All Forum Posts by: Theo Hicks

Hi Bernard,

I would look into passive real estate investing. You mentioned that you spend most of your time working and would like to spend more time with your son! So, you won't be able to accomplish that goal by adding even more work to your plate (i.e., actively investing). Whereas if you passively invest in, say, an apartment syndication, it might take some time to perform initial due diligence on syndicators and deals, but the ongoing time commitment is very low.

Hi Ricky,

I always recommend that people create their own model. It isn't easy, but you'll learn a lot about underwriting from the process and know the ins and outs of the entire model, which makes using it, troubleshooting it, and adding to it much easier.

Have you father gift you all or a portion of that money or have him fund a deal that you do. Or he can invest with a turnkey SFR company.

As other's have said, the returns offered aren't as important. It is whether the investor trust you to preserve their capital first and foremost and successfully execute the business plan. In other words, do they trust you?

Great ways to create trust besides a successful track record is transparency, having a large online present, and having alignment of interest in the partnership structure. 

There are a lot of great monthly, quarterly, biannual, and annual real estate market reports are there. To name a few:

• HFF MSA Employment Report of the Year
• Viewpoint reports
• CBRE US Multifamily Figures
• CBRE North America Cap Rate survey
• PwC Emerging trends in real estate

If you have minimal experience, I would go with 4plexes. Biggest unit size you can get while still getting a long-term (30 years) fixed interest rate debt. If you go 5 or more units, the debt is shorter-term and/or the interest rates aren't fixed. Cash flow wise, the most doors under one roof, the better (generally).

Sounds like a syndication. With 506(b), you must have a substantive, pre-existing relationship with all LPs.

Generally, the term "raising money" is used in the context of syndications. The general partners pool funded from one or multiple limited partners (aka passive investors) in order to acquiring real estate (typically multifamily) and share in the profits.

Invest $100,000 in 10 different apartment syndications (or $200,000 in 5). At an 8% preferred return, that's $80k a year, which I could definitely live off of. I would take all of my sales proceeds in addition to my returned equity and rinse and repeat!

Go to the local real estate meetups. And even better, start your own!