All Forum Posts by: Jessica Connor

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $448,000
Cash invested: $112,000

Duplex in Sacramento, CA that is 100% occupied. Have performed some light CapEx.

@Dan H. I'm investing in single family homes for rent (i.e, rent out the entire house). I'd love to go into commercial multifamily in the future though!

@Arthur Garcia are you interested in SFHs in Merced? I'm working in Merced right now. I'd love to connect if you're interested.

@Taylor L. I think that you have a really good point, this can be quite tricky and there's more details regarding the SEC regulations than was previously pointed out on this thread. Also you are correct Kim Lisa Taylor runs that website; as full disclosure I have not been her client or anything, I just found that since she is a member of the certain state bars and has experience in this area she should have a lot more knowledge than any of us in this area.

@Charese Allen @Anna Laud As Taylor alluded to, there are specific SEC regulations even for cases like this (where you are trying to do a friends & family pooling of funds), so I wanted to highlight that contacting a lawyer is the way to go and make sure to rely on a lawyer's guidance / advice rather than anything I previously mentioned.

Hi Chris, I think you would want to contact a syndication attorney to properly set up the syndication (i.e., collecting your non-accredited investors into the proper LLCs and such) (e.g., see content on this website: Syndication Attorneys) and then also talk to lenders as well. But probably better to have the syndication set up before talking to lenders, since you can read online about commercial financing requirements (these I think are more straightforward than setting up the syndication). Hope this helps!

Hi Charese! I totally agree with what Anna has said, she provided a lot of useful information. My friend and I have been thinking of the same thing, except we are out here in California. Basically when you get there, you'll want to get in touch with a "syndication attorney." One syndication attorney I know of has some good free information on her website that goes into more detail regarding the things Anna mentioned, see her website here: Syndication Attorneys PLLC 

If you'd like to chat more about this over the phone, etc. I'd be more than happy to. Feel free to send me a private message.

You were super close Shelby! To be frank, I think even getting a property in contract is quite an accomplishment itself! I think you definitely have what it takes to try again. Persistence is definitely the name of the game especially in Northern California. I would definitely focus on taking a breather and then figuring out what next action you can take (even if it's small) so that you can continue to move the ball forward, so that you don't get completely discouraged and give up. I've found both the Sacramento area interesting, along with Merced. I'd love to chat / connect with you if you're interested, feel free to message me!

@Matt Giacinto I am looking to acquire properties for buy & hold in Merced, but I don't have any properties to sell. Even so, I still think it would be great to connect! Feel free to send me a message!

Congrats David on improving this buy and hold, and then being able to exit. Definitely sounds like a lot of hard work and lessons along the way!

Hi Jessica! Hope you are doing well! Are you planning on looking at single family homes or multi-family apartments for investment? I have watched some webinars regarding financing and it seems like, especially in the case of commercial loans (5 apartments or more) they may require recourse / personal guarantee if you don't have experience with multi-family (experience with larger multi-family is preferred vs smaller multi-family). And if you are planning on financing a single family home, I am not sure if the lender will solely look to the potential rental income (if not owner-occupied) or if they will also want a personal guarantee too. Seems like if the lenders require recourse / personal guarantee, I wonder if they may be looking more closely at your W-2 employment income, especially if you don't have significant assets (e.g., do you have enough assets to sustain 12 months of principal & interest - something I hear they are looking more closely at especially with restrictions on evictions due to COVID). I haven't done any deals myself, but this is something I am also going to be looking very closely at myself before I leave my W-2 "day" job. 

Therefore, I suggest you call up lenders and start asking for what their criteria is to get approved so that you can make an informed decision about leaving your job. I am wondering what the answer is too, so if you find out anything please let me know!