All Forum Posts by: Jason Merchey

But also wondering, are you accredited as an investor? I get that you want to grab the bull by the horns and do your own thing, but being a limited partner in like two funds could equal 10-50 assets. THAT is awesome diversification, and diversification (to me) is more important than the extra money that active MF investors may or may not make. It's also 1/100th the work! 

But I'm a "base hit" guy, not a slugger.

Best of luck to you, 

Henry Washington is in AR like yourself. I forget if he does MF or only SFDs. 

Good luck to you. I will say that this seems like a hard time to beat the bushes for regular sellers (inventory is extremely low at present). Ideally, if you take the plunge, you have a pipeline for lead generation!

Best,

Jason

Cool deal Martin, I hope you mind success. 
Jason

One word most MF sponsors and investors don't love is oversupply. 

I saw it was referenced  here  as one of the upcoming possible threats to MF supply and demand and returns and such.

Any thoughts on the veracity of this claim??

Do you think sponsors are in agreement with this prediction?

Hi Nicholas, and welcome to BP! 

I think you are on to something in considering the (very difficult!) decision about whether or not your investing concept will prove wise. I would probably say it's about 60/40 in favor of doing your investing solo. I don't think either path is amazingly better than the other, and frankly you're gonna have to take some lumps in this business no matter what you choose to do. Eventually, hopefully, you not only make some money but you do not regret the path/s you took. Experience counts for a lot in this business! Best of luck,

I too love picking Brian's brain! I have had the opportunity to listen to the above mentioned podcast interview, read the book he wrote/the OP referenced, and invest a fair amount with Praxis (and with their former lending arm, Riverbend). He's a pretty likable and trustworthy guy IMHO. I'm not sure if I should be saying but I bet he wouldn't mind--the first asset sold in the fund I am in turned in a stunning IRR. Far beyond my expectations. FAR!

I will say that I asked him recently if he is still hip on the idea of floating rate debt with a rate cap, since it performs less than optimally in high interest rate environments. And also I have heard other syndicators say things such as "Wow it's gonna be a rough ride for newbies who got short term bridge loans or variable rate financing--and we expect to buy from them when they sell in the next year here!" Too soon for an answer, but I am waiting with baited breath.

I'm not thinking that Praxis Capital will be distressed enough to sell prematurely, and they are by now very experienced operators. But, cash flows and therefore overall returns will probably take a hit due to the floating rate + rate cap debt they favor. I've heard Brian say it's a good strategy overall, but that was not when the Fed has raised interest rates 7 times in a row to curb high inflation -- a rough environment for sure.

Congrats on graduating. This country needs doctors, so hopefully you will not exit that space! 

My two cents would be: secure your income and assets through your paychecks, pay down debt, don't overspend. That will allow you to invest from a position of strength. You must have the potential to earn $125k to $225k per year, and if you can spend only 90% of that (and pay your taxes and your debt) you will be on the road to financial strength. I tend to be of the opinion that RE takes so much a) time, b) capital/cash, and c) know-how/experience/luck that it's not to be taken lightly. 

Your ability to make good money in medicine is quite within your control and your ability to invest without a lot of capital or know how or time is quite limited. The country needs good doctors more than it needs more real estate investors, so please consider serving instead of going for the gold. 

Just an opinion!

Yes I just watched him do a podcast at the below and it was pretty impressive stuff.

Troy, no I did not. Now, I don't think my experience can be chalked up to more than a "smell test," and that was only with one of their strategies (the workforce housing apartments one). Their size and experience suggest that one could invest with them with decent to great success. 

I would say that I have had to kiss a number of (how shall I say)....individuals.... until I found the five to six I like enough to trust with my money for 5-8 years. And even they cause me a little anxiety. This is not an easy way to make a living.

And a critic could suggest that whenever you visit an asset acquired by virtually any syndication/group/company (in this case, apartments) you can put your finger on visible issues that cause concern. Especially during a pandemic. So maybe this was an unfair way to gauge Bridge's attention to detail. 

But then again, sometimes the smallest clue in REI will alert one to keep their powder dry. As apartment guru Rod Khleif said, "Sometimes the best deals are the ones you don't do." 

I just simply wanted to go with a sponsor that "felt" a little better to me.