All Forum Posts by: Tj Hines

@Jesse Daconta you can justify this by talking to other brokers in the area to get their opinion, as well as dialing in with a property manager that specializes in that area with that specific class of asset. They should be able to give you some insight as well. All brokers are in the business of selling - NOT buying! 

@Marcello Pirrelli reach out to @Michael Ealy as he has specifically worked with investors from China. He may be able to lend you some words of wisdom. Good luck

@Eleuterio Enriquez Jr, since you're not looking at 5 units commercial. They would simply use the nearest comparables against your property. They won't be looking at the cap rate metric. If you were to think one more unit - it probably would be more beneficial for you, as you would now be classified as a commercial real estate investor that has many more benefits than being a residential investor

@Wes Love, you should connect with all local commercial savings and loan banks in your area. Not sure of the pricing on a 20 unit but in most cases these deals the loan balance tends to be under $1M, but if not then you can seek out a Freddie Mac. As they do offer loans that are usually from $1-7 Million last time I checked, but this could have changed. Good luck

@Joel Santana, look into joining and getting involved with local real estate clubs in your area. You can find ones that are close by on meetup.com   There you will find like minded individuals to connect with. These relationships can become fruitful if you cultivate and nourish them the right way.

There are a ton of books out there:   Apartment Syndication Made Easy - Vinney Chopra, The Best Ever Apartment Syndication Book - Joe Fairless & @Theo Hicks.   Dave Lindahls "Emerging Real estate markets and Multifamily Millions   Crushing it in apartments by Brian Murray. Michael Blanks has one as well Financial Freedom Real Estate Investing.

@Kevin Reinell, the only real issues I see you having is when you are going to sell the property, the buyer may do their research and find out exactly what you did and back away from the deal.

If you repair or renovate anything and you need to pull a permit, this is where it gets a little iffy. If the inspector comes out and notices that there was never a permit pulled for that job, they can make you demolish it. Ouch!

You may have to fly under the radar with this property (if you know what I mean) if you decide to do repairs.

@John Schurna, Linkedin is an awesome platform to build out your network. Like anything else in order to draw influence you must add tons of value. This will lead you to gaining influence. It doesn't happen overnight. I suggest you connect with @Yonah Weiss on LinkedIn. He is the LinkedIn KING of knowing how to expand your reach and bandwidth there. You can learn a ton from him. Good luck

@Ryan Judah there are a ton of markets out there that offer good cash flow! We're in the Florida markets, but love the Southeast in general. There are markets out west with the criteria you're looking for.

If I were you, so that you become laser focused is to focus on 1-2 markets, so that you understand all of the market fundamentals for each market. Figure out what those 2 markets look like for you. Good luck on your journey

@Alex Funk

1) Where do we start? (Preferably start by searching for off market deals. There are wholesalers in your area that specialize in getting direct to the seller. Connect with these guys. You can connect with these guys at your local real estate meetups that can be found on meetup.com)

2) Is this as great of an idea as we think it is?  (It's a brilliant idea. One of the best ways to get started in real estate and ultimately lead you down the right path to financial freedom)

3) How should we fund the purchase/know which property is a good deal? (FHA will be a good source of debt funding for you guys. As they love the idea of funding a duplex that is generating two revenue streams, one from each unit. It's less risk on the table for them. You will need to put down 20-30%. Or you can find a seller that needs to be creative to get out the deal, to where you can partner with them and they hold a note. Good luck on your journey.)

@Matt Nettles, Tim Bratz definitely has a unique model. It's definitely unconventional but it works for him. The thing is he guarantees all of the loans himself and will pay that 8-12% pref regardless if the property is not performing or not.

In most of his deals the properties are not performing right away. It gives him a HUGE incentive to perform so that he can get paid himself. This is what you call aligning the investors interest and taking good care of them regardless of how the asset performs.

After returning the member capital, 100% of it - just like you said he will then take majority of ownership in the building. If you can afford or have the power to pay out all of your investors, essentially fronting all of the money then this model is beast. He takes down assets that are usually not cash flowing from day one.