Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
If you had capital you wanted to put to work but you couldn't find deals in your area (South Florida) that fit your business model what would you do? Change your strategy and look to other asset classes? Partner with a proven operator in another market? Lend on some hard money loans? Look for a GP opportunity in a syndication? Sit tight and wait until you can find deals locally again?
I've been struggling to find 5-15 unit value add multifamily deals and even single family flips here in my market. Prices are sky high, inventory is very limited and it's insanely competitive. I need to put some capital to work rather than have it sitting in a savings account.
I say broaden your base, look outside your immediate area but try to stay within a 3-4 hour drive. However, this problem is a national one not a Florida problem :-(
Investor 路 Boca Raton, FL 路 Member since 2019 路 50 posts 路 29 votes
5y
I hear you @Brian Garrett. I'm in the same boat as yours, so I looked into the Tampa area and doing a flip over there now. Also trying my first syndication just now for a MF property in Columbus, OH.
Property Manager 路 Las Vegas, NV 路 Member since 2019 路 18 posts 路 14 votes
5y
Look outside of your area, I have many California investors coming to me for investment opportunities here in Las Vegas. May be time to branch outside of your state.
I say broaden your base, look outside your immediate area but try to stay within a 3-4 hour drive. However, this problem is a national one not a Florida problem :-(
Investor 路 Boca Raton, FL 路 Member since 2019 路 50 posts 路 29 votes
5y
@Brian Garrett I'm a LP in the syndication. I actually have GC that is supervising the rehab work. I still drive up every now and then to make sure everything is going as planned.
Real Estate Agent 路 Kansas City 路 Member since 2018 路 4k+ posts 路 3k+ votes
5y
For multi have you branched into off market deals? I use a program where I directly target owners to find deals. Just takes time and consistent effort.
Rental Property Investor 路 Las Vegas, NV 路 Member since 2017 路 134 posts 路 93 votes
5y
@Ron Nir
Las Vegas i oversaturated with cali-cash buyers throwing ARV money at run down dumps, thinking they get a great deal because "its a lot cheaper than California"
A lot of serious local investors are investing out of state due to the lack of inventory and fierce competition here, so Vegas wouldn't be a market i still recommend, especially if you dont already have a good boots on the ground team here.
I put some money from sales this year in the stock market and was lucky enough to ride the tech wave up, but dont like the lack of control so im also looking diversify back into more RE deals. I wont do a deal with 10k spread though, just so i have done one. Im going to increase my marketing by 5X in 2021, if anyone is looking to partner on vegas deals instead of trying to build a business here remotely on their own, feel free to reach out! 馃馃徏
Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
5y
@Account Closed Thanks for the response!
@Ron Nir The only way I'd want to go outside of my market is if I was to partner with a proven operator that already has a solid track record there.
@John Thedford My main concern with HML's is that I'd have to be able to turnover the money enough times to make it worth it. I can get 1-4 points and 10-12% here locally I just have to be able to do enough volume and have the loans collateralized by properties I actually wouldn't mind taking over in a worst case scenario. Seems like a lot of effort to ultimately have no skin in the game. I'd prefer to buy property where I gain the benefits of owning real estate rather than just lending on it but it is something to consider at least in the meantime.
Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
5y
@David Braun Yeah I've broadened my area and started looking a bit further North but multifamily inventory is very limited in those Counties and the properties that are out there seem to be in rougher neighborhoods.
@Sam Issa Gotcha as long as you have someone you trust there that's what's important!
@Caleb Brown I've been primarily trying to source off-market deals but mainly through brokers, property managers, etc. Been thinking about doing marketing direct to owners but it just seems so saturated here with brokers, wholesalers and lots of buyers already doing that. I guess it's still worth a shot though!
@Stephan Kraus What you described there in Vegas is what I'm seeing here in Florida too.
@Andrew Carlson I'm connected with Todd but I believe he's primarily looking for LP's and not GP's.
@Dwayne Byrd How's the market doing up there? I haven't looked that far North.
Real Estate Broker 路 Palm Bay, FL 路 Member since 2017 路 175 posts 路 89 votes
5y
@Brian Garrett the market is doing amazing up here with prices still being reasonable. Our main thing is that inventory is at all time lows, latest report was at 1.5 months of available, when 5 to 6 is normal. That鈥檚 why we are going to be able to build at a premium.
Rental Property Investor 路 Columbus, OH 路 Member since 2017 路 3k+ posts 路 3k+ votes
5y
@Brian Garrett depends on what youre goals are in investing in RE. I really like Columbus OH because its beginner friendly (in the sense that prices are appreciating so almost anything you buy is worth more the next month) and there is a huge tenant pool to choose renters from.
Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
5y
@Dwayne Byrd Connect with me on PM I'd be curious to see what the numbers look like.
@Steven Foster Wilson My long-term goal is to build a portfolio of properties. My short-term goal is a 5-15 unit value-add multifamily deal that I can reposition, stabilize and then sell and 1031 to trade up to something larger. As mentioned in the original post I also buy flips to continue to build working capital to ultimately put into multifamily.
Real Estate Agent 路 Kansas City 路 Member since 2018 路 4k+ posts 路 3k+ votes
5y
@Brian GarrettI have had good success cold calling/texting owners. Keep it simple but you'll get a bite. I usually have a lead or 2 with every 20 contacts.
Rental Property Investor 路 Manasquan, NJ 路 Member since 2017 路 26 posts 路 39 votes
5y
Same here in NJ. Inventory is non-existent and prices are the highest ever. If you know how to swing trade stocks, that's what I've been doing. I'll be direct marketing after the New Year but there's lots of competition there too :(
Investor 路 Butler, PA 路 Member since 2014 路 130 posts 路 114 votes
5y
Low rates, low inventory, high prices. Tough to be a buyer right now. I just recently got lucky and ran into a nice off market value add mixed use. My plan is to keep saving money and wait it out. Cash will make you king when things cool off.
Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
5y
@Caleb Brown I'm planning to create a list of owners from our public records that fit the unit range I'm looking for and mail them as well as skip trace and text/call. I know a lot of others are doing it but maybe I'll get lucky.
@Sue Z. Unfortunately I've never had great luck in the stock market so I just withdrew everything I had invested towards the end of January this year and am looking to put those funds into real estate instead now.
@Travis Frenchak I hear ya I'm just tired of capital sitting in savings not producing any return. Congrats on the find!
Investor 路 Northbrook, IL 路 Member since 2017 路 352 posts 路 295 votes
5y
@Brian Garrett I applaud you for being diligent and aware of the local market conditions. The indicators you are noting show the market is either at the top of the market or already past the top of the market. When we faced those conditions, we sought ways to use our knowledge in other areas of the market that were underserved. Fighting the market tends to lead to overpaying, over extending, and losses.
We have made a few significant transitions in response to the market to reduce our exposure. One was changing our strategy, and the other was changing the asset type. Nevertheless, we apply our experience into the new asset class. We went from MF to self storage, and then changed markets in order to maintain our goals and objectives. Both changes required taking a hard look at our systems to insure we could expand beyond our markets. Without solid systems in place, we could not have made the transition in asset class or outside of our market.
Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
5y
@Scott Krone Congrats on being able to pivot successfully and not only change strategies and asset classes but also to be able to do it in a completely new market. Did you utilize partners to help in the new market?
Rental Property Investor 路 Charlotte, NC 路 Member since 2017 路 298 posts 路 232 votes
5y
@Brian Garrett I know a HML in Dayton, OH who lends at the same rates you could; however, the trick is to learn how to package your notes into a resealable format that appeals to more passive investors. He lends at 12% plus up to 4 points sells the notes back to passive investors at 10%, bundles partials into a single trust so all investors are in first position, then recycles that money into new loans. He also services the notes so his investors literally set it and forget it until the note pays off. You could potentially 10x your lending power this way if you build it right.
Investor 路 Minneapolis, MN 路 Member since 2016 路 254 posts 路 228 votes
5y
@Brian Garrett do you think it would help to go back to basics about how your finding deals? Are you out there walking/ driving for dollars to find the mom and pop operators who aren't listing or connecting with the broader network? Might be something to try.
@Taylor L. How would you suggest finding syndicators who are looking for help on the GP side?
@Sam Issa Did you partner with someone on the Tampa flip? Are you a LP or GP in the syndication?
First step is to learn the syndication business. Pick up a copy of Joe Fairless's Syndication Book, Michael Blank's book, and perhaps a few others. You need to learn the syndication process before the next step. The next step being...
Join syndication networking groups. I posted an event in the BP events section on raising money for syndications. It's a free multi day online seminar. You need to seek out syndication related events and make connections at those events. Then continue the conversation later and look for potential partnership opportunities.
You can also proactively reach out to syndicators both on BP and through other groups. Facebook has a number of syndication related groups. The problem there is sorting out who is real from who is not.
Just bringing capital isn't enough for a GP seat. Many syndicators will give GP compensation for risk capital, but that's different from LP shares because you're taking a risk. Michael Blank writes quite a bit about how to get into deals as a GP.