I thought I was pretty smart...

[Joshua Jones]

I run a fairly large and successful lending business in NYC focused on commercial loans to small businesses. I'm a young entrepreneur (cough*** Age 33 still kind-a young) with cash to invest. This year I acquired my first multifamily property of 6 units that gets a true 11% yield in a B+ area. A close friend of mine brokers over a billion dollars in RE loans annually and was able to secure a 5% 5yr ARM with 80% LTV on this 800k deal for me in October (18'). Total win!

Now, "I thought I was pretty smart", but it has taken me the better half of 2 years to find this deal in NJ. I underwrite 100s of properties per quarter, developed my own model to UW that's up to my standards (thanks to the Bigger Pocket template), and am ready to buy if I could just find another cash flowing or flip opportunity! 

I cannot find a BRRR for the life of me and with my background I thought I'd have it figured out by now. One could argue that all my effort was worth the deal I found... true... but I can't help to think I'm doing it wrong since my returns aren't moving my personal financial needle. I have the capital, I have the right financing group to position a loan for me, I have investors standing by if I need to make a cash call and yet, at this rate, it will take me 10 years to get 40 units under my belt!

None of this is meant to be "braggadocious", my current success is a product of the effort I've put in (i.e. not a trust fund baby; congrats to anyone who is, seriously). My current effort level in real estate is not yielding the results I would expect. 

Other successful real estate moguls in my network all tell me, ">5% COC doesn't exist in this market anymore". I don't like being told that things "aren't" possible so I proved them wrong with a 800k deal... against their mult-million dollar portfolios... HA I get the last laugh?

In all seriousness, should I be trying to find an out of state market? How does someone randomly pick a state/town to invest in? (I haven't heard a podcast on that yet)

Do BRRR opportunities really exist in NJ? Or anywhere for that matter, in >B neighborhoods?

Is it worth considering <5% cap rates and <5% COC for a strong future position?