All Forum Posts by: Sam Grooms

I would look at local portfolio lenders that can get creative for you. If they believe in your business plan, there's not much they wouldn't be willing to do for you. 

1. 1-2%

2. 1-2% 

3. 80/20 all the way to 50/50 after hurdles

4. 8-10% CoC. 14% 10YR IRR, 17% 5YR IRR.

5. 1.5-2x equity multiple on 5 YR. 

These vary widely between sponsors and deals, but this is what I see as an average. 

Thanks, @Dan Shelhamer! It's coming along great. Countertops went in today, with plumbing and electrical fixtures going in next week. Should be on the market in 2 weeks. 

It's been a little longer project than we'd like, as my wife took it over when my focus changed to a 98 unit we recently closed on that we're completely renovating. On previous flips, she just helped with layouts and picking out finishes. Dealing with contractors has been quite the experience for her. We'll see how many SFR flips we do in the future.

I'd be hesitant in solely using IRR or CoC metrics when comparing investment opportunities across different asset classes and different businesses. IRR and CoC don't measure risk, which varies greatly across these areas. It's hard enough to gauge risk just between different markets and different sponsors just for multifamily.

Yes, this is common. $2,500 is actually on the lower end. I'm used to seeing $7,500+ application fee. 

Good find, Shiloh. Sure, you can give money to a VC and invest in startups, but you have to invest it quite a few to see returns. The good side is that when you do get a return, it'll easily make up for all of the losses and a whole lot more. These type of investments are feast or famine, and you should only do it with truly expendable cash. 

If you want to invest in businesses, I'd go the Bain Capital way. Instead of Shark Tank, think The Profit. Invest in established companies that just need someone to help them turn it around or go from $100M in sales to $10B. I have friends that invest with Bain, and they are extremely satisfied. 

The biggest issue will be finding companies/sponsors that most people can invest with. These guys aren't taking your $50k you invested in a multifamily syndication. Think $10M+ for the well known ones. 

Add an equal number of lights to each panel. 

Why do you need a business plan? The biggest benefit is to the person preparing it, which wouldn't be the case if you use a generic one. 

But, most people don't need a business plan. 

Those numbers suggest operating expenses and economic vacancy combined are less than $2,000 per unit per year. That is highly unlikely. 

To get that low, you'd have to be running it yourself, and have a lot of deferred maintenance. Also, what does the county do with property taxes after the sale? Most counties can significantly increase them, like many counties in Texas. Here in Phoenix, we have law's preventing that. 

What furniture would you use for Airbnb? I'm guessing you'll still need your's. If you have to buy some, then obviously it's not a good idea.