All Forum Posts by: Wyatt Seidel
Wyatt Seidel has started 9 posts and replied 66 times.
Post: investing in Harrisonville mo
- Investor
- Kansas City
- Posts 70
- Votes 62
Quote from @Jason Malabute:
I'm looking at a deal in Harrisonville, MO. Harrisonville is part of the Kansas City MSA. However, it's 19 miles away from the southern part of Kansas City and 37.8 miles away from downtown Kansas City. According City-data, 65.3% of the residents in Harrisonville commute to work (34.7% live and work in Harrisonville). Harrisonville's population is only 10,042 as of 2021. Do you think it's distance from Kansas City proper a concern when investing in multifamily?
Hey Jason. Great questions. We recently just sold a property in Harrisonville even though our brokerage is in Kansas City. Absolutely, one of the concerns is distance from KC proper. As Ernst mentioned, your tenants will likely be living in Harrisonville on purpose and therefore be fine with commuting daily to KC.
Post: Why do investors want to work w/Wholesalers vs Realtors?
- Investor
- Kansas City
- Posts 70
- Votes 62
This is a great topic. I think investors prefer to work with good wholesalers than anyone else simply because a good wholesaler will have a pulse on the market. Not to mention, most agents work on the MLS. Not all, but most. That being said, a good wholesale contact is usually finding better deals that are off-market and haven't been picked apart on the open market.
I think the trickiest part when starting out in investing is finding a good wholesaler. 99.5% of wholesalers are terrible at what they do and don't know what they are doing. But, that slim portion of wholesalers who know what they're doing, deserve to be the middle man in my opinion.
Post: What to expect when planning to live in your first investment.
- Investor
- Kansas City
- Posts 70
- Votes 62
Thomas these are fantastic questions.
I think first and foremost, If you're going to be moving into a home with the intentions of only staying for a year, you should expect to not make any money. That being said, maybe look at house hacking or getting a roommate. The first property my wife and I bought was a duplex. We did NOT cashflow for the two years we stayed there, but it only cost us $300 a month to own an appreciating asset.
Then, when we were ready for the next project and moved out of the duplex, we are now cashing-flowing close to $1000 a month from the duplex.
My situation was different because I'm married. For us to make any sort of money it had to be multifamily. BUT, if you're ok with having a roommate, you'll be able to make a little bit of money with a SFH. Then when you move out and keep it as a rental, you'll start making some cashflow because you can increase rent or have another person move in.
I can't speak to the Ohio area because I don't live there, but I would say search for a place bigger enough to have a roommate. Or a property you know you can cashflow when you keep it as a rental. Great questions and keep up the solid work!
Post: 😍 Why I LOVE Investing in the Midwest
- Investor
- Kansas City
- Posts 70
- Votes 62
AJ,
I love it man! Congrats on the financial freedom. You're absolutely killing it and correct about our common goal; financial freedom through real estate.
I left the nursing profession for real estate full time. It's been an absolute blessing. No more long days, no more clocking in, and best of all, no more taking orders!
Cheers and much respect from Kansas City!
Post: Newer Investor looking to network.
- Investor
- Kansas City
- Posts 70
- Votes 62
Welcome Alicia!
I'm a newer agent here in Kansas City as well and an investor in the area. I'll shoot you a message and I'm looking forward to chatting.
Post: The John Fisher Breakfast Club
- Investor
- Kansas City
- Posts 70
- Votes 62
Quote from @Tim Emery:
Just spent a weekend in Kansas City! Should we be buying rentals out of state?
Absolutely you do! I'm going to message you
Post: Real Estate in MO
- Investor
- Kansas City
- Posts 70
- Votes 62
Hey Luke this is a great question. As someone mentioned above, it's very subjective to your goals in real estate. My wife and I have had a lot of success here in the KC market with our rentals. We're not super experienced by any means and only have a duplex and a couple single family rentals but they have treated us well.
Post: Current NFL Linebacker looking to get into small Multifamily
- Investor
- Kansas City
- Posts 70
- Votes 62
Quote from @Vince Biegel:
Hello, my name is Vince Biegel and I play linebacker for the Baltimore Ravens. I reside in South Florida and looking to get into small 3/4 unit multifamily units. Looking to learn. Talk with other similar investors in the area. Brokers. And advice from the BP group in investing in a new area. Thank you all!!!
Hey Vince welcome! I'm an agent and investor here in Kansas City. I'd be more than happy to chat with you about some of the expansions and growth we're seeing here in Kansas City. I'll message you.
Post: Syndications - What?
- Investor
- Kansas City
- Posts 70
- Votes 62
Quote from @Brett Deas:
I worked for a syndication for a number of years before I started my own, and in my experience this is how it normally works.
The typical structure is an LP. with two classes. The GP (General Partner) and LP (Limited Partner), the GP's do the work and the LP's provide the capital. Typically the GP's are a team and everyone has different roles. There is typically and investor relations person who raises the capital and essentially deals with the LP's the whole life of the deal. There is typically an operations/management person who manages the operations of the property, whether that is rehab or managing the property. Then typically there is someone on the backend who handles financials and whenever the exit is and how that would work.
The returns are typically split between the GP and LPs. Some have a structure called a preferred return, which is where the LP's get some % return a year before the GP's get anything. Then what happens is once you hit that preferred return number there is a profit split between the GP and LP's. On exit for the property there is always a split of the equity too, typically what I see is 70/30 or 60/40 on that exit.
For example, my syndication functions along those guidelines but a little different. We have a 50/50 cashflow split (no pref.) and a 90/10 equity profit split, so the LP's get 90% of the profit on exit after the recoup their original investment amount. The structure heavily depends on the asset class and that also dictates splits, but I operate in the STR space so we typically have a much great cash on cash return than most stable asset syndications.
This is fantastic! Thank you so much for the information. This is extremely helpful.
Post: Syndications - What?
- Investor
- Kansas City
- Posts 70
- Votes 62
Hey everyone.
First and foremost, it's been a blessing connecting with so many individuals in this space. You all have been very kind and warming to me, as a new agent and novice investor. Thank you.
I had an awesome conversation with a gentleman last week talking to me about how he's been able to acquire plenty of real estate through syndicates. I'm not super familiar with syndicates and I was hoping you could all share your thoughts and experiences. I'm aware it's a group of people who get together to attack bigger commercial-like properties. Each person has their own skillset they bring to the table.
I'm sure there are more ways that syndicates operate so please, feel free to share your syndication experiences and your knowledge on the process. Maybe touch on how one goes about forming a syndicate.