All Forum Posts by: Derek Lamonde

I have been dealing with a difficult seller for a multi-family B/C+, but I think the property is priced well and has great potential. Is it reasonable to request the past 3-5 years of tax filings after I show PoFs? 

I know most sellers like to show you their handy little spreadsheets, but to me the proof is in the filings. 

Historically, I won't consider anything in NJ below a 10% CAP which is becoming next to impossible given the taxes. I've considered lowering expectations a bit or working with a wholesaler, but finding a good one is proving as elusive as finding a 10% CAP. My next move is to start looking next door at PA, but the tend to yield lower rents so most of what I've found is a wash. I'd like to hear from folks that search out multi-family investments and what their criteria is for a "deal". Especially if you buy properties in NJ.

Are you aware of any of the good ones, Percy?

I like your pragmatism Jay. On my end, I don't want to waste my time or put my information out there if the wholesaler doesn't have a queue of properties that meet my criteria. So do the wholesalers have the property under contract? Is the seller bound to them as they would be a realtor? If so, then why require a NDA?

How do you establish a relationship with a wholesaler? I recently responded to a post on here from a wholesaler requesting information on properties in NJ that meet my criteria. In response I got a request for POFs and a contract sent to me, so I'd like to know if that is the normal way of initiating these type of relationships. Personally, I'd prefer the old-fashioned way of working with someone from the area that I can actually meet with in person but I have not seen anyone posting from the Garden State. 

Are folks comfortable sending POF and entering into non-disclosure agreements with people they've never met? Anyone have a fruitful relationship with a wholesaler they've never met before?

Hi,

I've been looking in the Easton, PA area, which has restoration potential but also a long-standing shadier element. Like many previously prospering PA towns, certain industries have gone the way of the dinosaurs w/ nothing on the horizon to back-fill the vacancy. Many of the buildings that show promise have storefronts with some currently occupied and others also having pursued the dinosaurs. At the moment, I have an aversion to storefronts since your rent is contingent upon their success. As they are also often specific to the type of business that currently or last occupied, I'm curious as to who is typically expected to foot the bill for "building to suit"?

I welcome experienced driven pros/cons feedback from the BiggerPockets community....

Thanks Edward. 

I certainly didn't mean to offend by referring to wholesalers as middle men and I totally agree with paying people for their work. However, if there is anything I can do myself I would prefer to do it. 

So to engage a wholesaler, if I stated that I'm looking for a multi-family unit with at least a 10% CAP rate and all-cash deal, is that where the conversation starts?

Regarding the banks, my question was if they disclose properties that are heading toward foreclosure. My guess is "no", but figured I'd ask. 

Motivated seller in NJ are what I was hoping to find from this forum. I see little value in a middle man, so what other avenues can I take to find motivated sellers?

Again I have used Craigslist and the MLS, each come with their own issues.

I can guess the answer, but will banks broker any connections with investment properties under water?

You folks rock. 

Thanks for the great ideas. 

One more question: what is a wholesaler? I keep seeing people post that they are wholesalers and am not sure how that works.

I've heard and read a lot about folks having "partners". Myself, I've considered it with friends in the past in order to double what I can buy. However, doubling what you can buy (as well as doubling maintenance costs...) while splitting the profits doesn't make any more sense to me than sticking with what I can afford and taking it all. 

Is there something I'm missing? At the moment I'm looking to add a multi-family unit to our portfolio of single units in NJ. From there I am interested in building our holdings beyond that so I'm trying to understand the pros/cons of partnering.