All Forum Posts by: Andrew Schutsky

Sorry I missed this one earlier, great post @Justin Goodin! I'll also second what @Brian Pownall mentioned about about sub-market analysis.  At this point it can be a quick/dirty from rent-o-meter or Costar if you're lucky enough. :) No need to visit comp properties just yet, but it's good to have some specific data to that zip code or niche. 

Check out @Todd Dexheimer and his "Coach with Dex" coaching and mastermind program.  I've been part of his group since December and he's a really good guy to have on your side and to help you through obstacles.  The connections made to other Masterminds like @Brian Pownall have been great as well. 

Same here in our Florida markets, cap rates seem to be compressing 50-100bps in the last 6-9 MONTHS alone, quality B/C class assets trading in the low to mid 4s is unfortunately common...lots of out of state (NY) cash buyers snapping up investments that to me did NOT make financial sense with any type of decent returns.

My go to recommendations for those getting started:

1) Best ever apartment syndication book by Joe Fairless

2) The Hands off Investor by Brian Burke

Rod Khleif's podcast is great, we will also be launching our own, Crushing CashFlow this coming Monday the 15th, check us out on Itunes!

Keep in mind, especially for larger properties, the banks are interested not only in the raw numbers as mentioned (DSCR, NOI, etc) but also the "story" behind the numbers as well. What tenants are in there now? What are collections looking like, are they going up or down? Is occupancy trending up or down and why? What is the risk or likelihood to stabilize or improve under the experience of the new management team?

We are planning to move south to the Tampa Bay/Sarasota, Florida area in the 1-2 year timeframe.  We've had enough of the cold and this will bring us closer to more easily manage our investments in our target market. :) 

One of the syndicators I work closely with and have invested in works nearly all of his large deals direct to seller via mail.  This includes some very large buildings including 300+ units and recently 900+ units.  He had success here but it took several years and several contact points and follow ups to make them happen.  Consistency, professionalism, courtesy, and persistence are key. 

Don't overlook the power of partnerships and networking as well. If you partner and/or JV on properties, your (temporary) weaknesses on the credit/financial side may be overcome if you can bring other skills and talents to the table.

Similar here - we tend to use $ total rent for a comparable layout (2BR, 1BTH example), but will confirm $/sq is in close range for a similarly sized unit and floorplan.  

Great summary @Justin Goodin! I'd also add there is an educational aspect you gain as an investor, especially if this is your first time through the process. Many of my investors have told me they wished they had learned about these possibilities many years ago.  Once the door is opened to passive investing in RE, they start to think of all the possibilities for future investments and opportunities in adjacent areas as well (debt investing, etc).