All Forum Posts by: Robert Frazier

Let's do some autopsies.

Why did your worst syndication and MF deals go bad?

Be honest, no naming names.

Thanks everyone. This is great.

Will share our PPM and Pro Forma as we move forward for your expert advice. We are so thankful for our bigger pockets community.

We are scaling up our Real Estate Investment fund with accredited investors, developing infill multi-family opportunities in SW Idaho. As we start to fundraise, what are passive accredited investors looking for in development opportunities? What are deal breakers, fees you hate to see included, structures that you shy away from?

As accredited investors, LP's and Co-GP's, what is most important to you in evaluating an investment fund?

-Returns

-location

-project niche

-Bios of GP's?

Thanks everyone for jumping in. I think the decisions we make as individuals, as investors and citizens have effects on others, and it is right to consider the cost to others that our choices make. Housing is difficult to develop. It takes 2-3 years to get a project from purchase to providing housing. It cost thousands of man hours of labor and cannot be easily created to deal with inefficiencies in the market. I live in a city with .5% vacancy and a STR on every block. There are families who are homeless who could afford an apartment if it was available.

It's not an all or nothing proposition. We can agree with personal property rights and also think deeply about what our choices mean for others. We don't have to be soulless bottom line leaches like wall street. What we do is provide housing. We can do that in a humane way.

 Me Thinks thou dost protest too much.

I’m working through it myself.

People can do what they want with their properties, I love helping people invest in properties. But my question is, is it good? 

Using Kant’s categorical imperative, you could say clearly no.

We don’t ask enough questions about what is good here, we ask: ‘what’s our highest return?’ Instead. As people we have moral responsibilities to each other, even as soulless real estate investors we have to think about the cost our choices have on others.

This is just a question I’ve been wondering as we deal with a huge housing crisis in our city.

is it moral to convert properties to short term rentals in a city with a deep housing crisis?


if a city has 500 units converted from long term to str, then the average occupancy is 70%, we have lost 54,000 nights of housing per year.


If vacancy is less than 1%, those 500 units of housing could be responsible for a significant amount of upward pressure on housing prices.

with the high cost of management for str, wouldn’t the world be better off with less of them?

Did you know 28% of American households are individuals? That has grown from just 13% in 1960.

I've been working with a client who is selling their sfh's to scale up to multi-family redevelopment (we've been learning a ton)....and they have build their real estate portfolio with room rentals in larger houses.
Our city Boise has a plethora of larger 30-50 year old homes that need lots of love. This was due to a large mormon population in the 80's and 90's. These houses make great opportunities for room rentals. 

We are listing this one: https://www.homesnap.com/ID/Bo...  currently and it is a rare bird in Idaho, a cash-flowing rental available for purchase!

Per Room Rental Rate: $800-$900 per month in 2 room suites. 

House: 5 Suites and 1 more ready to add a bathroom.

Occupancy: 90% plus

Monthly Revenue: $4000+

Net After Expenses (Assuming $450k note): $1000

This sort of strategy can work with househacking young people, retirees or actively managing SFH investors. It is more work to manage with renters who share space but the opportunity for a great cash-flowing property is super rare in this economy.

Let me know if you're interested in looking for this kind of opportunity in Boise or elsewhere.