All Forum Posts by: John Sayers

Mr Rolfe is the expert. Good info!

Seems, if I read it right... one would have to significantly get lot rent up by adding value that others have not achieved in the same area (IF even currently possible), and/or get local construction costs waaayy down, in order to make it work for that use, at this time.

The Waco property is not showing that they own it.
Maybe a JV with the Chamber/Waco Industrial Foundation/EDC groups exists?
Maybe they have a purchase option on the dirt?
No local announcement found that made news on a new manufacturing agreement. The chamber seems to announce them here:  https://wacochamber.com/catego...
A lot more questions than answers.

Originally posted by @Neil Narayan:

I think it may be a good time for these companies to grab commercial space at a good price with WFH going on right now

For sure if one needs it, it's not a bad time to grab some. They should know their long term planning needs, and can adjust/hedge for WFH.

Some one local like Matt and @Lexi Teifke  may be able to shed light on that area.

Originally posted by @Isaac Allen:

As a follow-up, I did end up using a version of this strategy in my last investment acquisition. 

... but effectively that's exactly what it did since I got $20k in an account that I had access to at closing and I was going to spend $20k+ on rehabbing the property anyway.

 
Thanks for the follow-up!

Originally posted by @Hayden Wright:

... inviting investors to be on a podcast is a great way to provide value to them and build strong relationships.

...

I sincerely appreciate any and all responses!

If you can bring unique and different value, go for it!

On this one note, besides value to the interviewee and host, what additional value does it bring to a potential subscriber already navigating the soup of RE investing podcasts? What unique value does the new PC plan to bring the audience? What is the target audience? Local, regional, national? Thing to ponder as one builds a PC.

I do find some stand out and bring value even if they had no guests, while others just follow the daisy-chain of rotating the investors that are out on the circuit. Some promoting more than value-adding.

"What do you look for when investing your money into an apartment deal?"
Right market for me, deal size not too small, class desired, business plan and assumptions, payout structure, fees, financing, operator that is seasoned and sees LPs as more than ATM, etc.

"What do you look for in your returns?"
LPs need to comprehend the GP loss risk picture; it can often be lower than is usually inferred and LP should seek better alignments and transparency first. Better transparency of analyzer inputs and outputs. Returns generally seem dialed in to trim LP more than GP. Same way I saw banking work. If you can find one that is more equitable and transparent in adjustments of the deal flow components, they may tend to care more for all partners, so keep them close.

"Do you diversify syndicators?"  Yes

"Do you like them to be owner operators as well?"
When GP owns a professional PM entity it can/should help sync property goals and boost all processes. A bad PM (owner or 3rd party) is a massive issue! Not a fan of owner/operator in the mom/pop sense. LPs should note that a GP owned PM entity has also created another GP income stream on day 1. Same for Construction Co etc. Not bad nor good. Assuming competitive (or superior) billing and skills, it's just not an issue on negatively impacting deal returns. Alternately, the owner attention, if spread over multiple service entities, should be buffered by skilled staff or the deals become a numbers only process. Some teams are edging closer and closer to the same Wall Street methods/ideals that some are seeking to avoid.

"Value or Yield?" - Mix that readjusts over time.

Thanks David for the updates.

Originally posted by @Reginald Ross:

@Tushar P.

This is why my syndications only charge acquisition fees and asset management fees. It lets my investors know I work hard for the pot of gold at the end of the rainbow which benefits everyone.

The waterfall structures, capital transaction fees, etc only nickel and dime L.P.’s.

My philosophy is if the L.P.‘s make money on my deals, they are more inclined to invest in future deals and the money making cycle continues...for all of us.

Simple structure is a good model overall. Complicating with multi-layer waterfalls can sometimes be seen by some as maybe squeezing an average deal to make the numbers work. Not always. Still, if a deal only works with multiple layers, tiers and formulas, it's maybe not that good a deal, if risk adjusted.

Similar to Mr Burke, some red flags instantly went off for me. It could be a super rare deal or a Vegas style of investment model. Return numbers mean nothing to me without factoring in the many risk considerations. Sometimes chunks of gold are uncovered; being able to discern gold from pyrite should be a key prerequisite skill before investing in the venture though. Caution is a good thing.