All Forum Posts by: Foti Karastamatis

Quote from @Nicholas L.:

@Brittany Barchalk

there are various platforms that are syndication-like and I believe don't require accreditation.  Fundrise, Arrived Homes, or even just publicly traded REITs.  

disclaimer: i have a non-trivial amount in Starwood and a couple other REITs.  they pay high dividends.  i haven't invested in anything like Fundrise that isn't publicly traded.

but just curious - as someone starting out, what about this appeals to you?  to me syndication makes the most sense as a diversification strategy.

 Have you seen what is happening to Starwood and Blackrock? 

Give them the real reason you are moving and if they don't like it, switch lenders. They either want your business or they don't. I quit begging people to take my money and it feels way better. They need you more than you need them. There are hundreds of lenders, brokers, credit unions, even hard money... that's really not that hard compared to todays interest rates. Use hard money to seal the deal the refi a few months after you move in. If the deal is worth doing, hard money can get it done. Would you lose a deal over a few thousand dollars? If so, maybe its not the right deal. Hard money can be the difference of making the deal or not. Just my humble opinion. Best of luck and let us know what happens.

Where to start.... I would not buy anything in Ca. Born and raised there but left 18 years ago. CA is very tenant friendly. I would invest in RED states because they tend to be more owner friendly. $1M could buy you $3-$4M with leverage a few months ago but $2.5-$3m should still be attainable today in MF. Do the research on the state or the syndication you are interested in. I would spread it around in multiple deals. Remember, you don't need to, or should, go at it alone. Partner with someone that can help you grow. Join a mastermind group like Grant Cardone, Rod Khlief, Brad Sumrock etc. Be careful of REIT's... look up Blackrock for current examples of what not to invest in. Best of Luck...

Quote from @Marc Warren:

@Brian Burke - The reason I'm looking is because the offerings I'm seeing from the sponsors I know, are not nearly as compelling as they were a couple of years ago.  I wasn't sure if the market has changed, or if they just haven't found good opportunities.

The market has changed substantially! Cap Rates and Interest Rates are way too far apart, the wrong way. For instance, a 4 cap property in Fl back in April when interest was, say 3%, was selling substantially higher than that same 4 cap property with 7% interest rate. In April, you could put 30% down with 70% debt at a 1.20 to 1.25 DCR or DSCR (debt service coverage ratio). Now it takes,(I've seen many) 50%+ equity down and a DCR of 1.42. The deals are still out there but its not like it was 2-3 years ago with the super low interest rates. True market sellers will sell because they have to and the market will determine the price. The investors demand their money back at the end of the investment period they signed up for. The ones getting hurt are the one that used an ARM with high LTV instead of fixed or I/O for 3 years and now have to refi or sell because a balloon payment is nearing.

I'm interested. I'll be in the area possibly tomorrow, looking at MF assets. If you have something, let me know.

It's always a good time to invest. "The sky is falling" all the time depending who you believe. Make sure your UW is solid and you are working with a great team. 

Quote from @Michael Di Giovanni:

What is GP? 

Syndications have GP (general partners) and LP (limited partners). Limited partners are equity investors and silent partners whereas the GP team finds, manages,  uses thier net worth to procure the debt, etc.

Quote from @Keith Miller:

To answer the questions above, I'm focused on apartments with more than five units from now on. I'll check out Hands Off Investor, as well as Grant Cardone! I am probably thinking too small with a fiveplex, as I really would like to scale into larger multifamilies in the long. I'm just focused on building a strong foundation of knowledge and execution of rehabbing and improving multifamily properties. My partner and I have not taken outside capital yet, and want to make sure we are well prepared before we do. 

 Look for a strong GP team to get in with. Either bring them the deal or invest in theirs. Determine what you can bring to the deal that will make you a valuable member. For instance, you can be boots on the ground or raise equity etc.  Either way, I would rather own part of 200 units than part of 5 units. It also helps if  you are in a mastermind group. PROXIMITY is everything because your network is your net worth. Surround yourself with like minded people.

Quote from @Keith Miller:

Hello,

I'm looking for books on Multifamily investing and development that you would recommend. I've read Multifamily Millionaire multiple times, along with a few other books. To give you a better sense of my situation, I've converted a few houses into small multifamily properties, and am closing on a five plex with a partner in five days. I am looking to expand my knowledge base about multifamily investing and development, so that I can buy more and larger multifamily properties. Any books that you found useful would be appreciated! 

Thank you for your help! 

@Brent Maier

 Anything and everything real estate related by Grant Cardone. If your buying 5 units at a time, your thinking too small. I did the same for years. Go big, or go bigger. You are already using partners, why not use more to get into bigger properties? Its the same work but it costs less per unit to purchase and operate larger properties. 

Quote from @AJ Singh:

@Eagle Yeh

38127 is a tough zipcode. i would leave it to the local investors . The only reason you are getting a bite at this is no one local wants it. There are slim pickings in value add or wholesale plays nowadays. 

Try to buy in better suburbs like Cordova, Bartlett, collierville, Southaven, Olive Branch etc. these are great neighborhoods for equity and cash flow. you should be able to get a starter house in 150k to 175k and yielding 1300 to $1500 a month. rents have shot up in good neighborhoods of memphis over the last 3 years.

Look into joining (MIG) Memphis Investors Group. Nonprofit with 350+ members from all over the country. Lots of great local info. Monthly zoom meetings and weekly "lunch with the pros" calls. I live in Collierville. Fantastic town.