All Forum Posts by: Curtis Rouse Jr

@Kelly Nolan

Welcome to BP! So I have to agree with @Steve Hall on this one because you NEVER want to have negative cashflow going into any investment unless this was something inherited and you were stuck with the property. In your case you didn't and have a multitute of options to invest out of that appreciation market because you are playing the speculation game and not the cash flow game which is key any investment. Since I'm biased because I invest in apartment communities, with $1.55mm purchase price you could easily go buy around a 30 - 40 unit property in the markets I shop that work could easily get you 10% COC ($35k - $45k in your scenario) with room to force some appreciation with rent increases and managing the expenses (a good manager/management company). This won't make you a millionaire over night like the housing market in the Bay area, but it will ensure capital preservation, growth and not as much exposure to market volatility because commericial property in based on income and not comps. I hope this helps and if you ever need any help or decide to look into some apartments to analyze, feel free to message me at any time. Best of Luck!

@Monica Davies as others have mentioned I always recommend people go the MFR way or 10-plex in your case because this is where true wealth is built quicker over the long run with scalability especially if you're doing a value add property where you can force some appreciation. If you ever need help running numbers, I've built a financial model (example on my website) I help investors with all the time for free that forecasts out 30 years and would give you more perspective on a value add play. I hope this helps and Best of Luck!

Exactly, for both a MFR in the range of 20 - 50 units I'm targeting to personally invest in and SFR's that I'm wholesaling to build up capital for larger deals. I've been steadily pushing my team to increase our pipeline because I target motivation then a good deal "IF" it makes sense buy/hold, flip or wholesale it away

@Clarence Gong as the others have mentioned, this is not an ideal cash flow market that I would be targeting unless you get something from an auction or off market from a VERY motivated seller. With that being said it would be very tough to find those returns, so I would recommend looking in more rural areas away from the city as cap rates are starting to compress. Look in areas like Macon/Middle Ga and North Ga in my opinion if you want to find better returns like I have been finding. Just make sure in these areas you have boots on the ground or a good management company you trust that familiar with the area you are targeting. Real estate can be very street/block specific that's why I give warning to know your market. Also, if you ever need help analyzing deals, I've built a financial model (example on my website) that I help investors with all the time underwrite their deals from the smaller SFR's to the larger million dollar apartment complexes. Best of Luck and let me know if I can be of any assistance!

@Eric L. as  @Luke Miller mentioned I would definitely pursue it because money chases good deals and not the other way around. If this deal makes sense financially and there is enough room to bring on a partner or even syndicate, that would be ideal. I love the seller financing model because if the property is owned free and clear, there are no banks you need to deal with and for the sellers they will receive more than the negotiated purchase price once factoring in the interest payments and they can defer having to pay the capital gains. The icing on the cake would be to cross collaterlize their note to another property (can do this as many times as you want) and they won't ever pay the taxes. Long story short, gives you a lot of options and depending on a value add play and negotiations, it won't take as much money up front that could be used for renovations. If you ever need help running numbers and forecasting to see what a value add play would look like, I've built a financial model I help investors with all the time for free that looks out 30 years (example on my website). Best of Luck and let me know if I can be of any assistance!

@Grant Moffett Yes there are lenders that have a shorter term seasoning period around a 6 month time frame you are looking for they are just a dime a dozen. I don't know any personally, but have read a few post on BP of investors finding these lenders and what they did was basically get a list of all the banks/credit unions in their area and started calling until they eventually found one. Once you get them on the phone, I would also ask them for recommendations if they can't help out. I hope this helps and Best of Luck!

As others have mentioned, I would definitely say deal flow with the market being so hot these days. I'm mainly looking at all off market deals via postcards, cold calling and having my team driving for dollars, but that has even started to somewhat slow down with sellers asking for ridiculous prices.  Just have to keep getting creative and most imporantly is to open up that pipeline and stick with your numbers not making emotional decisions.

I have a buddy who needs a good CPA with working knowledge of S-Corps and filings in the metro Atlanta area. He isn't into real estate as of yet, but plans on getting some investments in the future. He is currently an IT consultant on 1099 and working on his tax strategies. If you could message me your contact info, I'll get it over to him. Thanks again!

@Ryan A. Cole

Welcome to BP!!! So are you only looking in Texas/Florida for small multi family units because I see a lot of these in the Middle Ga area (Warner Robins/Macon/Forsyth) where I invest and you can easily yield double digit cash on cash returns. As with any area, it's very street specific so you have to be careful in that regards. Let me know if I can be of any assistance and Best of Luck!

@Moaaz Ahmad

Welcome to BP and congrats thus far in your career and wanting to get into the commercial space! What I always recommend to those getting started is of course educating, which it looks like you have been doing. I would also advise you attend a local REIA or Meetup group that is focusing on the commercial space that you plan on investing in. Next is deciding a market that will meet your desired returns and has characteristics like good job/population growth, job diversification, landlord/business friendly and a rising market. I mainly focus in the Southeast where I stay personally investing in the Middle Ga area, but I have now expanded my search to states like Alabama, South/North Carolina, Tennessee. Deals are tougher to come by these days so you need to underwrite as many deals as you can (preferably 100) before making your first purchase to get an idea for what deal makes the most sense. I have built a financial model I help investors all the time for free (example on my website) analyze smaller to larger multi family properties. I hope this helps and Best of Luck!!!