All Forum Posts by: Charles Seaman

@Jeffrey Donis I typically use iProtect Insurance & Financial Services out of Florence, AL or TBM Insurance out of Atlanta, GA.  They both service the NC market.

You're welcome @Elizabeth Puefua

@Jeffrey Donis Check out Acorn + Oak Property Management in the Raleigh/Durham area and Brown & Glenn in the Charlotte area.  I've worked with both and both companies do a good job on medium-sized properties without staff.  Keep in mind that if you start pursuing larger properties (100+ units) with staff, then you'll likely want different property management companies because you'll want companies that specialize in those types of properties.

@Jeffrey Donis What size properties are you targeting and what asset class?  Different property management companies specialize in managing different types of properties.

@Jeffrey Donis I'll have my partner, @Adam Balsinger, reply to this question.  He's the investor relations guy on our team and can better answer your question.

@Jeffrey Donis You're absolutely right. While finding the deal in the SFH space will often attract the money, it will occasionally do that with multifamily as well. But the other key point to keep in mind (especially if you're syndicating) is that SEC rules and regulations typically require operators to have preexisting, substantive relationships with investors, so you'll want to comply with them to make sure that you stay out of trouble.

@Jeffrey Donis I'm a big fan of the school of hard knocks.  If you ultimately want to run your own multifamily syndication business, then you'll want to do the things that are recommended below (and I made each of these mistakes, even though other people warned me about them beforehand).  I have a few more pointers that I can share from a deal that I'm currently working on as well, if you want more.

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.

You're welcome @Jeffrey Donis.  If you'd like me to make introductions, let me know and I'd be glad to do so.

@Jeffrey Donis I've used The Denny Law Firm, PLLC in Cornelius, NC for commercial real estate transactions and highly recommend them. Many securities attorneys service clients nationwide and don't need to be local. I've been using Trowbridge Law Group LLP for securities work lately. They're based in CA, but can provide services nationwide.

@Justin Wingfield I own a few properties with Section 8 tenants and have had a good experience.  It is reliable income.  Like anything else, there's always risk.  I personally only consider properties with some type of subsidized housing component currently because the possibility of a second lockdown makes me nervous about properties with market rate tenants.

There are instances where the subsidy programs will cover 100% of the tenant's rate, but that'll vary based upon the program and the tenant's individual situation because most programs typically assess a tenant's financials and living situation before determining how much of the rent they'll subsidize.  Your tenant screening process should be exactly the same for every tenant so that you don't run the risk of violating fair housing laws and you'll also want to enforce a strict screening process in general.