All Forum Posts by: Todd Dexheimer

Going out of state has allowed me to become a much better business owner. It forced me to give up doing everything myself and focus on building a strong team. The travel is the only part that takes away from family time for me. When I was buying in state, I was working 60-80 hours/week. Now that I am out of state, I am down to 35-45 hours/week and has made me much more effective. 

With that said, investing out of state is not for a newer investor, unless they have a partner in the area. My first out of state adventure as 8 years after I started in the business. 

This list is for Multifamily (5+ units) and applies mostly to larger buildings.  

Why live in those places? Family. My wife will not move, because or family and friends are here. My options are to divorce my wife and leave my kids behind or to invest out of state. I choose the latter.  

Look at areas of growth within the MSA. St. Louis has lost the highest percentage of population in the US since the 1950's (65%) and is still losing population. There are suburbs and parts of the city that will have population growth, so focus on those areas or find a new market. 

To find the properties, search for the brokers that list those properties and reach out to them directly. Here is an article on finding brokers: https://www.biggerpockets.com/...

Securities attorneys are going to help you set up the syndication. There are several on BP or feel free to PM me. 

How do you raise money? Well, it starts and ends with knowledge and your network. Gain experience through doing this business with your own money or find partners/mentors that have experience. After you have enough knowledge, network with people that have money looking to invest. 

This is not a get rich quick thing, so be sure you take your time and do it the right way. People are trusting you with their money, so make sure that you can actually do what you promise. 

Here are 2 articles that I wrote on emerging markets. You're really looking for a few key factors and trends. One of the biggest think to look for in my opinion that no one talks about is rent affordability. The next, would be opportunities. Some cities may check all the boxes, but just don't have properties you can buy and make money. 

How to identify markets: https://www.biggerpockets.com/...

Top markets today: https://www.biggerpockets.com/...

I hear so many people asking what the best markets to invest in are. First, my answer is look in your own backyard to make sure that is not a good option. If you say, "thanks, but no thanks," to your home market, then you need to dig in:

1. Job creation, 2. Increase in population and future expected growth, 3. Building proposed (permits pulled), 4. Government planning 5. Affordability 6. Absorption rate and vacancy rate. 7. Rent affordability 8. Landlord friendly. One of the other major factors that I look at, is if there is opportunity to buy value add properties, meaning buildings are being sold in the asset class and size that I desire and there are building being sold at a discount due to a problem needing to be solved.

With that said here is my top 11: 

1. Tampa Bay, Florida

2. Jacksonville, Florida

3. Phoenix, Arizona

4. Raleigh, North Carolina

5. Atlanta, Georgia

6. Savannah, Georgia

7. Cincinnati, Ohio

8. Des Moines, Iowa

9. Memphis, Tennessee

10. Huntsville, Alabama

11. San Antonio, Texas

To see my full thoughts check out the articles: 

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

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

@Charley C. it sounds like you are wanting to represent sellers to list their apartment buildings. If you are looking to represent, then get a subscription to Yardi Matrix, Co Star or RIES and search for the property/location you want to get the contact information and reach out directly. You will need to build relationships with the owners to get a shot at listing them. 

I think there are better websites to learn those strategies. BP is better for investors and agents listing smaller MF. 

Not many lenders will allow this and if they say that they will, make sure that you get clarity on what that means. Every lender I have talked to about this that will allow it, will actually reduce your LTV so that the total loan amount between the 1st and 2nd still hit DSCR and 20-25% down payment.

A viable option is to have the seller leave money into the deal as an investor. You then give them an equity split of the partnership on the limited side. You can make this a 5% preferred return or whatever you wish. 

If you are looking to find large multifamily deals to buy and you are a broker that doesn't specialize in MF, then play the role as a Principle and not a broker. Investors reach out to brokers that specialize in listing apartment buildings and build relationships with them. These brokers typically don't want to share in the commission, so it is best to work directly through them. I am licensed and every apartment broker that I work with knows that I will not take any of their commission. 

If you are looking to represent, then get a subscription to Yardi Matrix, Co Star or RIES and search for the property/location you want to get the contact information and reach out directly.