All Forum Posts by: Paul B.

I'm a Sumrok student and I'd recommend checking out his conference here in Dallas. The next one is in July, but start following him on social media now because he may be speaking in your area sometime before then. Search his name on this site and you can find numerous threads discussing his program. 

I think this one is true for me. If the IRR is good, and it's a 3-5 year hold, then a strong (1.75-2) MOIC is implied so I don't bother thinking about that particular metric.

 You trusted a guy just because he was on Fox News (or any media outlet for that matter; I am not saying you should have trusted him if he was on CNN)? And you were going to use your credit card to buy a property? Sounds like you are better off. 

 I like that. I am gonna start using it. Big Data is a big business now. But what does one do with this data?

Aside from the books mentioned by others, there are numerous articles on this very site explaining how to get into multi-family, and the basics of syndication. You might start with those to see if it's even a topic about which you'd like to read an entire book. 

If the property is going to cash flow with what is essentially 100% financing (not to mention the second loan is sure to have a much higher interest rate than the standard 4.5-5.5%), then it must be a heck of a deal. Find someone who is experienced and have them run through the numbers to make sure you didn't miss something. Getting approved for a commercial loan is more complex than getting approved for a mortgage, so you'll want to learn about that too.

 Sounds like a nice goal, but I am not sure how you can really be sure you're not causing misery. When I invest in a 200-unit apartment complex, I have noticed there are a few evictions just about every month. I have no idea whether these tenants "deserved" to be put on the street. In fact, I don't know the story of any of the 200 families living in the community of which I am a partial owner. What if you improved the lives of 150+ families by evicting 40 of their neighbors? Maybe in some cases there is a nice family with one troublemaker son...or maybe the children are lovely but the breadwinner is irresponsible with his money. Who knows...

If it were not profitable to provide (relatively) affordable housing, maybe some of these people wouldn't have homes at all. I can assure you the supply would be lower. 

I do think about the ethics of just about any business though. What about stores who sell $300 basketball shoes, or $1,000 tire rims? Should they close up because many of their customers might have better uses for that money? Or are they just fulfilling a market need?

 I think that is a good approach too. It will take some due diligence to make sure you can trust the syndicator, but after that, no work at all. 

 I attended one of their free events when I was starting out too. I didn't go for the "big event" they were pitching, but when you're brand new, you do still pick up some valuable knowledge at those things. 

 You may be right. Of the sponsors I mentioned before, virtually all of them were well-paid in another industry before they decided to get into real estate. Becoming a property manager might be a good way to get some experience in the business in general, but you may not be paid well. Perhaps you could do it as a stepping-stone, but I don't think it's a great long term career, unless you start your own company and it is successful, and it would take time to get there. 

I'm a student of Brad Sumrok's program, and have found it to be worthwhile. I don't believe his students have closed any deals in Nashville or Charlotte but there has been at least one in Atlanta. The model he teaches would work well in those markets, but he just doesn't have as many students in those places as he does in Texas. Search his name on this site and you will find some good threads discussing the program and you can decide if it's right for you.