All Forum Posts by: Hari Mann

Post title is inspired by a book I read by by Gary W. Keller and Jay Papasan. I love educational books like this and a bunch of others that really give me energy to tackle my goals and hustle hard towards my big why (shoutout to Simon Sinek).

Right now I feel like my company is on the verge of a huge transformation and a big "level-up" event: successfully offering our first large commercial residential investment as a syndication or partnership/joint venture. We've spent the last ~2 years taking stock of our experience, supplementing our knowledge through bootcamps, research, and mentorship (thanks DeRosa Group Accelerator!), and  developing our internal assets and processes so we can feel confident in our ability to deliver on our promises to future investors.

Now that we're here, we're ready to execute and are chomping at the bit to deploy some capital in a ripe and growing market statistical area. We chose Kansas City and I'd be happy to share all the reasons why with you - message me here if you're interested!

The last piece of our puzzle is finding the right money partners to work with. We naturally started with our personal circle of family and friends who have witnessed our journey from the beginning, we have also begun posting blogs on LinkedIn and our website, we've created a CRM database of all the potential investors we have met in our network, and are soon releasing our first recurring email newsletter for our subscribers.

The frustrating part of all this is that it feels like I'm pushing a rock up a hill that just won't make any progress. It feels like we're just spinning, working on developing our marketing materials and refining our processes like a car revving it's engine in park. I tend to think of things very tactically and I don't enjoy things that don't result in tangible progress. However, in the game of investor relations, and in any game that is based upon actual human trust and relationships, progress is not linear. Knowing and reminding myself of this when I start to feel like I'm not generating results has helped me keep my sanity. Also to the handful of people I have been sending test messages to, thank you so much for letting me blow up your inboxes :)

Does anyone have any recommendations for things I can do to help make this journey to finding a solid pipeline of investor partners click faster? 

I'm curious to hear about when your business went from being funded by your friends and family to being funded by your broader professional network. 

Cheers, best of luck, and happy real estate investing!

I have had good experiences with LimaOne and LendingOne. I guess they are not the same company even though their names are so close lol

Throwing my opinion into the ring here. My thoughts are summed up by the concept of dollar cost averaging (DCA). I try to build by portfolio with BRRRR positive revenue deals regardless of what the market condition at the time is. Naturally, this is easier/harder depending on the market we are in but overall seeking for deals of this nature and accumulating assets in the long term is my modus operandi.

Who's Stopping Me by Big Sean

This song (and actually a lot of Big Sean songs) motivate the hell out of me!

Update: I've been improving the units as tenants leave, increasing rent, evicting bad tenants, and decreasing expenses. Cash flow and thus valuation should increase significantly and I'm expecting to see that begin to bear fruit in the first few months of 2021.

I've discovered that the valuation of each individual condo and the low percentage of owner-occupants means that these units are not freddie mac warrantable so I'm looking for creative financing ideas or independent investors to work with.

Thoughts and ideas are appreciated!

Hey everyone, I bought the house back in February right before COVID hit the fan. So far so great in terms of cash flow but one unit went vacant in October, has been renovated and currently posted for rent. The big issue I encountered here was something I should have prepared better for but luckily did not bankrupt me. I was not prepared prior to the closing with home insurance (I should have known better but experience is a damn good teacher and I will not be forgetting this lesson ever) so when I was made aware of the lender requirement for insurance, I had to scramble to arrange it. The insurance inspection came after the closing which I thought was no problem because the house was inspected by the appraiser, repairs were ordered during the negotiation period, and I thought all the issues were taken care of. The insurance inspection came back with a few small safety issues with the siding and some mortar around the chimney but the big unforeseen problem was the decrepit rotting garage in the back yard. The garage was made of brick and wood and the wood was very soggy. The roof was caving in and the garage was basically unusable. The insurance company saw this as a big hazard and told me I had to demolish it which ended up costing me almost 15% of the deal! Needless to say, I'm happy I had some cash reserves. I was always planning to hold this property in perpetuity as a nest egg so the hit is annoying but should still be recovered over the years through cash flow. That and I'm hoping appreciation will occur.

Hey BP! My REI company has been lucky enough to experience growth these last few years and have recently closed on a purchase of 35 condo units in cash. After decreasing expenses, improving some of the units that need it, and maximizing rent potential, I plan to pursue a cash out refinance.

What kind of lenders should I be searching for to finance this kind of deal?

Hi all. I'm hopping into this thread because I'm also interested in the numbers going into building a home on a lot in the northern VA area. I'm looking to buy a lot and work with a construction company to build a semi-custom home for my retiring parents that will hopefully also be a decent investment.

I invest in Florida from New York as well. My experience has varied greatly but if you have good people on the ground it makes things much easier. I have developed connections with realtors, contractors, property managers, and others just by taking a deal from purchase through to resale. If you're seriously interested in commercial properties, you should just google "best commercial real estate agent" in whatever area you're looking in, even if it's all of Florida. Just get on the horn and talk to like 5 people and I bet you'll see some interesting deals cross your desk.

@Katie Miller

My goal is to have 32 properties BRRRR'd or in the process of rehabbing by the end of 2020 generating at least $90k cash flow per year. In the first quarter so far, I've got 3 properties under contract and being renovated. Next quarter, I'll look to add 6 more, then another 12 in the 3rd and 4th quarters. This will allow me to have enough consistent, reliable income to go full time with investing in the following year. Then I will continue to systematize my BRRRR business while also investing in tax liens and deeds, commercial multifamily, and researching how to get into buying and selling small businesses.