All Forum Posts by: Percy N.

@Jim Pfeifer, I had a call with the Vyzer folks from a sponsor and LP perspective and it seems like a good tool for the "professional investor" or anyone who wants to closely track their investments. 

It does take some work to keep it current and I am not sure if more than 5-10% of the typical HNW investor would keep up with it to justify the cost, but I was planning to try it myself and then mention it to our investor base as a tool they can look into (no profit sharing or conflicts here).

Also look at UpWork for independent consulting work.

Keep in mind, that even with "bad boy carve-outs", most lenders will have "joint and several liability". I am not a legal expert but my understanding is that it would mean that they can hold any of the KPs liable for the actions of one - in theory.

@Gurpreet Kaur Matharu whether you can legally charge utilities back depends on your local laws and your lease.

Assuming you can, instead of a submeter, I would look at a RUBS system bill back using either sq footage as a ratio or fixed price based on floorplan (again, it depends on local laws and market norms).

@Kris Marmol, this is question is so open-ended it is hard to provide tangible advice - where is the property located? size of the project, financing acquired, the experience of the team, etc, etc....

You can purchase data from companies like CoStar, Axiometrics, etc but it is not cheap.

We pay ten of thousands for data sources as it is an important part of how we select markets and the decisions we make.

Better data = better decisions.

The price will vary by market but in general, there is a "sweet spot" of what a rental investment home should cost in order to provide the best yield and relatively low headaches. Earlier in my RE investing career, we did more workforce housing where the yield was higher (or supposed to be) but then, especially with the pandemic we found that the higher-class properties are a bit more resilient and so we now have a $50mm multifamily fund that focuses on Class B multifamily in up and coming markets.

Another way sponsors achieve similar results is to have a tiered waterfall, so say LPs get a 80/20 split to a 13% IRR then 60/40 to 17%IRR then 50/50 etc.

We have done tiered waterfalls in the past but like to keep things simple.

Our Multifamily fund II waterfall for LPs is a 8% pref and 70/30 split all the way.

Before you pay anyone, go through all the free content on BiggerPockets and the web.

I would also strongly suggest going to a few meetings at your local REIA and networking.

Offer to add value in some capacity (bird-dogging, running errands, etc) for those with experience in exchange for them letting you tag along on a project. Learn the ropes and then partner on a project with them where you bring in some capital.

Agreed. Just make sure the credit union will issue the loan in the name of the LLC and just to be safe make sure none are passive investors in the LLC to avoid any potential securities issues.