All Forum Posts by: Barri Griffiths

Hey @Nathan g, that’s great insight into what to ask for screening a PM company. Im looking to hire a PM company in Cincinnati, to manage properties from 10-20 units. The challenge I’m finding in this smaller Multifamily size is that it’s hard to get a company that’s going to manage it as professionally as I’d like.(they’re usually one man band operations)They don’t help with due diligence, they won’t work together to come up with a business plan, they’re not too excited to help with rent comps before making an offer on a property. All of which I understand, as they don’t get paid for this work. Considering all of this, do you have any suggestions on how to find the right PM company.(I have asked for referrals from lenders and brokers.) TIA

I just went under contract on a 12 unit in Cincinnati. I was wondering what do you recommend doing in terms of due diligence? As things stand ill be using the current owner as the property manager, which means that it'll be challenging to use him for any of the due diligence. What I'm thinking so far is, ill need an appraisal, an inspection, a walk through of all of the units, checking all the leases, and the tax records to see if they match what I've been given already. Is there anything else you'd look to do on a small apartment complex like this? Might it be worth it to pay a company to do a financial audit?

Thanks in advance

Barri

Hello and welcome to Las Vegas @Michael Bailey 

The great thing about bigger pockets is that everyone gets to give their opinion, and you get to choose who you listen to, and figure out what works for you.

I would say it's a good idea to check out some local meet ups(I do run one of these events, but this is not why I suggest this)and meet some people in person investing in real estate. There are a few good ones in town, one of which is called the outback rein, which is run by @Jon Lee. And my monthly event focuses  on apartment investing, all the events will be on Meetup.com

Good luck and I hope to see you around!

Barri

Some the main reasons people lost their multifamily properties during the last recession was, they bought for appreciation, they were under capitalized, and they were over leveraged. As long as the property cash flows when you buy it, you don't over leverage yourself, and you make sure you have sufficient capital reserves/working capital. You should be able to ride out any correction. And at 12-14% Cash on cash, sounds like you've found some good deals!

Are they 5 units and above(commercial) or are they 4 units and below(residential)?

Hey @Sarah Smith

I run a monthly Meetup event focused on multifamily investing.

The next Meetup will be on the 24th of this month, it'll be up on Meetup.com next week. 

It wouid be great to have you there!

Cheers 

Barri

Hi @Scott Snow, 

That's all great information you provided.

I was wondering I'm looking to buy an assisted living facility which is already up and running and making great returns, the owners are selling the property for $280k and the business for $110k. Do you think I'll be able to finance both as part of an SBA loan? I'm trying to figure out how I can finance both parts?

Also is it possible with an SBA loan that I could cross collateralize with some of my other properties and not have to put a down payment? I was thinking about selling one of them to fund the purchase, but if I could do that instead, i could keep that property, even though it would be at risk if something was to happen to the business.

I might be ill informed on this subject so I appolgize if this is the case.

Thanks

Barri

Hi @Clint Jarvis

You are correct, it will depend on asset class and also area.

Most c class properties(which is what I'm assuming you'd be looking at in your price range) go for a 6-6.5% cap. And a lot will be even lower. There are a lot of good reasons to want to invest in Las Vegas multifamily right now. But price definitely isn't one!

It doesn't mean to say that you can't get a deal, you'll just have to work very hard to find one.

Good luck and feel free to message me if there's anything else I can help you with!

thanks @Jon Lee for the mention.

Hey @Brad Kaellner I know of one good one that I can recommend. Feel free to message me on here or email me 

Barri10ft

@hotmail 

.com

Cheers 

Barri 

Sorry just to make sure I understand. The only option I have is an fha 3.5% down loan?

Also what if my wife doesn't own any real estate, and isn't on any of the loans for my current properties. Would she qualify for the Freddie Mac 95% LTV?

Thank you for all the replies.

And if I find someone willing to finance a 4 plex, will I be able to do 5 or 10% down conventional loan? Or will it need to be 3.5% FHA.