All Forum Posts by: Theo Hicks

Yes. As long as it is 2 to 4 units, you can secure an FHA or other owner-occupied loan

Direct mail, cold calling, cold texting, door knocking, and many other strategies have all been used to find off market deals. All strategies require a list.

You can get a list for free on the local auditor/appraiser site. 

You can work with a broker/agent to get a list, but they may charge you. There are also other paid services like CoStar and ListSource.

That's why rule of thumbs aren't the best. Instead, have a cash on cash return goal in mind. Because $100 per door is a lot different if you have no money down vs. buying all cash.

First step is to pick a specific submarket. Fort Worth is huge and it will be very difficult to analyze every single Fort Worth 2 to 4 unit. 

Next step is to narrow down a property you want to pursue. Right now, you have the size but what about purchase price? Renovations required? Age of property.

Then, you'll want to work on your team. Will you manage yourself? If not, you'll need to interview and select a property management company. You'll also want to find a realtor to work with as well. You'll also need a mortgage broker as well.

Once you have those pieces in place, it's time to start analyzing deals!

Hi Jing,

It depends on your level of risk tolerance and how much time you have to spend on your business. There is most upside by using that $50k to buy your own deals. However, there is more risk and more of a time commitment associated with doing your own deals. Whereas syndications are completely passive and less risky since you are plugging into a well oiled machine.

Hi @Caleb Clay. Whenever you ask a "who/what is best" question, all answers are going to be biased! 

Your best bet is to check out some of the "list of syndicators" forum posts, review their websites, and set up phone calls to see who you vibe with the most.

1) Depends on the type of loan that you get. If you get a loan where renovations are included, your down payment will be a percentage of the project costs (purchase price + renovations + other closing costs). Not sure how common value-add/rehabilitation loans are on 10-units, so you'll want to speak with a mortgage broker about the loan programs available to you. Additionally, make sure you are including the legal fees associated with the syndication (operating agreements, PPMs, subscription agreements, etc.) You can get estimates from a securities attorney

2) Typically, the offer process is outlined in the offering memorandum. Most likely, they will ask you to submit an LOI by a certain date

3) It really depends on how confident you are in your hustling abilities. If your offer is accepted and you cannot close due to lack of funds, you probably won't be award a deal from that broker ever again. I would start looking for people who you can bring onto the GP that can raise the rest of the capital, as well as go back to your verbal commitments to see if they are interested in investing more. Ideally, your verbal commitments are equal to 150% of the amount of capital you need to raise.

Fear is good! It means you are getting out of your comfort zone and have an opportunity to grow.

Hi Solo,

Check out Syndication School. The solutions to A, B, C and more can be found there! DM if you have any other specific questions.

@Kwaku Farkye no real estate law is meant to be broken.

Starting your real estate career with fraud isn't a good idea.. Just live in the unit for a year and then do another owner-occupied loan.