All Forum Posts by: Zachary Inman

Hey Karroll. I work with a top apartment syndicator in the Midwest. If your investors are looking to invest passively, it might be a good fit. 

I agree with you. Waiting it out certainly isn't the right plan, in my opinion.

This is more of a sales question: how do you demonstrate value to alleviate investors' problems and fears? You already identified their problems, so how can you help? That depends on your offering, but most cash-flowing real estate has a huge capital preservation benefit during inflationary economic cycles (bc of the ability to raise rents), and if you're in residential then the rising rates will create more renters.

Some will always find a reason not to invest. It's not always a good fit, and that's okay. Find partners who understand the value of your project.

For Agents who get a lot of business, it's typical to charge an admin fee. $1k seems a little extreme though! The main thing to keep in mind is that everything on the buyer's agreement is negotiable. There is no "set rate," it can go down. I would dust off my copy of "never split the difference" by chris voss and negotiate a lower fee.

Or you could just bite the bullet if it's not worth the hassle to you. 

I agree with @Greg Scott. Those could all be described as "side-hustles," which are other streams of income, but certainly not passive.

I work at a firm that provides truly passive income through apartments. All the limited partners have to do is their DD and then collect the return. 

Ask the seller/agent where exactly they are getting their numbers from. Are they just asking because they think they can get it, or is it based on legitimate appraisal methods?

As with what everyone else has said, it really depends on your goals. Do you want to build an actively managed real estate portfolio? Do you want to be completely passive? Somewhere in between?

Also, risk tolerance is a big factor here. If you're looking for 10% IRR that would have different options than if you were targeting 30% IRR.

I work with a Midwest syndicator and have my own deals, so I can tell you first-hand that passive v active investing are very different. 

A good GC is worth their weight in gold. Of course, as with any profession, there are bad eggs out there that are either incompetent/lazy/overcharge. 

Vet your partners.

As for managing the flip yourself, it really depends on your experience. It can be a nightmare if you get in over your head, but also a great learning opportunity if you're willing to put in the time/effort. 

Honestly, the oldest way is the best way for me. Building a solid network with people I trust to dig for the best rates, best fees and costs, etc.

If there was an app/website to compare real time, I'd check it out. 

Rent SFH then house hacking the duplex w/ refi is the best option on paper, but there's the intangible of having to share a wall, which some people don't like. I would probably go that route personally. It also depends on if you're able to find a good deal - deal flow is tight.

Treat it as if your renter was standing right next to you!