All Forum Posts by: Damian Leonard
Damian Leonard has started 4 posts and replied 55 times.
Post: My first year investing in apartments, from 0 to 633 doors!
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
Originally posted by @Jeff B.:
Interesting - - how do you manage 633 tenants and their contracts? I'm sure that's WAY above me!
Jeff Beard -----A: I don't manage any of it personally. I am a passive investor and Key Partner in the deals, that we the members in the LLC, have hired 3rd party professional property managers. The lead sponsor is in charge of managing the pm and sending reports to the investors, and distribution of the cash flow. It is a passive investment for me.
Post: Apartment Advice Needed!
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
Plan for 10% vacancy, maintenance, higher taxes, insurance, cap ex to renovate, reserves, management fee 10%, utilities unless individual metered. Buy it at a 10% Cap or better. Research more on this website about apartments, and get your numbers down before making that offer. Good luck.
Post: The End of Mega Buck RE Gurus?
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
I think there is a line to be drawn for every personal situation. If you can get in a focused group, and be able to network with a group of like minded individuals, and not be out of pocket too much. It can be worth it if you are dedicated to taking action. Don't invest into a gurus network if you don't have the capital to invest in real deals. Don't go into real estate broke and with no money. Don't go with guys on national commercials, but find a group that isn't going to break the bank to network with close to home.
Post: My first year investing in apartments, from 0 to 633 doors!
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
Hi @Robin Khan
Send me a PM and I'd be happy to get you information on our group meetings and introduce you to the sponsors and investors that are all active in some sort of apartment investing or working to be.
Look forward to meeting you.
Cheers,
Damian Leonard
Post: My first year investing in apartments, from 0 to 633 doors!
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
Hi @Tim W.
To maximize returns to the investors, we typically finance 65-80% of the value, with Fannie Mae or Freddie Mac, on non-recourse loans when possible. I'd be happy to introduce you to our group. Send me a pm and I'll give you the details. There are benefits to doing a group purchase, but I also know the benefits of owning your own.
Cheers,
Damian Leonard
Post: Gas station near apartment complex - how close is too close?
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
@Nick B.Good question. I haven't thought about that before. Maybe one of our lenders, like Paul would know better and seen that pop up. Might shoot him an email.
Post: My first year investing in apartments, from 0 to 633 doors!
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
Originally posted by @Brad T.:
Sounds like you are a Lifestyles Unlimited member to me! It is a fantastic group. I am a lower level member from out of state. I absolutely love their philosophy and their podcast is excellent!!
I did learn a lot from LifeStyles, and actually my Mentor was one of theirs for many years. So yes, same group of guys basically, but sort of an off shoot from LU, in Brad's group for most part.
My Apartment Mentors Group
Post: DFW Meetup! Weds. Feb. 24th 7:00 pm
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
@Chris SoignierWould like to connect sometime, not sure I can make this one, but will try to get out there.
Post: My first year investing in apartments, from 0 to 633 doors!
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
Originally posted by @Adam Nelson:
@Damian Leonard your story is very inspiring to many. Obviously RE investing always boils down to the numbers, which I would like to find out more in your case. Respectfully, your invested in 600+ doors, right?
A) How much capital does it take to be invest in 600+ rentals? A:--->It depends on the deal and what the deal sponsor sets as a minimum. My smallest investment was $25k in a $1.5mm 32 unit, and my most was $60k in a 200 unit. I passed on some very attractive deals with over 300 doors, because the minimum ask was $75k-250k minimum. I like the diversification over many submarkets, different types of property classes, and being able to see how each separate asset manager performs with the asset and what my returns are with them as a lead. My way of diversification.
B) What is the ROI ? A:--->They vary from property to property, and it is early to give an answer that is a true representation. So far my distribution checks are averaging about 11-12% on my cash, and I expect that to grow as we stabilize the assets more. I am expecting an IRR in the mid to upper 20's when all said and done. Combined return on investment over 100% in 5 years or less is the goal. Some we'll refi in 2 years and get most of our capital back and hold, and others will probably just sell in 2-5 years, and pay the taxes. It is too hard with big group deals to do 1031 exchange.
C) How large of a syndication is it?.. Did you put a deal together or buy into an existing partnership? A: --->My first year, I didn't have the skin on the wall to do my own deal, the banks want to see experience, although I could have done a recourse bank loan looking back, but am fine with being able to partner, learn and grow from smarter people than I am. The properties I am in were in the $1.5mm-$14mm range, and each deal has a different LLC and lead sponsor as the asset manager, who syndicated the deal. We have anywhere from 6 partners to 41 partners, depending on the deal, to my knowledge. I am making offers currently now that I am seasoned and can show the bank my experience as a KP in a performing Fannie Mae loan. Feel free to connect and message me if you have any questions. I'm an open book. Cheers!
Again, thank you
Post: My first year investing in apartments, from 0 to 633 doors!
- Investor
- Fort Worth, TX
- Posts 60
- Votes 89
Thank you all for the kind words. I learn from multiple sources including here on BP, and don't limit myself to any one system or group. But my main mentor has helped me the most and has a great handle on apartment investing and group purchases for serious investors. Not a no money no problem program. I'll message individually the link to his program and let you check it out. I don't think I am allowed to post it here? I don't want to look like I am soliciting him, but I've had nearly 100 people ask who I learned from or how I got involved in apartment investing. He does give a referral fee if you join his group I think, so if you like what you see and want to join the group, I'd appreciate the referral, but it isn't why I posted the information here. Happy to answer any questions, just message me.
Cheers,
Damian