All Forum Posts by: Taylor L.

Clint,

Sounds like you're thinking syndication, but you might not be 100% familiar with the structure?

There are many resources to learn about syndication. Here are a couple - Joe Fairless, my mentor, has written and podcasted extensively on his experience. I wrote a post on 10 takeaways from the Fall 2016 Real Estate Guys Secrets of Successful Syndication seminar. David Thompson is active on BP and writes actively as well.

Syndications are either Limited Partnerships or LLCs. The property is deeded in the name of the LP or LLC. In LLCs, for example, investors are "members" and own "membership units" of the LLC, with certain voting and control rights (outlined in your Private Placement Memorandum). You, as the sponsor, also own membership units with more voting and control rights over the company/deal.

Re: your small property question - syndication isn't ideal for small $ value deals because there are high fixed costs, mainly legal. Syndication of this type falls under SEC Regulation D Sec 506 b or c. The fixed costs of legal compliance are fairly high. The lowest cost provider I've seen is RegDResources.com but as a first time syndicator I wouldn't go this route. Having an experienced local securities attorney who is available to consult and walk you through the process could save you a lot of time and headache down the road.

Furthermore, if you're able to raise capital from 3rd party investors, why not go all in and take down a big deal anyway? 

(disclaimer - I'm not a lawyer. Talk to a lawyer). 

If you're ever in the Richmond VA area, do come to the Richmond Multifamily Meetup. We meet on the 4th Monday of the month and discuss a topic relevant to multifamily investing.

@Chris Messersmith if you're looking to make connections I'd invite you to attend the Richmond Multifamily Meetup, link here: Richmond Multifamily Meetup

Our next meeting is Monday the 24th.

@Ian Tudor awesome, thanks. Serious respect for your hustle. Did you use a listsource, or go through public property records to build your list? By cold calls, do you mean door knocking, phone calls, or something else?

Congratulations! Can you tell us a bit about your cold calling/deal sourcing process?

 As others have said, unless you're a licensed RE broker/salesperson, do not call it a commission. 

I am not a wholesaler, but my understanding is that the formula is ARV * 0.7 - Repair Costs = Maximum investor price. If you got the property under contract for a dollar, then you'd be able to net the Investor price minus the one dollar paid to the owner.

Hi Matt! Are you a Norfolk native or did the Navy bring you?

Have you considered focusing on raising capital for your first couple of deals? David Thompson is active on BP and that's his specialty.

Please register on our MeetUp page.

This month: 

Our speakers built their portfolio by raising capital from third party investors. They are highly skilled at working and BUILDING RELATIONSHIPS with high net worth investors, including individuals and family offices. This meeting is for you if:

- You’re interested in raising investor capital OR

- You want to BE an investor and don’t know the right questions to ask.

Many of us, but not all of us, live in Richmond, Virginia. Multifamily investments can be had throughout the US, so many of us invest in markets other than our own RVA.

We'll be in the BIG MEETING ROOM on the FIRST FLOOR by the librarians' desk. 

There is a monthly membership due to be in the group, but the first month is free. Membership dues go to cover the costs of hosting & running the MeetUp. If we end up in the black on any given month, the positive balance will be donated to the library.

Terms you should check out ahead of time:

General Partner

Limited Partner

Equity Partner and/or Credit Partner

Syndication

Private Placement Memorandum

Value Add Strategy

Multifamily & Apartment Investing

Good work. Where did you get your financing? Interest rate & amortization?

That's a tough call. Richmond, VA is very different from Detroit or Baltimore. Richmond is a great city, but inventory levels are getting lower and there are a lot of people getting into the rental market. If I were in your shoes I'd look into cities across the PA line. Personally I wouldn't want to be a full day's travel from a single family rental. That said, I'm in the apartment space so I can't speak from long distance single family investing experience.