All Forum Posts by: Paul Moore

You are welcome, @Anthony Taylor!  Feel free to PM me if you want to jump on a free mentor call I do most Wednesdays. I would love to chat with you and see if I can serve you in any way!
 

@Matthew Masoud. You should probably check with a good Syndication Attorney on the rules here. If your investors are truly passive and you are shielding them from liability, I don't know that you really should do a simple LLC/non-Syndication. In other words you may be constrained by the structure of the partnership to syndicate even if you feel the fees are too high. As was mentioned above, if you get a good price from your attorney for your first one it may not be that bad in the scheme of things. Good Luck!

Hi @Alex Deters. As has been stated above, the key is to find assets with hidden intrinsic value. Latent upside that is not exploited by the current owner. Mom and pop owners often leave a ton of intrinsic value on the table. They typically don’t have the desire, or knowledge, or resources to make upgrades to increase in common maximize value. This is your opportunity.

The problem is that these opportunities are very hard to locate and upgrade. Most of them are already upgraded or overpriced. Though other asset classes are tough as well, you might want to consider looking at self storage, mobile home parks, certain light industrial, or RV parks. Sadly, most of these are overpriced just like multi family, but there tends to be more small time owners in these areas and hence more potential upside.

Feel free to reach out to me if you want to connect with a friend of mine in Lexington who is crushing it in the multifamily arena. Good luck! 

Hey @Guy Idan. Great question.  To simplify this you can assume annual revenues in the range of ~ 2-4% of the equity you raise. This includes asset management and acquisitions fees plus profit share (promote).  This is obviously a quick guess, but you can use this number on the fly.  Happy Investing! 

Hi @Maiane Freitas. I agree that most should go bigger when they can. I only wish I had sooner.  I’m going to touch on a different angle though. 

Right now it's very hard to get SFR or MF at a price with a predictable margin of safety. Buffett and others say this should be your top priority. I'd recommend You consider asset types that have the possibility of untapped intrinsic value. These are typically assets owned by mom-and-pop operators who don't have a desire, skill, or resources to upgrade their facilities, increase income, and maximize value. This is your opportunity.

I typically see these opportunities in mobile home parks and Self Storage for example. If these also exist in light industrial and RV parks. Let me know if I can help. Good luck!  

Hi @Ben McMahon.  I think this is a potentially great idea.  I’ve been amazed at how well self-storage facilities work in small or rural towns. The first thing I would do is to run an analysis with Radius Plus. This will give you a more detailed analysis of the competition in the area. I would hope to see mom and pop competition with poor marketing and about 7 square feet or less per person in a (say) 5-mile radius.  

You’ll also want to be sure you’re in a visible site on a well-traveled road in a medium or better income area. Let us know what you decide!  

Hi @Ramtin Roghani. You may want to check out the book by our BP friend, Ronald Rohde: Investing In Industrial Real Estate: A Practical Guide By A Qualified Attorney https://www.amazon.com/dp/1954...

Our fund has focused on self storage and mobile home parks for years, but we recently learned that there are great opportunities in mom and Pop owned small bay light industrial. 

@Brandon Malone I recommend you check out @Whitney Sewell’s podcast: The Real Estate Syndication Show.  You may also want to get this book by Gene Trowbridge: It's a Whole New Business, Fourth Editon: The how-to bible of syndicated investment real estate https://www.amazon.com/dp/1737...

I agree with @Todd Dexheimer that you should not do a joint venture unless it is very small, like a few hundred thousand dollars for example. Good luck!

@Brandon Montgomery I should have added that there is a great discussion of scaling and some helpful charts available in the book 
The Complete Guide to Buying and Selling Apartment Buildings https://www.amazon.com/dp/0471...

Hi @Brandon Montgomery. A lot of investors jump straight into medium or even large scale multi family, typically with mentors or partners, to increase scale faster.

My mentor had over 100 individual single-family homes. He sold them all and started doing multi family. He said it was much easier to do two 100 unit apartments than 100 individual homes. And he got twice the scale.

It’s very hard and dangerous to start out in large scale multi family without mentors or partners. Some investors I know have moved over to other asset classes as a result. RV parks, mobile home parks, and self storage all are great options. Good luck!