All Forum Posts by: Dallon Schultz

@Kevin Hildebrandt possibly local real estate or investor meetups in your area? I don't know much about Atlanta other than it's currently one of the hot markets to invest in. Browse BP for discussions on Atlanta and that may lead you to others looking to invest there as well. 

@Ricardo T. our first two purchases were maybe 2-3 months apart. I'm sure you've already experienced it but once you catch the multifamily bug you don't want to stop purchasing. Once you close on your current property you'll feel excited and accomplished but will immediately want to buy the next one. Nothing wrong with it as long as your analyzing the properties properly and not getting in over your head. 

@Noah P Bonds I hate to admit it but it appears that many on market deals being sold are going over asking price. I sit here and scratch my head at times wondering if the person even analyzed the property or if they're just inexperienced and think the gross rent is what will be going into their pockets every month. I don't know. But dealing with a duplex you're probably go up against cash offers. Going direct to sellers is probably the most ideal way but will also require more networking and time on your part. Another thought is to be patient. With how multifamily is flying off the shelves these days and how much people are over paying I'd like to think that some individuals will get in a pinch and need to sell quick. Get to know property owners BEFORE they decide to sell.

@Aubrie Gomez real estate agent and investor from Mesa. Easy valley small multifamily is HOT right now. Hard to find something that makes sense. I do have some connections with wholesalers that have puts some small multifamily properties across my desk but those would be cash purchases which could make it difficult as well to take down as you'd have to come in with hard money and refi out as soon as possible.

@Omar Gonzalez there are a handful of deal analyzers out there. Some have mentioned it is good to start from scratch and build your own. That is not a bad idea. It will require lots of time and effort but will allow you to really understand a lot of the formulas and concepts in analyzing a deal. With that being said it may be easy to also make mistakes or not know what to build into your spreadsheet. We have used 3 different spread sheets and in a way combined aspects of all three of them into one which we currently use. The one we liked the best was created by David Toupin with Obsidian Capital. I believe he's based out of TX as well. I think we paid around $150 and felt like it contained a lot of the important stuff and was fairly easy to navigate. Here is a link to their page where he also has a video talking about it. Might be worth taking a look at. 

One thing I think almost everyone can agree on is that it will be hard to find "the one" analysis tool that works for you and your criteria. You may very well take bits and pieces of multiple models and create one that works best for you and how you analyze deals and that's ok!

Happy investing!

@Account Closed I would say that having the strength to walk away says a lot about the type of investor you are. Inexperienced investors will get emotionally involved and find ways to try to make the deal work even when they know they probably shouldn't. You're right that you can get caught up in that woulda, coulda, shoulda, world but what happened if you closed and things went south quickly. On the flip side you'd be telling yourself "I knew I should have walked!" It's not always easy to walk away from a deal but trust your analysis skills and intuition. I'm sure there's a good reason you walked. Put it behind you and move onto the next one!

@Colin Parker for the most part 1-4 units are appraised as comps. With that being said I do believe in more rural areas where there may not be as many comps appraisers will consider the income approach but it is not weighed as heavily. Makes it a little more difficult to project an exit value on 1-4 units. Yes the income approach is used heavily on commercial properties but commercial appraisers still run comps to assist them in determining the true value of the property.

@Rashad Jackson I think it's always a good time to buy as long as the numbers work and your analysis has adjusted to help offset the risk. We're still looking to purchase but are being more cautious as we move forward. I still think it's too soon to know how much of an impact covid is going to have on the market. 

@Sonal Chopra excellent "What if" scenario! My ultimate goal, as I'm sure is many other's, is financial freedom through passive income. If I do not need to raise capital for a deal because I had all the cash required then that would be most ideal for me. I'd leverage that $10M over $40M of cash flowing assets, preferably multifamily and storage, aiming for a cash flow of 10% producing $1M in passive income annually and then assist other real estate entrepreneurs get started and assisting them and mentoring them in their own deals. Naturally I would also have to keep buying assets as to prevent having to pay taxes on my annual income of $1M.  

@S Cutsail I just sent you a message for us to connect