All Forum Posts by: Todd Dexheimer

Yes, there will be a crash! 

Sell everything and sit and wait for it to happen. So what if you have to sit around for 5 years or even 10 years+. When it finally happens, you can tell everyone that you saw it coming. 

In all honesty, I don't see a crash at this time, but certainly with the pandemic still looming and government interference in the market, we could see some stress that leads to downward pressure. With all the new money tossed into the market, we are sure to see inflation, which will affect rents and continue to compress cap rates. 

If you buy well located cash-flowing properties, with good financing and equity upside through forced appreciation, then you don't have to be worried about a market crash. Control what you can control.

I know several people that stopped buying around 2015-2016 because the market was getting too frothy. They're still sitting on the sidelines. Recently one of them have been on social media saying I told you so and posting articles about poor collections, etc. Funny thing is, the crash hasn't happened still and there is a good chance multifamily could avoid it. Then what? Sit and wait for the next one to come?  

Interesting concepts and good to be thinking outside the box a bit. Personally I am not ready to put my investors money into Bitcoin, but I do see that as a good option for the right investors. Right now, we put out reserve fund into a money market account for some minor added interest. 

You could also put it into a mutual fund, stocks, bitcoin, etc, but then you are playing investment broker with the investors funds that are supposed to be rainy day funds. 

Most mid to large sized companies are using excel. My company uses and excel template that we have created and tweaked over the past 10 years. It started with just one page and will soon have 10 tabs. 

As for teaching on the spreadsheet, I use sample deals and create a video going through the underwriting, along with typically another hour or so fine tuning the person underwriting after they practice it themselves. 

You're likely to get about the same in Minneapolis as you will in Salt lake with less population growth. It's fairly pricy here, especially in decent areas. Memphis you can get a lot more, but be careful about where you invest. The suburbs to the east are good and parts of Memphis are great, but there are many rough areas. Memphis is seeing some good growth in areas. 

A lot of these markets are still really solid: 

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

It took me 18 months from when I purchased my first property. I waited to quit until I replaced my W2 income by about 125%. 

To get there, I purchased 6 rental properties and was flipping 10+ properties/year. I only included the rental income when I looked at whether I could quit or not. The flipping income was just the icing on the cake. 

Tips: educate your self obsessively about your industry, mindset and business strategy, take action and calculated risk, network like crazy, take small actions to create massive action, be consistent and be persistent. 

As others have said, no cash flow in year 1 or beyond, doesn't show a bad deal or aggressive underwriting. You need to look at the whole picture and the business plan, as well as the experience of the investor. 

As a passive investor, you should really be looking at the sponsor team and whether you trust they can execute the business plan properly. You should be looking at the deal as well, to see if their modeling of returns meets your investing criteria. 

Networking is great. Look for virtual conferences and hopefully soon live conferences, which are much better for networking. The Northstar Real Estate Conference plans on being live in late April and hopefully more will be happening in the summer and fall of 2021. Also, just reaching out to people and setting up zoom calls. 

The most important thing is that you start taking action by connecting with brokers, property managers and lenders. Then of course touring properties and submitting LOI's.

For the underwriting/modeling we use our template that I created through Excel. 

For the presentation to investors we use power point or similar

For asset management and investor relationships we use Syndication Pro. 

Depends on what type of land. For distressed land, I would look at the tax lien and delinquent properties and mail/call them. Otherwise you can look it up on plat maps and target the size and location you're looking for. 

For redevelopment land, you can look for dilapidated structures and structures that are out of place, such as a few SF homes in a commercial area. 

Also, talk with all the local brokers that deal with land, appraisers and lenders. 

Yes. In my LOI template there is a "Commission" section. This states who is paying the broker(s).