All Forum Posts by: Ryan Cox

You're off to a hot start @Jesse Haffly!  It took me much longer to build up that kind of war chest.  I would knock on every door of every lender in Eugene and the state of Oregon - There's a program and a lender for you, no doubt.  Having a well thought out business plan will go a long way to help the lender determine a loan that is right for you.  If after a lot of no's you still don't have a loan, you should have a very good understanding of what you need to do to qualify.  Thus your 2018 goals will be set.

In the meantime, you could partner with someone with a balance sheet or wholesale.

All the best, RC

Welcome to BP !  Wishing you continued success in 2018!

Welcome to BP! @Dominic Courtney  Wishing you success in 2018!

Good question @Blake B. 

A couple of things I like to keep in mind when meeting with investors

1.  Is this presentation to a new or returning investor?  Who am I presenting to? Family member, friend, doctor, lawyer, investment professional (family office/wealth management)

2.  How much do they know about me, my company and business model?

3.  The Deal -  What's the big idea? Who's involved?  What's the process/timeline? What are financials of the project?

Keeping these things in mind helps me to tailor my presentation to the individual.  Tailoring the presentation gives you the flexibility to create a presentation that will resonate.  I agree with @Jeff Senkiw that simple is better than a lot of slides & data.

Hi @Tim Noteboom  

Here are the questions I would ask when assessing a syndication.

1.  Determine whether the type of opportunity you’re reviewing (development, value-add, stabilized) is the right fit for you.  Is it stabilized, (lower risk/low return) or a development deal (higher risk/higher return)

2. Assess the experience level of the manager. Generally speaking more experience means more success.

3. Is there a preferred return?  A preferred return essentially ensures that investors will receive the first portion of any available profits available for distribution before the manager gets their split and therefore helps investors to recoup their original investment as a priority.

4. Review profit split. Profits splits are arguably one of the biggest factors that will determine your return on investment (ROI) and are therefore a very important item to review when considering a passive opportunity.

5. Look for conservative assumptions in the projections.  I would look for a conservative assumptions/manager to under promise and over deliver.

6. Assess the sponsor's business plan.  Do you agree with the business plan?  Do you understand it?

7. Assess the location and surrounding area's demographics.  Is the area growing or declining?  Gaining or losing jobs, etc.

8. Review all of the legal documents.  The docs will guide the operation of the syndication in which you are investing - make sure you understand the entirety of the investment.  If you don't understand something - ask.

Welcome to BP! @Charles Edwards

Good question @Corey Perdue the two questions that I would ask before investing those hard earned dollars.

1.  What does it mean to be a passive investor?  There are a wide range of strategies to deploy when investing in real estate.  The majority take a very hands on approach to managing real estate, managing property managers or partners.  Speak with people who are working in the business you want to be in (fix/flip, buy and hold, etc) and understand what their day to day looks like?  How passive is the strategy?

2.  What do you enjoy about real estate?  Did you enjoy the work with your father fixing up a home and selling it?  Have you managed renters or property managers? etc, etc.  I would focus on the strategy that gets you excited about waking up in the morning.  All across the BP community people are having tremendous success with a wide range of strategies.  Pick one, become and expert and financial success will follow.

A tip that was given to me when I was 20, that has worked in every phase of my career.

A. Book a meeting with a professional in the market.

B. Ask good questions, be curious and find out what has made him/her successful.

C. At the end of the meeting, let them know your intention to be a professional in that market and ask if there are 1 or 2 people who are in the business that they would be open to introducing you to.

D. Rinse and repeat

After 4-6 weeks of doing this exercise you will have built relationships in the community, understand the highs & lows of the job, what it takes to be success and how to get started (ask how they started). This knowledge will give you a clearer picture of the investment approach you want to take, how to execute on your vision and potentially open up the doors to future partnership.

@Katie Andrews  From your experience in Los Angeles, it sounds like you should focus on building relationships with property management teams in both Los Angeles and Louisiana.  The ability of your management team to execute on the business plan will make or break your investment.  

I would spend some time thinking about what it means to be a passive investor and how much work/control you want in your deals.

Do you have relationships with investors in Louisiana that you could partner with?  This would be a great way for you to learn a strategy with a more experienced investor while putting your dollars to work.

Enjoyed reading everyone's goals!  @Brian Burke  Thanks for posting on the topic and for the "uncharacteristic share"

Here are my goals for 2018 - Raise $16M

Daily:

Engage with other real estate investors on social media/blogs

Contribute to the conversation on Bigger Pockets

Write a blog post

Weekly:

Publish a podcast episode

Meet with 3 potential investors/connectors

Newsletter

Monthly:

Host a local meetup

Participate on the board of a local non-profit (Friends of Barton Springs)

Newsletter

Quarterly:

Speak at an event

The Capital Raising Checklist

Thank you to everyone who chimed in on the previous thread to discuss their best piece of advice on raising capital.  As I look over the list, I am reminded that doing these things well and consistently over time is the best recipe to continue to grow my investor network.

Follow up questions:

What is the one thing you do each day to grow your investor network?

What is the one thing you do each week to grow your investor network?

I aggregated the excellent responses from Omar KhanJuan VargasBruce PetersenBrian AdamsGino BarbaroDave Van HornTodd DexheimerBrian Burke

I really appreciate everyone’s insights and wisdom.Thank you again for sharing!

Capital Raising Checklist:

1. Be trustworthy and credible.Be honest and ethical.

2.  Have a great deal and know your deal inside and out

3.  Put yourself in a position to connect and develop relationships with investors on a regular basis, i.e. REIAs, meetups & networking events.  Start with your inner circle and work you way out.

4.  Be patient.  Look for opportunities to add value to your investor community and think long term.

5.  Communication is critical!  Provide consistent and timely communication and follow through on your commitments.

6.  Always be raising capital.  Have a plan that you can execute each week to consistently connect with investors.

7.  Share your story and why investors should invest with you…put away the PowerPoint, you can send/leave behind ppt’s and other information for investors to review.

8.  Be upfront and set realistic expectations with your investors. (see, be trustworthy and credible #1)

9.  Give the best reporting in the industry & speak to your track record. (See, communication is critical #5)

10. Stop thinking of this as a real estate business!  You are competing against other financial services, i.e. stocks & REITs, align yourself with the professional legal and accounting counsel.