All Forum Posts by: Curtis Rouse Jr

@Alina Trigub Are you currently syndicating deals and if so what areas are you finding the most luck that yield enough return to bring on investors. I've been diligently looking since the beginning of the year with no luck because I'm not willing to pay 3, 4 or 5 caps.

@Herve Francois Welcome to BP! I'm currently in the MFR space owning 2 apartment complexes (16 & 19 units) and 1 SFR. You can read more detail in my bio on my page, but I've been investing since the beginning of 2016 and now looking to start partnering and increasing my portfolio by another 30 - 50 units within the next year. All of my portfolio is currently in the Macon, Ga area but I have been looking for deals all over the Southeast. Like yourself, I currently work as a finincial analyst as my day job and with that skill set of looking at spreadsheet all day have built my own financial model to analyze my own apartment deals and help other investors. I have plenty examples if you look at some of my previous posts and I have a case study on a 88 unit on my website you can check out. Would love to network and jump on a call if you're interested and we can go from there, so feel free to PM.

@Dulce Beltran You're very welcome and if you need any help I would love to help out. I started investing at the beginning of 2016 with a SFR, then purchased at 19 unit that same year and then a 16 unit last year. Looking for a 30 - 50 unit in the $1mm - 3mm range because I'm getting a lot of buddies/investors wanting to get into real estate, but I don't want to present them with just any deal. It's getting tougher with compressing cap rates, but I'm staying optimistic and looking daily. Best of luck with your search and let me know if I can help :)!

@Mayer M. congrats on working towards purchasing your first MFR! So I've built a financial model that I help investors like yourself analyze anything from the smaller SFR to multi million dollar apartment complexes. So according to your purchase price and metrics provided I have come up with the following below. Based on the following purchase price, this wouldn't be a good deal and would negatively cashflow per the assumptions provided below. The last two charts show at what purchase price this deal would make sense at ($160k). I personally invest in apartment complex and this is the reason I leave the smaller deals alone because the economies of scale at only 4 units. I look for 10% COC returns as you can see in the model and per my analysis, you would reach that by lowering your offer.

Assumptions

Downpayment: 20%

Closing Cost: 6%

Amortization: 25 yrs

Int Rate: 5.3%

Occupancy: 90%

Purchase price: $240k

Purchase Price: $160k

* I hope this helps and makes sense. This is a sample and part of the full analysis that I do when preparing executive summaries for raising private money, so if you need more detail than what's provided just let me know. Please let me know if I can be of any additional assistance or if you have another deal I can help you analyze! The BP community has tremendously helped ignite building my portfolio so I love giving back. Best of Luck!

@Corey Jackson I've done a couple JV's with other wholesalers and we always do a JV contract. In today's legal world, it's always beneficial to have some type of legal documentation if things don't go as planned which happens quiet often. Best of luck!

@J.S. B. Here is a quick financial analysis on this deal. Long story short, it looks like a good deal "IF" all the units are occupied and there isn't as much deferred maintenance as what I show. If at any point in time there are only 3 out of 4 units occupied, then this would be a negative yielding property in which you would have to pay each month (last chart). This is the problem with smaller deals like this because you don't have enough scale like apartments that I invest in. Me personally, I look for at minimum a 10% COC return, so anything below this is a bad deal and not worth my time. Let me know what questions you may have.

Assumptions

Downpayment: 20%

Closing Cost: 5%

Amortization: 20 yrs

Int Rate: 5.0%

Capex: 15% (older property assumption)

75% Occupied:

@J.S. B. Yeah I don't trust those websites for actual information, but for the time being I will go ahead and plug those in. I'm guessing you haven't seen the property and with it being an older property built in the 1920's, I'll just assume a higher percentage for capex. I'm guessing the current rents per unit are $590 with the $2350 gross rents correct.

@J.S. B. I've built my own financial model that I help other investors with and I can do a quick analysis on this deal if you could provide the following expensese: insurance, taxes and if there are any outstanding capex items that need to be addressed.

@Robert Falco Great question and this honestly comes down to your personal goals and in this case your family as well. Honestly, you want to be "safely" leveraged as possible without having to much of your own money in the deal. You want to use the banks money and use that other 30% - 40% on another deal that should increase your ROI depending on how good of deal you invest in. You look at some of the biggest companies like Apple for instance and they borrow as much money as possible even though they have billions in the bank. Why? Because leverage uses OPM and allows you to expand more rapidly while still have your cash reserves if necessary. Also, if you have family members involved, I would start looking at the larger apartment complexes where everyone would get more bang for their buck. This is personally what I invest in and plan on bringing in more investors for larger apartment deals. It's harder to do this on the smaller MFR end unless you have market appreciate, which in my opinion is speculation and more riskier. Again, this comes down to everyone's goals and aspirations. I hope this helps and let me know if I can be of any additional assistance. Best of luck!

@Kelly Carter I did a quick analysis on this deal through my financial model I built and like the others have mentioned, this is a horrible deal at that price. The first graphics will show at current asking and the bottom will show where it makes sense. All expenses based from your detailed although I think some expenses are missing.

Assumptions

Downpayment: 20%

Closing Costs: 5%

Amortization: 20 yrs

Int Rate: 5%

Rents: $1200

Makes sense at $67k (I personally like to see at minimum 10% COC):

*I hope this makes sense and helps with this deal. If you or anyone else needs help analyzing deals, I can look at the smaller SFR to the multi million dollar apartments for free because I love helping out the community that has taught me a lot about this business over the past couple of years.