All Forum Posts by: Theo Hicks

@Dominic Cordaro I have a minor stutter and talk a mile a second. I haven't - at least to my knowledge - lost out on any opportunities because of that. I just learned to accept it and not over think it.

@Aaron Lietz If you make a lot of money at your 60 hour a week job, you can start off by passive investing. Check out some posts by Holly Williams, who was able to quit her full-time job via passive investing.

Most people who work full-time jobs get up an hour earlier, go to bed an hour later, plus work on weekends (or weekend for you). If you do that, you have 14 hours + however long you work on your day off to focus on real estate. You will also need to put together a team since you likely won't be able to tour properties, grab lunch with brokers, etc. Partnering up would be a great next step.

Hi @Bruno Araujo.

What is the goal of this spreadsheet? To determine which strategy nets better long-term returns? If so, as others have said, it depends on the individual. I can make more money as a passive investor compared to any active strategy if I don't know what I am doing. Or I can lose all of my money if I invest with the wrong sponsor or wasn't prepared for a correction.

There are too many variables to account for. The best strategy for you is based on your time commitment, risk tolerance, experience, interests, skills, etc., none of which can be modeled in Excel.

1. If you find the deal, underwriting the deal, and/or asset manage the deal, you should be able to charge a fee. But it is better to have a least some of your own skin in the game for alignment of interests. I personally wouldn't invest with someone who doesn't have their own money in the deal

2. Usually, passive investors get 50% to 70% of the deal

3. Usually, syndicators form an LLC to purchase the property with and investors buy shares of that LLC. You'll want to work with an attorney for sure

4. See above.

1. Depends on your skillset. You'll need to know how to find deals, analyze deals, and asset manage deals. If you're comfortable doing all of that yourself, no need to a partner. If you aren't, then you'll want to find a partner with complementary skillsets

2. Yes. You can add value, refinance after stabilization, and hold for as long as you want!

3. Depends on what you mean by "partner"? If you want to partner as an LP, then there are plenty of syndicators to chose from. If you want to partner as a GP, it will be a little harder. Most likely, you'll need to find an aspiring syndicator to partner up with, unless you have a ton of value you can add to an existing syndicator

4. Most commercial loans are a few years to 12 years in length, so you'll have to refinance at some point

5. Depends on what you mean by "best"? If you are looking to expand quickly, you'll want to raising money, buy, add value, and sell so that you can return investor capital. If you are just looking for cash flow then buy, add value, and refinance is likely better, but you'll have trouble raising capital using this strategy.

Hi Ricky,

Once you've done a deal, you can start reaching out to your current network to see if they are interest in investing. Unless you've done an insane amount of successful deals, you're first few syndication deals will be with friends and family.

Hi Kayla,

Besides fact checking their track record and speaking with current investors, it really comes down to their character, which you can get a feel for when speaking with them on the phone. If they won't speak with you on the phone, that's a red flag for sure.

You will need to set up the 1031 before closing. I would find a 1031 consultant to help you with the process.

Hi Nia,

To add to Christopher's advice, I would start reaching out to local commercial real estate brokers and property managers to get their advice on affordable MF markets. Also, attend the MF meetup groups across the state and speak with actual owners to see where they are investing.

Thanks to everyone of recommending our book and school!