All Forum Posts by: Brian Adams

For my next property, I have had the vision to break into the small commercial multi family space (6-25 units) on a local level, and have taken action and started the journey down that path. I have pivoted everything I am absorbing (podcasts, books, folks I reach out to to connect) towards this sector of REI and have a written road map with my business partner on how we are going to get there and the forecasted steps that need to be taken. My main question is, I have about 70-80k in equity that I am hoping to leverage via a HELOC on my househack in the coming months on an 100% LTV. It was my intention to leverage this capital as skin in the deal when a worthwhile opportunity arose and still do, but do you think it could be worth it to invest as an LP on another group's deal FIRST (I have one in mind) to be able to have a hands on approach of the aspects of investor relations, structure, analytics, presentation, and how to handle that effectively, etc.? I really like the idea for the education in the macro but also am keeping in mind if my heloc capital is tied up for a year-2 years in the micro, it could really delay things. But also, that is just MY personal capital. We will begin starting to raise capital and learning the intricacies of it soon, and I have heard many stories of people putting together big deals for the first time with none of their own cash.

What do you think?

Have a great day!

Kyle

Kyle, I started by investing as an LP and it was helpful, but I wasn't thinking about becoming active until later. It did give me an appreciation for the seriousness of the syndication documents, a PPM, OA and SA, which are needed for a syndication. For those you need an experienced SEC attorney. As an LP, however, you are really on the outside looking in.

But if you know you want to learn the business, try to find a sponsor/syndicator who will let you volunteer to help the team out on a deal. If they will let you follow them around and listen in on meetings, site inspections, etc., I think that would be more helpful. You don't have to be part of the deal itself, if you can find someone. Good luck.

Hi Stony! That is a phenomenal idea! Thank you so much for the advice, I know of a few sponsors that actively put deals together that I can reach out too!

@Kyle Curtin

Can you find deals?

I am looking for people to find me deals, such as value-add multifamily properties, prefer off-market, that are built after 1980, B/C class property in B area with pitched roofs, individually metered, with value plays such as low rents, poor management, high vacancy and a motivated/flexible seller.

I am targeting properties 200+ units and prefer 500+ unit deals.

I can buy deals over $100+ million, the bigger the better.

My primary target markets are Dallas, TX and Atlanta, GA and target other markets where there are strong jobs and economic growth.

Feel free to message me.

1 Vote

Worcester, Massachusetts

@Satch Bernhardt you should connect with @Steve Sprowls

Steve is a pilot and a successful real estate investor.

1 Vote

@Allan Ryan - NOPE!!

0 Votes

@Jimmy Bell I live in Pennsylvania and own a 1,000 unit apartment deal in Atlanta, GA.

I utilize the services of a third-party property management company and they manage the day-to-day. This asset always has capex projects and the PM secures bids for me and I review and approve.

3 Votes

@Claude Goodman you can obtain market cap rates by connecting with appraisers and real estate brokers or online resources such as Marcus & Millichap, Integra Realty Resources, CoStar/Yardi Matrix, etc.

0 Votes

@Account Closed if you are looking to underwrite 200+ unit apartment deals, I have a couple of properties that need to be analyzed.

0 Votes

Dallas, Texas

Free vs. Paid??

I really like FREE stuff, I do just like most of us.

When I had access to FREE real estate resources I didn't use them.

When I paid for coaching, program, seminar, etc. I had a different level of appreciation for how my money was being spent and I had to take action.

I made a commitment to my wife that I wouldn't blow our money, I buckled down and got to work. I didn't want to fail her.

Curious, in your opinion, what is a reasonable amount to pay to get educated (like a course, seminar, coaching) in real estate?

0 Votes

Denver, Colorado

@Keith Lanier once you know your NOI, a cap rate is how you or an appraiser determines the value of income-producing real estate such as apartment buildings. A Cap rate is market specific meaning what someone else will pay for your property.

The lower the cap rate the higher the valuation and as cap rates rise, values drop.

You can obtain market cap rates by connecting with appraisers and real estate brokers or online resources such as Marcus & Millichap, Integra Realty Resources, CoStar/Yardi Matrix, etc.

0 Votes

@Vidit S. each property will be collateral for the lender so the lender isn't lending directly to the fund, but specific assets. Shouldn't be a problem unless I am still missing something.

0 Votes

@Vidit S. if you are using the fund to acquire 1-4 unit deals, you won't need a lender (bank) as you will pay cash, cash from your investors who invested in the fund.

0 Votes

All Forum Posts by: Brian Adams

Brian Adams has started 38 posts and replied 944 times.

Post: Apartment Investing/Syndication- Is it wise to be an LP first?

Post: Any Pilots in Real Estate? Looking to connect!

Post: I quit my CPA Job to buy Large Apartment Buildings

Post: OWNING MULTI FAMILY INVESTMENTS OUT OF TOWN

Post: Learning how to analyze apartments

Post: Seeking coaching for underwriting BRRRR’s / Flips in DFW

Post: Going into debt to buy mentorship

Post: Learning how to analyze apartments

Post: What are the best types of lenders for a fund(not syndicate)?

Post: What are the best types of lenders for a fund(not syndicate)?