All Forum Posts by: Omar Khan

@Mark L. Best bet would be to consult @Dave Foster. 

@Brian Noel All these rules of thumb are different for each market/submarket. What works in South Dallas doesn't fly in North Dallas. Similarly, "rules" that apply in Cali are not even close to those in TX or FL.

Would be helpful if you provided location, size / type of property and demographics.

@Gregory McKinley In all likelihood you will start with the 3 Fs - friends, family and fools. Once you do a few projects, you will have other people join. 

Best bet: relentlessly network, partner with the right people and continue to develop your relationships. 

Focus on your strengths not weakness. 

Supply increasing more than demand. Austin is a very attractive city to live and invest but in certain pockets there are supply issues.  

@Simon C. "Easiest" way - underwrite a ton of deals in a market and consult with your PM on each deal. That experience alone will take you further, faster than any other thing. 

Most rules sound great in theory but don't apply in the real world. 

@Patrick Leitch As the post above me has stated, don't rush into a deal. Managing investments is way different than PM. The same way the average syndicator would have a hard time being a property manager, you will have a hard time being a syndicator/investment manager without an adequate and liquid balance sheet. 

You can try to get in with limited funds but you will run into problems. That's a guarantee. I would seek to partner with a more experienced individual/group first to learn the ropes and develop your network. 

Kudos on not wanting to muddy your existing relationships. Most folks never get that!

@Bill F. Thanks

@Michael Doherty As you can infer from the replies above me, you can structure this as creatively as you like. From a practical point of view, I would suggest taking a a smaller cut say 10%-20% and going light on the fees i.e. don't fee this project to death. The fee structure on the larger multifamily works because there are enough $$$ to go around. On smaller deals, you do not have that luxury. 

In your case, you are on the right track. Focus on developing a relationship with these investors especially if you know they are good people and have investable capital for your future deals. If you hit it out of the park with them, these investors will do the advertising for you. And that advertising is worth a lot more than any paid advertising you can do. 

@Noah Mccurley Don't know where you got the 18 year cycle part but if you can figure out exactly where we are in the cycle, we should talk. Each cycle is different and it's hard to go forward looking in the rear view mirror. 

Each cycle is local and driven by Econ 101 factor like demand and supply. Even in 2008, there were some areas that got badly affected and in some areas nothing happened. 

Most costs are fixed. 

- PPM: anywhere between $8-20K depending on the lawyer, deal and proposed structure (these are all in costs)

- Legal: min. $5-10K

- Accounting, etc is ongoing but add up to over $10-20K / year 

The above are estimates. Can you get a cheaper lawyer? Sure. Do you want a cheaper lawyer? Doubtful.

@Brandon Ribeiro Simple answer: Don't. 

Even if you could get into this deal, going off your post only, you don't have enough cash reserves in case something goes awry. 

Anyone can get into a deal, getting out is the trick. You're on the right path - continue to save, educate and invest and soon you'll be able to do more than 1 property.