All Forum Posts by: Lennon Lee

 Definitely my friend.

As @Brian Burke mentioned, they participate in different ways in the commercial real estate space. They might go the direct ownership route if they have the infrastructure and the team in place or they might invest through syndications with experienced operators.

If you are interested in FOs I'd check out the Family Office Club in Key Biscayne. 

 Hi Daniel,

Welcome to BP! And I love that you love your job, too many people now a days not loving what they do.

You definitely came to the right place to get your education going and all of your questions answered by more experienced investors.

Not sure how active (or passive) you are looking to be with your real estate investing, or what strategies you are looking to pursue, but feel free to ask away and we'll be here to help you to the best of our abilities. I know I am.

Good luck! Happy investing!

 Mayer,

with your budget you really have many options and here on BP you'll be able to connect with people that can point you in the right direction.

I'm not sure how experienced you are in real estate or what your goals are. From your post I'll assume you have little experience with the strategy that you have in mind to pursue, which seems to be multifamily. At this point in the cycle (and at every point really) I'd be very cautious about jumping head first without having first defined your WHY, your goals, and your specific strategy within multifamily. (Maybe you already have a well defined why and goals, but I just wanted to remark that)

How active are you planning to be? Why are you nervous about investing outside of your home state? Will you be focusing on investing for cash flow or are you willing to make a bet on appreciation? (Notice how I said "bet"). Have you considered investing in a syndication in a larger deal with an experienced operator? How about looking at other niches like self storage or mobile home parks? If you already own some rentals why not continue to do what you know? etc.

As you can see, the questions are numerous before anyone of us can give you some real advice on how to proceed with your investment. Whoever starts answering your questions right away and telling you what to do without really knowing your, why, goals, risk tolerance, etc is just really being irresponsible.

I really wanted to put that out there first. So now that I've said that, I'll encourage you to keep educating yourself on the many different options you really have (beyond multifamily even), one of which might be to sit on the sidelines and wait for a downturn and then take advantage of the "crisis".

As you answer those questions to yourself keep coming back with questions and we'll be happy to advise you to the best of our abilities. Feel free to shoot me a DM as well if you want to chat further.

In any case, good luck and happy investing!

 Here is the link:

In this ocassion we'll be having a conversation with Ryan Hegarty. Ryan is a VP, Private Client Associate at U.S. Trust, Bank of America's private wealth management arm.

Ryan leads a team of experts, assisting institutions and highly successful individuals and their families with achieving their goals through a truly unique suite of services. These services include, but are not limited to, Portfolio Management, Wealth & Tax Planning, Philanthropic Planning, Trust & Estate Planning and Custom Commercial Real Estate Financing.

We'll be talking about how these high net worth families approach their real estate investments, how it all ties to their wealth planning and tax strategies, and what we can learn from them.

This time around we'll be meeting at the amazing WeWork Security Building (Downtown Miami) on Tuesday, May 1st at 6 PM.

It'll be a fun evening of knowledge sharing and quality networking with new and experienced multifamily investors, so you can't miss it!

The nearest parking garage is College Station Garage and it's only $5 after 6 PM.

WEWORK REQUIERES THAT GUESTS CHECK IN WITH A PHOTO ID.

TICKETS WILL BE $20 AT THE DOOR. (ONLY CASH)

 We still like San Antonio. In fact we are closing tomorrow on a 253-unit multifamily property in the Vance Jackson area.

San Antonio has been significantly increasing in population and  income is still raising which is allowing renters to move up to better quality Class-B apartments, which is where we are investing. We also believe the planned redevelopment of downtown will continue to attract millennials  to the city.

Wouldn't see San Antonio as an explosive market to be in but definitely more like a slow and steady growing city, which is also a good thing in my opinion.

 Hi Nick,

First and foremost, you should be talking to an SEC attorney for advise on this matter. 

The answer to your question is: It depends. 

Yes, the way you approach investors, how you market your deals to them, and the type of investors you can bring into a syndication depends on the route you want to take. Under rule 506(b) of Reg D, for instance, you can only market your deals to accredited investors (and some sophisticated investors) that you have a pre-existing relationship with, where as under 506(c) you can go ahead and publicly advertise your investment opportunity to accredited investors. Both have pros and cons, so at the end of the day only you can assess those benefits and challenges according to your goals and those of your potential investors.

If you haven't built a network of investors yet and you are expecting to syndicate a deal, you're probably going to have to partner up with someone that has that network of investors that have been primed and educated in the model and the investment strategy already. Forget about what they say about "If it's a good deal the money will come".  While that is "possible", believe me it is not "probable".

Continue to ask questions here on BP, read as many books as possible, and listen to several hundred hours of podcast on real estate syndication. Yes, analysis paralysis is something you don't want to fall into, but it will be way worse to jump into a syndication deal without the proper education, a good team in place, and a solid network of investors that are ready when you are.

good luck!

Glenn,

@Joel Owens pretty much gave you perfect advise.

My only 2 cents here would be to reinforce the timing issue. At whatever point in the cycle ground up development is the most risky and therefore always offers some of the best returns, but that being said, at this particular point in the cycle I would encourage you to spend a lot of time assessing the risks and downsides on this potential development opportunity.

I would tell this to everyone, but in your particular case you seem to be starting off and lack the experience that is definitely needed to take on a development project at the top of the market. 

Definitely go ahead and get together with an experienced multifamily developer in your area so you can truly understand the ins and out of what you would be getting into and potentially partner up with him/them if you decide to move forward.

I'm not a developer nor do I have experience in ground up developing so I can help you further, but I hope this helps.

Good luck!

@Gregg S. I would say shoot for the syndication model from the beginning even if that means that you have to spend a bit more time raising more money in order for it to make financial sense ($15K + for PPM, etc). 

From what you say on your post it looks like the investors will be totally passive and expecting a financial return on their investment, it doesn't really matter if they are F&F for the purpose of being in the securities world and therefore regulated by SEC.

@Sam Bates answer was very much on point, I also believe that it also shows that you are serious about your business and looking to build not only a long term investment business but also long term relationships with your investors.

Good luck!

 That is correct Matt.

And Jeff's answer to your initial question was right on point.

Good luck!