All Forum Posts by: Ian Tudor

@Alec McGinn - Just remember what you want at the end of the day. It's good to get motivation and inspiration from others. But ask yourself what are you going to achieve with real estate? What will make you happy? 

If you want to buy real estate so you can travel the world with your family, don't go big. 

Big has a large amount of benefits but comes with a lot of downsizes that you have to want. Raising large amount of capital can be stressful. Answering to needy capital partners can be stressful. Working 12-14 hour days can be stressful. If that sounds exciting then I would definitely chase larger opportunities. 

Reverse engineer what you want and work from there. Most people I speak to don't actually want to get big, they want freedom of time. Getting big doesn't always provide that.

@Kaydn Jensen - Patience. Real estate is a get rich slow game. So many new investors want 10,000 units in 5 years. Real estate isn't difficult but there are many nuisances to any niche. 

Slow, steady progress every day. And if the opportunity strikes, be ready to act. I've many investors who do all the education in the world but they only have one investor to call when an opportunity arises. And they don't close deals because of it. Network heavily especially if you don't have a lot of capital. 

@Andres Aguero - It depends on your goals. Reverse engineer what you want and work towards that. If you want to get F U money ($10mm networth & up) in a reasonable amount of time, you will need volume and capital partners. Very few people achieve because it isn't easy to do. The beauty of real estate is leverage and the money multiplier, not only in terms of debt but also in equity. Once you get into larger deals, you can promote and multiply in ways you don't usually get with smaller rental houses. 

Also, the market can affect how many deals you do in certain economic cycle. 

From the last three years in the business I have learned it as a real estate business entrepreneur, it takes deal velocity (speed/number of deals) and piggybacking off other people's money. That's when the business gets fun and where the bigger payouts exist. 

Again, you have to decide what you want. More money and deals doesn't always lead to a happier life. 

Does anyone have experience building waterfall real estate models? 

I'm putting together a deal that includes a preferred return and split. It's a simple structure - 8 preferred, 75/25 split. 

However before I circulate to my partner, I want to reach out to see if seasoned eyes could look over it to make sure I wasn't missing anything. 

If you have experience with waterfalls and wouldn't mind looking over what I put together, I would appreciate it. 

Thanks,

Ian

@Destiny Prince - It is always easier to talk to potential partners when you have a live deal. People struggle when one talks theory; in today's market, deals are harder to come by. If you have a live deal, everyone will take you more seriously. 

@Asia Cyprien - If you find that you are very interested go work with a firm that has a lot of deal volume. It helps bring  you up to speed quicker. 

@Steve Sun - I like where you are thinking but there really isn't an answer. There are deals to be found in a lot of markets. I like the macro trends of the Southeast because business and people are moving there. However, thousands of people know this and are buying in the area. Start wide in your search. The question you are asking is looking to oversimplify a very complex and dynamic economic system. 

@Joshua Rodriguez - I'd pick location first, then determine what return you would want that will help you determine your size. Start with what you want to accomplish with your first deal and work backwards.
 

Also, it depends on how you plan to manage them. Several people consider real estate as a mailbox money business. It takes a lot of WORK to find, close, and operate deals even if you outsource some of it. 

@Jason Ray Richardson - There are lots of good resources out there that can help you learn about the mobile home park industry. I hope Brandon delivers some content. 

Ryan Narus puts out a monthly podcast from his front lines view of the industry. He works deeply in operations and offers a no BS view of the industry. 

https://itunes.apple.com/us/podcast/mobile-home-pa...

Also, Kevin Bupp and Jefferson Lilly put out podcast as well. They offer a more general view of being an investor and operator. 

Lastly, Frank and Dave put out a lot of interview and educational information about mobile home parks. They are considered the founding fathers of widespread mobile home park education. 

Hope this helps..

@Matt Friede - Love to see you are in the neighborhood. My business partner and I own close to 140 mobile home units in Spartanburg County. We eye Greenville as well. We both enjoy disc golf as well. Maybe we can catch up when we are both in town. I visit a couple times of month.