All Forum Posts by: Chris Grenzig

@Calvin Thomas @Ron Vitkun

I've never looked at a GC deal, but I think I can make some pretty good educated guesses just based on our business model and deals we've done and how he structures his deals.

From my understanding he claims to close the deals with his own money and then sells his interest post closing. Nothing wrong here, although I am curious if there's any mark up (probably not is my guess)

Since he is raising money for a fund and not a one-off deal, they are usually structured with mandatory capital calls as money is needed for new deals (mentioned in earlier posts of this thread). This is not uncommon because it means your money isn't tied up in no assets until a deal is found and needed. Some people do the capital call structure, others don't.

I would definitely look at his fees, for deals of his size and considering they are low management intensity, a 1% acq fee and 1% asset management fee on Net revenue would be close to what I would expect.

Considering these are Class A a 6% pref seems fair, a 65-35 split over that seems a bit high, but nothing too aggregious (saw it mentioned earlier not sure if true).

As far as if he keeps money in, I would expect he will, 5-10% of total equity is normal and fair considering the size of the fund.

As far as the length of the investment, usually funds will have a pre-determined expected length (seems like 10 years), but will have clauses to extend that if the manager (Cardone) deems it necessary for a "wind down" period I believe its called, again nothing uncommon about that.

At the end of the day being a passive investor is giving someone else control. The difference between a fund and a one-off investment like we do, is the funds/returns can be blended between deals, if you invest in a fund you may not know the specific properties that will be acquired, and it's just less known. On a one-off deal you are still passive, no control, but your money is for that specific deal, it ends when that deal does, and theres less mixing of things around. There's pros and cons to both, you just have to understand what is right for you.

Hope that helps!

@Levi Steven not nearly enough information for someone to be able to give you any type of constructive feedback or point you in the right direction my friend...

Units:

Avg Rent:

Occupancy:

Other Income:

Expenses:

NOI:

Purchase:

Debt Amount:

Mortgage payment:

Extra Capital:

Total Equity:

Whats the business plan?:

@Lloyd F. Lofty Asset

@Samuel Gates house hack, the find a couple partners or a partner and split the equity to go out and buy commercial property/properties. Leverage each others resources and spread the risk out over a few properties instead of owning just one yourself. Continue to save and live well below your means, and accrue properties over the years. 

Every good investor needs a team, whether that be property management, leasing, maintenance, lender, insurance, equity, etc. Sonya Rocvil of Berry Rocvil Enterprises is joining @John Cohen and Chris to talk all things partnerships, joint ventures and building a team.

Sonya has been involved in several deals topping out over 700 units and has worked strategically in different joint ventures, partnerships and building teams in several markets outside New York to create incredible investment opportunities for herself and others.

John Cohen and Chris Grenzig at Toro have now acquired over 3100 units across several states and markets and have also worked in several joint venture and partnership structures, while creating teams in every new market Toro has been involved in.

If you have an interest in investing in real estate and are in the process of building out your team, finding partners, or looking for opportunities to work with others, Sonya, John and Chris bring years of successful and failed relationships for you to learn from and hopefully take into your own investing experiences.

As we have been, we will be recording the sessions and make them available to everyone free to watch on youtube. Check out our last couple of meetups below!

Tom Castelli & Taxes - https://www.youtube.com/watch?v=teSnefScyPQ&t=303s

Josh Eitingon & Chris Jackson Small vs Large Multifamily - https://www.youtube.com/watch?v=LOirvCNQxpQ&t=1388s

To learn more about Berry Rocvil and Sonya find her information below:
http://berryrocvil.com
https://www.linkedin.com/in/sonyarocvil/

@Andrew S. find out what your market is, sometimes tenants won't take a property if utilities is extra because no other property is doing it. Sometimes you can't attract higher quality tenants because they know the worse properties don't charge extra for it.

On your numbers $450-$550 is an extra $100 a month, RUBS is $75 extra...all things being equal I think the answer is pretty clear.

@Clint Galliano @Michael Dang @Cam Schumacher I've never spoken with them or know them personally but it looks like they raise money for other syndicators and may also acquire properties for their own company. I know some deals they've raised money for which were deals with, by all accounts, reputable groups.

We've never worked with them on any of our syndication deals and we very rarely have others raise money on our behalf, so I don't have much personal experience unfortunately.

@Joon Kim we've seen a significant rise in the amount of deals that are being acquired by several GP syndicators or sponsors and its always a little tough to determine who the actual operator of the property is going to be. Also, there are a significant more amount of groups that just raise money for other peoples deals. 

There is nothing wrong with going through somebody who is not the operator of the deal, but I would be very hesitant in investing in that deal without knowing who the operator is, understanding their track record, and even hearing their take on the property/opportunity. I would encourage you to do your due diligence on the person raising the money and the operator also which just adds another layer for you. 

John Cohen and I are happy to announce that Tom Castelli from the The Real Estate CPA is going to be joining us to talk all things taxes and real estate. Now that tax season is (hopefully) behind you, it's time to start thinking about how to plan for this years taxes and beyond. So be sure to join us and make sure you bring all your questions.

We will be recording the meetup again, and if you want to watch last meetups recording be sure to click here: https://www.youtube.com/watch?v=LOirvCNQxpQ

Be sure to join our meetup group here: http://meetu.ps/c/2JNwP/zNqhq/f