All Forum Posts by: Sam Epperson

tell him to connect with the local investor meetup!

@Jon Schwartz I live here in bloomington, IN. I do think it's a great market to invest in. It's a tough one to get into, especially since a small minority of people own a majority of the properties. Are you interested in buying in a market like this soon? I certainly am, and am currently looking for more partners. Would you like to connect?

if you're the kind of person who prefers to earn the money needed by doing some worthwhile labor, I love the guys at www.sweatystartup.com.  Start a summer business, earn some money, pay for the license

Thanks Heath. That was my assumption too. @Brandon Turner's description of how he did his first deal says he got 24 units and paid the owner $2500/month to take control. Not really any other numbers discussed. My assumption is that the rents were more than $105/month/unit.

So that would make sense to offer the mortgage amount. 

With $500/unit rents, and 50% expenses, and a 1.25 DCR, that makes mortgage payment $200/unit/month. Then cash flow is $50/unit immediately?

Im having trouble finding this answer in search. When exercising the MLO, what are general terms offered? Do you offer full rent to the owner or more or less? Example: 10 units at $500/unit... Do you offer $5000/month? 

What happens if there's a vacancy immediately after purchase? Money out of your pocket?

How to immediately increase rents if you're full of long term tenants?

I'm just lost on the cashflow of the first few months. 

I'm following Jake and Gino's Credibility Book plan, where we decide on a specific strategy and focus on proving experience. This question is about how to fund our deals. My social and professional circles are quite small right now, as we've recently moved to a city where i know very few people. 

I want to buy small apartment buildings in the suburbs and small towns that are a-plenty in this area. I'm looking at 5-50 units. 

I'm going to build a relationship with a local community bank or credit union to fund the majority of the property (75-80%). I'm hoping to find owners willing to do seller financing on either the entirety of the rest of the loan (20-25%) or something like 10%. That leaves me with finding funding for the final 10% plus rehab costs.

How to fund this portion?

Do most beginning investors use a hard money lender? Do they do private money? I'm hoping to find something like a 10% interest-only loan for 2 years. Refinance after 2 years into a non-recourse loan, pay back the private money loan, and hold the property for cash flow for another 3+ years. 

My wife and I have committed about $10k to help with closing and up-front costs.

Am I in the right ballpark?

Those who have at least one syndication under their belt, how do you manage your deal? What are the most effective things you do to provide value? What shouldn't we waste time on? How do you handle communication with your syndication team?

@Josh Pitts stick with indianapolis and suburbs that are right next to it: Greenwood, Southport, Brownsburg, Mooresville, Plainfield, Avon, Noblesville,Fishers, etc etc. Bloomington has huge upside, but it's very competitive. There's already a shortage of housing down here, and plenty of investors. Bedford is much more affordable, but it's because there's so few people moving in. You don't need to look out of state simply because of your cash situation. If you're borrowing for a mortgage, what's the difference in borrowing for down payment help too? Go big, and go with what you know.

my main concern is with this specific course. Yes, I'm absolutely meeting with local investors and professionals to discuss my local market. With this Question, I'm wanting first-hand accounts from anyone who has taken it. Do you believe it adequately prepares someone to begin multifamily syndication? Do you believe there's more that needs to be addressed? What other topics would you begin studying to ensure you've got the right skills for syndication?

Has anyone gone through Michael Blank's Multifamily investing course? Does anyone have any feedback on the quality of material and the level of preparedness you get afterwards?

I've been reading the multifamily blogs, listening to podcasts, and doing analysis for months and months now. I'm ready to take the next step and get serious with this. My goal is to make my first multifamily purchase by November 1.

I'd like any opinions on whether or not "graduates" of the course feel they need any supplemental education or experience to get them ready to make their first multifamily purchase. 

I have not made any real estate purchases yet, this will be my first, and I'd like to start big and start right.