All Forum Posts by: Paul B.

This year cities and states have seen their tax revenues drop significantly, to the point that some want a bailout from the federal government. I wonder if that changes the approach for Munis right now, or has this level of default risk always been there. 

Unless you live in a really small town, there must be investor networking groups in your area. There may not be any in-person meetings due to COVID, but perhaps there are Facebook groups or virtual Meetups where you could meet others who are already invested in real estate and are looking for good deals. If your off-market deals are truly any good, someone would be interested in partnering.

@Joe S.

All right, many people decide to move up to MF because there are only so many single family homes you can buy. Once you get to 10 or maybe 20, you realize that it is actually less work to manage a 100-unit apartment complex because you can hire professionals. I don't think there is a hard rule that MF is definitely more lucrative than single family. In fact, if you're good at finding deals, you will probably make a higher percent return on your money with single family. It's just that there is only so much you can do alone. If you start to build a team, you might as well target larger properties. The property managers are better, the lending terms can be better (e.g. non-recourse agency debt) and you can even put together a syndication and make a deal with other people's money. While it is theoretically possible to syndicate single family homes, the legal fees alone would make it cost-prohibitive. So perhaps you're right that they are not necessarily making more money, but they might be doing less work for the same money. 

I think your question is too open-ended. Are you asking what % cash on cash one makes in MF? If I told you I made $1,000 (or $10,000) a month in cash flow, it would be meaningless without knowing how many properties I own or how much work I do.

Correct. My understanding is that the 2018 fund is still available for investments. I don't know what it says on their site, but the webinar I watched was quite recent. 

@Mark F.

I just watched a webinar that Jorge gave in the last week or two that said the 2018 (pays 10%) fund was closing in November, and the new one (will probably pay around 7%) was scheduled to start around that time. 

I would also ask why a condo? I got my start with a condo, but it was in a much more expensive market, where there is a whole set of buyers who can't afford a house, plus there is limited construction each year. In DFW, you'll be competing with new construction, and most people who want a house could afford it, so the pool of potential buyers is smaller. I'm also not picturing that the opportunity to BRRRR a condo would be as obvious. I mean, I am sure there outdated condos that need some rehab, but I am not sure that you'd add significant value with a renovation....I'd love for a condo investor in DFW (or flipper?) to chime in and refute my opinion.

 I don't think the forum allows me to post links to a Meetup, but I will send you a PM.

I've been investing in MF since 2016. Normally there are multiple networking events every week in DFW, but obviously these times are not normal. I do know of an in-person Meetup in Plano next week (Aug 8) though. You could meet quite a few folks already in the MF game. 

All the education programs have certainly put more people into multi-family, which has probably driven up competition, and prices. But, if these programs are teaching their students how to underwrite properly, AND they choose to stick to the teachings, perhaps it keeps them from being the "dumb money," and paying too much. What I mean is, if they were pursuing the same deals without a mentor, then they might be paying even more, driving up market prices even further. It's hard to really know for sure. Any comments about the overall effects are just opinions.