All Forum Posts by: Andrew Hogan

Hey @Peter Hamilton, congrats on your success thus far. 

As with anyone posting publicly that they have a good amount of cash to invest, I wish you luck sorting through multitudes of DMs for the next year :

I'd recommend you speak with a real estate / private equity friendly financial advisor first. They can help you to see things that you may not have considered previously and recommend how much equity to keep in the primary residence. 

I've seen investors who prefer taking out a new 30-yr mortgage vs a HELOC or Cash-out refi. Why? It mitigates their risk and prevents the bank from changing their loan from something comfortable like a 5 yr I/O to "principal due now or we take your property" like we saw in 2008/09.

Regarding "jumping into multifamily in order to get better returns", what many investors have found is that they can get greater returns with less risk the larger multifamily deal(s) they can buy and spread their chips across. As I'm sure you're already aware, there will be much fewer head aches with nicer, newer properties vs run-down deals with more deferred maintenance. 

With the above in mind, 2000's or newer, 150+ units in desirable locations are the way to go. If your 1M can't get you there yet, raise the money or partner with somebody who can. 

Another point to think about is that if you can 2-3x your 1M in the next 5 yrs, that could enable you to buy a 10MM property by yourself. It just depends on how hands-on and active with the day to day you'd like to ultimately be. 

good luck!

Great points above. 

Solid operators should have an acquisitions team that is disciplined enough to throw away 200+ potential deals in to the garbage bin before they pull the trigger on a GREAT deal that is worthy enough to present to LPs. 

Less likely to get "lucky" in 2023.

Disposable income decreases significantly during market downturns so choose wisely.

Now more than ever, investors should be looking for necessities, not nice to haves.

@David Lund Primary financial goal is to sell my STR and invest all the proceeds into BAM's next Fund!

Such a great acquisition! Honored to part of such a high-quality team :)

@Puett Willcox Syndications let you spread that across hundreds or even 1,000+ doors with an experienced team!

All the best

@Owen J Titus with the right or the left foot.

Doesn't really matter which one as long as it's a step in the right direction :)

Hi @R Durney, there are a lot of other threads that go over this. Keep in mind that you are underwriting the sponsor / team / track record first, and specific deals second. (or search for a good Jockey before you look at horses)

Many groups are just capital aggregators (not saying they are all bad), but many investors prefer groups that are vertically integrated and have in-house management in order to maintain control over their own deals.

Happy hunting!

 I like that. Just might be tricky paying out "additional compensations" in one-year arrears. (long time until they see the first meaningful bonus). 

Hey bud, I'd recommend searching on LinkedIn for some small fish in a really big pond at some of the larger companies. 

Someone who's had lots of reps already but are hungry and eager to make something grow. 

That's where BAM scored several early employees that have been crucial to the team's success and are now an integral part of the executive team.

Specifically for compensation, as you know it's pretty common for underwriters to end up getting a piece of the acquisition fee if the deal comes to fruition. You just need to have someone else on defense to ensure they aren't stretching numbers to get a commission :)

Good luck!