All Forum Posts by: Matt McCourry

@George Krajacic Great overview on syndication!  

@Spencer Liddic The short answer is "it all depends on the deal"  I would recommend learning a little more on how to structure a syndication so that both you and your investors make a decent profit.  I would also make sure that you structure in some performance hurtles into your deal, that way if you make the property perform better then projections, you get a bigger and better cut for your efforts.  

50/50 is a pretty good deal if your doing the leg work and and Investor is putting up all the cash! However, when you move up to bigger and better assets you'll want to structure them differently from say, a SFR...

I recommend reading a few books, and talking to a few lawyers to get a grasp on what "fair" is when you move up to structuring larger deals...

A great but overlooked book is "The principals of real estate syndication" by Samuel K Freshman.

Good luck!

@Brian Adams Not so much that I don't like it, as it is where the research is pointing.  Atlanta is starting to cross over into the Hypersupply or "Sellers Market Phase 1" (as Dave Lindahl would call it).  Although it is still in the beginning stages, competition is getting fierce and unless your already rooted in the market it would be tough accurately gage where its headed.  

That deal you have there is a heck of a deal though, congratulations!  And I like the other posts about "deals and dollars"  Where I am at in my business right now, it doesn't make sense to go boxing down in Atlanta, thats not to say that there aren't deals to be had! 

@Michael Sjogren Great post!  Thanks for the additional links, and the BLS is a great resource but a nightmare to use...

@Eric Moeller  Thats a fantastic question and one I am currently answering for myself!

Heres the overview of what metrics I am currently compiling across various southeastern markets.

1) Population, at least 250k in the MSA

2) Jobs and Job growth, Job growth needs to be at least above 2.5% to indicate a progressive economy.  

3) Unemployment Rate (should be below the state and national average to indicate proper growth)

4) New product added (especially for multifamily)

5) Absorption rates over a period of time (probably the last 12 months and then projected over the net 12 months)

Of course there is much much more, but this is a start...

I am currently looking for multifamily product in all of your major southeastern coastal markets as well as RDU NC and Greenville SC, I would say that the only MSA to stay away from right now is Atlanta, its smoking hot across the board and even more so for multifamily product...  Hot markets do not equal emerging markets...

Also, if your getting into the apartment game @John Cohen would be a great resource to reach out to...

Good Luck,

Absolutely, Let me know a time that works, as of right now I am pretty free.  Mid morning and afternoons are best.

Thanks!

@Steve B. To be perfectly honest, I don't know a thing about generating notes.  I am personally looking for private money to expand my growing personal investment portfolio.

If your interested in getting into the lending space feel free to PM me, if not no worries.

Best of Luck!

-Matt

@Account Closed, Probably the most important thing is the track record of the sponsor. 

Remember this, the bigger portion of the pie you own the more negotiating power you have.  Sponsors are real estate guys, they are expecting to have to negotiate a little, just don't try to shave to much off the fees, especially if your return in satisfying...  As far as Acquisition Fees go, 1-3% of the purchase price is fairly standard, anything past 5% in my opinion is a little gluttonous...

Good Luck!

-Matt

Welcome Jackie!  My two cents are 1st narrow down the criteria, BE SPECIFIC on what you want. 2nd master the numbers, check out the bigger pockets calculator and the book "what every real estate investor needs to know about cash flow...." by Frank G.

Best!

-Matt

I am looking to expand my private holdings.

I buy small multifamily and brick SFR's (3/2 only)

I have a great relationship with a local bank but they just take too long to close my deals.

I use the BRRR (buy, rehab, rent, re-finance) platform for all my private deals, I have been converting the commercial loans to longer term residential loans but as I said, the private banks are drying up on me.

Have experience and am willing to share my previous deals, also, there is an opportunity to get in on some of my syndication deals.  I am currently learning from the best and we just got under contract on a 72 unit multifamily property in Charleston SC.

In all our deals we shoot for a going in cap rate of 8% or better and a Cash on Cash of 15%

I tend to go business casual on 95% of occasions.  One of the wealthiest investors in my area wears a cowboy hat, has long white hair, wears ratty jeans and a Harley Davidson T shirt, and generally looks like a bum.... BUT he climbs into a brand new G wagon and rolls out....

Confidence should be your main outfit.

Excellent advice @Brian Adams, I get two separate lists, one from a list broker such as a Co-star or something similar, and then the other from the county.  The county list helps me look up info faster, and is the most accurate in my experience...

I agree with Direct mail being an additional funnel to brokers and relationships.  I think the cold call is a great way to followup after a mail piece, especially if you can get the owners number and not just a law firm. 

I also LOVE the refi strategy, I'v done it on smaller deals and it is like magic!

Thanks again all for the responses