All Forum Posts by: Leslie Ray

Hoping people smarter than me can shed some light on these questions....

So, there's a lot of competition in the Multi Family Space and people are buying properties where the numbers DO NOT MAKE SENSE because either .....

A. They are fund managers from Wall Street and get paid points on the front end and asset mgmt fees. 

B. They are new investors and do not know how to properly underwrite or simply do not care because they are looking to get a acquisition fee and hoping it woks out...

So the idea is ... when the recession hits, it will cause rents to shift and the people who over payed for their property will lose the property because they will either have to cover the difference in their debt service each month or may need to come to the table with more money for DP for the new DSCR. Which they most likely won't be able to do. So they will let them go back to the banks? Where does Wall Street Money go after that?

So Im assuming you want to start building relationships with bank Asset Managers now and raising money now .......but..... what would you do if you've haven't done a multi family deal yet? 

 Why would you get the deal (when recession hits) over all the other syndicators who have been in the business longer, who have more money and is  just waiting on the sidelines? How do you get any kind of track record started right now if every deal seems to be over priced? 

Is there a play for new people who want to get into Multi Family who do not  want to buy a crap deal right now?

Looking for a Female Multi Family Investor Mentor. Would love recommendations! My business partner and I have both been in Real Estate Flipping SFH since 2012 and own businesses in CA. We are wanting to transition to Multi Family and have taken courses and started down the path to find a deal and have come across a lot of push back on our offers based on our underwriting. Most recent thing we were called by a broker is "bottom feeders".... we'd like to learn from a female (since we are both female) how to navigate these conversations and how to look at creative ways to do deals since they seem to be so hard to acquire right now or simply dont make sense. Basically, someone to show us what/ if we are doing something wrong, what are we missing or is this just where we are at in the cycle.

We're not attached to multi family only. We're open to looking at other asset classes as well ( commercial, self storage etc ) 

Thank you @Paul Choi. Will look into that

@Ryan Rominger do you deal with Multi Family?

Thanks to you all for replying. An attorney had recommended to us the above structure with the multiple LLC's. I guess they were thinking for protection purposes? The property would be located in a different state from California and Wyoming. It seemed a little excessive to us as well. We are scheduled to speak with a different attorney this upcoming week. Personally, I want to keep it as simple as possible with also having the necessary protection.

Let me preface this by saying, we have an appointment with an attorney to ask these questions as well but wanted to reach out to the group for your thoughts/ suggestions...... My partner and I have been thinking about how to structure our partnership to purchase Multi Family Buildings and have been told that we need to each have a California LLC (holding company) and Wyoming LLC operating under the California LLC. Would we need to create another Wyoming LLC to take ownership of the property we purchase and we use our individual Wyoming LLC's to be the partners in that deal? Also, if we are creating a website for credibility purposes together, what entity should we have own that site? Thank you so much to ANYONE who answers this......

@Ryan Dossey, to get the sellers ph #.... I know you can skip trace but is there another easy. I'm out of state from the MSA I'm targeting. I was thinking googling the prop address to see if they happen to have a website....