All Forum Posts by: Curtis Rouse Jr

Hey @Amanda M Laird welcome to BP! Sounds like you are going in the right direction for the larger apartment complexes. That's what I currently own and working on building my portfolio. My advice to expanding into this area is to start analyzing and looking at as many properties as you can that fits your investment criteria. I personally look for deals that I can double my money in 3 - 5 years, but it has become harder with the sellers market meaning you really have to hustle and analyze literally everyday. I have a financial model I built and would be more than willing to help you analyze any deals you are coming across as that's my specialty. Best of luck and message me if you need any assistance :)!!!

Hey @Letha Bernice Kitchens welcome to BP. For beginners I would recommend focusing on one strategy either it being buy/hold, wholesale, fix/flip as it can be overwhelming at the beginning. I would start with listening to EVERY podcast that has a world of knowledge and should lead you in the right direction. I own apartments down in Macon, GA so if you ever need any help or assistance I would be more than willing. Best of luck!!!

Hey @Kevin Dickson just so I can get a clear understanding this is a 49 unit Townhome community or is this a portfolio that makes up 49 units? Also what part of South Atlanta is the portfolio located?

So to get started with the analysis, I would definitely love to help you out as I have built a financial model that goes over various metrics of a deal like the NOI, 30 year P&L proforma, the exit (sale/refinance), DCR and some other parameters every investor needs to take into account.

First thing we will need is the trailing 12 of all the income and expenses. Looking at places like craigslist and rentometer is great but you should be basing your offer on the current performance and keep in mind that knowing what the markets rents are important as well for forcing the appreciation (increasing income, rehabbing, reducing expenses)

In regards to the outlay of capital sounds pretty steep with $25k per unit estimate. Just from looking at the rough numbers, this would be yielding a negative return at least for the first couple of years based on your estimates. You need to also think about other expenses like vacancy, insurance, maintenance, taxes, marketing, legal and any other misc expenses related to these properties

So as you can see, there is a lot to keep in mind especially when looking at these bigger deals and it becomes more important in your analysis given the age of the property and how well the previous owner managed the property. Your main focus should be to return your capital that you put in this deal as soon as possible so none of your money is in the deal and your return can then become infinite either through a sale or refinance of the property. For me personally I look to double my money in 3 - 5 years and the investors I bring in to yield them a preferred 8% return and an annual bonus payout based the the cashflow of the property that has no cap with a 35/65 investor split. These are things you want to think about as well because deals like this and possibly in the future you want to bring in investors to get into bigger deals. So factoring in investor payout is important as well and as I'm sure you know you can draw the deal up anyway you would like. All of these I have factored in my model so I can definitely help you out with that analysis as well.

I hope this helps and feel free to message me and we can walk through this together and I can give you examples of my apartments that I own in Macon Ga and how I am analyzing apartments for another purchase this year in the 30 - 60 unit range. This would help give you a better understanding of this deal :)!!!

Hey @Tommy Spijkers, I agree with the others as I invest in MFR's and analyze deals through a financial model I built and I do see quite a few factors that need to be included in your analysis.

First before I go into what else you need to include, you need to ignore all these Cap Rates and start looking at your Cash flow after your operations and financing because they will inevitably determine a good deal from a bad. For me personally, if a deal doesn't return at least a 10% cash on cash return, then I don't even waste my time. You need to run the worst case analysis as if rents will never increase and you will not manage the property better than the current owner.

So in regards to your breakout, I don't see you accounting for vacancy, property management (regardless if you self manage or not) and Capex (don't know if you included this in repairs but doesn't look like it because that's really low depending on the age and current updates to the property). You also need to include in this template the breakout of your financing and more importantly looking at the exit if you are going to sell or refinance out down the road.

Long story short, you need to figure out how much you are going to need to put in this property out of pocket and how fast the property will return that money back to you (velocity of money) running a worse case scenario and accounting for every expense possible.

All of my properties are located down in Macon Ga, but I look at properties all over the US ranging from 16  units on up to find the best markets that yield the highest returns. If you need help feel free to message me and I could quickly put an analysis together for you through my model. Best of luck!

Hey @Robert Perry welcome to BP! I agree with all others and getting involved with local meetup and REIA's, but I would advise you go in with an elevator pitch on what you do and what you are looking to do. This will not only help with your confidence being new, but also let other investors know that you are confident and willing to learn and do whatever it takes to succeed. I would also advise to get on the podcasts and look up all the MFR podcasts (especially the ones from Grant Cardone) because his energy will inspire and give you reasoning behind MFR's and what you need to do to be successful. My investing in MFR's is all done in Macon, Ga but I'm always looking to for returns elsewhere if the income, timing, location and size makes sense. If you come across anything keep me updated and best of luck!

Hey @Mohamed Nagoor, so as you are aware, SFR's are determined based on comps as you have received your agent. Unlike MFR (5 or more units) that value is determined by the NOI, SFR come down to a buyers willingness to pay vs likewise properties in the area. If already rented, I would post it on here and try to sell it yourself. What are the numbers on it? I would also advise to get 2 or 3 more sales price for other agents in the area

Hey @Jewel Welch, I agree with @Anthony Dooley by not being advised by real estate agents as most aren't investors like yourself and will not be looking at a deal on a return basis. My advice would be to start getting online to see what is out there and fits "YOUR" criteria, which should be predicated on it's income producing capabilities and then looking 5, 10, 20 or 30 year at the exit asking yourself will this still be a good investment then. I would utilize the BP calculators online or build your own financial model like what I have done to start analyzing these deals. Start taking action today and networking with others because as you will quickly come to find out, this business is predicated on who you know. Best of luck and let me know if I can be of any assistance!

Hey @Trainor Kapler, Welcome to BP!

This is a great place to learn everything real estate and has taught me pretty much everything I know. I recommend listening to every podcast you can, networking with others on the site and simply taking action by analyzing deals using the BP calculators and going to look at as many deals as you can. Best of luck!

Hey @Brad Gibson, so you definitely need to get the trailing 12 from the sellers and run everything worse case scenario as if the rents will not increase and expenses will go up. You want to make sure you are covered on all cylinders and I would definitely recommend using the BP calculators. I built a financial model that geared towards my needs and what my potential investors/bank will be looking at to analyze deals like these and larger apartment complexes, so I would be more than willing to help you out if you can send the actual data. Remember to always fall in love with numbers first and to make sure it meets your ROI's against other properties. Then you need to ask yourself, "Do I want the deal" and go execute. Best of luck and I look forward to hearing from you!

Hey @Juan Vargas, so I'm 100% in MFR or to be exact 97% because I do own 1 other house. This is the absolute best way to build wealth in my opinion as 80% other millionaires have already figured out. I like the Warren Buffet method and going 100% into something I believe in that will build and grow wealth for my family and generations to come. Best of luck to you!