All Forum Posts by: Kyle Kovats

 So I learned pretty quick that the far less expensive route is to just go to their weekend events that cost like $200 and you get the same network there as their $35K+ annual “mentorship”. The truth is, I’ve never heard of one that actually does mentorship, its mostly a “join my group and ill mentor you”. And then they never talk to you again and send you videos to watch of the same content they covered in the weekend event haha. 

@Derek Buescher does he have a course on asset mgmt specifically? Or is it on analyzing and underwriting for acquisition purposes?

@Shawn Mcenteer where is the meet up and when are they? And Ben, I grew up in Roseland and while now I do mostly apartment investing, would be happy to chat and see if there’s anything we can learn from each other

@Chad Childress good question. The adjustment won’t necessarily be to pref but rather acquisition price. There is definitely a little price discovery going on right now and a delta between seller/buyer expectations. It’ll be interesting to see how fast that gap closes when deals that are forced to sell due to maturity or rate cap expiration without sufficient reserves come to market.

7pref 70LP/30GP is fairly standard and could that change to 6 pref 70LP/30GP? Sure. But as a GP we underwrite to our investor expectations and if that is a 7% pref, it will be reflected in our offer to the seller.

Curious to hear from others what have been the best books you’ve read on asset mgmt and further the best courses you’ve taken. I will be taking the IREM asset mgmt course in the next few months and have read books such as finance and asset mgmt by fred prassas.

I currently am a GP on 4 assets but as always, I am always looking to try to pick up nuggets from others and see where we can improve our business. Any recommendations are appreciated!

Two answers we would need

1) where are rates in 12-18 months?

2) how many floating rate loans are coming due in 12-18 months who dont have reserves for rate caps

@Sydny Scarborough I passively invested as an LP is around 20 deals before first becoming a GP. I personally feel starting as an LP is the best route.

Find GP’s who are pretty transparent with things like monthly financials, monthly summaries of operations, etc. The insight you get from that alone is invaluable. As an LP I was invested in a deal that had a fire knock out one of the buildings. The GP was so open and transparent every step of the way with the different types of insurance that were essential, adjusters, replacement cost, debris removal, code upgrade, etc. It was incredibly valuable and helped me grow and become a GP

@Jason Baik awesome thread here Jason. Great stuff

@Jordan Santiago tough question but I’ll take a crack at it. I have invested millions as an LP and the #1 lesson by far I can share is that EVERY SINGLE DEAL will market “good” returns between 16-20% average annualized. Heres are a couple bits

- Don’t invest in the property, invest in the people running the deal. The people are sooooo much more important than the property. Find the right people and rest assure they’ll find the right property.

- When vetting GP’s before investing in their deals ask the following. 1) what are your two most recent deals? 2) how are they doing? 3) can I see the recording of your webinar when you were raising equity with your original projections? 4) can I see your most recent monthly reports/financials that you shared with your investors?

Hope that helps

 Thanks, Andrew! The compensation bit is the one I have the biggest question on as to your point, I want to have interests aligned. Which leads me to wanting a salaried individual whos additional compensation is specifically tied to meeting year 1 proforma. If that happens then transition them from salary to “commission” if that makes sense