All Forum Posts by: Ben Morand

@Kim Meredith Hampton I really appreciate that! I just connected and PM’ed you.

Hello BP community!

So I currently have yet to purchase my first property, and I wanted to hear some opinions on my preferential strategy. After researching quite a bit, I have come across the niche in which investors seek out 5-20 unit commercial properties for a variety of reasons. First, this market is less concentrated than others. From what I've heard, the vast majority of investors are scared to enter the commercial industry because they feel overwhelmed by its "complexity". On top of this, I've heard that most experienced commercial investors are not looking for such small properties, and would prefer to invest in large multifamily (80-100+ units) to increase their return. This leaves the smaller, 5-20 unit commercial space with less concentration and more opportunity for deals (especially in particular markets around the country).

Beyond this, I also am attracted to the fact that commercial value is based upon NOI and cap rate, rather than on comps, so the value is more in control of the investor and less based on the surrounding properties. From what I've heard, this allows investors to add value without as much rehab to the property (through raising rents, adding in additional revenue-building assets, decreasing expenses, etc.).

However, I do know that is is harder to find quality property management for these sizes of properties, and it is also harder to sell them (due to less demand). Also, commercial loans are also a bit more complicated (at least to me) than residential loans, so I would need to learn much more about how these work before ultimately cracking down on the strategy.

I am curious as to what are your guys' thoughts are on skipping the residential realm and hopping directly into small, multifamily commercial properties? Also if anyone has any advice, tips, or resources, I'd love to hear them if you'd be willing to share.

Thanks everyone!

Hey BP community!

My name is Ben Morand and I am a new investor based out of the Orlando area, as well as a licensed agent in the Gainesville area. A little about myself: I am 21 years old and I am currently a marketing student at the University of Florida, with a minor in economics. I have had a part-time job for a few years now, but haven't yet dove into real estate as much as I would like. Over the past year, I have read 20+ real estate/entrepreneurial/mindset books, listened to hours of podcasts, obtained my real estate license, and ultimately researched far more than I can cite. But here I am, still with no major action taken. I realized that I have the education part down (at least enough to get started, there's always more to be learned), but what I am missing is the networking aspect. 

I am really starting to realize how important relationships are in the real estate world, and I am very interested in connecting with local investors. So if you would like to connect with each other, feel free to include your current portfolio, your long-term goal, your investing strategy, and your big WHY, and we can connect and network together! I'll start:

Current portfolio: 0 units (working to add 5 this year)

Long-term goal: 75 units

Investing strategy: 5-20 unit "sweet spot" commercial properties; implementing the stack to buy 5 units, then add 10, then add 20, then add 40, year after year to reach my target 75 unit goal

Big WHY: both my parents work in K-12 public education and my family has always been locked in the traditional way of working. I obtained my real estate license and quickly learned how much I love the industry, and especially the investing side of things. I see others my age hurdling any roadblocks and achieving success in the industry and I want to make that happen for myself. I see no reason why I can't create the life I want.

I am excited to connect with you all and I hope everyone has a great week!

@Tyler Gibson I really appreciate that! Just sent you a PM.

Hey BP community!

My name is Ben Morand and I am an aspiring investor based out of Orlando, FL. Over the past year, I have been tied down under the far too common "analysis paralysis" and have been making excuses as to why I have not yet started my journey. Now, I am looking to change that and wanted to start by meeting all the amazing locals in the industry. I am wondering if someone could guide me towards some of the local meetups that are open to new attendees?

Thank you guys so much and I look forward to meeting you all!

@Dan Schwartz Thank you Dan! I really appreciate the insight. And yes, I definitely worded that sounding easier than it probably is with the business credit haha! I am going to speak with a CPA soon, as well as some banks to discuss the possibility of business credit. Fortunately, I do have excellent personal credit and have been working at the same job part-time job for about 2 years now, so hopefully I can qualify for at least some to help get started.

Do you have any Airbnb rentals yourself?

Hello BP folks,

So I am currently a 21-year-old college student at the University of Florida, as well as a licensed real estate agent. As of right now, I am not making consistent enough income, nor do I have enough in savings to hop into a rental property. (While I do value to idea of strategic partnerships to compensate for this lack of capital, that is a whole other discussion.) 

Recently, I stumbled upon some BP members discussing Airbnb Arbitrage and fell in love with the idea. After watching tons of videos on YouTube (honestly the best education out there), I came to the realization that I could open an LLC and use some small business credit to start as soon as I find a deal. This idea excites me, but at the same time, just like any other real estate endeavor, I know that Airbnb Arbitrage is not as simple and easy as it may seem.

I am wondering if anyone who has actively held Airbnb Arbitrage properties would be willing to share their story on how they got started, their timeline from start --> first property, their returns, and any good/bad experiences along the way?

Thank you guys! 

@Dan Maciejewski Thank you so much! I appreciate the in depth response. I’m trying to gauge my refinance appraisal estimation for these types of properties so I appreciate all of your help!

Hey guys,

So this may be a simple question, but are small multifamily properties (2-4 units) typically appraised using comps or using the income approach? I know SFR are always dealt with using comps and commercial properties use NOI to determine value, but what about the small multifamily, which is in between the two? Thanks everyone!

Hey BP community! Quick post for today, but does anyone have any solid resources on using business credit to partially fund deals? I’m open to hearing any books, courses, videos, suggestions, websites, etc.

Thanks everyone!