All Forum Posts by: Charlie Moore

Quote from @David Wallace:

Are you looking to deploy the 200-250K into syndications run by other sponsors? Or do you want control? 

If you want to own it, you're looking at a deal size of around 900K to $1.1M I'd guess. I rarely see people talking about IRR at that size. It's mostly cap rates and CoC.

I always recommend looking at multiple valuation metrics, not just one. 

If it's a heavy value-add deal, cap rates and CoC might look terrible in year 1. Most of the return comes after stabilization, re-finance, or sale.

If it is stabilized, CoC will look better in Year 1 but won't increase as much over time.

So it's very deal-dependent. 

I'll say a number, but take it with a boulder size grain of salt. 

I see a lot of people anchored at the 8% CoC number.

Super helpful - yes I intend to own this asset myself - not invest in a syndication. Yes, 600-1mil would be my guess. My goal is primarily cashflow but obviously would not turn down appreciation. More rural Georgia or North Carolina, or even a suburb of Cincy or Minneapolis or Louisville. So I am open geographically. Just need somewhere where I can vet and trust the PM. Weighted toward cashflow but would not say no to a slightly below market, value strong appreciation play. I want 12-14% COC but don't know if that is totally lala land. I don't mind cosmetic work but I'd likely avoid any huge (crawlspace, New HVAC, etc) type stuff. This would obviously change the strategy but I have even considered making one unit an STR and the other 2 or 3 units a traditional 12-month. I travel a lot so considering a multifamily by somewhere I already travel and being able to stay in it. May be a pipe dream though. 

Quote from @Gino Barbaro:

@Charlie Moore

Great question. I'm gonna sound like a lawyer. It depends.

It depends on the market, the market cycle of that market, how you find the deal, the type of debt you can put on the asset.

If you're buying without a syndication, I never look at IRR, especially if my intention is to hold and refi.

When you syndicate, IRR is the metric investors want to see. If you want to have a longer discussion, DM me.

Gino

Super helpful - yes I should have anticipated the "it depends" answer. My questions was general enough. I intend to own this asset myself - not invest in a syndication. My goal is primarily cashflow but obviously would not turn down appreciation. More rural Georgia or North Carolina, or ever a suburb of Cincy or Minneapolis. So I am open geographically. Just need somewhere where I can vet and trust the PM. Weighted toward cashflow but would not say no to an slightly below market value strong appreciation play. I want 12-14% COC but don't know if that is lala land.

I am looking to deploy 200-250. I understand that IRR is the more common metric in MF. Just curious in the near term what I should expect to make on my money. I am willing to do some value add. I am looking for B class property.

Quote from @Jonathan Carpenter:

Hey there, this is my first Bigger Pockets post so yay!?

We're working with a mortgage broker local to us and he has put us in contact with Lendbase as well. We are not currently under any sort of contract and we just found this thread through a google search on Lendbase.

We are currently working on a construction loan to develop some residential lots, assumed the Mortgage Broker would be on the up and up... had some sales-ey call with a guy out of Utah. 

I suppose the main question is, does this company actually come through. We're looking at a rather large loan and I feel like we could go down a different road if this place is not legit.

Thanks.

 Did you end up using them - talking to them right now - and a little nervous to pay the engagement fee. Thanks

Wrapping up a new construction duplex right now. Torn between selling and keeping. Want to keep it, but when I account for all expenses the cash flow is really rough. My question is...how much should I allocate/factor in for Cap x and monthly maintenance on a new construction? Lessening those %s obviously greatly helps my monthly numbers but I don't want to run them too low. I plan on doing a 1031 in a a few years so in all likelihood I wont be addressing any of the bigger ticket items. Hope that makes sense. Thanks!  

Quote from @Austin Wei:

Quote from @Charlie Moore:

I recently sold some rentals and came into some money. I also recently bought some land in an opportunity zone. I had no idea that it was an opportunity zone! I was really intrigued by the episode last week and have listened to it a few times but this still feels a little above my pay grade as I'm only a year into investing. I was going to build and sell but now I obviously want to keep, if I can swing it! How do I find a tax strategist in my area (or do I just use my CPA) to dot all my i's and cross all my t's - if I am going to keep and not sell I wanna make sure I am doing this the right way and that I do indeed qualify. If someone feels comfortable answering some follow-up questions I had from the episode I would be greatly appreciative! 

Sorry to be the bearer of bad news, but you're already disqualified. You need to 

1. Set up the Qualified Opportunity Fund (QOF)

2. Deploy the capital gains realized within the 180 day window into the QOF.

3. Have the QOF acquire the land.

I've greatly simplified for brevity. But, since you already own the land you're disqualified.

I recently sold some rentals and came into some money. I also recently bought some land in an opportunity zone. I had no idea that it was an opportunity zone! I was really intrigued by the episode last week and have listened to it a few times but this still feels a little above my pay grade as I'm only a year into investing. I was going to build and sell but now I obviously want to keep, if I can swing it! How do I find a tax strategist in my area (or do I just use my CPA) to dot all my i's and cross all my t's - if I am going to keep and not sell I wanna make sure I am doing this the right way and that I do indeed qualify. If someone feels comfortable answering some follow-up questions I had from the episode I would be greatly appreciative!