All Forum Posts by: Nathaniel Loeffler

Simply asking the question: "what should I do with my $100K?" indicates that you need more financial education. I highly recommend that you spend some time learning before investing in anything (other than your own education of course).

It's rarely a good idea to take a blind leap into something based upon a recommendation.

Action plan:
1. Get a financial education
2. Find a top tier CPA and develop a wealth and tax strategy
3. Develop your exit strategy
4. Implement your plan with focus and discipline.

Wow! Thanks for the info and opinions everyone.

I tend to agree with Joel. I know that it takes the same amount of effort to put larger deals together as doing smaller deals. As such, the larger properties cash flow so much more, it's a safer bet (particularly since I'm looking for MF properties for the purpose of cash flow).

I think I'll keep looking.

I'm sure you're right about the housing market, but I'm looking specifically at the MF market. I'd be willing to bet that apartments are emerging there because it's getting to be too expensive to buy a home there. Maybe that's driving people toward apartments....

Anyway, a Google search for "Emerging Trends 2013" or any other year for that matter will bring up the "Emerging Trends in Real Estate" documents. It's an annual report created in a joint venture between PWC and ULI. At approximately 100 pages each they're a good, comprehensive read. I recommend them to all investors (commercial, MF, residential (SF), CMBS, REIT, etc.).

Mehran - There was nothing labeling the info I received as a pro forma, but I know that the numbers are likely inaccurate. I'm really just trying to figure out if the property is worth spending some time doing the homework on.

The units are separated into 4 buildings. All units are submetered. The broker sent me 3 years of profit and loss statements and the current rent roll, but never asked for a non-disclosure agreement (strange?). According to the documents, the NOI ($96,614 to be exact) is current (up from $95,552 in 2010). Management is in place and is compensated with 10% of the gross rents (seems a little high for a multifamily property).

According to the pictures (which admittedly could have been taken at any time), there is likely room for improvement which will enable me to raise rents rather quickly as long as the local market will support it.

The expenses are reasonable. Maintenance is less than 5% of gross income and total expenses (not including debt service) are about 23% of gross income

That's about all the info I have for now. What do you think? Is it smart to put it under contract and start due dilligence?

I have no knowlege of the neighborhood but I do have friends that live in the area and family that are not too far away. They may be willing to drive by....

I couild also pay a reputable property manager to take a look, but I don't know what that will cost me and am hesitant because I don't want to be taken advantage of. If I interview them first, and agree to have them manage the property if I buy it, they might give me a discount on the inspection (just thinking out loud).

Thanks for your input. Keep it coming!

Jim - This is not the property off N. Graham.

Note: As this is my first investment property, I'm concerned that I may be way off base. I like Charlotte as an emerging market (albeit slowly). According to "Emerging Triends 2012" and "Emerging Trends 2013," Charlotte is slowly increasing job growth and becoming a more attractive investment. My strategy for this property would be to buy and hold for 5-8 years for the cash flow, then do a 1031 exchange for a larger property.

I'm looking at my first potential multi-family deal and was hoping that some of you with more experience can tell me if this deal is worth exploring further:

21 Units in Charlotte, NC
Asking price - $649,000
NOI - $96,000
GRM - 5.1
Cap rate - 14.9
1 unit vacant
B property

I don't live in the area, so the deal has to be great in order for me to be willing to make an offer and get started with the due dilligance.

What do you think? Is this good enough to look further or should I keep looking?

Thanks for the warm welcome everyone! I'm looking forward to working with and learning from each of you!

Is there a good real estate investment club in Vegas? I'm thinking that would be an ideal place to start networking (other than bp of course).

Thanks!

Hi all,

My name is Todd, and I'm about to get started in real estate investing. I'm in the military (in Winnipeg, Canada) and moving to the Las Vegas area this summer. It will be nice to warm up a bit! Winters start around Halloween and the snow doesn't completely melt until May. Most winters, we get 2-4 weeks of -45 degree temperatures, so getting back to the desert again will be a really nice opportunity to thaw out.

I have a lot of goals in real estate, but primarily, I'm looking to provide quality housing, offer a phenomenal ROI for my investors, and increase my cashflow. I'm mostly interested in multi-family and commercial real estate, but because I have no experience, I'm open to other opportunities as well.

I hate the idea of being dependent upon taxpayers for my retirement so I'm looking to achieve financial independence so I don't have to retire with the military. I don't think it's right to ask taxpayers to fund my retirement. I joined the military after 9/11 because I wanted to serve my country, not to be supported by my countrymen.

I've spent the last year reading and studying everything I can get my hands on related to real estate investing and investing in paper assets. My skills are in leadership, willingness to get my hands dirty doin some work, and learning quickly. I lack experience, but we all have to start sometime, right?

I look forward to meeting you all!

Regards,
Todd