All Forum Posts by: Matthew Thurman

Hello all, 

I've been working with a great (expensive$$!) mentor learning Multi Family syndications. I've fallen in love with the commercial side of real estate, way easier to project returns, solid large business projects, ect ect.. Unfortunately for me, Life just hasn't gotten me to the point where I can really participate in syndications. I'm working hard at changing that, and hope to be raising money in the next 12 months for other peoples deals (South Florid is a competitive market and hard to find your own deals that make sense).

During this adventure, people around me have been very interested in learning about and investing in syndications. They are rightfully overwhelmed looking at spreadsheets, projections, ect by themselves. The mentorship i'm part of is a single level, 100% program. From newbie, to being a General Partner. Its very expensive, time consuming, and way too much of a program for people that just want to be knowledgeable Limit partners. 

Does anyone know of a parred down course/mentorship available that focuses on JUST being an LP. Perhaps a mentorship that has 2 levels, LP training and GP training... That would then open up the LP's to a group of GP's ready to take their money?

Thanks for your feedback!

First off I think its important to define "crash" and what real estate asset you are looking at. Do I think that single family (including up to quadplexes) will crash in 2021... Absolutely not... I suspect that asset appreciation probably slow down while wage inflation slowly creeps up to allow buyers more purchasing power... that would be my guess... But there is a ton of demand in the single family area and way too many roadblocks to clearing that demand. Builders cant build fast enough, not enough land in major cities, not enough building supplies, nor labor... All this points to a strong market in the single family arena for some time. 

In the commercial multifamily you could very well see a "crash"... This is will most likely show as cap rate decompression. I suspect around .15 basis points a year for 2-3 years... Does that mean that large multi family asset prices will decrease though? probably not... Strong rental demand will allow rent growth, therefore increasing NOI and negating the cap rate normalization...

But honestly... who knows!!!???!!! Just be on the look out for great deals, be selective knowing that we are at the top of a market, but understand, you wont know when the Peak as come until you look back and say... That was it! 

@Daniel Weed THANKYOU!!!! I just got out of a meeting with an investor wanting me to invest in his syndicate deal... One of the things he mentioned was using velocity banking to increase ROI.... I had heard of this strategy in the past and pretty much wrote it off as a scam... Now that i have a major investor speaking of it i decided to come home and run the numbers myself in excel. I'm not nearly as proficient at excel as you guys are. However, I broke it into weeks, made assumptions that my monthly "expenses" were able to be broken into 4 perfect payments (1x per week, 4x per month, 4 weeks /month).... All in all i put it all together and found there to actually be a small net loss vrs just paying an extra payment towards principle each month. The spreadsheet you posted was much easier to use and provided a 2nd confirmation my original assumption... Velocity banking is a scam.