All Forum Posts by: Brian Adams

@Marquis Cobb locating a sponsor, just like investors for a deal takes time.

Are you raising private money for the 60 unit deal?

If so, make sure to ask the investors if they would consider sponsoring the deal for a piece of the GP ownership.

If this is your first deal, be prepared to give a big chunk of the deal away. You need the sponsor more than they need you.

@Marquis Cobb When I first started I had a similar experience.

When you are reaching out to people to be a loan sponsor for a deal and they aren't responding, what are you asking them to do?

@ZZ Song when I first started out I didn't want to pay for a coach, I figured learning on my own for free was more cost-effective. My experience was it lacked the same level of structure, guidance, and accountability.

Paying for a coach provided me with a structured learning plan, personalized guidance, and accountability.

I have now bought and sold 5,300 units valued at over $300 million.

My thoughts on getting a coach are that it can be a great way to learn from an experienced investor and get personalized advice. Coaching can provide a more tailored experience and the investor can provide more individualized guidance and support. Additionally, it can be a great way to build a relationship with an investor and gain access to their network and resources.

@Marjo Naci

For me, commercial real estate equals apartment buildings. There are other categories of commercial real estate such as office buildings, retail, industrial, etc. so get really clear on your goal.

Advantages of starting out in apartment buildings include the potential for high returns on investment, the ability to build a diversified portfolio, and the potential for long-term wealth creation through property appreciation. Additionally, apartment buildings tend to have longer leases than residential properties, which can provide a more stable income stream.

Disadvantages of starting out in apartment buildings include the significant amount of capital required to purchase and maintain properties, the potential for vacancy if tenants leave, and the need to constantly market the property to attract new tenants. Additionally, apartments can be subject to market fluctuations, which can make it more risky than other types of investments.

It also important to note that investing in apartments requires a great deal of knowledge and experience, as well as a good understanding of the local real estate market and the laws and regulations that govern it. 

Good luck on your journey!!

The journey from flipping houses to investing in an apartment complex can seem daunting at first, but with the right guidance and plenty of patience it is definitely achievable. Before taking the plunge into a larger commercial investment, it is important to evaluate your current financial situation. It is also essential to explore different financing options, such as acquiring a loan or partnering with another investor. 

Researching the local real estate market dynamics is also critical when determining if and which apartment complex would be a sound investment decision. 

With careful research and preparation, turning your house-flipping business into an apartment complex venture can be incredibly rewarding!

@Marjo Naci starting a real estate syndicate to raise money for apartments can be a great way to invest in the real estate market. The first step is to gather a group of like-minded individuals who are interested in investing in real estate. You can reach out to friends, family, and colleagues who have expressed an interest in investing in real estate. Once you have a group of interested individuals, you can start to explore different real estate opportunities and develop a plan for how you will raise the money for your investment. Some options include crowdfunding, private lending, or working with a real estate investment company. It's important to do your research and make sure that you understand the risks and benefits of each option before making a decision. Good luck!

@Cole Baker the implications of sending in a Letter of Intent (LOI) and going under contract on a property depend on the specific terms of the contract and the local laws governing the property.

Generally, when an LOI is accepted and depending on the language of the LOI, the parties are not yet legally bound. The LOI builds the framework for the PSA (Purchase and Sales Agreement). Once you are under contract you are legally bound to perform (Close).

If a buyer fails to fulfill their obligations, they may be subject to legal action. Similarly, if a seller fails to fulfill their obligations, the buyer may be entitled to compensation. It is important to read through the contract carefully and understand all of the terms and conditions before signing.

In a PSA there is usually a DD (Due Diligence) period where you have access to the property to review the asset, financials, perform inspections, etc. The wording of the PSA is important as it can allow during DD to terminate the PSA.

@Justin Moy I have grown my investor list all organically and new private investors mostly have come by word of mouth.

I have used email marketing campaigns to reach potential investors and engage with them in a more personal way.

@Sivakumar Ganapathy

1) To narrow down the areas to invest in, you can research the local real estate market, look into current trends and prices, and speak to local real estate agents and investors to get a better understanding of the area. You can also look into economic indicators such as job growth, population growth, and local infrastructure to get a better idea of the potential for investment.

2) To do financial calculations for feasibility analysis, you can use a variety of tools such as financial calculators, spreadsheets, and real estate investing software. These tools can help you analyze the potential return on investment and other financial aspects of the property.

3) To help form a team of real estate agents, funders, and property managers, you can reach out to local real estate agents and investors to find people who are experienced in the field and have the skills and resources necessary to help you with your investment. 

@Taylor L. Yes - I tried a paid social media campaign (FB Ads) to locate accredited investors, but it did not yield the desired results, so I no longer use this strategy.