All Forum Posts by: Collin Placke

Pretty tough to find 1%ers on the Dallas side, especially Plano and Richardson. Mesquite/Garland probably your best bet. Irving is a solid market. I ended up investing in Fort Worth because the returns were better and the tax valuations were lower (which will kill you in TX).  

Most get their deals from wholesellers or auctions. Pretty rare to see many bank owned properties, but that may flare up post covid. Just remember, wholeseller or auction will need to be a cash closing. No wholeseller will want to wait for you to get traditional financing if he has other investors ready to pay cash. Also many properties wholesellers sell don't qualify for traditional financing because they are in such rough shape.

I think it boils down to two major questions: 

1) How much control you want to have in your real estate investments? Many Drs, Dentists, Lawyers, and other higher net worth busy professionals chose to passively invest in multifamily properties. They get all the benefits of real estate investments but it doesn't require a further investment of their limited free time. Obviously, this wouldn't work well for anyone looking to have complete control, but these people are too busy to learn about real estate investing on their own and they are happy trusting their investments to experienced professional multifamily management teams. 

2) What are your cashflow goals? In my opinion, anyone looking to earn $10k per month or more from rental cashflow should skip single family and go straight to multifamily investing because of the scalability. Plenty of people on here will argue with me on this, but here is my reasoning... $10k per month at $250 cashflow per door is 40 houses. That's 40 roofs, tons of sinks, 40+ fridges, and 40x anything that can break. Expenses will kill your cashflow. Now consider one of the 100+ unit complexes I'm invested in... 10-20 units share one roof. If a sink breaks, they are all the same and we have 3 spare sinks on a shelf and a full time maintenance man on location to fix it. The scale and efficiency of multifamily is lightyears ahead of single family. 

But large multifamily deals are a team sport, so again it comes back to control... If you want to lone wolf it and do everything yourself, stick to single family. 

In the case of multifamily syndication, the private investors are Limited Partners in the deal which means they funds raised by them to close the deal are not considered borrowed because the LPs are partners in the deal. 

@Meng Chang haha well there you have it, the right answer is somewhere between @Corby Goade and I!

I raise private capital for large 100+ unit multifamily acquisitions, and I can assure you it doesn't happen over night. It takes persistence, a good personal brand, integrity, and a solid track record to attract private money consistently. 

What projects are you looking in to?

Neighborhood scout is a great tool, here's a few more:

10 year population growth: https://www.census.gov/quickfacts/fact/table/provocityutah/PST045219

Industry Diversity (VERY important post-corona): https://wallethub.com/edu/cities-with-the-most-least-diversified-economies/10852/

Millican Institute Best Cities Ranks

Unemployment/Job Growth: https://www.bls.gov/sae/#tables

I invest in multifamily, so I use a lot of CoStar reports for market info. Here is a copy and paste of everything on my market analysis spreadsheet for multifamily acquisitions. 

Okay I understand now. With a credit score in the 700s it might be worth a shot to try and get a personal line of credit? Again, post 'rona I don't know how tight credit markets have gotten. I have heard of people raising money from friends and family to partner with them. Learning how to raise private capital can take you a long way whether you keep flipping or go down a different path in real estate. I raise private capital for large 100+ unit apartment complexes. 

Interesting you are having trouble finding a hard money lender... a year ago they were swarming around here sliding into every new member's DMs!

Austin what are you looking to accomplish with this coach?