All Forum Posts by: Rene Hosman

This weekend I was lucky enough to attend an MFIN - Multi Family Investor Network - conference here in Colorado and see BiggerPockets CEO @Scott Trench share the stage with @Ben Suttles and @Feras Moussa talking about the future of real estate investing, plus a number of other keynote presentations and informative breakout sessions. This was a conference for mostly private equity firms that raise money for and invest in large multi-family deals, and truthfully I felt a little out of my depth. I consider myself well-versed in real estate knowledge and business jargon, but syndications really have their own set of lingo - starting with the word "syndication" itself! So I was a bit nervous going into rooms with people who live and breathe multi family.

I went partially for my own knowledge, and to see Scott speak, but also because BiggerPockets has officially launched our new platform, PassivePockets, this week. PassivePockets is for those interested in truly passive real estate investing through syndication, so I needed to begin to educate myself more on this real estate investing road that I hadn't yet considered for myself.

Here's a few things I learned from MFIN that I think apply to the greater BP community

• Multi-family and large investors are in the SAME BOAT that we are in as small-time investors. Interest rates have been crushing, or at least compressing deals for them just like interest rates have been causing trouble for small investors like you and me. Some might take this as a sign to turn away from real estate investing right now but to me, I felt optimism actually. Large companies and equity firms obviously have more resources at their disposal than a small investor, but to me I couldn't help thinking about all of the tools and extra benefits we get as small investors. We get primary residence loans for <10% down, we have the power of creativity, and if we're planning smart - we also have the opportunity to ride the wave of interest rates because we're much less dependent on adjustable rate loans.

• If you want to get involved in syndications or passive real estate investing but you don't have enough in liquid cash for the minimum investment, you can use your retirement accounts like a self-direct IRA to do so! I consider myself fairly financially literate, and I had never considered this option. In my mind syndications were for later in my career when I had a lot of cash liquidity, my rationale was if I had 20-50k liquid at this point I'd just put it into my own deals. But I am actively saving for retirement, mostly invested in index funds, and I hadn't considered that I could use some of these retirement funds. I don't consider these funds liquid or available for REI usually because using that money for my own deals would require withdrawing it and paying penalties. But I can consider rolling some of my retirement accounts into a self-directed IRA and investing in syndications that way if I wanted, and still enjoy all the tax-free growth in my retirement account.

• Bonus depreciation is winding down, as many of us know. But did you know that if your rental was placed into service before 2022 that you can still recapture the tax benefits of 100% bonus depreciation if you do a cost segregation study? If you have no idea what I'm talking about when I say bonus depreciation or cost segregation study, here's a few good resources for you:

Cost Segregation overview blog post
Cost Segregation podcast episode
Bonus depreciation blog post

My questions for you all this week is related to syndication investing, I want to know - have you invested passively in a syndication before? How did weigh which of the many deals out there to invest in? What kind of due diligence did you do on the operator before you handed over your money?

If you haven't yet invested in a syndication, do you plan to? Is this something you're thinking about doing soon? Or something that you think you'll eventually move on to when your personal portfolio is where you want it to be? And if you haven't invested in a syndication before, what questions do you have for those who have experience with this kind of investing?

PS. A huge thank you Disrupt Equity team for hosting MFIN in the Rockies this past weekend!

Poll: Have you invested in a syndication before

Quote from @Jason Xenakis:

Quote from @Rene Hosman:

Quote from @Jason Xenakis:

Hey guys. New recruit here. I met my wife on Bumble. Online dating apps are all about the numbers. More swipes, more interactions, more dates. This gave me the opportunity to meet the girl of my dreams. How can I make my real estate investing game as efficient as Bumble? I don't want to scroll around Zillow and see something shiny and type the numbers in some calculator. This to me seems akin to going to a bar to pick up chicks. I want an analytic platform that updates in realtime when properties are listed with a multivariate analysis of each properties. What software should I look into? 

Hi Jason! This is exactly what we here at BP aim to help investors and soon-to-be investors with! We have worked really hard to build and provide tools so that there's a low barrier to entry (well, as low as it can be in Real Estate anyways) 

Here's my rec that could have you looking at dozens of pre-analyzed deals in less than an hour 
1. Start with our Market Finder tool and use it to look at different areas of the country that interest you, then really hone in on 1-3 markets you want to focus on. If this seems daunting then you can start with the Top 100 Cashflow Markets that we put together and just pick 1-3 markets from there. This is just for practice for now so the most important thing is just looking at the numbers to gain an understanding, don't put too much pressure on it at this point, it's a muscle you have to build by doing reps. 

2. Once you've identified markets you want to look into, head over to the on-market deal finder and start putting in zip codes you've identified and specify your personal requirements for investing. What this tool does is it takes active market data from the MLS and shows you the basics of the properties already analyzed for you. 

These tools are available to pro and you can test drive them with a free pro trial as well. If you have any questions about that - message me!

The best we can do is give you the tools to help analyze deals faster, from there real estate is so subjective and often "one mans trash is another mans treasure" so it's really about getting your brain used to looking at these numbers.

Once you know your market well enough, your brain IS this tool for you because you can look at a house when you're driving down the street and have that gut knowledge almost right away if it's in a good area, what price point you'd need to hit to break even, how many beds are desirable, etc!

 Thanks Rene. This was super helpful. 

 Happy to help, I'm here to assist the community so always feel free to PM me if you have questions too. I know we have a lot of great resources here at BP but sometimes the problem is we have so many resources it can be hard to find and access them all!

Quote from @Kenyatta Donley:

The registration site still isn't working properly. I am not able to log in and see my agenda and possibly make revisions if need be. 

 I messaged you to see if I can help troubleshoot this for you!

Quote from @Jason Xenakis:

Hey guys. New recruit here. I met my wife on Bumble. Online dating apps are all about the numbers. More swipes, more interactions, more dates. This gave me the opportunity to meet the girl of my dreams. How can I make my real estate investing game as efficient as Bumble? I don't want to scroll around Zillow and see something shiny and type the numbers in some calculator. This to me seems akin to going to a bar to pick up chicks. I want an analytic platform that updates in realtime when properties are listed with a multivariate analysis of each properties. What software should I look into? 

Hi Jason! This is exactly what we here at BP aim to help investors and soon-to-be investors with! We have worked really hard to build and provide tools so that there's a low barrier to entry (well, as low as it can be in Real Estate anyways) 

Here's my rec that could have you looking at dozens of pre-analyzed deals in less than an hour 
1. Start with our Market Finder tool and use it to look at different areas of the country that interest you, then really hone in on 1-3 markets you want to focus on. If this seems daunting then you can start with the Top 100 Cashflow Markets that we put together and just pick 1-3 markets from there. This is just for practice for now so the most important thing is just looking at the numbers to gain an understanding, don't put too much pressure on it at this point, it's a muscle you have to build by doing reps. 

2. Once you've identified markets you want to look into, head over to the on-market deal finder and start putting in zip codes you've identified and specify your personal requirements for investing. What this tool does is it takes active market data from the MLS and shows you the basics of the properties already analyzed for you. 

These tools are available to pro and you can test drive them with a free pro trial as well. If you have any questions about that - message me!

The best we can do is give you the tools to help analyze deals faster, from there real estate is so subjective and often "one mans trash is another mans treasure" so it's really about getting your brain used to looking at these numbers.

Once you know your market well enough, your brain IS this tool for you because you can look at a house when you're driving down the street and have that gut knowledge almost right away if it's in a good area, what price point you'd need to hit to break even, how many beds are desirable, etc!

Quote from @Dan H.:

Quote from @Brooke Andrea:

Does anyone know where next year will be?  I couldn't make this year unfortunately...

They usually announce the next year’s location at the closing session of the current BPCon.   I suspect this year will be the same, so look for next year’s location at the end of this year’s BPCon (so in just about a month from now).  

 
best wishes. 

 Dan is correct, thanks for pointing this out Dan. @Brooke Andrea - next year's location will be announced at the end of this year's conference - and I can tell you next year's location will be SO fun (and back in the US!)

Quote from @James Wilcox:

Quote from @Rene Hosman:

We're so excited to be hosting all of you at BPCON2024 in Cancun this Oct 6-8th! The best part of the BP community is that the fun doesn't start or end with BPCON with options to connect and learn year round - so let's start before we get to BPCON with a round of introductions. I'd love to learn about the following from all of you coming to BPCON

😁 Your Name
🧠 What would you consider your area of expertise - real estate related or not!
🙌 What are you most looking to get out of BPCON 2024
🤝 Fill in the blank: If I could make a great connection with someone who is an expert in _________ at BPCON2024 then I would leave BPCON happy
🗓️ What session are you most looking forward to? Reminder: here's the event schedule

Register now for BPCON 2024

James Wilcox with eXp Realty. Kentucky licensed agent. 

My area expertise is all investment real estate especially have a fondness for STR and MTR properties.

Looking forward to meeting new people from all over. 

Looking for an expert in campgrounds or RV parks. 

If anyone from KY is going to BPCon LMK. I am looking all Kentucky people together at the event. I did this last year and it was awesome. 

 Yesss! I also cannot wait for Heather's talk about outdoor hospitality!

Quote from @Ricardo Lemus:

Quote from @Rene Hosman:

Hi @Ricardo Lemus ! 

This is a great topic of discussion and ultimately I think depends on your goals and what metrics you personally try to maximize. 

The first question is of course, can you get a loan with less than 20% down - but I'll assume you can given that you're exploring both options.

I recently read Real Estate by the Numbers by J Scott & Dave Meyer (shameless plug it's available through the BP bookstore here) and in chapter 36 they discuss exactly this - that in some cases using more leverage can actually boost your returns and you should run the numbers both ways to see what makes sense for you. The TLDR is that if you can take the money you would have otherwise put in the property and invest it somewhere with higher returns then you could be better off doing it that way even if it means smaller or no monthly cashflow because money in your hand now is more valuable than the same money in the future. But that does not come without risk of course. And that is assuming that you can rent your property and at least break even even without a 20% downpayment - assuming it's a rental that you're talking about. 

 @Rene Hosman thanks a lot for all the Information you shared! 100% agreed with you about the "money in your hand now is more valuable than the same money in the future" and that's why every time I see and option to invest I'll go for it! I will talk to my credit union and see the options! 

Thanks again! Enjoy the weekend! 

 Please keep us updated and let us know what you decide to do and why because it's a super great learning experience for all of us to hear about!! 

@Peyton Culberson have you sent a written notice of the noise violation to this problem tenant yet? I would start with that ASAP so that the lease violation is documented. Does your lease specify a process/timeline/number of warnings regarding the noise ordinances? I'm a personal believer in always following your lease as closely as you can so you have a document to back you up

@Lisa Fortune it appears you are a "an asset based real estate lender" do you really not know the answer to this question?? Or are you just fishing for leads here, which would not be allowed...

Wow! Just from your one photo it has so much character! Do you have any more before/after photos you can share?