All Forum Posts by: Ryan Cox

I've seen a lot of great posts and wisdom shared in respect to raising capital on BP. 

What's your best piece of advice for raising capital?

@Sam Epperson  I agree with @Brian Burke book suggestion's and I also like The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges. 

I would also recommend  focusing your efforts on developing your sales & presentation skills.  Being able to build relationships, communicate effectively, display organization & attention to detail are critical to capitalizing your deal & developing long term relationships with investors.

@Gavin Tam  I think that you are on the right track in reviewing investment options and then selecting a strategy that you want to become an expert.

Here are the things that I would ask/consider when vetting a deal and/or sponsor.

1.  Determine whether the property you are reviewing (development, stabilized, value-add) is the right fit for you.

2.  Assess the experience level of the manager/sponsor

3.  Is there a preferred return?  Why?  Why not?

4.  What are the profit splits?

5.  What are the assumptions/projections?  Are they conservative or aggressive?

6.  Assess the manager/sponsor's overall plan and strategy

7. Assess the location and surrounding area's demographics

8. Review all the legal documents.

This general guideline will help you evaluate sponsors and the deals that they are working on to make sure the sponsor and deal are a fit for you and your investment/real estate goals.

All the best, RC

@Bryce Ray The "Dallas Ft.Worth Grapevine Arlington Desoto area" is a massive market to cover.  

I would start by narrowing the geography that you would like to purchase a property.  You want to know the market, brokers and comps backward and forward to find the best deals.  For example, you could define your search in Arlington to 303-Fielder-I-30-360.  Building relationships with the brokerage community and "driving for dollars" in a defined market will give you an edge and help you win good deals.

@Taylor Colligan

A few questions I would ask myself:

What do you feel comfortable negotiating with your partners?  What seems reasonable and fair? 2% acquisition fee, 4% asset management fee & 20% of the profits??? (Just an idea)

I would think long and hard about the value that you are bringing to your investors and make sure that you are not selling yourself short.  I believe that the best business relationships are fair and equitable.  If either you or your investors feel like they're getting the short end of the stick going into the deal, then challenges will develop in the relationship in the short or long term.  Establishing an equitable relationship from the outset of your business relationship will set you up to work with your investors over the long term and get referrals when you deliver against the expectations you set.

All the best! RC

@Bar Goldstein  Good questions!

Here Is what I am seeing being offered by syndicators.

1.  8% preferred return to limited partner investors.  The LP receives an 8% return before the general partners receives any payout.  The promote structure is commonly 80 (LP) /20 (GP) or 70/30 depending on the deal/experience after the LP receives their pref.

2.  I would try to lock in a fixed rate with rates expected to move up in 2018.  Debt typically fixed with an interest only component (24-36mo) for a term of 7-10 years.

Best of luck in deal #2! RC

Ramsey Blankenship Having investors that trust you and want to invest money in your deals is a great problem to have. I would seek out legal counsel from a real estate attorney who has experience structuring entities with investors. It is worth the cost and effort to ensure that you and your investors are setup for success.

@Justin C Huggins All things being equal regarding the return on investment, I would ask myself the following questions.

Which investment offers the larger cash flows?

Which investment has the opportunity for larger sales proceeds?

How long do you plan on holding the investment?  When can you expect to get your equity back?

Exciting times @Mark Mattison!    Find a real estate investment strategy that gets you excited to invest in your business and education everyday. 

I would consider the time horizon of your investment & your management strategy as you enter into retirement.  While being an active real estate investor can create some flexibility compared to a W-2 job, the time commitment can be equal to or greater than your current job depending on the investment strategy you choose to implement.

When choosing a strategy,  I would also take into account your risk tolerance as you want to protect your hard earned 401K and pension dollars.  I might consider finding some partners you trust to share the risk and work load while you are learning to master your strategy.

Best of Luck! RC

Welcome to BP @Cory Carrigan!