All Forum Posts by: Curtis Rouse Jr

@Brandon Haines I'm in the MF space and own a couple apartment complexes down in Macon, Ga which is south of Atlanta where I'm finding better yielding properties. With compressing cap rates and it being a sellers market, in Atlanta and pretty much everywhere else you need to be very careful not to over pay. I've built a financial model that I use daily and help other investors analyze anything from smaller SFR's to the larger apartment complexes, so let me know if I can be of any assistance. Best of luck and remember to stick to your numbers where the property cash flows from Day 1!

@Louis Vaughn I'm in the MF space and own a couple apartments myself. I help investors all the time analyze anything from smaller SFR's to the larger MFR's complexes through my financial model I built so please let me know if I can be of assistance if you come across one you like. The BP calculators are a great tool as well and what I used to initially get started. I have posted some examples if you look at my past forum post. Best of Luck!

@Daniel Hernandez First you need to start with educating yourself on the type (SFR/MFR), location and most importantly the financials of a deal. Me personally I look for a 10% COC return with potential to double my money in 3 - 5 by way of a value add play. These deals are getting tougher and tougher to find with the compressing market, but they are definitely out there you just have to find them. Realtors are a great resource, but most don't specifically deal with investors or know what makes a good/bad investment. If you're going the realtor route, focus on someone who invest themselves and start networking with local investors who are doing what you want to do that will help shorten the learning curve. I've built a financial model and I love helping other investors analyze deals from small $30k deals to multi million dollar apartment complexes, so please let me know if I can be of assistance. Best of Luck, I heard Dallas and Houston are great markets to invest in!

@Yaya Y. I agree with @Chris Seveney and he is 100% correct. You need to completely ignore all this cap rate talk and focus on you COC because that's what ultimately determines a good investment. In my financial model I built, I take into account any and all relevant expenses giving me my NOI then net out my financing giving me that COC. If it's not 10% or more (very rare these days with compressing cap rates) then it's not a deal and I keep it moving to the next deal. Many investors are getting into trouble by over paying and not doing a full analysis taking a worst case conservative approach and when this happens you capitalize as the market corrects. If you ever need help analyzing a deal, I would gladly help out and the BP calculator are awesome and where I started as well, just not enough tweaking for the type of in depth analysis I do today. Best of luck and let me know if you need me!

@David Greene I would talk to as many lenders as you can everyday until someone says yes because alI you need is one. When I was out looking for lenders for one my current apartments, I called 5 different banks until 1 said yes. I got a list from Google and these were a mix of banks and credit unions. This is another reason I defer to MFR's because there is more emphasis on the property performance like what you have shown vs. your personal income with the SFR's. Best of luck and start calling away!

@Craig Oram I'm in the apartment complex space and my advice would be to never shop on a budget when you're looking for real estate. If you don't have the money, go find someone who does by raising the capital needed. In that respect, these investors are going to want to see first if it's a good deal (you better be on your A game about every metric/detail), your experience, how you will manage the deal and finally the exit. I've built a financial model that I use to analyze all my properties and have helped other investors, so please feel free to reach out if you need any assistance putting the financial analysis/offering package together. Best of luck!

@Tamiel Kenney I strongly agree with your point as investors are compromising on their underwriting and getting into deals "hoping" that this cycle will continue. As we all know with market corrections and how they usually happen around every 7 - 10 year cycle, which is where we are now, they could be in deep trouble.

You're correct, cash flow is king all day and it seems like the deals with most cash flow need the most rehab which is the tough predicament I'm finding in today's market. Like I was discussing with @Keith Ransom, I want cash flow from Day 1 without having to wait another year or two. Just have to keep scouring the deals because they are out there, just need to put more effort in finding them.

I also checked out your website and I love what you and Mark are doing networking/coaching with individuals in this MFR niche! This is the best business to build/grow legacy wealthy while preserving capital as a unbelievable tax shelter. Best of luck to you and I'll have to come check out an event or attend a meetup when you are in Atlanta!

@Nick B. Yes cap rates outside the metro Atlanta area can get up in the 8, 9, 10 cap range and these are the only deals that I've analyzed making the most sense. I'm just not willing to step outside my numbers and go for those lower caps that are yielding literally nothing. That's why I created this post because nothing is making sense out there as cap rates keep compressing and financials are not supporting it.

You're right, on this deal the rents are a big issue and there is absolutely no room for a $200 - $300 increase and the 10 cap is no help.

Do you currently own in MFRs and are you finding returns that meet your criteria in DFW? I'm looking more in the southeast, but interested to see what's going on out there as I have a buddy out in Houston who said the market is rapidly expanding.

@Jamaal Johnson Welcome to BP! You are in a great place that has literally taught me everything I know in real estate. I'm in the MFR space where I own and manage my apartments, so if you ever need any help analyzing any deals, I've built a financial model that would definitely help avoid some problem properties. I've posted some examples if you look at some of my post and the BP calculator are amazing as well so just let me know. Best of luck!

Sorry for the blurry images everyone, tried to get everything in one screenshot. 

If anyone wants better pics I'll upload one by one so just let me know.