All Forum Posts by: Brian Adams

@Linda Thompson looks like I never answered your question.

Most of my deals have been value-add where there was poor management, low occupancy, deferred maintenance, low rents, and high expenses.

With this set of facts, the property didn't cash flow on day 1 or 6 to 8 months after acquisition.

When the asset was sold, after the property was fixed up and rents were increased, any deferred cash flow and profits were paid out. So if you are the sponsor of the deal, you do need to plan from a cash flow management perspective that your cash could come in the future in a lump sum. 

To answer your question, with proper planning, YES - you can generate enough cash flow in syndication deals.

In our current market though, my belief is to focus on solid cash flow deals, be prudent and financially disciplined in underwriting (financial analysis).

I think most people expect the COVID-19 (Coronavirus) to have major impacts on real estate.

I haven't bought any deals since 2018 as the market has been way overpriced. 

Hopefully, some great deals will come my way - targeting to acquire 5,000 doors.

@Karen Higgins I have used Infusionsoft as my CRM that helps me with emails, automation, web forms, contacts and investor segmentation, tasks, etc.

On one of my 500+ unit deals, I raised $10 million in about 2 weeks. I was able to effectively use my CRM that kept prospects and investors updated.

When I first started, I transitioned from Outlook/Excel to Constant Contact to Aweber to Infusionsoft. 

I have been very happy with Infusionsoft and my VA has access. That said there are probably cheaper options out there...good luck

@Maurice Lightner generally there are no restrictions on how much each person can invest.

However if an investor owns more than 20% of the deal, the lender could underwrite the investor. Meaning the investor would need to provide a personal financial statement, bank statements, schedule of real estate owned, etc.

I have taken 7 assets full circle totaling almost 2000 units. For me and my time, having a small equity percentage doesn't appeal to me to be a mentor, but it may to others so keep networking.

How I started and what I realize now, you may need to give away a good chunk of the deal to someone who can get the asset closed. Assuming the venture is successful, this will help establish your track record and credibility with the 8-12 investors.

Good luck!!

@Travis Watts I have taken 6 assets full circle totaling almost 1,800 doors and all have exceeded expectations.

@Lucas W. Emhof I am not an attorney.

If you make over $200k, it is my understanding that you can subscribe as a sole subscriber.

If both you and your spouse want to sign the subscription booklet, you are correct regarding the $300k income limit.

@Alan Lambert congrats!!

I can give you a laundry list, but here are my top 3:

1. Be prepared when the deal doesn't perform the way you have outlined in your PPM and executive summary. Don't just hand off the keys to the property management company and be an absentee owner. Ask for updates and it will be your job to verify.

2. Assuming you are syndicating the asset - communicate regularly with your team and investors. Share the good, bad and more importantly the ugly. If you can't pay returns to the investors because of XYZ issue, get ahead of the issue but sharing what happened and your plan to resolve.

3. If this is your first deal, raise more money than you think you need. Projects and costs can add up quickly so make sure you have adequate reserves for Capex and working capital.

Good luck!!

@Michael Ealy, congrats!!

You may want to consider a JV partner who has access to capital.

Are your current investors really "tapped-out"? If you have a good deal and a good investor list, your investors will figure out a way to invest and most likely can help bring other investors in.

Also, how motivated is your seller and do they need to close quick? If you can structure the contract to give you more time, you will find the money.

Good luck!!

@Jorge Abreu that is awesome. I made an offer on a 1300 unit deal and got out bid by almost $10 million.

I am so glad you are finding good deals in this tight market.

Keep on kicking butt and congrats on your success!!

@John Cassel Awesome and way to action.

Yes - you can get deals by direct mail and as you probably know, it will take you time. It took me 2 years to close a 200+ unit deal...here is that story if you are interested - Bought 200+ Unit Apartment Complex, Increased Value Over $4 Mill

Your best source for deal flow will be from brokers. Think of ways you can strengthen those broker relationships so when a 10-100 unit deal comes available the broker thinks of "John".

Really important, when you get that call, make sure your investors are ready to go. If it is $1, $2 or $10 mill having the investor capital to pull deals down will set you apart from other buyers.

Good luck!!