Psyched about this one. I think I can create tons of value. Underwrites to mid-14% IRR.

Took about 5 months of placing offers. But I love this one. Wish me luck!

 

Well, I think I can add 35% value in 3 years. And my thoughts are - I am buying.

You know, everyone always talks about the market cycle. People don't understand that the market cycle is only half of the game - money cycle is the other half.

When property could be bought for pennies on the dollar, no one lent. Very few had cash to deploy. So - everyone was bitching and moaning that there are so many good deals and no money. Today, there is so much money and appetite, so everyone is bitching - we are too late in the cycle...You guys can't be pleased

I like good product in up cycle, and I like good product in down cycle. So long as there is value to be created, I am all about it.

 

No

No specifics here, MJ.

 

Not in a public forum. The SEC is kinda touchy that way, with this being a Reg D. Message me for details if you'd like.

 

Well, let me see if I can guide you in how this works.

The intelligent way to do marketing for is to be present when someone needs what you've got to offer. That's in contrast to plastering yourself over every billboard like wet noodle on the wall - only Ford can afford to do that.

So - here I am. I do what I do. If you'd like to know more - I think you can figure out where and how to find me. This way I am happy, you are happy, and the SEC is ecstatic...lol

 

Tou-che' - for knowledge you pay.

 

Reg D 506c is for accredited people only, and allows wide advertising options. This raise is under $4M so we are doing 506b, which allows 35 sophisticated investors.

 

Yup

 

MJ - understood. Do what you have to do. I am not about to (nor is it even possible) teach multifamily syndication on this forum.

Those who follow the thread, if it stays up, will get updates as those become available. I am not releasing specific numbers, investment parameters, or projected returns on this thread, though. For this you'll have to reach out privately.

I guess, the lesson here is this:

As a real estate investor, I try to always have more than one exit. And as an entrepreneur, whenever I do anything I try to have more than one reason and accomplish more than one objective.

That said, this is just an exciting time for me. It's big growth for me as an entrepreneur. It's also culmination of 5 months of very, very intense work. If anyone wants to be happy for me - please, I'll take it. This is one reason for the thread. Another is that obviously as things progress, I'll share bits and pieces. Finally, if any of this sounds interesting, ans someone wants to reach out for more details - why not? More than one objective...

Does this work? If not, I understand if you need to remove this thread, MJ. Just calling a spade and spade.

 

So - I am privy to a lot of exaggerated hoop-lah about real estate. In actuality, all of this is actually very challenging.

Just in financial terms, what we had to do on this deal was to offer a 6-figure EMD, and no finance contingency. Additionally, the bank good faith deposit is $50,000 to begin the loan app, and attorney fee is $15,000.

Add this together, and what this means is that we are hot into this thing almost $200,000 - if it doesn't close for any reason, this money is lost.

Now, I don't know about you, but I am not sure how anyone can be debonair about this. Think about what it takes to go hard on this much money - think about how much DD would have had to be done even before we were under contract for us to get comfortable around this. Furthermore, think of the established relationships necessary to even attempt to do this type of DD...?

There is nothing debonair about this. There is nothing easy about this. And this is definitely not something a new investor can or should do!

 

It's my pleasure to help, Kelley. Good luck, and feel free to reach out.

 

Let me know if there is a delay with the downloads. Happens once in a while. Truth be know, it's time to revamp JustAskBenWhy.com but there is never time...

 

Just came back from the meeting with the PM. This, by the way, should be taught as lesson number 2:

1. Number 1 is - know how to underwrite properly.
2. Number 2 - know how to buy something that attracts a PM who can actually execute what you underwrote lol

Ours manages 21,000 units in 5 States, but AZ is their home-base. We met with the regional manager who'll have our asset, as well as the guy responsible for purchasing of materials and procuring bids for work.

We met to button up our CapEx. The project calls for well over $1M in reno costs, and, as they say - you're off by an inch, you're off by a mile...

When coming out of the elevator, we bumped into the mortgage broker and the banker who flew out of NY to DD this deal. As part of their DD, they met with the PM.

When people ask me how to manage a duplex in another State, I quite literally have no idea what to say.