All Forum Posts by: Luke Miller

@Sarah Smith that's how I (and many other syndicators I know) got started. Investing as an LP is a way of adding value and helping them accomplish their goals while learning on your side. The last two deals that I've done have had syndicators as LPs in them. 

@Kyle Kovats great topic. Thanks for sharing. It's not easy to share when things go poorly. What lessons have your learned that have helped you vet sponsors better? 

Also, can I get you on my podcast to talk about your passive investing experience? 

@Sarah Smith - you mentioned that you want to get away from the fully hands on investing you've been doing. As a syndicator, i've never been more "hands on" with any other type of investing. There's so many moving pieces and people involved that it's a full time job. Is that what you're looking for or are you more interested in the passive side of things?

Either way, the advice is the same. I would find a great partner/sponsor to team up with and learn from them. There is a lot of similarities between SFH investing and multifamily, but also a bunch of things that won't transfer over. I'd be happy to help or give advice on the route I took.

@Charles Seaman curious why you think replacement reserves should be below the line. Wondering if @Brian Burke agrees?

Try reaching out to the "power brokers". They might seem a bit more serious, but make sure you're saying the right things and speaking their language too.  

@Brian Reinholz it's going to be cheapest to go custom. Find a local builder to do it for you. I have gotten quotes on large commercial apartment buildings for $5k a space for covered parking without electrical. I am guessing it's going to be substantially more on a small scale. Maybe pole barns or Cleary buildings? 

Good luck! 

Hey @Jordan Santiago you might not get many responses this way. That's like asking if anyone doesn't mind having a little more competition haha. Here's my go-to way to find brokers:

1. Go to loopnet, CREXI, and CityFeet and find the brokers with deals that fit your criteria.
2. Go to CCIM’s website and source brokers who specialize in multifamily
3. Go to CBRE, Marcus and Millichap, SVN, ARA, and Cushman and Wakefield to find their brokers.
4. Find Costar's "power broker" ranking for your area. (brokers who have closed the most deals)

And that's it! Just reach out and set up interviews with them.

@Aurelien Bonin - what do you hope to get out of his program? Is it the education, or is it a deal, or both? You need to look at his student's rate of success and weigh that against what you think you can get on your own and what other groups are offering. 

I personally think that his deal analyzer is missing a couple things that would be helpful. However, his training was helpful for a foundation. 

For me, it was finding a group that was actually doing deals that I can piggy-back off of to get my own deals done. Experience with brokers, property managers, etc. With Michael's program you don't get that. 

@Bruno Araujo it's not comparing apples to apples. Residential is a different animal than commercial. If you're trying to create something for a passive investor to look at and make their decision, how are you going to talk about the intangibles (being a landlord instead of a passive, different tax benefits, budgeting for cap ex, hiring/firing staff, etc...)

Usually, when I talk to a passive investor, I tell them that with a syndication they can get returns that are close to a SFH investment, but it's a whole lot more passive. Not to mention better tax benefits (cost seg., bonus depreciation, etc.)

I've found that the intangibles are more powerful than the returns.

@Jerry Neven i've said this before, but it's worth mentioning again. Barriers to entry is the name of the game for equities. In other words, the easier something is to invest in, the returns are going to be lower. The harder something is to get into, the rewards are generally higher.

Take a bond, super easy to buy but is yielding around 2% right now. Buying your own apartment building can reap huge gains, but is incredibly difficult to find a good deal right now. 

Cardone Capital is fine for low-yield investors who want an easy place to park cash, but you can do better if you're looking for greater returns.