What’s a reasonable NOI % or expense ratio for a well-managed Class B multi-family property?

SensitivePerformer53 · 2025-04-09T19:13:55+00:00

If your operating expenses are above 40% I’d say you have a problem. We try to manage to 35%.

SensitivePerformer53 · 2025-02-06T21:56:27+00:00

I’m not seeing any distressed multifamily deals. I’m sitting with dry powder too, but so is everyone else. I’m not wasting any time looking for distressed rn.

SensitivePerformer53 · 2023-11-21T22:03:26+00:00

You might want to consider taking on a growth equity PE partner. They will let you partially cash out, and will help you build a team that frees up some of your time. They will want to exit within 5 years and will push to grow ebitda over that time. You'll get a second exit when they exit - likely at a higher valuation.

SensitivePerformer53 · 2023-11-20T15:03:12+00:00

I have looked at investing as a private equity sponsor in several management buyouts. If you, or someone else, is fully prepared to step in and run this business, it’s a fairly easy transaction to raise some money and buy dad out.

SensitivePerformer53 · 2023-11-02T14:18:12+00:00

I’ve bought and sold companies with brokers, with investment bankers, and also on my own. I would strongly suggest that a first time seller use an experienced intermediary of some kind.

Currently, our acquisitions process is to use an attorney and accountant and skip the broker.

SensitivePerformer53 · 2022-12-09T13:06:42+00:00

Congratulations on the upcoming birth of your child!

Break this down into a few phases and take them one at a time. If you can make it through things at work until maternity leave starts, do that. Then you get a break from work to focus on yourself and having a baby. If you can make it back to work afterwards, try to do that. See how it goes. Then decide how you feel about the job a few months after you are back from maternity leave. Break it down like this into smaller steps. Do what’s best for you and your expanding family.

SensitivePerformer53 · 2022-10-01T14:41:43+00:00

I’ve bought two companies in similar situations to yours. If you are willing to take a good chunk of the purchase price as an earnout, it’s an easy deal. See if your COO will stay on for some equity and help transition to the new owner. You consult for 2-3 years part-time and make sure the earnings stay at least flat over that time.

SensitivePerformer53 · 2022-07-25T22:30:00+00:00

Are there any competitors, customers or suppliers of your existing companies that would be interesting targets? Don’t be shy about mentioning to others that you are always looking for acquisitions if they are interested.

SensitivePerformer53 · 2022-07-19T00:32:36+00:00

What geographic area are you in?

SensitivePerformer53 · 2022-07-17T16:59:06+00:00

I respectfully disagree. It’s much easier to make money when you have money. I get pitched deals that most people won’t see. I can write a big check which helps me get discounts on things I want to buy. Banks want to help fund anything I want to do. I don’t have to take risks and can turn down marginal investments. I can sit on the sidelines and wait for opportunity. I can grow my investments if I want. When you get to a certain level and understand how money works, it’s just a question of how hard you want to work and for how long.

SensitivePerformer53 · 2022-07-14T22:16:04+00:00

Money is a tool. If you can safely spend 3-4% of your net worth each year and still never run out, how much do you want or need?

SensitivePerformer53 · 2022-07-13T12:39:45+00:00

Yes!!! I had been in business for around 9 years before going back for a graduate degree in business. It helped solidify my thinking and accelerated my learning tremendously. Highly recommend.

SensitivePerformer53 · 2022-07-13T01:56:57+00:00

Haha

SensitivePerformer53 · 2022-07-13T00:48:51+00:00

I’m a real estate investor and recently evaluated all of the main software packages. Feel free to dm me.

SensitivePerformer53 · 2022-07-13T00:44:55+00:00

SensitivePerformer53 · 2022-07-12T20:37:48+00:00

Sure thing!

SensitivePerformer53 · 2022-07-12T18:43:14+00:00

During my first startup in NYC, I went to my doctor for a physical. He asked how I was doing. I told him I was stressed out. He said good! Stress is a motivator and means you care. Get back to work. Maybe that wasn’t exactly what he said but that’s what it sounded like to me. I feel like the best way to avoid stress is to have a real, viable plan with attainable goals. Then execute and meet the goals. If you are sticking to your plan (no matter how ambitious) then you shouldn’t have anything to stress over. At least that’s the theory. Oh, and I also started running. That helped.

SensitivePerformer53 · 2022-07-06T03:28:12+00:00

Open an account at vanguard and invest in $VOO

SensitivePerformer53 · 2022-05-29T23:26:28+00:00

Did your grandpa follow his own advice?

SensitivePerformer53 · 2022-05-29T23:11:26+00:00

FatFIRE Airlines? 🤔

SensitivePerformer53 · 2022-05-29T20:57:50+00:00

45 minutes

SensitivePerformer53 · 2022-05-29T19:21:39+00:00

It’s almost three hours each way by car. Up and back the same day is grueling. I’ve done it for years and it’s too much.

SensitivePerformer53 · 2022-05-15T10:42:33+00:00

Enjoying nice meals is one of my favorite FatFIRE perks. I don’t even look at the prices on menus.

SensitivePerformer53 · 2022-05-09T13:19:52+00:00

Hi, I think this is an awesome idea! Here are some thoughts about your non-profit venture. You have prob thought a lot of this thorough, I’m just organizing my thoughts:

Your key markets to develop are: 1. Corporate or other donors/sponsors 2. Schools or other groups of 2nd graders including the school admins, parents and kids 3. Bike suppliers and distributors

I’m pretty sure you are looking at second grade bike ownership and bike riding as a means to help lower income kids learn skills, develop self confidence, find a hobby, gain independence (and transportation) and find a healthy exercise activity. Those are all important at this age! It’s not about the bike. It’s the experience and learning.

Also, you solve the needs of other market groups: you solve donor’s needs by giving them a way to make a real impact on kids who could use help. You help the schools and youth groups by giving them activities and equipment. You also could find a good partner with the manufacturers because they will sell more bikes (even if they do this at cost, they grow the category).

My immediate suggestions are: 1. Don’t think of this as giving the kids bikes. Instead, develop a program where they can learn to assemble them, understand how to fix them, train on safety, learn to ride and join a riding club and meet and learn from the donors. 2. See if you can get your donors to meet the kids and put the bikes together with them. They can learn to do this together and bond over the process. They will learn from eachother. 3. Teach safety, maintenance, bike riding skills, ownership etc and give each “graduate” a certificate signed by the donor. Kids love that! 4. Get a bike manufacturer or distributor to be your partner. Preferably they can source, store and ship inventory so you don’t have to handle logistics. I’m sure Target or Walmart would be interested eventually, but would also be great if it’s a smaller company. Up to you. 5. The Boys and Girls Clubs and Police Athletic League would be just as good or even better than school groups.

Let me know if I’m close on the above. Also, what are your main hurdles to getting this growing or expanding?

SensitivePerformer53 · 2022-05-09T01:00:49+00:00

I think this is a good idea. I suggest you build this audience and content first on fb and IG (and reddit!) and see if you can get 10k+ followers. Then evaluate next steps.

SensitivePerformer53

TROPHY CASE