All Forum Posts by: Account Closed

Great! I will check them out. Most books seem to focus on the opm or no money down investment strategies. Are there any that are written for investors with significant cash to invest?

Hello,

Can you please list your favorite, most informative book on Multifamily REI?

Thanks in advance

Lawrence

Brian, why is it that mf are better in high job growth areas? I would guess they are more succesful in low income or near university campuses. Just curious.

We never really got to the point of making an investment. Me and the other guy were ready to fund an LLC that would be managed by the friend. He would collect a fee as well as earn his equity over time to manage the company and bring deals to the table. He works for a local LARGE Commercial REI company locally so this work would be on the side for him. He just wanted too much equity up front for no money invested. I was willing to allow him to earn up to 10 percent equity that was based on appreciation of the buildings as well as rental performance along with bonuses for everyone based on yearly performance.

Great post John, I was wondering about this. A deal fell through that I was working on because the person (a friend) arranging the investors, me and another gentleman, wanted to have equal equity with us and had no money to put up. No dice for me.

I remember trying to raise money years ago and feeling that I was more important than the money. I learned quickly to, as my CFO taught me, Respect The Money! when asking for investment. Sweat equity is usually way overrated unless the equity is earned with performance. Also, now when I am the one investing I see how it feels to put your own money out there. If the deal goes south a non paying partner loses just time while the investors lose cash. Also, I believe that there are tax implications for the grantee when granting equity to a business partner that has not put cash into the business.

Well I am glad to have found BP and very much appreciate all of the feedback so far. There is a lot of great information on this site and it seems to have respected REI mentors as well. Looking forward to learning from you all.

Yes, I actually do have equity in the home but there are repairs and other fees that she is charging me which basically wipes out any equity... I can force the sale but would like to resolve amicably if possible.

What about purchasing a multi with cash and then taking a 50% heloc out to use as a down payment on another much larger building? Then both buildings should be able to generate good cash flow. Thoughts on this strategy?

Thanks Brian, I am looking for an ROI that includes immediate cash flow as well as long term buy and hold potential. I have no need for the investment money in the immediate future. I will keep on the lookout for the right operating partner to work with.

to clarify, the paved road is not blocking the easement, the owner of the prop is not allowing utilities to follow the road.