All Forum Posts by: Michael S.

"New Construction as Relief: Homebuilding will play a key role in keeping pace with growth—new builds have already been the backbone of Huntsville’s housing ecosystem"

Where do they think these new builds are going to go?  Further south of Grissom High?  Lowe Mill?  Ditto Landing?  High end MFH is already overbuilt downtown.

Huntsville was a "sleeper pick" prior to 2019.  If anything, the market here remains overheated and tough to find deals.

@Austin Fowler - I bought my first out of state STR with a business partner in November of last year. It's been performing so well that we agreed to watch for the next opportunity, which presented itself last month - we haven't finished getting it ready yet, but we should have it active by next month. Might consider a third STR in this location in 2026 as well.

So we are not systematically buying STRs - but if the right opportunity shows up, we will pursue it.  

@Matt Thelen - that's exactly why we are willing to pay for quality property management.  

Only two of our properties are self-managed.  

All the rest have property management in place, and all tenant placements for these were performed by the property managers.

@Matt Thelen - we actually received 100% of rent on time this month.  

Not seeing or hearing any issues in Huntsville / Madison like this from property managers or property owners I know right now either.

@Chris Seveney - totally agree with your post.  

That said, the OP asked "Curious: what’s your biggest filter for saying yes to a deal right now?"  I answered the question directly just for myself.  I'm sure there are many people on BP investing in syndications right now, and there are also certainly folks who did indeed make money over the past couple of years in syndications.  That's great.

They are just not for me for the reasons stated above.  No one had responded to the OP yet, so I just gave my thoughts on it.  

@Denise Supplee - ok, you asked the question, so I'll give you an honest and blunt answer.

I wouldn't touch a real estate syndication in general whatsoever at present.  Maybe if I knew the GP personally, perhaps.  Otherwise, zero chance.  

The number of investors who have lost 5 to 6 figures in the past year is wild to me.  Returns are irrelevant when you lose your whole initial investment.

We've lost 5 figures on flips before.  The difference is:  we know why we lost the money, we can learn from the mistakes made, and no one else pocketed my money (not saying this happens with all syndications whatsoever, but it likely has with some of them over the years). 

Also, there is a lot of tangible value to having control of your own money.  With a syndication as an LP, you write a check, and hold on for the ride.  No thanks.  I get plenty of that either investing in the stock market or going to the amusement park with the kids (although amusement parks usually don't accept checks).  

@Jay Hinrichs and @Chris Seveney - appreciate the explanations.  

Definitely makes more sense now.  

@Erik Estrada - like Jay alluded to, it looks like you need to change your client screening process.

I work with several local banks - I am transparent with all of them on who I am working with, and who has notes on which properties.  

If I have a property I need a note on, I will simply send it to one of the banks, and "trust" that they will give me their best terms.  In return, I don't shop the loan.  If they violate my trust, they've lost my business.  If they think I am shopping the loan, they will drop me for wasting their time.  It's a very high functioning model.

We had a recent acquisition that was atypical for multiple reasons - as such, I did not know which bank(s) would be interested.  So I sent the same email to three banks about the deal, and put in the email clearly that I was sending it to 3 banks intentionally because I knew it may not work for them.  One bank said no, one bank didn't respond (aka we don't want it, but if you beg us, we'll probably do it), and one bank said we've got this - send us the contract.  The other two banks thanked me for offering them the opportunity afterwards.

@Ken M. and @Jay Hinrichs - I will readily admit that I do not know a lot about the behind the scenes of the banking world, so I will ask these questions on behalf of myself and 95% of BP that wouldn't know the answers to these either for educational purposes:

1.  If you take over a property and the note where the terms of the note clearly state it is not transferrable, and the buyer knows this, how is this not fraud?  I mean, it's either fraud or it's not fraud, right? 

2.  If the bank is made aware of this, are they not now complicit in the fraud?  If it is a portfolio loan, I get it - it's their loan, they can do whatever they want in theory.  I'm talking about a conventional mortgage.

3.  If I am running a bank, with a loan out at a 30 year fixed rate of 3.25%, and I find out the terms have been violated, why on earth would I not call it to get the capital back to loan out now at 7.5%?

These are purely for my own education and curiousness - I have not done sub-to, and have absolutely zero plans to do sub-to.