're referring to isn't just for rehab.  The rehab will be done much faster than that, but you have 10 existing units that are already leased.  So unless you're planning to buy those tenants out of their leases, then they're not going to happen right away.

5. If it's a JV deal, I don't think that it's an unreasonable split. The managing party is investing some of their own capital and it sounds like they'll be doing all of the work, so it's fair for a property of this size. If it's a syndication deal, then it's likely on the high side. But it all depends on what type of return the investors will be getting.

@Linda Wright I took courses with them in 2017 and 2018 and have nothing but good things to say about them.  What are you hoping to achieve by taking the courses?  If it's simply laying an educational foundation, then you'll likely be very happy.  The content is presented in a concise manner and they provide you with materials that you can use for reference on an ongoing basis.

@Nathan Gesner That's the name of the company and they've been around for nearly two decades.  Their website is: https://rementor.com/

@Evan Dyer Cold calling them is definitely one way.  If you have any mutual connections, then having them make an introduction is even better.

@Evan Dyer If you're looking to go the syndication route, then you'll want to do the things that are recommended below.

Recommendations When Starting Out

1. Pick a target area. You want to focus on one area so that you're familiar with the area and so that you have meaningful relationships with brokers, property managers, and other professionals that will ultimately lead to you getting better deals and better information.

2. Find sponsors. Sponsors are people that have the financial and experience track records to qualify for the loans that you'll need to acquire properties (unless you're not planning to use any debt). If you develop good relationships with them, then they might even let you use their track records to get good deals that you wouldn't get otherwise and to attract investors that would be more skeptical about investing with somebody that has no prior track record.

3. Find investors. Many syndicators make the mistake of spending too much time finding deals and not enough time finding investors. You should be spending as much time finding investors as you are finding deals. It's often said that you'll be able to find the money if you find a good deal. While there is truth to that in certain regards, it's tough to do that in syndication because there are strict rules and regulations that must be followed when raising capital.

4. Find partners. Most successful syndication groups have at least two (2) partners. It gives investors more confidence knowing that multiple people are involved because having only a single person in charge can be risky in case anything happens to that person. It also helps to divide the workload. When you first start out, there won't be much to do. But as you start building momentum, you'll quickly have more to do than you'll be able to handle, especially if you're working a full-time job and have other life obligations. My recommendation is to have one (1) person handle the acquisitions and one (1) person handle the investor relations. If you have more than two (2) people involved, then you can always further divide the workload accordingly.

@Carla J Brand then I'd recommend going active on the syndication side.  There will be a lot more earned income than passive income with that approach, but the rewards can be plentiful if you stick with it and build it out.  It'll start slow, but it will eventually allow you to do bigger deals than you could do by yourself.  There's also a lot of responsibility that comes with it because you'll be managing other people's money, so it's not for everybody.

Got it.  With that purpose in mind @Patrick Flanagan, you're likely better off buying smaller multifamily properties that will bring you steady cash flow each month.  If you have enough capital to acquire them without a partner, then I personally wouldn't have a partner.  Just make sure that you have a good property management company in mind, unless you plan to manage them yourself (this will start to become another job as you add on more units, so it's probably not going to help you achieve the desired result of time freedom).

Another option is to passively invest in syndication deals, as this is probably the most passive you can be in real estate.  The biggest downside to it is that you're giving up any control you have over the deal, but many people like this approach.

If you're buying multifamily properties with 2-4 units, then they'll be looked at from a residential standpoint by lenders, meaning that their value will largely be determined by comps. If you're buying multifamily properties with 5 units or more, then they'll be looked at from a commercial standpoint by lenders, meaning that their value will largely be determined by the property's NOI and financial performance.

Got it.  Being an accredited investor (or not) shouldn't be a major deterrent.  I'm not an accredited investor yet and I'm currently involved in three (3) multifamily syndication deals.  What are you hoping to achieve through multifamily investing?  Do you want steady cash flow or are you hoping to build a large scale business from it?

@Patrick Flanagan I landed my first multifamily deal through persistence and hard work.  It was my first real estate investment, but I had 14 years of experience working for a commercial real estate investor, so I was well versed in it.  I had multiple partners because I went the syndication route.

For you, your path might be different.  The first questions that I'd ask myself if I was in your shoes would be as follows.

1.  What is my level of expertise with multifamily?

2.  What is my personal risk tolerance?

3.  How much money do I have access to?  This can be your own money or other people's money.

Then from there, we can help determine which path might be best for you.

@Justin Goodin It varies from month to month, but I submitted 11 LOI's in the month of March. My goal is to submit as many LOI's as possible. It helps to let people know that I intend to stay active in the market.