All Forum Posts by: Simon C.

@Michael Le and @Omar Khan Thank you both for your inputs. I haven't got the PM involved with the underwriting as I try to do a quick analysis to see if it works before I dive into the details. I'll definitely get the PM on the next one!

@David VanWert - Hi David! I was in the same situation as you were 2 years ago - realize there's such a thing call syndication which led me the path of investing passively. It took me a while to vet the first sponsor I invested with as this was very new to me.

Before identifying a sponsor, I suggest on identifying your investment criteria (hold period, IRR, EM, CoC, etc) and the type of asset class you want to invest in. There's many syndication deals out there, and they can become a distraction if you don't know what you are looking for (especially when the returns look attractive!!- stick to what you feel comfortable and know).

Once you have identified the criteria and asset class, then I'll suggest looking for sponsors that specializes in that asset class. From there you can also generate a sponsor criteria list for refinement. Sponsor criteria could be: years of syndication, experience with a down turn, frequency/method of communication, and etc.

This might be excessive, but I also asked the sponsor for 3 investors who I can contact. I asked for both new and repeating investors. I was able to connect with the investors to validate the sponsor which ultimately provided me with more confidence.

Happy to connect with you if you have further questions. I see that you are a local from Los Angeles -  I'm in Orange County.  If you ever want to chat over coffee about this topic, let me know. Happy investing!

@Emmanuel Perez - thanks for the feedback! glad to hear that your LLC is up and running already!

@Todd Dexheimer - thanks! How does one find the expense ratio of nearby properties for comparison?

Hi Everyone!

What are your experience with the different types of income and expense report published by NAA, ALN, IREM? Does anyone use the submarket data to analyze your deals? I was always told use OE is roughly 50% of GPR as a general rule of thumb. I understand that the 50% is very general and of course it will vary by the submarket and the type of property, condition, age, etc. As such, I assume these types of reports will help shed some light into the expense of owning a property? Like to hear your thoughts! Thanks!

@Emmanuel Perez - thanks for the feedback! Was the initial consultation helpful in terms of educating and guiding you to what you want as far as asset protection?

@Omar Khan, @Ben Leybovich   For my own education, whats typically the cost to syndicate (Legal, PPM, setup, etc) a deal? Does this depend on the size of deal and number of investors or is it pretty fixed? 

Hi everyone. I too am considering Sutton Law firm for incorporation advice and setup. Seems like everyone on this thread has once considered Sutton Law firm. Has anyone out there use their service?

I believe most regional and local banks offers recourse debt while Agency Debt (Fannie Mae and Freddie Mac) offers non-recourse debt. You should check out the whitepaper written by the folks at Old Capital (http://www.oldcapitalpodcast.com/) I found it very useful to understand multifamily investing. Biggest difference is recourse debt requires personal guarantee while non-recourse doesn't. Might be a little tough in the beginning to qualify for agency debt as they look to see if you have prior multifamily experience. 

Hi @Chad Reynoso @Adam Kakuska; Thank you for your interest! I think we have enough interest to start organizing. Stay tune!