Alternative To Multi-Family Investing (for now).

[Vitaly Mozeson]

Hi all,

I wanted to share my experience in my pursuit to acquire small multi-family properties over the last 6 months.  With the rising interest rates it seems that sellers are still holding strong on price. This of course has resulted in endless searching and offers that are not being accepted. Meanwhile my money is slowly dying in the bank with the dire interest rates. 

My best friend is one of the bigger hard money lenders in the county. He gets great deal flow all across the US,  and has a very tight underwriting process.  These notes are secured by real estate with a loan to value such that if the borrower defaults, you (the investor) foreclose and get a property at a huge discount. Although this rarely happens, if it does you don't lose. 

These notes pay out anywhere from 10%-13% per annum on average. Can't find those numbers in real estate, but in all fairness it's a different asset class. The up side is high cash on cash, no tenants, no repairs, etc.  

I've invested in several of these in the past. This is where my money is going while we wait for sellers to soften up, hopefully by the end of 2023.  

[Gino Barbaro]

@Vitaly Mozeson

I think sellers are going to "loosen up" before the end of this year./ We just closed a deal, and have had several others hit our desk.

Brokers are starting to cold call and email deals to us. It's starting to feel a lot more like 2012-13. Don't think of you're money dying in the bank, it's sitting there in reserve. I have some of my money in whole life, where the return is better than banks, and there are additional benefits.

Notes are a good place to generate income while waiting for deals.

Good Luck

Gino