All Forum Posts by: Theo Hicks

Hi @Travis Houck,

The first question you will need to answer is: why would someone invest with you? If you don't have real estate investing experience, what experience do you have that will convey to potential investors that you can successfully execute the business plan. If you don't have a good answer to this question, you'll need to go out and get that experience.

Hi Mitchel, 

Reach out to local commercial brokers. Let them know your deal criteria and let them know about your verbal commitment amount so that they know you are credible, serious, and have the ability to close on a deal.

Census.gov has data for all of the metrics you mentioned, accept crime rates I think. Go at AreaVibes.com for crime rate data.

Hi @Cassandra Cowen. People have made and are making money in every market in the country. Each market has it's good areas and bad areas. So I perform submarket and neighborhood level research on Florida, Texas, and Alabama to find the best areas in those markets. You can do Census.gov research on a census tract basis, visit the markets in person, and talk with local owners, brokers, and property management companies.

Depends on the investment offering. If you are doing 506(b), then you must have pre-existing relationships with the investors. If 506(c), they can be strangers but they need to be accredited. Something else to think about - expect to receive a lot of questions after the webinar. Do you want to answer a bunch of questions from people who are just curious about investing but either won't or aren't qualified?

$5k a month on a $300k investment is 20% ROI. Doubtful that you'll be able to find a passive investment that returns 20% per year.

You can invest in a 506(b) syndication if you are not an accredited investor. However, they will likely have a minimum investment amount that is greater than $10k. Other options are crowdfunding or REITs.

Hi Jingwen,

As others have said, you'll want to work with a securities attorney before going under contract to make sure you are doing everything correctly. But your LPs aren't involved in signing on the contract. Only thing they sign is the PPM. Or if they are the loan guarantor, they'd sign on the loan too.

If you aren't 1031ing into another deal, Only option is to do seller financing or lease option with the buyer. Or not sell the property.

As others have said, it depends on what you want. 

Syndication is more of a time commitment, because of the added responsibility of raising capital from passive investors. It is an actual business whereas you might have been able to acquire your 41 units on the side. 

But, you will be able to do larger deals since you can leverage other people's money. And the ROI is higher because of the fees you can charge.