Direct Ownership VS Real Estate Syndications

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This Money Monday we will discuss the differences between direct ownership vs real estate syndications!

VIDEO TRANSCRIPTION

00:00
back to the euro you’re on vacation last
00:01
night on vacation but i made sure to
00:03
come back just in time for monday
00:04
mondays there you go
00:05
it’s commitment folks absolutely did a
00:07
bunch of snowboarding
00:09
somebody had to say park city utah you
00:10
know i know you know i just couldn’t
00:12
trust ben to keep the trains running so
00:14
i figured three days that all the trades
00:16
could slip the lights started going out
00:18
it was gonna get crazy here pretty quick
00:19
but we are back now we’re back man
00:22
monday mondays do this every monday 3 30
00:24
central sometimes 3 34.
00:25
yeah because ben’s running uh to
00:27
starbucks late talk about a lot of
00:29
different
00:30
topics yeah and you know you guys are
00:31
welcome to make suggestions but this
00:32
week we are talking about
00:34
what then direct ownership or owning
00:36
your own deals
00:37
versus syndicating absolutely right you
00:39
know and
00:40
we’ve both done a little bit of both
00:42
right so we’re going to kind of give
00:43
some unique perspective on the pros and
00:45
cons of each one right
00:47
you know so let’s kind of just dive into
00:49
if anyone has any you know topics for
00:50
future let us know right
00:51
and basically we’ll spend about 15 20
00:53
minutes presenting and then we’ll do
00:54
last 10 minutes q a so q a is really the
00:56
best part of my mind right people can
00:57
ask anything you want doesn’t have to be
00:59
about this topic
00:59
and we want people this needs to be
01:01
interactive right or we want it to be
01:02
interact doesn’t need to be
01:03
right but you know so if you have
01:05
comments on the on the topic or just
01:07
real estate in general drop them in the
01:08
comments section give us a like give us
01:10
a share
01:11
you know that kind of helps us kind of
01:12
keep motivated to keep putting this
01:13
content out here so
01:15
let’s talk about risk right so
01:19
owning your own deal versus syndicating
01:22
a deal and i’m going to give my own
01:23
unique perspective because i’ve done
01:24
more syndication than i’ve owned
01:26
my own deals right and i’d say that
01:29
we are de-risking a deal by syndicating
01:32
them
01:33
right why is that right it’s because
01:34
we’re leveraging other people’s time
01:36
money and experience
01:38
and putting a syndication deal together
01:39
versus it’s all on you
01:41
if things screw up on a deal that you
01:43
own right yeah i mean you can put
01:44
experts in the role the same reason we
01:46
buy apartments that
01:47
you know have 90 units or above versus a
01:50
40 unit because again
01:52
40 unit you it’s really hard to have a
01:53
dedicated person to do
01:55
that job well yeah and you kind of you
01:57
know if you’re you’re owning your own
01:58
stuff you’re kind of having to wear too
01:59
many hats
02:00
you’re never going to be the best
02:01
maintenance guy or the best accountant
02:03
or the best
02:04
anything else right so well yeah and and
02:06
once again it’s all on you right the
02:07
most valuable thing that we have in our
02:09
lives is time right
02:10
so if it’s all on you there’s just not
02:12
many deals
02:13
especially when we’re talking about
02:14
apartments even smaller apartments like
02:16
say you got a five unit here
02:18
10 unit there that starts adding up and
02:19
that’s a lot of work right
02:21
you know because what ferris pointed out
02:22
right you’re not going to be able to
02:23
afford to hire on somebody full-time
02:25
or maybe if you did hire them on
02:27
full-time they’re probably not the
02:28
greatest asset to you
02:29
right you got to step in and mop up a
02:30
lot of their mass right so that’s a lot
02:32
of
02:32
there’s a lot of inherent risk in doing
02:34
it all on your own right now don’t get
02:36
me wrong we’ve seen people be wildly
02:37
successful
02:38
so that’s not a you know um don’t think
02:40
think of it like hey this is just our
02:42
opinion
02:43
and this or this is some kind of a you
02:45
know law that’s set in stone right you
02:47
know i think it just
02:48
each person’s you know situation is
02:50
going to be different so
02:51
that’s what i’m thinking about in terms
02:52
of risk right returns
02:54
i would say it’s probably a little bit
02:57
um you know returns are going to be in
02:59
the eye of the beholder right so if
03:00
you’re owning your own deal
03:01
maybe six percent’s all right right yeah
03:03
and maybe i’ll speak about this one a
03:04
little bit right
03:05
it’s it’s ultimately any
03:08
real estate deal can make money yeah
03:10
right but with syndication
03:12
you can typically buy a bigger asset
03:14
which means you can actually play on the
03:16
commercial space versus
03:18
more of the non-commercial right houses
03:20
in the neighborhood are not valued based
03:21
on income they’re just not right based
03:23
on columns right they’re based on what
03:24
their house in the neighborhood you’re
03:25
never going to be able to
03:26
significantly increase that price right
03:28
you have to wait for the whole market i
03:29
do know a guy that bought half of a
03:30
neighborhood
03:31
just so he could show well everybody’s
03:33
not everybody’s a hedge fund right you
03:34
know
03:35
but um you know it’s ultimately with
03:38
syndication you can pull together
03:39
people’s money
03:40
right let me just use an example if i
03:42
had fifty thousand dollars and bet only
03:43
had fifty thousand dollars
03:44
to invest we can go i can buy a house he
03:46
could buy a house
03:47
yeah maybe we can get that house at a 20
03:49
discount we do some improvements and
03:50
maybe make a few bucks
03:52
right but if me and ben and then we get
03:54
10 other friends to go do a house
03:56
right go do you can invest 50 000 we got
03:58
600 thousand dollars to invest we can go
04:00
buy a three million dollar asset yeah
04:01
now we can play in commercial and we can
04:03
actually go buy one with 30 down units
04:05
like we did in atlanta
04:06
bringing those units online and
04:07
significantly double triple people’s
04:09
money right
04:10
yeah that’s the difference is really in
04:11
terms of the returns is that you could
04:13
actually
04:14
pull people together people money
04:15
together have you know more of them
04:17
you’re leveraging other people
04:18
you’re reducing risk in some capacities
04:20
right because again
04:21
you’re not having a bet you’re betting
04:23
more on income at the property and
04:25
performance there than you are on comps
04:26
because also just betting you know the
04:28
guys that do the deals at our
04:29
appreciation place
04:30
they’re just making a big bet on
04:31
appreciation right correct you can’t
04:33
force appreciation in a lot of times you
04:35
know
04:35
with the traditional houses so yeah but
04:37
in commercial you can right but i mean
04:39
at the end of the day right the returns
04:40
once again in the eye beholder
04:42
one one guy or gals deal might be good
04:45
you know three four five percent they
04:46
might love that right
04:47
whereas syndication you got you got
04:49
partners you got lps you got investors
04:51
you’re usually gonna have to go for i
04:52
guess the more meteor deals is kind of
04:54
in my mind
04:55
right you know and then once again your
04:58
the returns
04:59
you know um you’re spreading risk right
05:01
you know you’re leveraging other
05:02
people’s money like ferris was talking
05:04
about
05:04
to maybe get those bigger returns right
05:06
because you’re able to get into bigger
05:08
deals that have more of a a play right
05:10
you might have a couple extra zeros at
05:11
the end right
05:13
yeah and even then also maybe one that
05:14
we kind of glossed over there’s just
05:16
better
05:16
debt options too right a lot that’s true
05:18
right yeah actually that helps a return
05:20
that’s great you know i mean i think
05:21
that that’s actually something we should
05:22
point out right the debt is going to
05:24
point out most of my comments you know
05:25
for the record
05:26
oh you’re too far away i can’t patch on
05:27
the back man all right so no the debt is
05:29
definitely going to be a big
05:31
a big driver in terms of what the
05:32
returns are going to be right you know i
05:33
mean even in the big commercial space
05:36
you’re seeing stuff that sub threes in
05:37
terms of interest rates right
05:39
you’re locking in long terms of long
05:41
periods of io
05:42
interest only right that means you’re
05:43
not paying principal right you’re seeing
05:46
you know non-recourse which means if the
05:48
the market turns on you right
05:50
uh you’re ultimately not going to lose
05:51
your own personal net worth to
05:53
you know to the deal right so that’s
05:55
going to ultimately affect the returns
05:57
right whereas
05:58
yes people are going to say oh you can
05:59
get the same thing but single family
06:00
rentals there’s only so much you can do
06:02
then you have to kind of get you know
06:03
and start pulling things together you
06:05
know collateralizing this and that
06:07
and you know putting into jumbo loans
06:09
and all this other stuff so
06:11
don’t know enough about single family
06:12
and having those portfolio deals but
06:14
i’d say in the commercial real estate
06:15
space those that debt definitely helps
06:17
right
06:17
so let’s talk about experience right you
06:20
know i would say
06:21
it’s a lot easier just to go out and buy
06:22
your own little deal right even if it’s
06:24
a single family home
06:26
than it is to go out and put a big giant
06:29
syndication deal together right the
06:31
syndication there’s a lot of moving
06:32
pieces there’s a lot of team members
06:33
there’s a lot of things that could go
06:34
wrong there’s an inherent amount of risk
06:36
in what we do
06:37
right so you have to have a little bit
06:38
more experience that doesn’t mean that
06:39
you have to be a pro
06:40
right everybody started at zero i always
06:42
tell people that right you never you
06:43
always start off when you never had a
06:44
deal
06:45
you know and some people put some very
06:47
very big faith in you to go out and make
06:48
that happen right
06:50
you know so you’re gonna need to have a
06:52
little bit more education up front
06:54
probably to put those syndication deals
06:56
together or you’re going to have had to
06:58
have partnered with somebody once again
06:59
it’s a team sport
07:00
that has that experience whereas
07:02
single-family home you got enough money
07:04
you know especially for the first one
07:06
two three they’re not even gonna ask
07:07
questions
07:08
you’ve got the money to put down and
07:09
they’re gonna probably loan it to you
07:10
yeah you know you’re gonna get that loan
07:12
much more difficulty than getting your
07:14
residential
07:16
it’s definitely commercial is definitely
07:17
a lot easier to get a loan than um than
07:19
residential which is crazy right i could
07:20
get a 20 million dollar loan easier than
07:22
i can buy a
07:22
400 000 house right you know so the
07:25
experience is
07:26
you don’t need as much when you’re
07:27
starting off you know but put to put a
07:29
big
07:30
real estate syndication deal together
07:31
you’re going to need some right you know
07:33
time commitment let’s talk about this
07:35
man you know you still have some single
07:36
family stuff you know talk about
07:38
i remember being you me and you went
07:39
over there the other weekend yeah you
07:41
got to see one of them
07:43
me and ben were meeting and we went to
07:44
lunch somewhere near that i’m like hey i
07:45
gotta go stop by pick up something yeah
07:47
you know like luckily actually that that
07:48
that condo had the same tenant three
07:50
years pretty much like no issues all
07:53
right so that’s that’s about that
07:54
that’s about it but yeah i mean even my
07:57
problem now is i still haven’t leased it
07:58
i don’t know how that barely had the
07:59
time to lease it like it’s just
08:00
so you still have work that you need to
08:02
do right and so
08:03
the time commitment now if you are a
08:05
passive investor on this indication is
08:07
pretty much nil
08:09
yeah there’s a piece of paper
08:10
participating in this indication is a
08:12
whole other thing it’s
08:13
maybe even more than owning a house
08:14
right because i mean usually you’re
08:16
doing a big push or rehab you’re doing
08:17
weekly calls whereas
08:18
you buy a house i mean you’re not
08:20
managing a team you’re managing a tenant
08:21
that
08:22
probably is going to you know not talk
08:23
to you for a while yeah so
08:25
you know it kinda depends on what you
08:26
are but the time commitments are
08:27
different now
08:28
comparing passive to passive like yeah
08:30
you know most people that buy
08:32
a house a rental portfolio are not
08:33
passive investors
08:35
they are they are essentially they are
08:37
what i want to call they are
08:38
moonlighting investors
08:40
and they’re investing their second
08:41
dollar right it’s it’s a side hustle
08:42
right
08:43
now they’re they’re buying some rental
08:45
inc or buying some rental properties to
08:46
get some additional income streams in
08:48
right but typically they’re going to be
08:51
you know like you said trying to lease
08:52
the property out probably
08:54
doing some paint and some minor repairs
08:56
right going over there cleaning the
08:57
carpet
08:58
you know you’re talking to tenants when
09:00
they have a problem right
09:01
you’re collecting rents if there is a
09:03
problem you’re probably going and
09:04
soliciting bids and getting maintenance
09:06
guys or getting a vendor out there right
09:08
so i always kind of equate it to if
09:10
you’ve got 10 single-family homes
09:12
versus say a hundred unit property that
09:15
10 single-family homes is probably gonna
09:17
probably you know be about equivalent to
09:19
the amount of work
09:21
that a 100 unit apartment complex is
09:23
going to probably be as an active
09:24
investor right and once again lps
09:26
passive investors aren’t doing much
09:28
right so the time commitment just
09:30
depends on how much effort you’re
09:31
putting in on the
09:32
you know buying your own deal side right
09:35
you know but remember
09:36
you know if you if you’re kind of in
09:38
that weird gray area where you can’t
09:40
afford a team
09:41
it’s all on you you know whereas the
09:43
syndications are structured as a team
09:44
sport
09:45
right so let’s talk about stress right i
09:48
used to have hair
09:48
people always know this yeah right now
09:50
i’m just joking and it wasn’t because he
09:51
didn’t lose
09:52
syndication i always use that joke
09:55
though because
09:56
you know what we do is it is not only
09:58
inherently risky but it’s also stressful
09:59
right it’s a lot of work right i mean
10:02
now we have a lot of fun doing it we
10:03
have a great team here that helps us out
10:05
you know but don’t get me wrong you know
10:06
there’s definitely stressful weeks
10:08
right you know whereas at one or two
10:10
rental houses especially if you
10:12
if you come in you rehab it you fix it
10:13
up or you’re not gonna have those
10:14
maintenance issues and you get a good
10:16
tenant in there
10:16
like fair said you might go months
10:18
without even talking to your tenant
10:20
right you know whereas we are we are
10:22
living and breathing this
10:23
daily on the syndication side right you
10:26
know weekly calls
10:27
daily emails and phone calls and
10:29
meetings you know monthly reporting you
10:31
know the whole
10:32
shebang goes into this this is a
10:33
full-time job
10:35
so you know ultimately with a full-time
10:37
job right versus say a
10:38
side hustle full-time job’s usually
10:40
gonna be a little bit more stressful
10:41
right
10:42
and once again you’re playing with other
10:43
people’s money which you know we take
10:45
our fiduciary commitment very very
10:46
seriously so
10:47
that’s the type of stuff that keeps us
10:48
up at night right we want to make sure
10:50
that we do right by our investors
10:51
and that also adds a level of stress too
10:53
and then you tack on a couple zeros and
10:56
you know uh and sometimes it could add
10:58
its level
10:59
its own level of stress too right
11:01
absolutely
11:02
you know i know i know we kind of we
11:04
touched the surface we could probably
11:05
die
11:06
maybe if you know people have questions
11:07
let us know right we’re in the q a
11:09
section so
11:10
feel free to ask us anything you want to
11:11
know about the topic by design we wanted
11:13
to really
11:14
keep more of a q a on this because i
11:15
think people have a lot of different
11:16
ways that they look at it
11:17
and i wanted to i wanted to caveat what
11:19
we just talked about that we’re not
11:21
leaning towards one or the other yes
11:22
we’ve done we’ve done syndication but
11:23
we’ve also done our own deals
11:25
i would say that it’s just where are you
11:27
at in your life right do you have the
11:28
time to commit to it
11:29
and you have the resources right you
11:31
know what i always tell people is you’re
11:32
eventually going to run out of your own
11:33
money
11:34
right and that’s why syndication in some
11:36
ways is always a good thing right so you
11:38
can pull people’s resources right
11:40
you know say you’ve got a half a million
11:41
dollars in the bank right yeah maybe you
11:43
can go out and buy
11:44
three four five maybe even ten houses
11:46
right but at that point you’re going to
11:47
run out of your own money unless you’re
11:50
constantly setting aside more and more
11:51
money right and some people do they save
11:53
a lot
11:54
you know but to get back up to that 500k
11:56
might take you a little bit longer right
11:57
so you’re going to cap out how much you
11:59
can do
11:59
right so your upside is going to be
12:01
limited right whereas if you have 500k
12:03
and you’re rolling that into
12:05
say 10 syndication deals that are all
12:07
worth 10 million dollars a piece
12:10
that 500k can now be worth millions
12:13
totally agree right yes so people have
12:15
questions go ahead and ask them right
12:17
monday mondays do this every monday 3 30
12:19
central
12:20
i literally came back from my vacation
12:21
yesterday just to be here with you all
12:23
right um you know and basically
12:25
we’ll like i said do bunch of different
12:26
presentations and then we’ll do cuny at
12:28
the end so if you have ideas for future
12:29
topics let us know
12:30
if you have comments go ahead and leave
12:31
them so let’s go through a few of the
12:32
comments all right so ronnie says what’s
12:34
up gents what’s up
12:35
look like y’all both got plaid on today
12:38
i thought of that
12:39
today whenever i uh i did wear this
12:41
copied me
12:42
all right no i’m definitely in the
12:44
office always before earlier than ben
12:46
uh trevor says hello hey trevor what’s
12:49
going on trisha says
12:50
yes uh miles says what’s up guys what’s
12:53
up jefferson says happy monday
12:54
happy mother’s your thoughts on ticks
12:56
and 10 30 wanting
12:58
your deals yeah i mean i would say it’s
13:00
that’s probably
13:02
one of the more complicated things to do
13:04
um when you’re doing a syndication
13:05
versus owning your own deal
13:06
right yeah it’s more complicated but
13:09
it’s not i don’t you know we’ve never
13:10
done it so we
13:11
but it’s really not i think it’s not
13:13
that bad i was talking to
13:15
our buddy sam actually whenever i was
13:16
out last weekend
13:18
he said it’s really not is it the first
13:19
it was hard the first time but it’s
13:20
really not that bad so yeah
13:22
it’s definitely possible the the problem
13:24
becomes right now you have to get
13:26
more and more people to say yes right
13:28
whereas if you own your own deal you
13:29
want to do a 1031. guess what you’re
13:30
talking to the the decision maker right
13:32
so there’s not a whole lot of people
13:33
making
13:34
taking a vote on that thing yeah so we
13:36
like them obviously
13:37
larson says hey great to see you both
13:39
and i see as well we’re gonna see in a
13:40
few weeks here
13:41
hey uh deke says hello to both of y’all
13:44
look forward to conference later in the
13:45
month absolutely thank you look forward
13:47
to so for those who don’t know we
13:49
we’re going to talk about here at the
13:50
end but our conference is coming up
13:51
february 27th
13:52
we’ve got robert house 26 days to robert
13:54
helms we got a bunch of different
13:55
speakers different topics different
13:58
panels and still look forward to having
14:00
people on it right and so maybe i guess
14:02
started jumping we’re just going to jump
14:03
right into it yeah
14:04
and then we’ll go back to the comments
14:05
but if you’re you know if you guys are
14:06
coming
14:07
shamelessly plugging right now
14:10
mfinvestornetwork.com
14:11
yeah plug in disrupt to check out the
14:13
goal is really it’s an environment
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people network come one come all
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no clicks no everybody’s welcome so come
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check it out and really it’s an
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environment people to learn
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from other people go learn about
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investing if you’re an investor and
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really just get
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familiar with the space so no and use
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the coupon code disrupt and everybody
14:30
knows us right you know we’re pretty
14:31
laid-back guys you know we
14:33
we like networking i think that’s how
14:34
we’ve been so successful is that we just
14:36
know a lot of people in the business
14:37
right so we’re able to partner and
14:38
yeah we literally had to put this
14:39
conference on because ben was just
14:40
getting way too antsy for me lately like
14:42
he just needed
14:44
yeah so i mean i enjoy doing this folks
14:46
and this is so you
14:48
what we’ve talked about before right
14:49
it’s a numbers game it’s a relationship
14:50
game yeah we’ve
14:51
we’ve all gone virtual with it but that
14:53
can only go so far right
14:54
you know you ultimately we need to get
14:56
back to business with the vaccine
14:57
rolling out i think
14:58
everybody’s starting to feel a little
14:59
bit more comfortable but we are going to
15:00
take some precautions right
15:02
we got the bigger room we have this
15:03
giant room at the westin yeah
15:05
here in houston um you know and we’re
15:07
going to have we have plenty of space to
15:09
to do the networking and see some great
15:10
speakers and a lot of great panelists
15:12
too
15:12
absolutely you know we’ve got some new
15:13
panelists coming and we’re excited about
15:14
that
15:15
so let’s see let’s keep going so miles
15:18
says
15:19
i don’t think there’s ever going to be
15:20
that many people who believe that they
15:22
can own a property the 99 is trapped
15:24
inside the matrix
15:25
and we will never know who is going to
15:27
be able to make the mental shift
15:28
to become the owner investor now that my
15:30
business is off the ground with logo
15:32
design
15:33
i’m a bit concerned about finding
15:34
friends who aren’t going to ask me for
15:35
something if they find out that i’m
15:36
banking especially after things get
15:38
rolling more
15:39
well i mean you know be you know be
15:41
proud of your success right you know i
15:42
mean
15:43
you know with with success comes haters
15:45
right but at the end of the day right
15:46
you just do you and yeah i mean
15:48
i’ve learned tell people what you do
15:50
because that opens up a million dollars
15:51
somebody cares about the people it was
15:53
weird because like you know
15:54
even buddies that i had from high school
15:55
right when they started finding this
15:56
stuff out you know some of them had
15:57
already invested in this stuff
15:59
they had known people that invested they
16:00
liked the idea of it that was just
16:02
me doing shows like this or networking
16:04
or just talking to them over a couple
16:05
beers right like
16:06
let people know what you’re doing right
16:08
you’d be surprised what kind of reaction
16:10
you’re gonna get and most of the time
16:11
it’s positive
16:12
you know and sometimes you gotta
16:13
convince your your relatives and your
16:15
family that you’re not crazy
16:16
absolutely but after a couple wins
16:18
usually the first ones are gonna be
16:20
on board to try to get a job so trisha
16:22
says you’re reducing the risk based upon
16:24
how the deal’s set up you absolutely are
16:26
right i mean you know with single family
16:27
you can’t really get creative with
16:28
structuring
16:29
yeah with commercial you can absolutely
16:30
get really creative right we’re
16:31
syndications
16:32
right i guess we keep on saying
16:33
syndications as synonymous for
16:35
commercials
16:36
but yeah i mean you could obviously
16:37
syndicate anything but well you can also
16:39
open anything too right yeah
16:41
but to be keep them synonymous i mean
16:42
yeah you can get really creative you can
16:44
do something like hey ben
16:45
i’ll buy your crappy property if you
16:47
carry all the risk
16:48
for it right but i’ll pay you a premium
16:50
once i’m done with it right like if ben
16:52
can take that
16:53
bet ben doesn’t really lose much because
16:55
the property is already in the condition
16:56
that it is
16:57
and i i risk you know what i can do but
16:59
i’m taking on
17:00
you know i’m kind of getting into it for
17:02
no risk though i can get part way
17:03
through and realize there’s a problem
17:04
and just stop right i don’t have to go
17:05
buy the property and it becomes a
17:07
win-win
17:07
yeah it’s an owner finance yeah right
17:09
you know i mean yeah you can get
17:10
you can get creative like that folks
17:12
right and i think that you know
17:13
ultimately what i love about
17:15
commercial real estate syndication
17:16
whatever you like i just love the fact
17:18
that we can leverage things across the
17:20
board right
17:20
you can leverage other people’s time you
17:22
can leverage other people’s
17:23
expertise and you can leverage other
17:25
people’s money right that’s both on the
17:27
equity and the debt side
17:28
right you know so people get so caught
17:30
up on these
17:31
all their bigger projects i got a couple
17:33
extra zeros how am i gonna do this
17:35
right ultimately i go back to the to the
17:38
saying right that i’ve said many many
17:39
times right
17:40
if you don’t have the time but you got
17:41
the money somebody’s got the money but
17:43
not the time
17:43
right you know so you have to understand
17:45
that it’s all about putting the right
17:47
team together
17:48
right and then you leverage everybody
17:49
else right in a good way right we’re all
17:50
there to grow together
17:52
right absolutely that’s what you can do
17:53
in syndication so let’s see so savion
17:55
says calculate the risks
17:56
uh what are your thoughts on paid
17:58
mentorship right i mean
18:00
paid mentorship it could be it depends
18:01
on figure out what your weaknesses are
18:03
there’s pros and cons
18:04
i mean i’ve done it right you know i
18:05
mean ferris hasn’t done it it’s it’s
18:07
really ultimately
18:09
you know i felt like i needed that but
18:11
then i kind of stepped back i’m saying
18:12
well maybe i didn’t but i still met a
18:14
lot of good people
18:15
and i got that foundational education
18:17
that i needed
18:19
right um you know but ultimately it’s
18:20
not for everybody right and i think
18:22
you know when you’re starting off don’t
18:23
spend a ton a ton of money there’s a lot
18:25
of free resources online or low-cost
18:28
resources right
18:29
check out investoracademy.net right you
18:31
know we’ve got some stuff especially
18:32
about multi-family syndications that
18:34
i mean we took a deep dive into the
18:35
stuff the the courses are really not
18:37
that expensive
18:38
and maybe that will give you enough
18:40
momentum to go in and start looking for
18:42
some deals right and then it’s
18:43
ultimately about putting the right team
18:44
together
18:45
that is you get the foundational
18:46
education you put the right team
18:48
together
18:48
boom sky’s the limit absolutely and yeah
18:51
i mean
18:52
we are part of a group called
18:53
multifamily masters go check that out
18:55
they do have a
18:56
and a pretty awesome mastermind they’ve
18:57
been putting together as well for people
18:59
is there a website
19:00
yeah multifamilymasters.com boom all
19:02
right
19:03
so check it out you know or reach out to
19:04
me or anybody we can kind of help get in
19:06
touch with the right people but again
19:07
that’s more you know people figure out
19:08
do you need coaching do you need
19:09
education
19:10
do you need mastermind like they’re all
19:12
different than they really are actually
19:13
that’s a good point right you know i
19:14
mean men
19:15
i have a lot of good points mentoring is
19:16
like hand-holding right
19:18
come on buddy come on mid-drinks like
19:20
hand-holding right you know they’re
19:21
going to be there
19:22
along the way right they’re a coach
19:24
right whereas a mastermind you’re all
19:26
collaborating together you’re
19:27
sharing ideas you’re inspiring each
19:29
other you’re keeping each other
19:30
accountable right
19:31
or are you the type that can really pick
19:33
up on stuff that’s online
19:35
right there’s a lot of podcasts out
19:36
there there’s a lot of stuff that’s
19:37
online that you can pick up on there’s
19:38
books
19:39
right you know it’s just you’re going to
19:41
have to determine your
19:42
how much education you think that you’re
19:44
going to need to get into this business
19:45
right
19:45
all right let’s keep going so trisha
19:47
says i just downloaded the information
19:48
from the website and i’d like to see
19:49
more like a sample of a deal
19:51
with numbers change so to follow with
19:54
entry fee
19:55
asset management fee acquisition fee how
19:57
the profits are going to be divided
19:58
so i think if i interpret that right
20:00
they’d like to just see you know a fee
20:02
structure right a sample fee structure
20:03
so
20:04
shannon can we maybe take a notice oh is
20:05
that on the toolkit
20:07
oh okay yeah yeah yeah we can’t have it
20:09
at that toolkit if people have ideas
20:10
suggestions let us know we want to
20:11
continue yeah well
20:12
that is an iterative process we’re gonna
20:13
we’re gonna continue to make that better
20:15
right absolutely so chris collins says
20:17
what’s up fam what’s up
20:20
hopefully you’re coming out to the
20:20
conference coming out february 27th
20:23
i think i stole you some tacos man come
20:24
on yeah we got tacos here lots of tacos
20:27
here yeah we do
20:28
actually we really do all right chris
20:31
collins
20:32
also says what’s the most people you
20:34
think is reasonable for jv
20:36
say you’re buying a 25 unit so the rule
20:38
jv’s you have to give everybody yeah
20:40
they have to have them they have to have
20:41
so that becomes like a four to eight
20:43
kind of person thing
20:45
yeah i mean and that might be stretch
20:47
right it depends on what it is yeah
20:48
because i think i think you really you
20:49
can’t just say oh this person’s investor
20:51
relations well what does that mean how
20:52
much time are they actually spending on
20:54
it right because
20:55
what they’re going to say is you really
20:56
did a syndication but you called it a jv
20:58
just to avoid having to do that extra
21:00
layer of paperwork so
21:01
be careful though chris you know you’ve
21:03
probably heard the webinars and stuff
21:04
that we’ve heard about it too
21:05
so just you know um obviously you know
21:08
talk to your lawyer about that before
21:09
you jump into one
21:10
um everybody’s gonna have to be doing a
21:12
role and they’re gonna have to back it
21:13
up with the amount of hours that they
21:14
spend on it
21:15
absolutely so let’s see so it says
21:17
what’s up with 203k
21:18
with fha for house hacking i’m coming
21:21
towards my first house hack
21:22
i want to live in it and live for free
21:24
then move straight to a commercial
21:26
that’s what we we were just talking
21:28
about this the other week with shanna
21:30
yeah i mean it’s a great
21:31
it is a great strategy for folks getting
21:34
started yeah it is i mean
21:36
what is house hacking all right so find
21:38
yourself a duplex live in one side
21:40
and then rent out the other one the
21:42
other side should essentially pay
21:44
your mortgage for the whole entire thing
21:45
right maybe you’re not making a ton of
21:47
cash flow
21:47
but they’re essentially paying down your
21:49
note right and you’re living there rent
21:50
free
21:52
great i’d say that’s a good one
21:53
especially when i’m when i’m um
21:55
starting off great strategy i think
21:57
that’s a great strategy right
21:58
yeah you ultimately have to get in there
21:59
with you know probably a few grand
22:01
right like you said with an fha three
22:03
and a half percent down
22:05
um but if you’re a va you might even be
22:06
able to get a zero down who knows
22:08
yeah no shame let’s see kevin easter
22:10
says what’s up guys heaven
22:12
he said killers what’s up kevin dude i’m
22:15
here in houston but if not we’re going
22:16
to see you in costa rica in a couple
22:17
months absolutely costa rica man i’m
22:19
surprised he hopped off a clubhouse long
22:21
enough to watch us
22:22
oh he was watching elon musk this guy’s
22:25
like
22:25
this guy’s talking about monkeys and
22:27
mars okay he’s on a whole other level i
22:29
thought that was awesome
22:31
i was listening to you say it in your
22:32
voice too man yeah i love you kevin man
22:34
i miss you man
22:35
now let’s see so david says iggy says
22:38
just jumped on oh no i missed a great
22:39
topic you did but hopefully you know we
22:41
can
22:41
always watch the recording we always
22:42
have recordings all right so here’s a
22:44
good question from chris
22:45
collins again one hang up when
22:46
syndicating is legal fees what is the
22:48
difference in legal fees to say a 20
22:49
million dollar deal versus a say 20 a 2
22:51
million
22:52
honestly i’m going to say the legal
22:54
fields are almost the exact same
22:56
minus the blue sky filings
22:59
indication right you do have to file in
23:01
each of the states that you have a
23:02
syndicator in
23:03
and those can vary right investor and an
23:05
investor sorry each investor and then
23:07
and those can vary
23:08
by state and those prices can be from
23:10
anywhere from like 50 bucks
23:11
i think you would like a thousand
23:12
thousand yeah to 1200 or something like
23:14
that i mean
23:15
so it could really vary so you know
23:17
imagine you have a syndication where you
23:18
have one investor from every state
23:19
that’s the max exposure yeah right i
23:22
don’t think you have to pay per
23:22
it’s not per investment paper state
23:24
basically right in the i’m hoping so
23:26
anyway i think so but anyway that’s the
23:28
difference everything the
23:30
ppm is gonna be the same cost the llc
23:32
documents are the same you know it’s all
23:34
the rest of it is typically folks just
23:35
so you have a barometer of where you
23:38
should be right it’s anywhere from 15 to
23:40
25 000 is how much it’s gonna be to put
23:41
the ppm
23:42
the operating agreement the subscription
23:44
agreement and the questionnaire together
23:45
right and typically you know if your
23:47
lawyer also
23:48
will help you negotiate and put together
23:50
the psa you’ll usually get that lumped
23:52
into one flat fee
23:53
and then on top of that you got the blue
23:55
file uh blue sky filing fees right which
23:57
is going to be another
23:58
call it 10 to 20 on top of that
24:01
absolutely
24:02
so awesome so yeah so let’s keep going
24:05
then we’re almost running
24:05
time so ronnie says y’all got to get a
24:07
clubhouse get an iphone oh man i don’t
24:09
know
24:10
they got to get on android man uh he
24:12
says when are you getting an iphone i
24:13
don’t know ronnie going to get us one
24:15
and then greenberg says yes it’s per
24:17
state so yeah it is yeah yeah no i
24:19
figured it was you know because they
24:20
would they’d just be
24:21
killing you if they were doing it yep by
24:23
by investor but still it’s still a
24:25
significant amount of money and you
24:26
usually don’t know what’s going to
24:27
happen until
24:28
you know you’re getting close to closing
24:29
and they’re like oh yeah by the way
24:30
another 10 grand
24:32
so let’s keep going then really all
24:33
right wrap it up we’ve got the toolkit
24:34
you know trish already downloaded it
24:36
right check it out
24:37
disrupt equity.com toolkit right we got
24:40
all of our stuff checklists webinars
24:42
podcasts more we’re going to continue to
24:44
update that that’s just
24:45
everything condensed into one and we’ll
24:47
continue to to
24:49
you know uh make it a great tool and
24:51
resource for you guys to kind of find
24:53
all the information we put out there
24:54
right
24:54
absolutely and since we’re wrapping up
24:56
as well and we’re only 26 days away
24:58
one more shout out our conference is
25:00
coming up february 27th here in houston
25:02
texas one day event
25:05
mfinvestornetwork.com use the coupon
25:06
code disrupted
25:07
and we want you guys all out there it’s
25:09
gonna be awesome yep yep and we always
25:11
we always try to work in a lot of
25:12
networking right so
25:13
come in friday hang out with us yeah
25:16
stay saturday night have some drinks
25:18
you know and let’s see so ronnie says
25:20
next deal we close i’ll consider buying
25:22
both of y’all an iphone whoa whoa whoa
25:25
whoa whoa
25:26
make it happen says dropping bombs
25:28
always see you at the conference look
25:29
forward to seeing you all
25:30
all right we’re going to do a deal here
25:31
soon man so we got some pokers on the
25:34
fire right so what’s coming up next week
25:35
ben before wrap up
25:36
all right the biggest mistakes new real
25:39
estate investors make and
25:41
i you know i i could i could attest to a
25:43
lot of these personally
25:44
yeah ben i mean ben doesn’t do much
25:47
besides make mistakes it’s ridiculous
25:49
no no it’s all about learning from your
25:51
mistakes because there’s like like i
25:52
said there’s a lot of risk
25:53
things are going to go wrong right so
25:55
it’s all about how do you adapt to
25:56
you know i like to tell people on the
25:58
team everybody makes mistakes mistakes
25:59
are okay it’s not okay to keep making
26:01
the same mistake though no
26:02
don’t make that same one twice right you
26:04
know you’re gonna learn from it and you
26:05
gotta grow from it right so we’ll kind
26:06
of go through some of the headaches that
26:07
we’ve gone through and
26:08
you know so you can maybe avoid those
26:10
land mines whenever you’re starting off
26:13
all righty that is that’s it some money
26:15
mondays we do this every monday 3 30
26:17
central we will see you guys again
26:19
next week all right
26:29
you

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