All Forum Posts by: Chase McArthur

@Josh Levan

Do you have capital ready to deploy? I know some really good brokers in that area. PM me.

@Kanica Gooden

I respect your drive and dedication, keep it up! As you can tell, this is not an easy game to play. I'm sorry you are having difficulty getting your deals funded. Unfortunately there is no easy way around this. You are going to need to prove you can do what you say you can. There are really only 2 ways to do this. Either invest in properties yourself, starting small and working your way up OR find a job inside the industry that will allow you to create a name for yourself by making money for other people (fund manager, underwriter, broker etc.)

The truth is, accredited investors are accredited for a reason. Investors know other investors who in turn share their networks of those already established within the sector. I'm not saying that it will be impossible, but it is going to be very very difficult to compete with those already in that circle. It is going to take more than bringing some one a deal. Ask any true investor on BP how many deals are sent to them on the daily. I have faith in you! You'll figure it out.

@Gary Bahl

The truth is, there really is no "optimal" expense ratio that exists across the board. Your required returns and investmeny strategy will dictate what is optimal for each deal. Because of this, you should look to finding a ratio that is tolerable rather than optimal. This is typically measured within a spectrum because the floor can be easily quantifiable. No matter what you do, there will always be a minimum number that can never be lowered any further, due to fixed expenses.

@Caroline OConnor

Unfortunately the link doesnt work. I can tell you that based off of your description if it has already been rehabed you will be limited on your upside potential. You will need to take a look at your market rent to see how much, if at all, the rents are below market.

@Lorraine Brock

Did you prelease?

Often times its best to begin marketing the property for tenants as soon as you close the deal. Doing this creates tenable cash flow during renovations from which deductions for capex can be made for that fiscal year. As @Oleg Shalumov said, if theres no cash flow being produced from the property, theres nothing from which to deduct.

@Jason A.

Truthfully, your best bet, befriend a broker.

@Jason A.

Typically there are two addresses on the scc websites, one for the registered agent and one for the principal. Often time the principal address is the owner. Google the address and find out who it belongs to. Sometimes its a holding company, sometimes its a home address. If its a home address, punch it into the county website and find the owner, if its a holding company, search their website and find the owner.

@Au Jia

So it's a lot like the chicken and the egg scenario. You need equity to ink a deal, but you need a deal to secure equity partners, right? Deals are easy to find, but finding the right deal is the trick. Because of this intrinsic variable, investors are easy to find when you have the right deal. You find the right deal by calling your *** off to any and every property owner you can find. Deals can't be found on the internet, truly good deals have to be discovered, so start dialing. 

Full time investors know where to find deals, they have established certain channels. So the key is to become one of those channels. Network with brokers, go to meetups, put yourself in front of people. When you talk with them you have to wet their appetite. Tell them "yea, I have a few deals that I'm currently working on that look very promising and I have a few more being sent to me everyday. I have no clue how I'm going to handle all of these, let me get your info and I'll just send them to you." Then send them the deals you find, if you've done your homework and the deal looks good, they will call you.

@Jason Gamio

Welcome, Jason! Exciting time my friend! As @Oleg Shalumov said, the more the better! But there is a minimum that you will need to meet in order for the banks to lend you money. The investment term is DSCR or Debt Service Coverage Ratio. This is a number that lenders use to determine if the property generates enough cash flow to cover the loan payments after expenses.

@Anthony R.

I 100% agree with you. Getting out of a property is easy, it's getting into a new one that's scary, and I totally understand why. This is why I stress the unbelievable importance of a great broker, and not for the reasons most think.

There is often times a grave misconception about what I do. If you ask most investors they would say that I'm a commercial real estate agent. "I can sell my own property and keep your ridiculous commission for myself" most of them would say, at least the ones who dont really understand how I do what I do. And honestly, to those I say, go ahead, knock yourself out, I'll talk to you in 6 months.

Allow me to adjust perspective, here comes some truth!

Whenever I am talking with prospective clients I have their preconceived notions working against me. So to overcome this I simply re-frame who I am by explaining to them how I approach my profession.

I am a CRE investment broker. There is only one difference between me and a hedge fund manager and that is our product. My job is to increase your wealth and make you money but instead of bonds and equities I trade in real estate. My job isn't simply to sell your property and wish you a happy life, that's what real estate agents are for. Comparing what I do to what a real estate agent does is like comparing a bank teller to an investment banker. I'm calculated, I'm strategic. I don't just bring you a buyer, I bring you a qualified investor with a fat checkbook that won't waste our time. I don't just sell you a property, I strategically provide you another investment opportunity that will make you wealthier than the last one. If you just want to pretend to be a "real estate investor" then go talk with your local Re-Max agent, I'm sure he's got some killer deals on some little fix and flips that you and your brother Andrew could bond over. But if you want to make real money and grow real wealth then come talk at me.

Mic drop...

But seriously, I do what I do with passion because I love it and that's what makes me an expert in what I do.