All Forum Posts by: Luke Miller

@Dino Cardamone $10k is a little short for most multifamily syndications, but if you're interested in commercial investing, @Micki M. does a lot with mobile home parks and the barrier to entry is a bit smaller. Perhaps she can give some advice. 

@Joseph R Fornwalt focus on building relationships above all else. Raising money for real estate is less about the deal and more about you. The more you can convey (and hopefully exhibit) honesty and positive ethics, the more you're going to attract people.

Once you have that, start by attending tons of meetups. Go where people with money would go and go to start friendships, not to solicit money. Some get away with high-pressure sales, but that's not my approach because it doesn't fit my personality. I am in it for the long-haul so if it takes me a couple years before that one particular person decides to invest, that's fine with me. 

@Mike Vu I've never done a deal with him, i'm focused on syndicating for my own passive investors. 

However, he had a good reputation in the multifamily community. He's an educator and does make money selling education, but like most of the others doing this, he began by doing deals. I wouldn't hesitate to consider it, but the same fundamentals still apply. You need to double check underwriting, conservatively project disposition, and stress test the metrics. Doesn't matter if it's his 10,000th deal or his first, same fundamentals still apply.

Hope this helps!

One of the biggest things I wanted to learn about when starting taking investor capital is the mindset of a passive investor. I wanted to learn everything I could about their fears and the questions they were going to ask before we sat down together. I couldn't find any quality resource and/or podcast on the subject. 

I'm in the process of changing that. Keep an eye out for my forthcoming podcast if that interests you. 

I think you'll start to see evidence of a slow down in primary HCOL markets. There are already some weakness in individual markets and submarkets (Denver), but I believe that the overall multifamily market remains healthy. Cap rates are compressing despite rates rising Treasury rates and could continue that trend. Most multifamily economists expect 2019 to be another strong (albeit worse than 2018) year for the multifamily industry. Homeownership affordability constraints and consumer trends will continue to drive demand, while strong rent growth will support property price growth.

No matter what, stress testing and highly conservative underwriting will be taken on all of my acquisitions.

@Ben Leybovich is correct. You need to maximize the total value of the dollar. It's simply a mathematical equation to ensure you're maximizing returns while also providing a good return on equity. 

 Colin, if you're going down the road of 'no PM at all'. I would recommend that you find an intern or someone to take "under your wing" and to mentor. They are going to be much cheaper and much more involved. In exchange, you're giving them valuable insight into being an investor. If you find another deal, give them equity in the deal in exchange for asset management.  The problem you're going to run into is you won't find anyone motivated to take care of your properties the way you would want it done. The only option is to give them financial incentive to do so. 

@Account Closed the problem you'll run into is if it doesn't have sewer you're going to run into Certificate of Occupancy problems. I would imagine that the county/city you're operating in has some sort of requirement for this. If it already has a toilet, you're fine. 

You can use a HELOC, line of credit, construction loan or private money loan to build it out. I'd check out AIrdna before spending the money to see what the viability is.

@Nate Anderson an affordable CRM that allows document signing and relationship management. Can you take care of that for me? 

Hey @Phuong Le generally you're going to want to find places that have higher cash flow and lower valuations. Look for rent to cost ratio and try and find a good candidate that needs cosmetic updates and you can buy at a deep discount. Hope this helps.