All Forum Posts by: Armando Payano

Find an agent for sure

Woooohoooo! Congratulations Laura. Good for you and good luck on your new journey. 

Unfortunately it doesn't seem you have any way to bind yourself to this deal, not being an agent. Do you know anyone you trust that is licensed that can help?

I brokered deals in this price range, we only worked on EXCLUSIVE AGREEMENTS, for this same exact reason. 

We saw buyer agents get ignored at closing (closings scheduled and them not be told) even though they where involved in putting the deal together. Terrible. Some would get a tiny "kick back" but nothing close to what could've been possible.

At these closing many times the seller or buyer, or both will squeeze the agent out of the deal. Many times even with an exclusive agreement with the seller and  an agreed upon fee we would be forced to drop our commission as either party would threaten to not close the deal. 

This is one of the reasons I left that market the lack of integrity was horrible.

Perhaps you can get an agreement in writing with the sellers agent although I am not sure if that is possible or legal in California. Be upfront with both parties and good luck.

Also this should serve as some motivation to get licensed so that it doesn't happen again.

Salute!

It's easy to be tempted to bend rules during due diligence. 

Good for you for not. 

Better to not be in a deal WANTING in one, than to be in a deal WANTING out of one. 

I would not proactively volunteer anything for them doing a good job of what they agreed to do. As @Account Closed mentioned as much as I like some of our tenants, and we may have been friends had we met in a different way in life you are my customer and I don't want to ever blur that line because things can quickly change. 

With that being said, carry it forward. If you can ever help them then do it. 

I often find my self saying if I ever get  the opportunity to show this tenant that I appreciate them I certainly will. 

Good for you thinking along these line. The world cannot ever have enough good people.

Not sure if this applies to the info your compiling but what the heck....

We are searching in the 1-1.5mm price range. What is stopping us from making our first MULTI-FAMILY deal? (We own several other single unit investment properties and prepared to scale up)

First it took some time for us to get to a point where we knew we had earned the experience necessary to acquire such an investment. Entirely different ball game.

Here is the issue we face. Inventory and yield. Currently in our target market, Tampa, there is a lack of inventory in this price range that supports such a low yield. Cap rates are in the 6-8 range for the buildings that fit our criteria.  

Our model will only allow us to buy in C areas. A few we've looked at are D- areas and asking C+ prices. So what we are doing is studying different strategy's to add value but haven't found any that we can. In a few the value has already been added and is priced in by the seller. Although there is always the "potential upside in rents" broker statement. We know enough to to know that it's a red flag if any owner adds value and doesn't capitalize on it.

At these percentages we just have to be more patient and stick to our plan. So now we are looking to add a small multi family 4-10 units to our portfolio as there seems to be more opportunities in that space. 

Any suggestions/comments are always appreciated.

Great position to be in.

Here is something to think about. If appreciation slows, chance are rents will stay firm. Considering the amount of appreciation thus far even with a pull back in prices you will still be net positive so you will be able to "ride it out" while cash flowing well and potentially catch another wave of appreciation. 

Take some time to find another investment, which can take awhile to find a good one, THEN consider selling or taking out a HELOC.

I am in a similar position. Purchased a condo in NY for $465k in 2010 recent comp sold for $700k. I have a 10yr tax abatement. It currently rents for $3250 a month providing $400 cash factoring the 50% rule but it's much higher as the it was built in 2009 and I have spent $400 in maintience in 3yrs. I owe about $240k on it.

Our plan is to leverage it into a multi family of about 1mm with 50% DP once we complete phase 1 of our SFR acquisitions. So that will be in about 1 year.

Good luck.

That's amazing Chris nice work, congrats. 

good on you Maggie for spotting this. 

Hi @David Brizendine great advice. Where can I find information on current inventory conditions for a given market?