All Forum Posts by: Matt McCourry

My biggest investor & mentor (in terms of dollars available to invest, who's worth about 150 million) told me that if I didn't take myself seriously then nobody else would either.  A three piece suit isn't always necessary, but look like you know what your talking about, cause you never know who you'll meet out there.....

Solid advice @Roy N. 

I would add that raising money is just as important as finding deals.  I recommend putting together a database that also acts as a pipeline of individuals you're moving from total strangers to folks who when to give you money to be in on a deal.  I would say that for the most part once you have a strong verbal commitment with a specific dollar amount then you can count them in as one of your investors.  I am currently experimenting with a commitment sheet but it doesn't work quite as well as I would like....   

regardless its all about the relationships.

Good Luck!

@Abraham Saldana

> Where are you getting your data on the downward trend?  the Grand Strand as a whole is up 6% from this time last year (median home price)

> NMB is great both before and after atlantic beach.  especially the Cherry Grove area!

> Local banks are a huge part of what I do, w/o them I could not make even close to the returns I make, Investors are either 1st time flippers that watch too much HGTV or the big guys that run the grand strand, there is a huge untapped market for quality single family homes to rent......  demand is strong.

I wouldn't look too far away from the RDU area though, that market is on fire and I am sure there are some good SFR's or small multifamily deals to be had!

Feel free to reach out to either me or @Sean Brooks for investment advice in this area,

Good Luck!

Congrats!  and I love the part about the Distribution channel, currently thats is what I am trying to focus more on...  I also noticed that all of the channels you mentioned are internet based!

Bottom line, if your not marketing your product or service online (no matter what you sell) your leaving big money on the table!

Eyes = dollars 

Great post!

@Chris Armstrong keep us posted!

@Chris Armstrong Look like you have already received some great advice, everyone is right Charleston is on fire and many people that are moving to the MSA cannot and will not stay in the downtown area. I visit Charleston frequently and as long as the numbers make sense I would say its a good buy. I would base everything off rent you can receive once the rehab is complete. Value add can be a tricky game but it never hurts to put in an offer, you always have the DD period to get more precise with your numbers. There are two sides to REO, local banks are typically more reasonable and usually will work with an investor, Larger national banks not so much....

Just be careful on your location, a little rough is ok, I think in a few years some of these areas that are on the fence will tip one way or another...

To get another opinion you could look up Billy and Lisa Pelloni @ Adalease property management, they are managing the rehab and the day2day at our 72 unit in Johns Island...

Good Luck  

@Ayodeji Kuponiyi I like the plan!  Turnkey is an interesting space that I never considered until recently...

@Alex Franks could probably provide you with some great Turnkey strategies to get started, as for syndication, you could always be learning while your doing.  I started learning the syndication side of things while I was rocking and rolling in the SF value add space here in Myrtle Beach SC.

Good Luck and keep grinding!

Not sure the brokers play here but there is some valuable advice above.  

Everyone has already given fantastic answers so I would just like to leave a little wisdom that I wish someone would have told me.  

Build the team, and the deals will come.

O, and I wouldn't wire that money to him if I were you......

Good Luck,

@Bryan Hancock brings up some great points, I would say that a "typical" asset mgmt fee would run 1-3% of gross rents.  3% if it is a steep value add (in theory would require more mgmt oversight) 

Also, what I have found with many value add plays is that our larger investors much rather prefer to use more of the banks money via bridge loans, being that we like to have a quick turn around this fits well with our model....  Some of these older gents lived through periods were interest rates were high and money was tough to get..

Rules of thumb are always great to know, they give you a loose yardstick to measure by, just make sure that the rules of thumb are product specific, as always value add is much different then a stabilized deal, even if both are the same "type" of property.  

Good Luck!

@Daniel G.

Great Question!

I started to respond to the individual questions, but the short of most of these questions is "it depends"  I know thats probably the worst answer to give, but it depends on the deal, Value add?  Stabilized? , the investors expectations: Number driven?  Looking for long term cash flow?  Quick capital gains??  Quarterly, monthly, or annual distributions of CF??  

Tip: raise funds once, if you anticipate you need roofs done in 5 years, don't go back to the investors looking for cash then...

Can you tell us more about the deal??