All Forum Posts by: Todd Dexheimer

Yes, the Northstar Real Estate Conference will be October 6th-9th in Minneapolis. Excited to be live again and talking about all things Multifamily/commercial real estate! 

I don't like turn-key investing. You are buying a rental property that someone else stripped all of the equity out and then you're relying on them to lease it and manage it for you. There is no value add upside. They are typically in lower end areas and often in low to no growth cities. 

Now, with that said. I am biased, as I am a multifamily value add syndicator and also invest passively in syndications. I do, however, own a portfolio of 1-4 family rentals. I purchased those for a deep discount, renovated and refi'd. If you want to go the SF route, that, in my opinion, is the way to go. 

Network your butt off! You should be attending every live and virtual meet up in Atlanta and nationwide as possible. Also, talk with your more established friends/family network. 

A lot more factors to really be looking at. These are 3 very different markets, so my guess if someone is looking into one of those markets, they aren't really looking into the others. 

I dig into several key areas: 

1. Population growth/trends

2. Job & income growth/trends

3. Government planning and economic development

4. Rent affordability/cost of living

5. Current rental market (vacancy rates, rent rates & trends, etc)

6. Amount of new build and absorption rate

7. Availability and affordability of apartment complexes for me to buy

I am confused why you want seller financing if you have 2 high paying jobs? Why not take advantage of historically low interest rates? 

Multifamily Millions by David Lindahl 

ABC's of Real Estate investing by Ken McElroy

Emerging Real Estate Markets by David Lindahl

Tons of great podcasts. Right now Pillars of Wealth Creation is doing an Apartment Investing series going through all the steps necessary to buy apartments

There are many differences: 

1. Teams and partners make it possible. You will likely have passive investors, property manager, attorney's, accountant, bookkeeper, cost segregation company, 1031 exchange company, mortgage broker, inspectors, contractors etc on your team. Most people also have 1 or more partners that come in to the deal on the general partnership side. 

2. Financing is much different (Agency debt, bridge debt, local bank debt, Mezzanine debt, etc)

3. Working with Realtors is different. The MF brokers are listing brokers and you will have to build relationships with all of them in your market. They specialize in MF properties and often times don't even fully market the property. There is not really an MLS that deals end up being listed on

4. Property management is different. Typically you hire a 3rd party PM company and they hire full time leasing staff and maintenance staff to be at your building

I'm missing a lot here, but that is a starter list. 

Can you BRRRR? Yes, we are working on a refi of a 224 unit building that we should be able to get 100% of our cash back out about 2 years after purchase.

A syndication is pooling people money to buy an asset. It is a great way for someone getting started to learn and get an insider's scoop on larger assets. It's also great for those just wanting to be passive and not deal with all of the hassle of owning their own property that they have to manage. You get an ownership share of the building and share in the tax benefits, cash flow and equity. Here are a few articles: 

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

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

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

The business plan is about what your company is planning on doing. I suggest you write a general business plan on what your company will be doing. ie purchasing value add multi-family, built in 1980 or newer, located in B class neighborhoods. 

Then you will also have a detailed business plan on each specific property that explains the specific plan for the property

@Mike Bianchi the best thing is that you have options. I personally would spread my money out between a few asset. I like a little in stocks for some quick liquidity and a bit of excitement. Then, I would place the money with 2-3 sponsors on several deals at about $50k-$100k/deal. Multi-family, self storage, Industrial, Senior housing as all strong asset classes and look to remain strong. This is a strategy I tell most of my investors. They may invest less with me in the end, but it serves them the best.