All Forum Posts by: Jeffrey Donis

I know I’m aiming high here after only owning 1 residential property, which I am Airbnb’ing right now, but a friend of mine in commercial real estate with 10 years of experience and I are teaming up to buy a commercial property in the Phoenix area. We’re looking at 10+ units and want to structure it so we’re the LPs and we pitch to investors to be the GPs. Yes I know it’s ruthlessly competitive, yes I know it’s a relationship business, and there are tons of all cash buyers coming from California with $3-$4M so my question is how can I develop a competitive advantage here? I’m working with a broker now whose sending me off market deals who has relationships so I’m starting there! But I want to know what I don’t know here. What should I know before pursuing this venture? What are your top 5 do’s and don’ts (autocorrected to donuts which I’ll take too)? How can I ensure a successful deal? I have the excel tools already but want to learn how others are valuing a deal too.

Here are some of my favorite podcasts to listen to-

The Best Ever Podcast

The Michael Blank Podcast

Multifamily Takeoff

The Multifamily Wealth Podcast

The Real Estate Syndication Show

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Originally posted by @Aaron W.:

@David Lee Congrats on owning a 4 plex!

Right now is a good opportunity to sell, but if it is not something you've lived in as a primary home, then you'll want to take into account the potential capital gains taxes by selling. Although it will be lower rate (probably 15% of the gain) since you've held on to the investment long-term, but it will still take a bite into the gains. Another option is to do a 1031 exchange into a new property, but there are strict rules on how the proceeds are transferred and dates to identify and close on the property. A less discussed option is to invest in an opportunity zone.

How much more effort will it take to manage the property efficiently and maximize the value? If you want to be passive, then ensure you build in costs for property management.

Before determining if you should sell or keep, make sure you know your why in investing and what goals you need to accomplish your why. Are you investing for cash flow or appreciation? Do you want the cash flow now or can it wait? What is your appetite for rehab?

Good luck!

Great points!

I agree on finding out why you are investing in real estate in the first place. By knowing your purpose/goal, deciding on whether or not to sell or hold onto a property comes down to whether or not it brings you closer to your ultimate goal.

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Originally posted by @Lohith Etamsetti:

Thanks @Jeffrey Donis

Would love to connect for further questions.

Sounds good!

Send me as message with any and all questions!

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Hey Francine!

I am out of NC, however, I would love to connect! If you ever have any questions or concerns regarding the NC market feel free to reach out!

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I also believe that you do not necessarily need to start small- the main thing is having a foundation of knowledge in whatever it is you want. If large multifamily is the end goal, then why not start learning and taking action on that now rather than later? If it is due to the funds you may or may not be able to qualify for, there are ways to get the funding without you having to be the one signing off on the loan. Syndication (pooling together of investors money), partnering up with someone else, or finding a loan guarantor whom is willing to gain something from the deal in exchange for leveraging their net worth + the liability of the loan. Of course, the first step is education as well as building the network. If you have and questions feel free to reach out!

Wish you the best!

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Hey Jacob! My brothers and I are in Durham NC and are in the multifamily space as well. Would love to connect!

We have been building relationships with brokers, building a team, and underwriting deals. We have also been building out our investor database. We are after 100+ units so it was important for us to find roles that we enjoy doing the most and focusing on that.

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Hey Lohith!

I live in Durham NC - The Durham/Chapel Hill + Raleigh, Charlotte MSA are all areas where prices are high (not impossible to find a good deal with preferable returns however likely, not to sure).

Some sub-markets we are considering are cities in between the major MSAs in NC- Between the Triad, Durham/Chapel Hill and Charlotte- places with growing population, job growth, steady rental increases, and other demographics that justify it being a good place to invest. Let me know if you have any more questions would love to connect!

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Originally posted by @Jordan Becker:

Thanks, @David Lilley and @Jeffrey Donis !

no problem!

Wish you the best of luck!

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It went well for us - it is fairly accurate and a lot cheaper than Co-star. Co-Star does have more information that is helpful that reonomy does not.

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All Forum Posts by: Jeffrey Donis

Jeffrey Donis has started 15 posts and replied 1176 times.

Post: Visiting The Triangle on Mar 6 - love to connect with locals

Post: Multifamily Investment 101

Post: Sell or Not multi-family

Post: Multifamily investments NC

Post: Newbie Looking for REI Networking in Houston

Post: A breakdown on building a portfolio

Post: Residential to Multifamily

Post: Multifamily investments NC

Post: Multifamily Financing and Depreciation

Post: Thoughts on using Reonomy