All Forum Posts by: Justin Moy

Cash flow, appreciation, debt paydown, and equity at refinance / sale 

I think it will be. Just like with all other types of assets now that are available to retail investors. REITs never used to exist but now there's a REIT for just about every niche and private investors can invest in just about anything through them. Private groups will always look to syndicate properties and I don't see why this would be any different!

 I wish I could answer that, we're not experts in the data center field at all but it's a new asset class that I think will boom according to the data. But what I've heard is access to water is huge for data centers so being close to a lake or river is a big factor for them.

I think investors are always 'buying' but it just depends on how many deals they're buying and how intently they're looking. 

I'm sure if your investor friend had a deal brought to them that fit their buy box and had the returns they're looking for...they'd buy it if they had the cash. 

But, it's a matter of competing at certain prices. I think multifamily right now is seeing too low of cap rates, at least for our buying strategy. 

So we're 'buying', but we're not making nearly as many offers as we have in the past.

 Of course! A syndication lets lots of investors pull their cash together to purchase a single larger asset. There is an operating team which does all the work and passive investors, called limited partners, who only put up cash and do not put in any work on the asset. I'll DM you as well

One of the great parts of real estate investing is all the niches and strategies you can invest in. Keeping track of asset classes and their cycles is huge for a passive investor to find success investing. In today’s episode, I’m going to go over the next asset class that I think will be the boom over the next few years.

An asset class is the type of property you invest in, multifamily is an asset class, self storage, short term rentals, office space, strip malls…all of these are different asset classes and all have their pros and cons.

Picking an asset class should be a mixture of your comfortability with that class, the opportunity, and the market cycle for that asset class.

The next big asset class I think we’ll start to see is data centers.

Data centers are projected to continue growing with the huge expansion of AI, in the last year alone demand shot up 61% for high end data centers and that’s just for the large companies, the Amazons, Facebooks, and Microsofts of the world.

That doesn’t include emerging companies or anybody else that needs data centers for non AI related ventures.

With supply chain issues data centers got enormously backed up, it was hard to get computer chips for cars let alone the extremely sophisticated computer chips and technology for running massive data centers.

As AI and emerging technologies continue to grow at an exponential rate this demand will continue to push, and will likely continue outgrowing supply and the ability to create new, modern data centers.

It’s an asset class we’re looking at and continuing to learn about and collect data on and it’s not something we’ve invested in yet, but I do think that could change as that industry becomes a bit more stable and predictable.

I would engage a lawyer to draft the documents for you and give it to them to sign. Also look at the timeline of the EMD being refundable.

 If you're already in the deal then I'd look at the operating agreement to see what it takes to 'fire' the GP team. Typically it requires gross negligence so it would be rare and you'd have to prove they outright neglected or purposefully did something unethical. 

It is pretty rare to be able to prove something like this but if the deal is going that poorly it's worth exploring

I think the first step is to walk through every inch of that building with a GC and get a completed list of everything else that is needed. Sounds like you've done a lot of the work already and if you're almost at the end of that rainbow it's likely worth it to finish it through. 

If you walk through and are finding a longer road than you're willing to travel down, then you can stop the work and start the process of selling it. 

That's what I'd do!

I believe (and seems confirmed by comments) Pace is a single family guy. I would choose someone who specializes in multifamily and does that all day everyday. 

One of the most important parts of a mentorship program in my opinion is the network you build there. I'd ask about networking events and groups they host, how can you make connections with other students, how available the coaches are to you, do the coaches participate in deals with their students (this should not be mandatory for the coaches to do, but I'd ask how common it is). 

I'd also suggest paying for a mentorship program as opposed to looking at free or discount options.