All Forum Posts by: Theo Hicks

I recommend making your own. You can either start from scratch or base it on someone else calculator. You can download a free simplified MF cash flow calculator on Joe Fairless's website.

 Hi Wayne,

You don't want to use a "rule of thumb" calculator to underwrite MF deals. You want to base the rents on the condition of the unit (how they will be once you take over) and rental comps. You want to base expenses on the current expenses and how you will operating the property (which a property management company can help you with).

Others have already provided advice on how to raise capital legally. Lots of people get started in syndications by raising capital for other syndicators.

A few other ways to break into the industry: find off-market deals, underwriting deals for syndicators, become a syndication attorney, be the loan guarantor, start a MF property management company, do smaller MF deals with your own capital and transition into raising capital

Ongoing returns should include fees and capex (and debt service), because ongoing returns are based on cash flow, not NOI. Sales price/exit price, however, is based on NOI, so it won't include capex or asset management fees.

Hi Sarah,

Based on your experience, you should have no issue transitioning into raising capital to syndicate deals. The first step is to determine how much money you are capable of raising. That will determine what sized deals to look at.

Are your 70 properties all SFRs or do you have multifamily experience? If you haven't done a MF deal before, you'll need to work on your MF education or find a partner who has MF experience. Plus, you'll likely need help with the underwriting and asset management.

Nexts step is to start building your team. Start with a property management company and then start reaching out to brokers to create a deal flow. You'll also want to find a mortgage broker to help you with financing and real estate and securities attorneys to help you with the PPM and operating agreements.

From there, you start looking at deals!

You need to work with a 1031 exchange consultant and make sure everything is set up prior to closing on the deal. You cannot get the money tax free unless you 1031 into a new property.

You need to work with a real estate attorney and a securities attorney.

Check out Mark Mascia. He's done over $1 billion in development via raising capital. Just Google him, because I am not sure if he is on BP. He's been on plenty of podcasts too.

Just based on the fact that 2 to 4 units are considered residential so that you are able to "house hack" with a 3.5% down loan (can even include renovations in the loan) makes 2 to 4 units the best property type to start with.

Read national, regional, and local real estate reports. Read the local news. Attend local meetups and speak with investors. Meet with local owner, property managers, and brokers to get their take on the market.