All Forum Posts by: Brett Peters

@Ryan Daigle I agree. Multifamily is not completely recession resistant in this situation. C class will definitely be hit first, but this could extend up the spectrum depending on how long the lock downs persist. There is also the cause for concern of a significant influx of inventory ie. Investors looking to jump ship, and it's possible we may see a bit of oversupply which which may increase vacancy. In general, this is going to impact r.e for the next few years but the situation is still somewhat infantile and the ripple effect on r.e is always a delayed response. Retail tenancy is shook up, as well as hotels. Industrial remains resistant with slight up tick.

@Hai Loc, Both the retail and hotel sector. A large amount of retail tenants have began seeking abatements as well as severance. Hotel goes without saying, there shut down. The longer this lasts the more it will trickle down to multifamily. They only sector not affected is Industrial as well as some retail locations with consumer staples.

@Alex Olson Precisely, the first sectors to be impacted are retail and hotel. MF will undoubtedly be the last. If people would remain contrarian we should be able to avoid a trickle down. It is always a good day in real estate, stay focused and be smart.

@Chris Levarek where I'm from in Pa, the average tenant is paying 30% of their income on rent. There is a major shortage on supply in the multi family space and limits placed on construction that will together create the perfect storm for this problem to increase. I think as multi family investors a bigger concern is vacancy rather than rental increases. We as active participants in this sector need to speak up and become more active in the troubles facing our industry. So in short, yes I believe it is a necessary evil. Though it may not be so evil after all.

@AP Horvath I would recommend purchasing a commercial multifamily property. In the PA area you can get a solid 5 or 6 units for that all cash. If you are planning on leveraging and feel more cavalier about the matter, I would look into the specialty/retail segment. For example a car wash where you can purchase both the business and the real estate. Financing would look like 20-30% down on either of course but with you immaculate financial picture I would expect you to fall on the lower end of that spectrum. Finally, if you are cash flow oriented consider an interest only loan. If you are in it for the long haul then a 5 year fixed 20 year amortization will be ideal. Then brrr until your heart is content!

@Erin Attwood, I actually did this myself. I started in Real estate as an individual investor and then decided to get my re license. So I will tell you what I was not told. Being an agent is very expensive and demanding. Assuming you are going to actually function as an agent. There are other ways to get mls access, like signing up as an "assistant" to an agent in order get the password. The term assistant is superficial don't worry. My advice is if you are not going to actually function as an agent then hire one. If leadership is your highest and best use then delegate. It is not a bad idea to become licensed but it is not at all what it looks like. You will also have alot of overight amd potential for litigation believe me!

Anytime my friend. Definitely don't allow all these yellow lights to stifle your journey. Best of luck to your endeavors, I truly mean that!

I would link up with a commercial realtor in your area who deals specifically with land. Land is a completely different animal. 1.) It is a very niche buy and has above average hold times. 2.) Make sure it is on a municipal water system or you will be paying in the 15k range to make that happen. 3.) Make sure it is on the city sewer lines or you will have to install a well or water system which can also run 15k depending on how many gallons the tank holds. 4.) Conduct what's called a perc test to ensure it can "actually be developed" 5.) Buy cash if possible. I have seen lenders demand anywhere from 50% to 70% of the purchase price up front due to its inherent volatility. Hope this helps!

@Rob Bowness, if you have it under an LLC your cash out should be about 70% if it is under your personal name you can get 80%. The answer is do both. Hold it until you find a better cash flow producing investment, then sell it. You will skip the capital gains at 25% and you will roll right into receiving rent.

@Jason C. I love hearing stories like this. Congratulations, celebrate, then go crush it some more!