All Forum Posts by: Scott Skinger

The Real Estate Guys also have one on March 2/3 in Dallas https://realestateguysradio.com/events/how-to-rais.... More specifically it is on multifamily syndication.

@Chris Tracy I think I'm going to go to the Brad Sumrok one as well, so hope to meet you there.

@Quandra Adams The spread between $0 and $3500 for closing cost, $0 to $3K for the down payment and 4 to 4.5% is substantial. Get these numbers nailed down (and all of the other numbers) or it is going to be very difficult for you to analyze the deal. 

Personally, I would run the numbers and see if the duplex would cash flow when renting both sides out, which is something you may decide to do in the future. If you are living in one of the units, it will negative cash flow, which is probably fine (only you can decide) because they are helping you pay down your mortgage and you will probably be paying less for your remaining mortgage payment than you would be if you were renting...while paying down equity.

@Brian Lewis I agree with what a few others have said. The key points being read, learn and diversify.

1. Read. There is a TON of info on BP. Read this http://www.biggerpockets.com/forums/311/topics/527804-friend-netted-3m-looking-to-deploy-newfound-wealth-into-re, the posts and all of the links. Go to www.crowdstreet.com and download their whitepaper. Go to www.jakeandgino.com, read/watch/listen.  Go to www.themichaelblank.com, read/watch/listen. Go to www.praxcap.com, www.venturedproperties.com and others...see how they operate their businesses and if that is in alignment with your investing strategy.

2. Learn. Similar to above, but now that you have a baseline with all of this new information, start asking SPECIFIC, well thought out questions.

3. Diversify. I'm not a financial planner, however, I thinking diversification is pretty general advice. $50K is a lot of money but I think everybody here would agree, including the syndicators who would accept your 50K if you were an accredited investor, you probably shouldn't park all of your $ in one investment. At a minimum, you should probably have it spread across a few syndication deals. You might also consider different locations, different commercial investments, different RE investments or different asset classes all together. If you haven't already, do yourself a favor and speak with a fee based financial planner (i.e. they don't make commissions off of their recommendations). Build a financial plan first and then start picking your investments.

Good Luck.

Check out this thread, lots of good info and look specifically at the links provided by @davidthompson http://www.biggerpockets.com/forums/311/topics/527804-friend-netted-3m-looking-to-deploy-newfound-wealth-into-re

Agree with @Lane Kawaoka Personally, I want to establish a track record and have my systems down cold before I take other people's money for a deal. One method I like (at least in theory) that Michael Blank pitches is to create a sample deal package that is representative of a deal you would be doing. OM details, projected returns, deal analysis, your background, etc. You would then start having investor meetings and let people know that you are active looking for types of deal that look like your deal package (making it clear that this is just a sample deal), gauging interest, answering questions, etc. The idea being that you have met with a lot of people by the time you actually have a deal under contract and they are "warm".  When you have an actual deal, the package will look very familiar to your potential investors and you are speeding up the process. 

Wow! Honestly, I don't think you can be overly paranoid in this situation. YES, estoppel statements. For any discrepancy, I would ask for all of the cash for security deposits from the seller, whether you get cash at close or funds are held in escrow. I also think you need leases from every tenant clearly stating what your terms are. You're potentially signing up for a nightmare if you don't have some sort of understanding (legal and on paper) with every tenant. 

@Elizabeth Wilson I would love to meet up with the group. I will be going to the meetup at BP HQ from 6:30-8:30pm. I would have to imagine that a group of people from here will go out for a few drinks after. Maybe sync up with the Whova conference app?

https://www.meetup.com/BadAssREI/events/246583333/...

I will be there and would love to meet up @Spencer Gibson 

Yeah, actually I was put together a contact list for the conference and after going through the Whova app was completely impressed. Great app for pre-planning and connecting with people at the conference. 

Your expenses are below 30% which is too low. Evaluate the property at 50-55% expenses and see if the returns match your investment goals. Right now you have $5000 budgeted for maintenance and you don't have a capex reserve budgeted. Apartment turns, new carpet, new paint, replace an appliance here and there, new roof, windows, driveway, etc. That's going to cost you more than $5000/year. I would have AT LEAST 5% for R&M and 5% for capex reserves.

I think your expenses are too low in a few areas. 2% vacancy is allowing you basically one week of vacancy per unit per year. That seems tight. 2% PM ($62) is also low. I'm sure that you're planning on self managing but you should at least account for your time at an hourly rate to help you analyze the investment and calculate true ROI.

Consider using 5% for vacancy and 5% for property management and see if you are still happy with your returns. If things work out better, then great, but it would be prudent to be more conservative in your underwriting and take the emotion/excitement out.