All Forum Posts by: Todd Dexheimer

Network like crazy and let people know that you will need a KP. Bigger Pockets, Conferences, meet ups, facebook groups, calling guests on podcasts, etc

A few things to consider:

1. Asking for the seller to finance 20% is great, but you need to be sure to find a bank that will allow this. Most banks will lend 75% of the purchase and if you get supplemental financing, like a seller carry back, they will reduce the amount they lend to you. They want skin in the game. You can try to convince the seller to hold back 20-25% and invest that amount with you as an equity owner. This would then give them shares in your LLC and not affect the lender.

2. With a private lender, you will want to set that like a syndication, where they get shares, so that it doesn't negatively affect your leverage with the lender (similar to point 1). If you pay the loan as debt, you will need to find a private lender that won't record the note and trigger the bank. 

3. Getting paid commission is possible, but in Multifamily, brokers often want to hog the commission and are not willing to share it with a buyer/buyers agent. The benefit with a 20 unit is that most of these brokers are used to sharing the commission, so you are likely ok. 

It should be the same as what your current 401k is. No taxes paid until you start tapping into the money when you retire. 

I agree that at this time real estate (besides office) looks poised for continued growth. We are continuing to purchase both Senior Housing and Multifamily, but are certainly paying attention to a few factors, especially with Multifamily.

1. Inflation: this could be good, but we need to see income inflation, not just expense inflation

2. Interest Rates: a small fluctuation is fine, but if for some reason interest rates go up 3+ bps, that would certainly change things

3. Government intervention: we are avoiding states that are aggressively going after landlords

We have done direct mail several times and have gotten some response, but in all cases the owners wanted a ton of money for their real estate. Haven't done a deal yet with direct mail, but we will likely try again at some point. 

Like others have said, the LP's should be able to boot out the GP in case of misconduct. Personal bankruptcy likely won't force you to lose your money. Picking a syndicator is like picking a property to invest in. Choose wisely and you should be in good hands

My guess is Grant Cardone would start with syndication, just like he did to grow his portfolio. Don't know who Manny Koshbin is, so not sure his angle. 

As for what you should do? Well it sounds like syndication would be the best fit for you, but you're opposed to it for some reason. Other options would be to bring on JV partners and you and the other partners come up with the money to buy the "Large Multifamily." You can also do private money loans to come up with the full purchase price. Lenders will not like this, so you will have to buy with cash. If a large asset is $5 million, then this could be possible, if it is $50mm, then a little more difficult.

 Not sure that there is readily available data. I think the biggest change is the fact that it's all over social media, podcasts, youtube, etc. 20 years ago none of that media was around, so it was literally just your friends and family network. I know plenty of people that have been syndicating 20+ years, but they have their network and don't use social media like the younger generation of sponsors. 

If by we, you mean a partnership, then investing in the LLC may make sense, especially if that allows you to qualify as an accredited investor. If it is just you individually or you and your spouse, then it doesn't make much of a difference. It is pass through income anyway.

This is coming from a lead Sponsor, not a CPA, so reach out the your CPA and attorney to confirm. 

I would say a big social factor would be the millennials moving out of apartments and buying homes. The Baby Boomer generation moving into senior housing, freeing up the housing inventory we are starved of, thus making housing to purchase more available to buy. 

As for economic factors, there are so many at play, but a recession in general will cause people to move back home or double up, causing occupancy issues. Also a booming economy with irrational exuberance, can cause a building boom that will out pace the demand.