All Forum Posts by: Todd Dexheimer

Building relationships is for sure a good thing, but the point is that getting a pre-approval is not something that happens. I would tell the broker/seller that commercial lenders don't offer pre-qualification letters. They base their financing on the purchase agreement and the financials.  

We have a very long list of items that we look at during DD that includes both the physical and operational sides. Make sure you have your property management company involved, your contractor involved, maintenance involved and possibly hire an inspector. 

The biggest issues that I see that people miss or glaze over: 

1. Age and condition of the major systems (roof, siding/brick, foundation integrity, plumbing, electrical, HVAC). The plumbing is the biggest cause for future headaches that I see

2. Verifying the leases and financials

First, before going the syndication route, you should be very knowledgable in the investing strategy you choose. I will assume that you will invest in large multifamily, since you're posting in that forum. Once you have a handle on MF investing, the you can look at taking other peoples money. 

All that syndication is, is pooling people money together, to buy and operate real estate. Now, with that said, any time you take on investors, you need to be extremely cautious, follow the rules and be able to perform the way you said you would. 

I am doing a podcast series right now on apartment investing and we cover syndication, so you could check that out. Also, here are a few articles that may help you as well. 

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

 Great graph. This shows that from October, 2008 until September 2012 we had the lowest housing starts since they started tracking the data! 4 years! From 2012 through today, we have had a slow ramp up back to normal. What this doesn't account for is the amount of units that have been knocked down or the population growth and demand for new housing.

With record high material pricing and labor pricing, I would be surprised to see a big uptick in new construction.  

Commercial lenders typically don't write pre-approvals. If you have a good relationship with them, then maybe

In any market, you always have to have some sort of aggressiveness in your underwriting. Back in 2010, when the market was down, you had to aggressively look at the future and say that we are headed for greener pastures and the same applies today if you want to buy deals. Being a business owner is about taking calculated risks with a well thought out business plan. Your success lies in being able to execute the business plan at or above expectations. A lot of your success comes down to you and your team, but some of it certainly comes down to market conditions and luck.  

You will need to find a lender that will approve a seller carry. Most will not. Call your local banks near you to see if they allow for a seller carry back to be in 2nd position. 

Things took a big slow down for a while, but now, we are seeing pricing rise rapidly on acquisitions and we are also seeing a lot of LP investors looking for deals to invest in. Over the last 6 months, I have talked with more LP investors than ever before wanting to place money in a syndication. There is a lot of money and not a lot of good places to put it. 

Correct, most listing agents don't want to deal with a buyers rep. If they do, it is because you are paying the buyers rep out of pocket. 

There are 2 reasons for this: 

1. The listing rep needs to best represent the offers and if they don't know who is presenting the offer, they are not confident they can close, which if they don't close, tarnished their reputation. The listing broker feels confident if he knows you as a buyer. The better relationship you have and better track record of closing, the more likely you will be getting the offer accepted. 

2. They don't want to share the commission. They worked had building the relationship with the seller - often times many years or decades. To share the listing with a buyers rep that did very little to earn the commission doesn't seem like a great proposition, especially when you combine that with #1 above. 

So what do you do? Build relationships with the listing brokers and work the deals they present to you. You could always hire a mentor to look at the deals and guide you along the journey. That will likely cost less money that a buyers rep and get you more deals.

Find 1 market and focus on it, stop looking at several

You are not looking for a buyers agent. You are looking to build relationships with the agents in the market that list the type and size building you are looking for. This is not residential, where you find an agent to ride along in their car and show you properties on the MLS.

Read this article: https://www.biggerpockets.com/...