All Forum Posts by: Michael Patton

Quote from @Alex Deters:

So I've been looking on Crexi at Multifamily buildings and most have a 4%, 5%, 6% cap rate on average. Isn't that low? How does one justify putting 300k down to only make 2k-4k a month? Is that a normal return?

Hi Alex

You are not alone. When we first started looking at Multifamily, we had the same question that you do. If that had been the case, we would have stayed with other types of real estate. Fortunately, the cap rate is good for figuring Out the offer price and ultimately your selling price projections. Other than that, it’s not used for much else. If you’re looking at a class C or a class B apartment that have value to be added to them, your return can be much greater than the way you are calculating it now. 

A good way to see this would be to join a call for a presentation from a syndication that is going over their latest apartment investment. You quickly see what type of loan they are taking, which is usually interest only, how they plan to refinance in three years, their improvement plans to the property to increase income and to lower expenses, their cash flow projections, and ultimately the year in which they predict to sell and for how much.

 The first time you listen to one it really explains a ton and fills in a lot of holes. That starts your foundation and you just build on that. 

Brandon Turner has a book that you can find on here that focuses on multi family investing. It comes in two volumes. The first volume is people investing in smaller multi family, think of duplex and triplexes or a 10 unit apartment. The second volume is for much larger apartment complexes, think of 100+ units. 

Next would be to brush off your Excel skills, get ahold of someone’s analyzer for deals, and start to unlock your own opportunities.

Happy Learning.

Mike

Quote from @Paul Moore:

Hi @Michael Patton. I would recommend going on Jim Pfeifer’s site: Left Field Investors to see what you can find there.  You may also want to check out The Real Estate Crowdfunding Review and the affiliated Private Investor Club.  They have a lot of third-party reviews of syndicators and deals of all types.  Good luck!  

You are awesome.  Thank you

Quote from @Scott Meyers:

Hey Michael!

We have a Passive Investing side that routinely puts together syndications for Self Storage opportunities - Existing Acquisitions, Developments, and/or Conversions, as well as a fund.

We'd be glad to have a frank and candid conversation with you so you can see who we are, what we do, and how we compare to others.  Also, we're very familiar with Scott and Ryan from Spartan and have partnered with them by co-raising funds for one of their recent projects.

Scott

Thanks Scott. I send you my email via connecting here on BP.  

We are currently looking at two self storage syndications and wanted to reach out to the BP community for recommendations for others so we can compare. 

Does anyone know of any active syndicates for self storage? We primarily want to focus our money in the southern US (Arizona all the way to the Carolinas). 

Thank you for the help. 

Quote from @Mike Reynolds:

Quote from @Michael Patton:

Quote from @Brenda Whittaker:

I am here because I have not found a specific RV forum, and assume it may be a commercial real estate related topic.  Please correct and redirect me if Im wrong.  Is there anyone out there who can teach me something about RV Park investing/building?  Where might I find some education on the topic?  Please let me know and thank you.  

I just finished building a small RV park in Texas and currently moving heavy equipment to a new property to build a 60 site park. Happy to share any development knowledge with you. 

I may have heard about you from a lender. He didn't drop any names, but he did say "There is a guy in Texas building RV parks and flipping them." He only told me because I may be helping a friend build one and he offered to finance the construction. It will all depend on the powers that be right now but it's looking good so far. 


Either way, I wouldn't mind picking your brain on the subject. What area of Texas are you building yours in?

 Along I 20 for the most part. Happy to help. 

Quote from @Brenda Whittaker:

I am here because I have not found a specific RV forum, and assume it may be a commercial real estate related topic.  Please correct and redirect me if Im wrong.  Is there anyone out there who can teach me something about RV Park investing/building?  Where might I find some education on the topic?  Please let me know and thank you.  

I just finished building a small RV park in Texas and currently moving heavy equipment to a new property to build a 60 site park. Happy to share any development knowledge with you. 

The title alone is sure to sell this. Well done Neel. 

I saw 2 duplexes come on the market in FW (just south of downtown) Friday afternoon.  In this market they might be gone already. 

Well said. I appreciate you taking the time to share this with the community. 

Regarding Masterminds and other learnings you mentioned, do you care to share which ones you like and don’t like (and most importantly the WHY). I find most of them to be too sales oriented and I feel like I’m getting ready to listen to a timeshare pitch. 

Keep crushing it and sharing. 

Thank you. That has been the issue. We own outright millions in real estate (just for us with no rental income), and have cash reserves to buy all the properties we mentioned. Banks (we have been to 4) haven’t been willing to loan us money since we have zero income. It’s a little bit of a catch 22.