All Forum Posts by: Louis Gilliam

@Roni E. thanks for the information.

@Haydn Zeis appreciate the article. I just read through it, very helpful to get a real life perspective.

@Greg Dickerson I was reviewing a recent article Michael Blank wrote discussing the possible returns an LP could receive if they snowball their returns into recurring deals. His example discussed returns in the 20-25% range after about 8 years/8 properties and putting 50K a year into a new deal. Based on your experience is this something you've seen? I enjoy listening to the MB podcast, but I'm curious how accurate his calculations are for a passive investor. 

Hello BP community,

I'm just starting to dive into the RE investing world. As I'm learning and discovering what my "niche" will be I've really become interested in MFH. In this space I know there are active and passive investors. If there is anyone who as been on both sides of the coin in this arena (as an LP in one deal and a sponsor in a different deal) could you describe your experience from each perspective? Was there one side you preferred over the other and why? Additionally, could you provide "typical" ROI from each side? I'm curious to know how substantial are the returns as the sponsor/GP vs as an LP when the deal is through. From what I've learned the sponsor makes considerably more and that seems understandable to me since they are doing much of the legwork throughout the project. As a "hypothetical" LP, I tend to lean more conservatively in my investing. So I would likely look at a 5 year plan with a preferred rate of 8% (or lower for a higher equity) and a refi with a sale for an overall target of 20-25% annual ROI after the sell. My objective is build equity over cash flow in a deal.

Thanks for the input!

Louis