All Forum Posts by: Rodney Miller

@Cameron McNulty

Goal for 2020- purchase $20 million dollars of Multifamily assets.

Let me back up.

In 2017 my goal was to shift my focus and learn the large commercial Multifamily business.

I had spent 2003- 2017 amassing a 100 unit SFH portfolio and was getting frustrated with the time I had invested to get those 100 SFH's. @ 50 years old I needed to scale faster.

I spent all of 2017 reading books, listening to podcasts and vetting RE mentors in the large Multifamily space.

2018 goal- To invest passively in some large Multifamily deals and make more connections. Also wanted to find partners to help raise capital and spread the workload.

In 2018 I invested passively in a little over 300 units. I met and talked to many operators. Vetted a lot of deals and made some great connections. I found a mentor and joined some Multifamily investor groups. I Attended a lot of regional Multifamily events. I eventually partnered with two guys who I now call friends.

2019 goal - To purchase 500 units by year end as a General Partner.

2019 - We purchase 2 properties totally in 374 units ( missed our goal by 126 units). 1st was a 100 unit @ $4.2mm price tag. 2nd was a 174 unit @ $8mm price tag. We were able to purchase over $12mm in assets and raise $3.6mm in capital (OPM) to purchase these properties. The capital raising was new territory and was a white knuckle ride but be survived. In

Crazy journey.

They say that you usually overestimate what you can accomplish in a year but underestimate what you can accomplish is 5-10 years.

Sorry, that probably went way too long......

@James Wise you are 1/2 right LOL!

I have 6 sub 2’s in my portfolio. I kept folks from foreclosure and also kept my word and paid their mortgage when I was actually losing money.

It gets slimy when investors take over debt payments on deals with little or no equity.

When things get tough they bail and leave both the mortgagee and the tenant high and dry.

Honestly some of the balances are so low now that if the seller asked me to pay off the mortgage I would do so. They haven’t asked so they must be Ok with the situation.

Good luck!

@Leon Lee The biggest problem we have found in Tertiary markets is finding solid property management companies and access to contractors and service providers.

That being said, our best performing assett is in a town of 20k people. It’s right at 100 units.

It’s helps to find Tertiary markets within 30 minutes driving distance from larger markets of 100k+

Someone mentioned that you will have to get financing via a local bank or credit union. Not true. We were able to secure very favorable agency debt on our property.

We’re seeing more investors come into the tertiary markets as the larger markets have become extremely competitive. Good luck

@Carl Fischer I haven’t found that the case. I have spoken with several companies and have hit a brick wall. If you have any companies that you suggest I am all ears! Thanks!

@Josh Chappell Try Price Edwards. Not sure what their minimum number of units is. Good luck!

@Courtney James That’s a red flag. I would keep looking. There are plenty to choose from.

@Thomas Wang I would be surprised if you could find a 10-12 cap property in this crazy market. 

What are your goals?

Would you be happy owning a handful of small properties or would you like to eventually be a GP in a $40MM project?

If you want to go bigger faster I would look at partnering with experienced GP’s on larger deals.

Most GP’s will look for partners who can:

Source good deals

Help Raise capital

Or both

GOOD LUCK!

@Courtney James There are a lot of fake coaches out there so be careful!

How much experience do the have in both real estate and coaching others?

I own a business as well as invest in RE. I have used coaches for both and still do. I can tell you that a great coach can collapse time frames and accelerate your growth beyond what you could do on your own.

A bad coach will take your money and waste your time.

I just got back from the BEC. I talked to several people that are very happy with Trevor McGregor.

He is a real estate, business, and productivity coach. He is Joe Fairless’s coach. Maybe check him out.

BTW I don’t work for him, with him, or promote for him.

@Joe Splitrock  I held about 75 rental houses in 2008 during the downturn.  Vacancy really wasn't affected and rents began to climb shortly thereafter.  Maybe it was my market (OKC).   My properties are bread and butter class C housing for the blue-collar Tennant.   I think Class C housing fairs much better during downturns.   I think the smart money is investing in Class C housing and Multifamily as well as mobile home parks.  The Investors that got into trouble were highly overleveraged and were thin on cashflow.  Class C properties, if purchased right cash flow great and stay full during tough times (at least in my market).  After living through the 2008 downturn I am now focused exclusively on Class C multifamily and mobile home parks.  

@Jayson Bell Hard money lending is a great way to leverage your self directed IRA. Good luck