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My 2019 Year In Review

My 2019 Year In Review

2019 was a really exciting year for me and I hope it was for you, too. If you’re like me, this is the season to reflect on the year that’s passed and to look forward to what’s ahead. I find myself thinking about the things that went well, and the things that maybe didn’t go […]

How We Find Large Multifamily Deals

How We Find Large Multifamily Deals

At Nighthawk Equity, we aim to generate consistent deal flow so that you can invest with us over and over, and over again. To do this, we must couple long-term investor relationships with consistent deal flow that delivers. Today, we are going to explore these 3 key factors that keep our pipeline full.

How much capital should a sponsor have in a multifamily investment deal?

How much capital should a sponsor have in a multifamily investment deal?

How much of their own capital should a sponsor have in a multifamily investment deal? It’s a fair question, and one that investors may ask to gauge how vested their partners are in the deal. But the real question is this – how important is it for a sponsor to invest their own capital? And is it a deal breaker if they don’t?

Making the Leap from Passive to Active Multifamily Investor

making the leap from passive to active multifamily investor

Many active syndicators start out in the real estate game as passive investors. Passive investing is a great way to gain exposure to the real estate investment market, learn the industry, and get a sense for how the deals are really done.

How to Vet a Multifamily Syndicator

Evaluating the Team Passive investing is all about partnership. When evaluating the team you’re considering investing with, it’s important that you look to both the team as a whole, as well as the individuals that makeup that team. Things to consider: How many people are on the team? Who is in charge? How many deals have they done as a team/individual? How aggressive/conservative is their underwriting style? How much capital have they raised and deployed to date? How many investors do they have in their syndication? What’s the average rate of return for their investments? What is their experience investing in the multifamily space? What is their experience investing in a particular market or submarket? Take Nighthawk Equity, for example. Nighthawk has built a strong record of over 1,100 performing multifamily units, with a portfolio value of over $44.2 Million. We are conservative underwriters that have evaluated and purchased properties in markets across the United States. And we have a team of people that are dedicated to key development areas: Acquisitions Asset-Management Investor Relations Operations To see the deals we’ve got brewing, join the Nighthawk Investors Club. Taking on Green Teams Obviously, it’s ideal to partner with a team that has years (or decades) of experience and a solid track record. But every team starts somewhere, and I don’t think it’s necessarily a deal breaker to partner with a newly assembled team. In today’s environment, there are new partnership opportunities that spring up all the time. A fairly new investor may have access to a property deal or to a capital raise. At Nighthawk, we will take on these investors as joint ventures. So, while these partnerships may be young, that doesn’t mean the value isn’t there. The way I look at it; just because someone doesn’t have a track record as a multifamily investor, doesn’t mean they don’t have a track record in life. Consider their related or unrelated professional experience. What has their career been? Do they have a track record of success? How have they dealt with difficult situations? This is especially applicable for friends and family investors. At the end of the day, you are investing in the person. (Remember, this is a people business!) There is certainly value in knowing and trusting the person you are doing business with. Now, it’s up to you to determine if you’d prefer to stroke a check to a group you don’t know well, but trust their investment track record. Or, invest with a person that you know and trust, but may lack experience in multifamily investing. In either case, don’t just trust your gut. Do your research and ask the tough questions to make sure they’ve done theirs! Building Long-Term Partnerships The most successful passive investors are literally able to quit their job and live off their passive income. And that’s really the goal at Nighthawk; to enable passive investors to quit their day job, if that’s what they wish to do. Or, they can keep that full-time job and let their investment income compound over time for an even more comfortable retirement later. Regardless of their personal long-term strategies, the most successful investors typically have one or two operators (maybe three at most) that they invest with. We’ve recorded hundreds of podcasts now, and this is a recurring tactic of the ultra-successful investors. Like us, they look to build long-term relationships. The average investor might put in the minimum investment of $50,000 into Nighthawk just to see how well the group performs. And that is a great way to test the waters. But we are looking for long-term partners as well. We know that if we like the partnership, we communicate well, and we do what we say we’re going to do, we’ll have a great shot of being that investor’s main operator. Because, ultimately, if an investment performs well, there’s really no reason why an investor couldn’t or wouldn’t invest with the same operator, over and over again. It’s a win-win scenario to build a long-term partnership. One where both parties can establish trust AND a track record of success. We do encourage you to check us out and invest at the minimum level, to see how we do. Just know that we are looking for long-term relationships because that is how we are going to build the business and keep our investors happy. Next Steps If you’re still new to this and not quite sure what to do next, I’ve put together a report that compares the stock market to a multifamily real estate investment strategy. It’s a great report and totally free. I think you’ll find it eye-opening. If you already have a deal under your belt, or you are ready to get started with passive deals, you’ll want to get on our deal list. To see the deals we’ve got brewing, join the Nighthawk Investors Club. After joining, we’ll schedule a call to get to know each other and see if makes sense to work together.

Multifamily investing is a team sport. Sometimes, we can get so caught up in “the deal” that we forget that this business is really about people. I always encourage active investors to establish their team early on, before they even start to look for deals. For you, the passive investor, the key is to partner with an experienced operator or syndicator.

Stand Out with Brokers Using Video

stand out with brokers using video

You’ve learned from my previous blog posts that the key to accessing off-market deals is to create relationships with brokers. If you have already started the process of building your team, contacting brokers using my suggested script, and building rapport with your new connections, you’re on the right track. But at this stage, you might also find that it’s still tough to access consistent deal flow for attractive properties. Here’s the deal. You’ve GOT to stand out from the other buyers on your broker’s list. How do you make yourself standout to land those coveted off-market deals? I’ve got some insider secrets that I’m excited to share with you today.

Forced Appreciation vs Market Appreciation

You’ve probably heard the terms market appreciation and forced appreciation. Both sound similar, but they are two totally distinct terms. Let’s dive in and discuss the difference between the two and the factors that affect them.

Understanding Cost Segregation

One of the most common questions my investors ask me is how cost segregation can impact passive real estate investors from a tax perspective, particularly in a multifamily syndication.

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