All Forum Posts by: Andrew Hogan

Like @Thomas Johnson and @Jay Hinrichs eluded to, leverage your network to tap into capital and your skills to form a rockstar team. All the best!

 @Ben Sears you can only work so fast with your own dough. Leverage your track record to partner with others.

Our system automatically keeps track of everyone so that if that were to happen, we would "catch up" all our partners to their pref. I'm sure you're keeping track as well to make sure you get the right amount. Pausing distributions is pretty common during times like these and can be done long before a deal is in jeopardy but thankfully it hasn't been necessary in our case. 

Congrats Kate! It was a tough decision to discontinue my dream of being a professional athlete but after 4 years of competing on the D1 level, I was ready to channel my passion into providing for my future family. 

I'd say to househack a small MF if at all possible. Keep networking and offer your skills to potential mentors. Work to learn right now - not to earn :) good luck

True, there are more SFH opportunities than MF. Even then, I believe there is still an overabundance of multifamily opportunities... Relationships.

Regarding those returns, I'd definitely look at different strategies from a risk-adjusted return perspective. If you're focusing on your biz and deploy those funds passively it will obviously take longer but you'll get the experience of your partner and their team. If you're looking to do it yourself you may achieve it much quicker but with a higher risk of losing your hard-earned dough.

@Ivan Barratt recently spoke about this topic:

"I would tell you to focus 100% on starting and growing your biz first. Down the road, you can use the cash flow from the biz to buy your real estate. Rich Dad Poor Dad "The Cash Flow Quadrant" breaks down this formula quite well. As an example, Robert Kiyosaki did NOT get wealthy via real estate. He got wealthy via growing an education company. Then, he used the funds from the biz to buy income-producing assets. Look behind the curtains and most "real wealth" has been built this way. Focus on the B quadrant first. :)"

Source: https://www.biggerpockets.com/forums/432/topics/823961-syndication-investing-during-a-recession?page=7#p4904659

Unfortunately, there is little translated content. I have personally translated our material por eso :)

Great responses by all three guys here. I like where you're going Wendy but I don't believe that illiquidity and risk are 100% correlated. How have folks lost 30%+ of their stock portfolio this year if they could have sold the first day the market tanked?

Nobody knows the future just like nobody can eliminate risk entirely. It's all about mitigation of that risk.
Bigger IS Better in this industry :)

Hi Charlie, Yes, multifamily can have wonderful economies of scale.

This could present some great opportunities to pick up real estate. As long as you know how to batten down the hatches on the operational level and ride to the other side of the trough there isn't any need to pass up good deals right now. (we have seen more deal flow in the Midwest that wouldn't be as attractive in the pre-pandemic world)

You need to know your numbers and have an A-Team to execute.

Thanks to the 2017 tax bill, cost segregations go about twice as far as they used to in creating paper losses. Many are using this to offset their gains and cover a chunk or sometimes all of their tax exposure. Ask an up to date CPA about it.

Good comments here. Also depends on the aggressiveness of the sponsors/investors and their discipline & risk tolerance..

For the past several years, BAM has consistently pulled the trigger on less deals than hoped for due to sheer discipline given the stage in the economic cycle. Other sponsors were willing to pay more for a lower return.

We've also seen others with higher risk tolerance that attempt to execute a high value-add play (kinda crazy at this stage) which may project higher returns but bring with it the added risk.