All Forum Posts by: Seth Ferguson

@Robert Leparulo I just sent you a DM about a meetup talking specifically about joint ventures and partnerships.

@Dori Arazi

And yes, a POA is a good choice in this case as long as whomever is acting for you is trustworthy and on the same page.

@Dori Arazi

A POA is easy to set up. A local lawyer will be able to do that for you.

Thanks for the mention @Grant Rothenburger. @Andy Ramdeen It's happening on Feb 19.

Hi @Dori Arazi

Are you talking a power of attorney situation? Just not sure what you mean.

Hi @Account Closed,

Stefan Aarnio runs courses in Winnipeg that you might benefit from.

Hi @Barry Sanders,

Would this be your first commercial deal? I'm not familiar with your background.

Anyone investing the capital needed to acquire and rehab the property will be asking about your track record. These heavy lift scenarios require a very experienced hand, especially since the clock starts ticking at closing and you have 0 dollars of rent coming in (if unoccupied). It's challenging enough when a property drops from 80% to 50% during a comprehensive reposition.

A good management company that's experienced in these projects is an absolute must. Someone on the GP side should also have experience doing these types of lifts.

Just as an aside, there is no point taking an abandoned property to 50% occupancy. You need to get it stabilized before any hope of an exit through refi or sale.

Hi @Derek Hanners,

My personal opinion is that you never want to pay off the mortgage. I interviewed Chris Gray about this a few weeks ago. I also don't like selling properties...I would rather refi and keep them.

Doing a refi is your best bet. If it takes you into a negative gear with your original property, the positive cash flow of your new purchases in a "friendlier cash-flow market" will offset the loss. The biggest upside is that you will own more property, paid for by the first property.

Don't worry about loan repayment...that's peanuts compared to the appreciation over a long-term hold.

@Clark Michael

I started off with single family homes and duplexes but quickly realized that I couldn't scale as quickly.
The larger multifamily deals allow you to bring in other investors, which in turn, allows you to scale faster. However, you're working with other people's money and need to be extremely solid with your set up, deal criteria, and the operation of the property.

Hi @Clark Michael,

I think the answer to this question lies in where you want to be in 5-10 years, with what amount of income, and what lifestyle. A lot of the guests I interview work backwards from this and create the life they want.

I know people who've done quite well with single family homes, and also people who've done well in multifamily. What sort of multifamily deals are you looking at? 20 unit +? 50 unit +? 100+?