All Forum Posts by: Omar Khan

@Jamie Garcia What are you specifically looking to get out of coaching? Every "guru" has their own specialty. Some are great at the analytics, others are mindset and others at marketing. Nobody excels at everything as the coaching programs are a reflection of the guru's background and personality. 

Your profile says you own a construction company. That means you have background knowledge in asset, property and project management. Maybe you need help in marketing? 

Alternatively, maybe you have a killer investor network but need to better understand the analytics side of the game. That will be a very different coach than a marketing coach. 

My point is that most of this information is commoditized and available for free online. You need to figure out which area you need to hit the hardest (first) and then get a coach who excels at that area.

@Nicholas Polito I would urge you to improve your credit score and shore up your personal financial situation first before acquiring real estate. 

I can't speak on behalf of your investors. My point was that people change their opinions especially when it comes to related party transactions. You are not planning for right now but for the future. The more loose ends you have the more, potential, hassle you will have to deal with. 

Even with sophisticated/institutional investors, it becomes a hassle managing the political dynamics around related party transactions. Btw, this is not a critique on your proposed structure, your as an investor or the veracity of this strategy. This is purely an analysis based on how people actually react years down the road as opposed to what they are saying right now. 

@John Moon Bridge lenders should be able to provide short-to-medium term financing (6 months to 3 years). This can allow you to sell an asset, improve your personal balance sheet and/or be in a better position to get conventional financing. 

@Joshua R. There are a ton of attractive markets all over the country. It all depends on your investment goals, relationships and long-term plan. 

An article which you will find helpful: Choosing the Right US Market To Invest In: The 4-Step Guide to Success

@Marc Izquierdo No exit plan will make it hard to attract investors, lenders and other partners. Your investors might tell you one thing now ("I'm a long-term buy-and-hold investor") but reality is going to be very different as life situations, relationships and demands take a toll. 

You can play with #s all you like but unless you have a solid track record and/or significant personal capital, it will become very hard to do a related-party transaction and not annoy most, if not, all of your investors (regardless of what they are saying now). This is because you have a massive conflict of interest. In other words, investors will always be suspicious when you decided to sell to yourself or a related party.

With the caveat that beginners shouldn't try to do deep value-add deals, I'd be happy to connect you with an OKC investor (PM me). They've invested in a few projects and should be able to provide value. 

I would suggest hitting up a bridge lender (Eastern, Greystone or a mortgage broker) as they will be your best shot. Nonetheless, they will want to see your track record (most important), how much skin in the game you have and a solid business plan. 

@John Acklen I would stay away from going in-house on the PM front if you're in acquisition mode. 3rd party PMs will take a lot off your plate especially as you're trying to scale up. You can think about going in-house once you hit a 1,000 units or so (you hit it, not participated in deals where you invested in 1,000 units). 

Essentially, it's a cost-benefit situation. Do you have the skills and experience necessary to manage the property manager. I can tell you that the PM job requires a lot of skill which most investors don't have. Investors also have a tendency to discount the critical role played by the PMs. 

Once you hit a certain volume, you can poach your regional by offering them a better salary plus equity in your deals. 

@Joachim Lassen There's only so much you can do with adding amenities or rehabbing. This is because your property is still valued off comps (regardless of if it's over 4 units). At the bare minimum, the market sets the level of service you should provide. 

I would start by improving curb appeal followed by interiors. Parking spots are nice but you most tenants expect to get 1 parking spot - so upside might be limited. 

@Tyler Kastelberg Thank you. I'm a big believer in your business model and know you're killing it with your flexible CFO business which is bringing a ton of value to small-to-medium sized businesses. 

@Daniel O'Neill Tyler hit the nail on the head. The operations will make or break you. It is critical to have a solid property manager with a proven track record. I would suggest interviewing 3-5 candidates, describing your situation and asking how they would best serve your needs. 

I have also learnt a ton by networking with local investors. They can provide you "boots on the ground" knowledge as well as be a good source for referrals. The latter is very important as finding the right GCs is not an easy task. 

My personal preference is multifamily (disclosure: I'm a multifamily syndicator) but I know different people prefer different strategies. 

I wholeheartedly agree with  @Michael Dang that this is a continuous education process. Even after valuing complex assets for over a decade, every day I pickup small nuggets of information that enhance my knowledge while providing perspective. 

Nonetheless, there is no substitute for actually going through a transaction. You shouldn't rush into it but don't get crippled by "paralysis by analysis". Plan, educate, network but then go out and take action!

Always happy to help and provide insights.