All Forum Posts by: Omar Khan

Short of having as impeccable a resume as Brian Burke, in most major markets (think Dallas, Atlanta, etc) you will need to offer hard money. It doesn't all have to go hard day one but a nice chunk of change must. That being said, there are specific carve-outs for fraud, continuing performance, clean title, etc. 

Typically, the sponsor is putting their own money in because not many sponsors are raising capital without a deal being under contract. 

BRRR will be hard to do in Montreal (or Toronto, or most Canadian cities) because prices (vs. rents) are generally higher in the US vs. Canada. BP is a great resource but is geared towards the American audience. Your best bet would be to post in the Canadian section of the forums.

Keep in mind though that your BRRR (or other strategies discussed on these forums) success will be way lower in Canada than in the US. Also, it will be harder to do certain activities like wholesaling, etc in Canada due to different laws.

@Jordan Archer The standard is dependent on who's presenting the info. Sales people (brokers, agents, seller) can and will present you the most aggressive set of #s (say T3 NOI or T1 NOI) whereas investor might use something else.

Where you bring the cap rate has little bearing on what the market is going to pay. Also, as an owner you want your property yielding the highest cap rate but as a seller you want to sell for the lowest cap rate.

@Steven Winfield There are a million ways of doing this. You can start by searching on the forums and/or consulting with an attorney (wouldn't recommend this starting out but you will still need an attorney - eventually). 

I'll second Theo's great advice. Most, if not all, of the Excel files you find online are overly simplistic and/or riddled with errors. Laziness isn't going to get you very far in any business. 

You can literally spend less than a month learning the basics of modeling and create your own template. That experience alone will add more real experience under your belt than being a data entry monkey.

@Lennon Lee 100% agree! Great article.

No equity placement broker exists. A broker/dealer can help you but only if you have experience and the right amount of internal controls/sophistication with an auditable track record (as @Brian Burke mentioned). 

I wouldn't waste my time too much at this stage. Doesn't matter how good of a deal you have. Literally, no one cares because you don't have a track record.

The broker is not going to take you seriously. Probably going to push you to the side to work with more "legitimate" buyers. You will need to show proof of funds, track record or something more valuable then a piece of paper.

I would continue to save and invest your money into the S&P500 ETF (Vanguard). Build up to 3 months of emergency funds and approx. $50K-$100K in liquidity before venturing into real estate investing to provide a cushion. 

I know this isn't the usual "don't wait to buy real estate, buy real estate and wait" advice peddled by most folks here. But you will be better in the long run when you have a nice cushion and your back is not against the wall. 

To quote the great philosopher @Chris Grenzig no BS attitude helps a lot. Your options are limited both from a capital raising and asset management perspectives. Plus, it's harder to create a thought leadership platform if you don't have any solid thoughts nor leadership(due to lack of experience).

Your first investors will typically be friends, family and fools. They are investing based off their relationship with you as opposed to the merits of the deal only. You have to rely on your honesty, transparency and years of relationships to convince them why you can be an effective steward of their capital.