All Forum Posts by: Omar Khan

 Long time. All is well. Hope you're doing well too. 

You might be confusing your personal experiences or opinions with reality. It all depends on the degree you get. If you're shelling out $100K for a degree in interpretive dance... then I get your point. But most folks, including myself, who graduate from a top 10-15 school in STEM, accounting/finance, life science (esp. pre med) and similar fields are easily earning $100K+ within 3-5 years of their undergrad degree (you might find it interesting to know that I graduated in 2008... so not the best timing for a finance major). 

Successful entrepreneurs make more money than most people but getting a solid education from a top-tier institution is still the highest probability path to ensuring social mobility and an upper middle-class life (at the bare minimum).  

You did nothing wrong because you did not name anyone nor provide any hint in your post as to who that person could be. Going off your post, this could literally be ANY sponsor in the entire world. Don't understand why the sponsor is butt hurt (FYI: I am a sponsor). 

I am not saying that a sponsor has to agree to every point an LP raises - legitimate or not. But asking for a breakdown on fees and airing questions around the use of funds is entirely within your rights. In fact, it would be dumb to NOT do it. 

Sunlight is the best disinfectant. It might be for the best to avoid this person/group because (only based off your post/responses) they are not transparent. 

@Alejandro Antonio Taylor JR You are surrounded by great markets - JAX (and surrounding areas), Orlando and Tampa. Take your pick!

If you're buying 20-30 unit buildings you will have a ton of options and should do fine as long as you are not buying in the hood. 

 Thank you so much, Khan, for your detailed response. My initial reaction was to wait to be approved for a mortgage but thought I would look into other solutions and not getting discouraged. But I have definitely been warned about owners with malice intentions, If you don't mind can you go deeper into what you meant when you said owners "loan to (re) own".

You are offered an "attractive" financing from the seller but the fine print and legalese is designed to trip you up ie you will pay to get in and then because you are in breach of some BS minor point or you have over-leveraged yourself the seller can take back the possession of the property and cut you out.

Sadly, none in Tampa but you should look on Meetup.com to see if you can find any events to attend. You will have to attend a lot of lame events to find the one that is right for you.

@Account Closed

Banks are in the business of handing our mortgages. If that is not happening in your case, there might be mitigating circumstances. I can understand that sometimes life events occur which may cause a bad credit score or financial hardship (not saying they happened in your case). Maybe you can try to fix those areas where your mortgage application is lacking before trying to secure a house.

This will mean getting on more secure financial footing before embarking on real estate ownership. It will also benefit you in many other areas as well as ensuring, on average, that you are better able to own a certain piece of real estate long term. 

If the above doesn't apply, you can always try to get seller financing. But remember that certain owners can be predatory and you might be dealing with someone who "loans to (re) own".

@Lennon Lee Runs a very successful and popular meetup in/around the Miami area for multifamily where you will find investors and sponsors alike. 

All financial research done points to the same conclusion - costs matter. At the end of the day, costs come directly out of the investors pockets. You should read the old book: Where are the customers' yachts? It's written from the perspective of a stockbroker/investing in stocks/bonds but the exact principles apply. 

Also, I am assuming you work hard for your money. If after research you feel the sponsor is doing something that you would feel (somewhat) dubious in nature, then run for the hills. Just because a sponsor is hitting their numbers does not justify bad behavior.

There is an ample amount of research (dating back decades) into this topic and it all points in one direction - costs matter! 

I have to agree with @Andrey Y. initial reaction at balking at these costs. As @Brian Burke mentioned, one should dig deeper and not go off first impression only but at the end of the day it DOES matter (by a lot) what the sponsor is doing, how they are conducting themselves and, most importantly, how they are spending the funds entrusted to them. This goes to the core of how this or any other commercial transaction transpires ie the sponsor should act as a fiduciary and is not living the high life off investor funds. 

Or in simpler words, it is doubtful that the average sponsor (again, deeper research needs to be done) would be eating lobster if this was their own money.