All Forum Posts by: Richard Neuharth

While appraised equity isn't cash, the fundamentals of real estate investment trump any particular method for acquiring properties. Especially during the bear markets, basics are the most important KPI.

Reduce the amount of personal cash in the deal.

Ensure that the property can provide enough cashflow consistently to sustain itself 

Wait for the best time to sell

Never, ever, nevereverever, put yourself in a position that forces you to sell at the worst possible time. This means building contingencies for vacancy, repairs, insurance increases. Still making sure the property can cover itself plus some. 

Just me personally, If I missed by 20% and had to leave 20% of my equity in the deal, I would rather just buy a turn-key. The whole point of BRRR is to reduce the amount of equity in each property so you can do more. Your DSCR should still be 1.25 or higher.

Generally, we want to look at the story of the property. Where is it located? How do the other properties perform around it (difficult)? Tenant base, jobs, etc. If it's property specific and we can potentially improve it then it might be a go. If its the location then maybe not so much. Bad debt is also one of the most difficult items to overcome and generally takes the longest.

Look up Kyle Swafford. He is from the area. We have worked with him. Their firm does RE and SEC. They can answer your questions for sure. Good Luck!

The market is changing pretty rapidly right now. To get a real time update and to be able to make the best guess I would consult a broker or PM. They can give you co-star, crexi, or similar report for how properties are trading right now.

You can find everything online and most of it for free. I have joined several masterminds over the years, which I love. I am a veteran and have quite a few groups that are military and veteran based. We have worked with and helped a lot of veterans get started in the industry. It takes a while to get good at underwriting, but the right teacher can make all the difference. 

There are other ways to provide value as well. It's not all underwriting. Check out Tribe of Titans. Veteran background, and Brian Briscoe is a good dude. I'm also part of Think Multifamily and they do an excellent job of helping you build a network and focus on acquisitions.

Good Luck!!

We are active syndicators in DFW. We host a meetup and events monthly as well as always looking for future partners and investors. 

Your network is going to be the most important piece in my opinion. Build your team first. This includes investors, sponsors, capital raiser, insurance, mortgage, etc. It can take a while and it can also be a rocky road when first using someone new. I would recommend finding someone that has experience with whatever size property you want to buy and partner with them. You will most likely need their experience anyways. Checking out some conferences might be a good way to get going too.

The most important part of any investment is the sponsor/s. 

There are quite a few red flags that I would suggest you ask the hard questions. The annual returns for example are an instant red flag. Yes, I want them but are they real? unlikely. Definitely not conservative. 

Usually higher returns carry much higher risk. There is quite a range of different investments. This makes it more difficult to underwrite and actually be able to determine the returns that can be provided. If you haven't already, ask for the underwriting. If they won't provide it walk away. 

Best of Luck!

There are quite a few options. The best ones cost quite a bit. If you are starting out I would say build a relationship with someone who has access to co-star so that you can get a list of all the properties in whatever area you want. 

We are seeing more fluctuation in the leverage vs interest rates for large multifamily properties. We were stressing down to 75% but now have to go to 70%. When lenders get stressed they tend to be more cautious and lend less on each property.