All Forum Posts by: Chase Louderback

@John Bradley I've heard some people do every two months or every quarter.  You should cold call within a week after your projected delivery time from the mailers.  That being said, I don't do any mailers for my current prospecting.  I only cold call and try to meet the owners in person.

@John Bradley  Like Greg pointed out, cold calling and relationships are what will really matter.  I would suggest mailing and following up with a call and then if they seem like they are considering selling in the near future you should try to meet them in person (if they are close by).  

If you had to cut one of those things out, it should probably be the mailing.  The more personal (calling, in-person meetings, etc.) the better.

@Wilfred Gonzalez Jr

What are your goals with the house hack?  For example, some consider a "good deal" to be a property where they either have no mortgage payment or they are positively cash flowing from the other units.  In higher priced markets like CA or certain parts of NY & NJ, some people want to just be paying much less than if they rented.

You will need to decide for yourself what your goals are and then you'll be able to determine what a good deal is.

Yes, it is possible to get FHA and other loan products for 4 unit and less properties. You should speak with a lender ahead of time to know what your options are and what hoops you will have to jump through so that you can be prepared when you find the deal.

@Travis Kemper  Greg is 100% correct.  Best method is always speaking (or meeting) the owner directly.  You an also use Reonomy, ProspectNow, or Costar for owner information.  Depending on how your county categorizes multifamily ownership, you may be just fine with getting the free list from the town/county.

Best!

Hi @Geoff Garber

Feel free to direct message me.  I'll be happy to help.

@Aaron Harren In addition to what Greg and Seth have pointed out.  With those size properties you can generally get better loan terms because they are still classified as residential.  If they are solely investments you can get 20% down payments or even less if you decide to house hack one of them.  

Hi @Shahn Sattar

I think it depends on the size and price range of the properties that you are looking to acquire.  If you are going to have larger properties in different markets with >$1MM loan balances, then it would probably be best for you to build a relationship with a mortgage broker and to pursue agency debt.  

If this is going to be smaller properties with <$1MM loan balances then small local lenders may be your best bet.  Keep in mind those loans would be recourse.

Hi @Sunny Kapila

Value = NOI/Cap Rate, so in this example (assuming the NOI and cap rate are correct) would be ~$20,689,655.

Have you run the numbers to see what YOUR expenses in operating the property will be?  Is there Value add potential?  Is that Cap rate reflective of where the market actually is (aka is it priced fairly).

It's important in this market to know what you will be getting into when you take over the property and that you will be cash flowing from day 1.

Best!

In my opinion, you would find great deals in NYC the same way you would find great deals in any other market with whatever you currently have.  It would be networking with brokers, posting to LinkedIn like @Scott Wolf recommended, constantly asking for referrals from other people and property management companies.  

The big difference would be, with $20MM of cash in hand you will have people fighting for your attention and you will get more deals sent your way quicker than if everyone thought you were a tire-kicker.

Hi @Kevin Hart 

You have a couple of different options, always check these over with your lender or attorney to see if they will work for you.  Some options could be:

• Get a new mortgage from your preferred lender with the seller holding the full second (downpayment).  Can structure his second on anyway that makes sense and you are both agreeable to.  Generally he will have to be holding 30%+ for the lender to be comfortable with you only putting down the closing costs.
• You can buy the property "Subject-to" his current mortgage and have him seller finance the remaining balance.
• Investigate to see if his current loan is assumable, then have him seller finance the remainder.  This is similar to the subject-to, but a little easier.

Let me know if you have any questions.  If you decide to pursue the subject-to route then you need to get educated on it and potentially have someone that has done it before give you some guidance and the proper contracts.

Best!