All Forum Posts by: John Henry

Hi all. Just found out about @Justin Brown's meetup today through Ryan. I'm also an Allentown-focused investor, own 17 units and looking to buy more. Let's connect!

Hi there,

I'm currently in the middle of syndicating a 10 Unit property with my partner in Allentown, PA. I'm curious as to what the 'norms' are for these types of syndications, in your experience?

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Purchase Price: $675k

Equity Being Raised: $170k

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Is it typical for GPs to invest pro-rata alongside LPs and get a 20% carry on the back-end in the event of an exit? I was under the impression that GPs could get away with putting let's say 10% of the equity down, but actually retaining something like 35% of the equity for putting the deal together and doing all the work, etc.

PS. We're putting up anywhere from $25-35k, but ideally are staying in the lower range and raising the rest so we can be liquid enough for more deals.

What are your thoughts?

Thanks!

JH

@Nicole (Dunlap) Pendergrass - Seems like you know a good amount about the Bronx. I'm also on the hunt for a small 3-4 unit MF in the Bx.

Do you care to connect offline? Looking to meet as many people as possible in the space. 

Having such a hard time finding a great broker especially. One who invests, is positive, and likes to get deals done.

Anyway, would love to connect :)

Bumping this thread up. I'd be interested to participate.

I would look at Atlanta, Georgia, Chicago, and Philadelphia. All three are interesting markets with promising growth in the years to come and they're urban metro areas which I tend to like.

Each of these cities have sub-clusters in their peripheral that often times make for good low-cost but high-yield investment zones. I found myself a great area and recently put an offer in for what will be my first Multi Family (4 unit).

Good luck!

Hi all,

As I get closer and closer to making my first investment, I am inevitably faced with crunching more and more numbers. Which I find to be great fun!

My question for you is -- Do any of you have a spreadsheet template that you use to analyze potential properties for Excel or Google Sheets that you can share with me?

I would feel more comfortable using a template being used by active investors; as it's very likely that my analysis isn't thorough enough and I may be leaving small things out here and there that can be a deal-breaker!

Thank you guys so much for your continual support. Currently going through the loan pre-approval process :)

Warm Regards,

John Henry

I see that!

After doing some additional research and contemplating, I've decided to go for the FHA loan and make it my primary residence for a while. Even if it means commuting an extra 1.5hrs each way in the morning, it's really going to free up my capital reserve and allow me to take things slowly until I can ramp up.

Will keep you posted!

Thanks so much for the comments everyone... super helpful. :)

JH

Hi Everyone,

New investor here... yet to buy my first property (with roughly $50k cash available) but looking feverishly for my first deal.

If I've done my homework, then I know that good deals are hard to come by. So what gives? It seems like almost every deal I've seen is good enough. They all seem to cashflow (based on the numbers given)

What makes the difference between a good deal and a great deal? 

What method can I use to come up with a reasonable offer on a property I'm looking at? 

There must be some way to reverse-engineer the numbers so I can determine what the maximum number I'm willing to pay for a property is.

Thanks in advance!

JH

Thanks @Jeremy Hunter and @Allen Hayes

Allen, I see now how clarifying my goals is the real determining factor. I do intend to become a full-time real estate investor, but not at the moment since I'm having tremendous fun being a full-time Venture Capitalist.

Perhaps a low-key, low maintenance investment then is the right way to go for me at the moment then.

May I ask, Allen and Jeremy, what are the key numbers you look at in a property that indicates to you that it's a good deal.

For instance, is the ultimate consideration how much net-net income you'll have after servicing the mortage and all other expenses (regardless of how big or small the mortgage may be)?

Thanks for your time.

JH

@Mark Gallagher I'd like to get in on this as well. I'm also scouting deals in Allentown specifically.