All Forum Posts by: Brian Beadle

Hello all,

I am looking to connect with a few great wholesalers in the Omaha area. I am looking for SFHs, MFHs, and/or commercial property.

Thanks in advance!

Is there a reason you like this property specifically? In terms of cashflow, it doesn't look to be a home run.

 https://www.realtor.com/realestateandhomes-detail/...

How about something like this? A tad bit pricier but you get three units instead of one. Depending on your situation, you could live in a unit finance via FHA w/ 3.5% down and bank the other two units.

Great first analysis tho. Happy investing! 

I suppose that was a bit undefined. I’m looking for purchase price of long term b&h multi family properties.

Thanks! 

Let's hear some numbers! Here in NE, $50k/unit is pretty easy to find for a solid C/B class. 

Area:

Price per unit:

Class:

@Diego Lopez   Agreed. I understand that property management is not the most lucrative business in the world, but I feel it makes sense that if I have a certain way I would like my properties to be managed, why not build a business around around those pillars.   If I don't, I feel like I would end up managing my management company which may take just as much time as oversing my own PM company. 

 Haha, yes. No disagreements there David.  If you have a talented PM company in place, there shouldn't be too terribly much interaction with your tenants. All the more argument for developing your own PM company. Am I wrong?

 I do not disagree David. The only downfall of this would be the shift from managing properties to managing people. I feel many HNW investors buy properties instead of business because it is much easier to manage properties than people.  Your tudor style four-unit on the quiet cul-de-sac isn't going to drink on the job, steal toilet paper and embezzle quarters from the washing machines...

Good points Elenis, but I am not necessarily referring to 'self-management.'  The property owner would own the management company in a separate entity. He/she would still perform the same functions as if the property were managed by a third party company, but instead, the property would be managed by a company he/she owns. 

It seems to me that if you have a strong understanding of RE investing and its principals, it would not be difficult to build a team that will operate under your direction. Why pay someone else the 5-10% when you can build a business that can do this for you. 

It seems like a natural succession for a large multifamily unit owner to also own their property management company.  

Agree or disagree? Why? 

Dave, what if you partnered with someone for a larger project? Of course, the returns may not be as large as finding great single family homes but 200K can get you a nice portion of a large project. 

Take this one for example in my hometown. (Full disclosure, I just plucked this off Loopnet so likely the numbers are baked more than the crowd at a Dave concert) 

http://www.loopnet.com/for-sale/omaha-ne/multifamily/?e=u

200k can get you 50% ownership in this beaut if you found a solid local partner. 121k net leaves you with a 60K takehome on your 200k investment. I'd take 30% COC without doing any work all day before buying 20 SFHs.

Keep in mind, this 7.37% cap rate property is probably more like a 4 cap in real life but it still illustrates my point. 

Also, I'm not one of those 'they sky is falling' fellows, but I would be much more comfortable in this market with my holdings in larger multifamily RE than in leveraged SFH's if we were to enter a recession. Look at 2008 default rates on multifamily vs SFH and it won't take long to see the benefits.

Hope you're enjoying Florida!