All Forum Posts by: Luke Miller

@Chris Gantz one challenge that you might run into is integrating your investments with your property management company. You might see that as an advantage, but some investors might see that as a potential conflict. For example, your properties aren't performing as well as you hoped, would you fire yourself as a management company and let another 3rd party take over? 

Obviously some institutional owners also manage their own assets (AIMCO for example), but like @Greg Dickerson said they have a track record. AUM does not equate to assets owned and I would be hesitant to invest with someone trying to run two large (syndication fund and management company), time intensive businesses, at once. 

@Andrey Y. let us know what the sponsor says. I'd be curious. For reference, my travel (before the deal closes) is usually limited to a couple thousand on the high end. For due diligence, I budget somewhere around $100/ unit for inspections and then a certain percentage to do the file audit. 

I would imagine that there is a reasonable (in their mind) explanation for their costs, but who knows? I doubt they are using it for nefarious purposes like @Jay Hinrichs insinuating, but i've been wrong before. 

That's the beauty of being an informed investor though, if you don't like the offering move on. No one is forcing you to invest.

Cool concept, @Chris Lopez I love the idea. 

Hey @Tatiana Litvinenko I would suggest looking around for quality syndication coaches and mentors. I believe that you are paying for track record and systems that they already have in place. This will allow you to really scale quickly. My advice is that you should interview the coach before signing up. What is their track record, how many deals have they done, how are their deals performing, etc... 

What you'll find is that VERY few coaches and mentors are actually worth the money they are charging. As mentioned, Joe Fairless has a coaching program that focuses heavily on raising money. I would also look at Think Multifamily. Mark and Tamiel Kenny are actually doing a high volume of quality deals and are genuinely great people. Feel free to PM me if you have questions. 

@Kenneth Westervelt feel free to DM me the developer. Chances are that I know them and I can give you my thoughts on their track record. 

That being said, if this is your first commercial real estate investment, I would highly suggest holding off until you know a bit more about development and the risk profile of this type of investment. There is a lot of moving parts and variables with ground-up development and i've seen first hand how it can go very bad here in Colorado. The returns can be much higher, but there is no cash flow (in most projects) and it could be years before you see returns. 

I was about to add my thoughts, but realized this was from two years ago! Hope you found what you're looking for @Peter S. 

I'm focusing on my inputs a lot more this year and trusting the outputs will take care of themselves. Most of my "goals" surround my KPIs. For example, "x" number of new investors in my pipeline will result in "x" dollars raised. I have KPIs around newsletter subscribers, investor calls, investor meetings, videos created, podcast recorded and published, podcast subscribers.

That being said, i'm only focusing on two main areas: finding quality deals to fund and quality people to fund those deals.
For me, there's great relief limiting my scope to just two main ideas. I don't feel like I have to constantly be changing or evolving.  

@Kumar Gaurav if you're looking to be an active investor, pick one of the options above. I would shy away from turn key as it's much more active than some would lead you to believe. For true passivity, a commercial real estate syndication would probably fit. You'd need to choose an asset class, operator, market, etc... 

it's a lot of work up front, but once the money is wired it's almost completely passive and you still get many of the same tax benefits. This is all while monthly/quarterly cash flow.  

@Fabiola F. there is a lot of unknown information so i'm going to make some assumptions. It sounds like you're looking to sub-syndicate so you can share in GP profits as well as taking a fee for placing the investors into the opportunity. I've seen some syndicators take a 1% fee (or so) for placing capital into their fund to then place into the syndication. There are significant drawbacks to this though so make sure you talk to an attorney and an accountant. Specifically, I think you would need your own PPM and would need to distribute K-1s. I'm not sure on these because i've never done a sub syndication. 

@Taylor L. come on out to Denver and share your experience haha!