All Forum Posts by: Barri Griffiths

hey @Chris Mason thanks for the reply.

So what you're saying is if I find a good reason why I'm moving(I.e moving to a gated community so my wife feels safe at night when I'm not home, and also that there's a swimming pool for the summer time when it gets ridiculously hot here) and then articulate these reasons to an underwriter. There's a much higher probability of the loan getting approved?

What do I do if the mortgage person I speak with flat out says they can't do it?

Cheers 

I've heard about many people moving into a 4 plex and taking advantage of owner occupied financing. And I decided this was a great way for me to add to my portfolio. So I started to look and also contact lenders to find out what was possible. I've spoken to a couple of them now, and they both said that it's unlikely that I'll be able to get this sort of financing, as I already have 3 sfh's(one of which I currently live in) and that it's going to be very hard to convince them that I'll actually be living in one of the units!

Does anyone else have any experience, or suggestions as to what I can do to make this happen?

hey @William Brown there's a few different ones here in Vegas. There's the outback, and the sin city REIA. Both are on Meetup.com.

I also host a monthly event focusing on apartment investing. Feel free to come along, we meet every 4th Thursday.

Feel free to reach out to me on here, if you'd like to find out more!

When my current tenants lease expires in march of 2018, I plan to sell the property(sfr) and reinvest that money via a 1031 exchange into a small apartment building(12-18units)mo

I've already contacted a few different brokers, to see what kind of opportunities are out there.

Should I be transparent with all of them, and tell them that I'll be using 1031 money. Or is this going to put me in a bad negotiating position, and I should try and avoid this?

Is it also best to let them know that I won't be looking to buy until march onwards, but that I want to work with them now to identify what exactly is my ideal property?

Is there anything else I should know or consider, when doing a 1031and dealing with brokers, and in general?

Hello,

I have a rental property that has a lot of equity in it, and I'm getting almost no return from it. I'm looking to sell it and take that equity and invest it Into a small multifamily(12-16units)

The current tenants have been in the property for two years and have been exceptional tenants(majorly improving the place, always paying on time, not requesting many repairs, etc) 

How should I approach them about the subject and what protocols should I follow?

I would love to sell it to them, but I'm not sure they're in a position financially to buy.

Also one of the tenants is a realtor, so I was thinking at worst she'd get the commission for selling it. But also it might make the house more affordable as I could sell it for to cheaper to them as there would be no commissions to be paid?

My mother is also looking to sell her house, and needs a realtor so the tenant could also represent her. Or is it a bad idea to cross mingle affairs?

Any Help with this matter will be greatly appreciated!

Cheers

Barri

Hey Frankie,

Congrats on finding some off market deals, and getting direct contact with the seller, that puts you in a good position right away.

you didn't specify what type of property it is and what the area is like. But I'm just going to assume it's a C class property in a ok neighborhood.

And before firing any kind of offer over I'd ask for some more information, so that you can get a better understanding of the property and the valuation. You'll need the t-12(the trailing 12 months income and expenses) and the rent roll.

But just to give you a down and dirty quick calculation again without knowing anything more apart from the numbers you gave.

On the 8 unit that's rented out at $750 each-

Calculations made on an annual basis 

750x8=6000

6000x12=7200

72000x0.1(10%vaccancy)=7,200

72,000-7,200=64,800

64,800x0.5(50%expenses)=32,400

NOI-$32,400

Market cap for C class is about 6-6.5% 

So let's be conservative and use 6%

Value is NOI/cap rate

So 32,400/0.06(6%cap)

=$540,000 valuation 

You can apply the same calculations to the 6 units and that should also give you and idea of where the value is.

I hope this helps, feel free to reach to me with any further questions, I'll be glad to help In any way I can!

Cheers 

Barri 

I've always heard and believed that you should only buy on actuals. But I've been hearing more and more of the experts buying at a low cap rate(5-5.5 and even lower)

Therefore I'm assuming they're buying on what the property can achieve in the future. 

There is a property that I've been looking at that have rents that are $100-125 below market.

 And I believe I could comfortably get $75 more per door without having to do any improvements.

A lot  of the tenants are month to month, so I could implement this pretty quickly.

How are these experts buying at such a low cap, and still giving their investor a good rate of return?

And is it unreasonable for me to buy on what I believe I can get the NOI to pretty quickly?

without digging into the financials, where in Vegas is this property?

Because even if the numbers look great on paper, if it's in a rough neighborhood, your actual costs could be drastically different to your calculations.

I'm currently about to submit an LOI on a property, and want to include seller financing as part of the deal. I plan on asking for 10% of the down payment(the remaining 15% of the 25% down payment would be made by me)at a 5% interest rate, 7yr term, 25 yr am. The only problem is, this severely affects cash flow and the returns.(even though you're required to bring less money to the table) I've always heard that seller financing is like the holy grail, but unless I'm missing something, it seems like you'd need a deal that's a big home run for it to work!?

Am I overlooking something, or is just a case of I will need a better deal for seller financing to work?

@Brian Burke

Thank you again for taking the time, I'll try this and see where it gets me.