All Forum Posts by: Luke Miller

My advice echos @Brian Burke. I wouldn't worry too much about all the intricacies of the business side. Try looking into syndications to see if it's something you want to build a business around. There are very few things you actually need the LLC for when you're starting out.

PM me if you have questions since i'm local!

@Karen Higgins you shouldn't focus on going-in cap rate for something like this. This is a value-add play that should yield you a NOI delta that you would be comfortable with. In other words, I would be okay paying a 2.1% cap rate (if it was necessary to get the deal), but the value needs to be there.

I think that's what @Ben Leybovich was trying to say, but he over explains things to seem like an expert. 

Negative cash flow might only be important to you, the owner likely is just tired and has stopped trying on the property.

@Greg Dickerson is right though. I would focus on pricing based on actuals to start and only come up as the competition grows or you think there is better offer. Assuming this deal is off-market, you're going to have less competition and the seller will likely need to make the same concessions with any buyer. Your biggest risk, at that unit count, is a 1031 buyer coming in and over paying so don't compete with that.

@Shannon Hogan i'm confused. You're having trouble with the lender requiring a sponsor?  You're likely having a hard time because a lender isn't going to invest in the deal unless there is someone with experience on the team. Think of it this way, a lender is the biggest investor in the deal. They will require that their money is safe with someone who has done this before. Try finding someone with experience and asking them to team up with you.

@Jordan Santiago it does happen as @Enrique Huerta mentioned, but sponsors that are doing that probably aren't competitive these days. I don't see many sponsors for value-add multifamily doing this because investors have so many options to choose from. 

If I were offering a promote and an equally attractive deal/team wasn't. Why would I choose the promote?

@Bellman Tumasang that makes sense. Good to know the rules before jumping in. I will say that you shouldn't do any advertising on BP (or anywhere else) for syndications unless they are a 506(C) deal. That's pretty obvious, but you never know!

@Manmath D. you shouldn't be comparing coaching programs based on price. Jake and Gino are great guys, but they haven't been syndicating long. That's likely why the price is lower than some of the others. 

Instead of comparing pricing, you need to figure out what YOU want and find a coach that matches up to that. Is one-on-one coaching critical for you? Do you want to take down big properties or smaller mom and pop deals? Do you need access to their brokers? Are you interested in learning how to be a money raising machine or do you only want to analyze deals? 

I don't know anyone personally coaching for $3k. That hardly seems worth anyone's time. 

@Bellman Tumasang is your deal a 506(c)? 

@Jesse Watson two very different scenarios. One gives you a lot of control, one doesn't. How important is active control over your investments? If the answer is "very". Go with BRRRR. If it's the opposite, and you have the net worth requirements, go syndications.

@Grant Rothenburger can you sign me up for a spot to do a podcast recording day-of? 

@Mike B. I'm with @Greg Dickerson. Focus on what is making you money right now and maximize profits. If you're looking for ways to reduce taxable income, focus on passive investing. I tell busy professionals this, almost daily, that you don't need to reinvent yourself as a "real estate investor" if you don't want to. You can get a lot of the benefits by selecting the right deal for you and passively investing. 

My philosophy is that the highest and best use of your time is doing what makes you the most money. Don't slow down now that you have momentum.