All Forum Posts by: Brian Metz

I jumped into my first deal last summer. I'd spent about 4 months educating before and started scouting the market. It wasn't a home run by any stretch. Not even a double...I'd call it a single, but it got me on base. It's given me experience, some street-level education, and is helping now to expand my holdings due to forced appreciation. Anybody who's on the fence, don't wait for the perfect deal! Find one to get some experience and credibility, and take action.

Cheers,

Brian 

Hi @Donald Eggers, you could structure it so that they are debt partners. Make them your bank and essentially you are paying back a loan to them. You wouldn't necessarily have to give up any equity this way, and could give them an attractive interest rate that'd be more enticing than potential returns in the stock market, if there money was sitting there.

Best of luck!

Cheers,

Brian

Not sure what type of investing you’re into, but Joe Fairless and Theo Hicks’ book Best Ever Apartment Syndication book is obviously geared toward syndications, but I still found tremendous tangible and actionable knowledge in it even though I’m only involved in smaller multi-family properties at the moment.

Cheers,

Brian

Hi Victor, I'm in a similar situation, but am trying to lead-turn the problem by building a base of investors who would want to structure a partnership with me through debt or equity. As much as we want to do it alone, I think using other people's money has to be in our future to grow. I don't know if you've been able to force appreciation on your initial property, but my first one was a 6-plex and I was able to increase the equity by increasing NOI and that gave me $50K in equity to tap into.

Best of luck!

Cheers,

Brian

Yes that's a standard down payment for a duplex, unless you can use an FHA or VA which I don't think since it's out of state and you won't occupy for a year. I don't know if it's a large bank you're planning to use, but just because you have a loan with them doesn't mean they'll treat you any different. I have my primary residence mortgage with Wells Fargo and one of my investment properties with them, but that didn't affect their rates or down payment on the investment loan. Best of luck!

Cheers,

Brian

Hi Andrew,

I’m currently striving for cash flow of $100/door and a cash-on-cash if about 9%. I obviously want to maximize that, but I look at the equity I can build through forced appreciation as well. For instance, raising rents and cutting expenses may increase the value of the property $XX,000. I’m not a home run hitter when it comes to those numbers, but simply just try to hit a single. 

Cheers,

Brian

Be ready for commercial financing since it’s over 4 units. What are your plans with the property and is it stabilized? My first one ever was a 6 unit and at the time if purchase only 4 of the 6 were occupied because the owner had just rehabbed two units. When I called big banks though they wouldn’t qualify it for financing because it was unstabilized in their eyes. I ended up doing a cash purchase and then refi shortly after, but make sure you have a plan in place. And know if you need short term lending, I.e. a bridge loan, to stabilize it, raise rents, etc to season it before you get longer term financing.

Best of luck!

Cheers,

Brian

Hi, similar to what’s been said an appraisal can be great to help you with a refinance, but when it comes to selling I feel it can be very subjective. I don’t count on being able to sell at the appraised value, but instead try to keep an eye on what the market is doing (comps and/or cap rate) and then take a bit off from that to keep it conservative. When I think of appraisals I think of beanie babies...how did those work out for folks?! ;)

Best of luck.

Cheers,

Brian

Congrats on the new acquisitions and thanks for the very motivating words! I’m a big fan of folks that jump in and just do it.

Cheers,

Brian

Hi @Brian Cohen, I'd recommend linking up with the folks at Five Pillars Realty group. They do a monthly meetup called Pints and Properties. @Shelby (Osborne) Johnson and @Michael Glaspie are two good folks to hit up.

Cheers,

Brian