All Forum Posts by: Luke Miller

@Jose Ortega I don't recommend it. BP calcs are good for small rentals, but there is so much more that goes into large multifamily buildings. The principles are the same (NOI, Expenses, rent, etc) but there are so many variables that this calc does not take into account.

invest in a good education program, learn all the different ways to analyze the deal and use spreadsheets as a tool. Just because the numbers look good in your "calculator" does not necessarily mean it's a deal. 

@Cody F. evictions show up on a criminal background check so if they were done properly, landlords who do background checks will see them. 

Assuming they aren't on non-garnishable wages (SSDI, Child support, etc) you can go through a collections company. I recommend RD Fuller, but only because I know the guys that run it. Good luck!

@Account Closed whatever makes your pitch unique! I think that would be a cool thing if I were having a beer with you. 

@Steven Foster Wilson to answer your question as succinctly as possible. Find a mentor/coach that is actually doing deals, pay them, and watch your experience go through the roof. 

If I were you, i'd save money and ask to be a part of a syndicated deal as an LP and learn as much as you can from that side and then start looking for your own deals. 

@Dennis Johnson start by educating your self and evaluating your skills and deficits. Then, find a partner and/or mentor that complements your skills and partner with them. You will be surprised how quickly you'll gain experience. 

Or...

you could try and do everything yourself and spin your wheels for a full year before making that decision like I did. 

@Raj G. What are your goals? It's not necessarily true that you don't learn anything in a syndication. Limited Partners have direct access to reports, sponsors, underwriting, etc. Plenty of people have been a limited partner in a syndication and then moved on to complete their own deals.

I would suggest figuring out what you want to do before finding a mentor or partnership. Flipping, rentals, wholesaling, etc. 

 Here's a really good source on explaining the difference. https://syndicationattorneys.com/articles/joint-ve...

I would suggest reaching out to brokers for recommendations and from there, weeding them down to a couple with good reputations. I've found good luck looking on local Apartment Association's board of directors. Usually, if they are invested in their local assoc. they are reputable folks with a good company. Obviously, this should lead to an interview where you ask an exhaustive amount of questions, but it's a good place to start. 

Partner with someone who has capital. If they are actually deals, it shouldn't be too difficult to find someone willing to invest. If you're doing a JV, make sure everyone is an active investor and no one is passive. If you're offering passive investing, that's a syndication.

@Jon S Strick this will all be laid out in your Private Placement Memorandum (PPM). If you're doing a true syndication an attorney will draft this document, which lays out all the rules of the deal and how everyone will get paid. You should however have an idea on how the deal will be structured so you can start analyzing deals based on those criteria. 

Generally deals are split 70/30 or 80/20. A good basic thought process is that everything is split in this fashion. Cash flow, proceeds, etc. Deals can be structured any way you like (within legal boundaries) whether or not you'll find someone to invest with you is another story. Most experienced LPs are looking for 80/20, high CoCR, preferred return, lower asset management fee for large deals, and other things. 

I would suggest researching deal structure from some books. I'm sure others will chime in on their favorites.