All Forum Posts by: Theo Hicks

If you want to raise capital for a duplex, I would go the JV route. The costs to put together a syndication usually don't make sense for smaller deals. Find someone with the capital and give them a defined ongoing active role in the deal.

The structure will depend on what your responsibilities are. But if they are bringing all of the capital and doing something else, I would give them more than 50% of the deal (cash flow and equity).

Depends on how fast your drive...lol. But really, it is up to you. I personally like investing in an area I can easily drive to because it make the acquisition and management processes easier.

I would select a market first and then build your team. Most of your team members will ask you "what areas are you looking at?" Without selecting a market and analyzing the submarkets and neighborhoods, you won't really have an answer.

Hi @Jason Merchey

If you search "list of syndicators" on BP, there are a ton of thread that have answered your questions.

Also, continue to browse the multifamily forums on BP, look for syndicators who are posting valuable content on a consistent basis, and check out there websites.

It looks like you learned a major lesson about underwriting from the 24 unit and the 11 unit. I am not sure how you currently underwrite deals, but whatever decision you make, I recommend underwriting your deals more conservatively so that you minimize the chances of running into the same issue again in the future!

@Yuriy Shepelin I would search "LOI" or "letter of intent" on BP. I am sure you will be able to find a template. If not, a quick Google search will suffice. Just want to make sure it includes:

• Purchase price
• Earnest deposit and terms
• Due diligence terms
• Closing date

@Dave Godfrey agreed. For my Class C portfolio in Cincinnati, I've never had someone not lease a unit because of an application fee. It is all about setting expectations from the get go rather than surprising them with an application fee.

@Scott Morongell But didn't you know that the submarket, which has been a 6+ cap for over a decade, is finally turning around and is going to become the best area in the next few years...?

I like your philosophy @Stephen Dispensa. That is why I prefer to use brokers rather than generate leads myself. I can focus on what I am good at (underwriting) and "contract out" what I am weak at (finding deals).

There are multiple BP threads that list out reputable apartment syndicators. I would start there!

FHA apartment loans are through HUD. But they aren't the same as the 3.5% FHA loans on residential properties. For apartments, unless you do creative financing like a master lease, you are going to need to bring around 25% of the project costs to the table.