All Forum Posts by: Chris Tracy

Your best bet IMO would be to try and get in with like Marcus & Millichap, CBRE, Cushman & Wakefield, etc.  Interview a bunch of places and see what they offer regarding training and tools regarding investment properties.  Compare & contrast what they offer for commission splits too.  Because ultimately you want to learn how to buy investment properties, yet broker stuff all along the way right?  Most brokers have access to software like CoStar, ProspectNow, etc that can help you find property owners, do research, etc.  I'm an agent and I remember when I first started, I was with a primarily residential oriented company & I attempted to explain syndications to my broker and he literally said, "I have no idea what you're talking about." haha... Priceless.

Check out CBRE's report regarding cap rates.  That may help fill in some blanks/ be a good resource for you.

@Charles A.- You can mention other people on here and give them props... you just can't promote yourself.  For example- @Joe Fairless- I listen to your podcast and it's the best ever!  haha

Nice job with your deals... keep going and go even bigger!

I'm going and I'm pretty pumped/looking forward to it!  I've never been to one of Dave's events, but many of the guru events are a similar song and dance.  The real questions are:

1. What do you need?
2. Why are you thinking about going?

I go for the networking.  Typically at these events you have a mix of people looking to learn and there will probably be sales pitches.  However, there will most likely be a room full of sophisticated and accredited investors.

Do you need passive investors to provide capital for you to help you buy deals in your syndications like @Jay Hinrichs said?

Do you need a key principal to sign on the loan to help you qualify for buying a 60+ unit?

Then you should probably consider attending all the networking events you can get your hands on and afford.

Do you need education/support/coaching?  There's a lot of gurus on here that teach the subject.  I heard that Dave is pretty pricey as far as coaching.  You could probably get a better deal if you shop around, assuming that's what you need.

Anyway... hope that insight helps and hopefully see you there!

Hi @Troy Remelski... To realistically get the time, attention and hand-holding you will probably need, you're most likely looking at a 1-1 coach to provide you software for underwriting, show you how to undewrite and most importantly help you identify the pitfalls that exist when attempting to buy larger deals, review deals that you're working on, as well as help guide you all the way through to the closing table.  Then the fun begins with managing the asset!

Is it reasonable for me to request the P&L from a realtor representing a MF property? If they do not have it or are hesitant to provide it, is that typical?  

Absolutely.  You will ultimately need as much current and detailed info as possible regarding the deal... but keep in mind the bigger picture and what is causing the broker's reluctance?  Focus more on developing the relationship with the broker.  Get the best financials you can, but more importantly... get the point across to the broker that you are easy to work with.  People like to do business with people that they know, like and trust.  Everyone is looking for the red pill regarding off-market deals- there it is.  Also, if you are dealing with a mom & pop seller... they are not the most organized people... but that could be a great opportunity for you!

Also, forgot to add, asking for any rental contracts/agreements that currently are in place for the property as well.  

Don't worry about this until you do your physical due diligence, when under contract.  You will (or should do) a lease audit at that time, so don't stress that in the beginning (again, focusing on building the relationship).

So your first goal is to get:

• a T12
• a current rent roll
• an OM
• the asking or whisper price

Hope that helps!

Keep in mind... it's a 2 way street.  You're not always merely interviewing PMs, but more importantly you're building a relationship.  PMs can be a very valuable resource for you for a variety of reasons, not to mention they can also be a potential deal source for you!  Everybody and their brother is hunting for apartments right now... you have to find ways of separating yourself and getting face to face with people is a great way to accomplish that.

Let's connect!

What do you guys recommend is the best way to buy an apartment building ?  How many units are we talkin'- 3 or 300?  This is a loaded question... lol.

What are the main things you look for when forcing appreciation in a property ?  I would say the market and a deal that has a proven value add opportunity for starters.

If your using a bank how much do you have to put down ?  It depends on the deal, but around 25% is typical.

What’s the best way to raise capital for your investment ?  Give value on this forum whenever you can, go out and meet people (local REIA meetings, bootcamps, etc.), and being a thought leader seems to be the way to go (hosting a meetup/public speaking, a podcast, etc.)

@Jonathan Studdard-  If you're looking at all strategies, don't forget about passive strategies... as the ones you mention are active... food for thought.