All Forum Posts by: Richard Neuharth

There are free ones out there like Lonestar Capital Group. Most are paid like Michael Blanks, which is pretty good. The best one we have found is Think Multifamily. 

The best way we have found is to call brokerages that deal with Multifamily properties, or find deals that are listed on broker websites, Crexi, and Loopnet and start calling. Get added to mailing lists and follow up regularly. Hope this helps.

We bought them all!!! lol! Seriously though, I think that there are some markets where there are people interested in selling but they don't know where to move their money. Some of our other markets are struggling with this as well. It's a stable market with stable returns and great employment. I'd probably wait to sell too. 

It is slightly more difficult to get a commercial loan that is sub 1mil. If you have exhausted your local banks, I would recommend a mortgage broker. They are able to get better terms and options because they have a relationship with different lenders. 

For new investors looking to get started, you have to be able to bring something to the partnership. Best way is relative to your skills. We got started by finding the deal. That took months and months of building relationships with brokers and underwriting billions worth of deals until we found a good one. I’m not exaggerating either. You can spend the time to find deals and make relationships, you can find high net worth people to be able to bring money to someone else’s deal,  or like @Reginald Ross said you can put your own money into someone else’s deal. 

In my experience 5% is pretty high, but maybe those groups have investors that are comfortable paying that and they are fantastic operators. We keep our fee to 2%. I know truly great operators that are at 2% acquisition though. It depends on what you are comfortable paying and who you know. BP is a great place to meet operators from all over the country. Conferences are another great place as well. We do a lot of social media networking and we speak with sponsors and investors daily from all over the world honestly. Out of state investments aren’t much different. We live in Texas but invest in multiple states throughout the south. We travel regularly to visit the properties but I believe that is very important in maintaining a strong asset. 

There are definitely people doing this. We have come across quite a few in larger markets. It seems like a decent way to increase the quantity of C Class properties if it is done right. I would be interested though if the returns are still there with the cost of materials lately. 

Some cities/states only allow you to bill back a certain percentage of utilities. It’s best to add separate meters if you can. It can be expensive but well worth it. When you get your Due diligence team out there or call before and ask them. It varies depending on where you are. Once you get an idea of what it cost do the math to figure out if it’s a good investment. Most of the time it will be worth though. 

@Isaiah Stiverson The best way honestly is to make friends with people that are already doing it. There is so much that you can only learn from either doing it and making mistakes, or building relationships with people that are already doing it. You can find meetup groups, conferences, networking events, property tours, etc. Those are great places that will give you opportunity to speak with operators. Building teams is quite a bit more difficult than most people talk about. It can take time and not every company is the perfect one size fits all fit. If you want to do it all on your own then start building those teams now because they will help you be confident in submitting offers. hope this helps some. Stay relentless