All Forum Posts by: Dominic Jones

Get to the local REIA if you can and find the investors who target the multis. Rub elbows with them until you start a fire (haha).

Otherwise, you can always just do your internet research. Search by multi-family property types and just start getting your averages. Average price per unit, market rents range ($low - $high), just to start getting a feel for the multi-families in your market. 

That makes sense. So it's not what I was thinking before then or does what I say up above still apply?

Another example of what you're saying for instance may be... in my market I've seen a lot of duplexes that are on the MLS asking anywhere from 40-50k per unit (on average). If I was to negotiate the deal down to say 30k a unit for a duplex $60k but at the time of purchase, it was really worth that $89.9k then I would be purchasing a property that has about $30k in equity as-is. Is this correct?

@Anthony Kondor

 found this podcast "How to get Private Lenders to FUND 100% of your next deal" on @Joe Fairless's website: http://joefairless.com/blog/podcast/jf218-how-to-g...

Haven't listened to it yet, but I plan on doing so. Think it may be useful for you as well.

 That's awesome... Alright, perfect opportunity for me to ask!

In your ending summary paragraph you state that "we had a decent amount of equity going into it." By this you mean that the original owner had already paid down a considerable amount of the mortage on the property?

This has been a gray area of understanding for me but I think it means that the mortgage is less than its original value, for instance, a house that is free in clear has 100% equity? Please correct me if I'm wrong.

I don't understand what you mean by "my rehab needs to be 200k," are you talking about the ARV?

If you are looking to live in one of the units and rent out the rest then yes, I would do whatever it takes to get the FHA loan. I don't know if you've ever came across this part of the site: http://www.biggerpockets.com/mortgage/fha-loans/ but it should help you get started. From what I've heard it's a little bit of a hassle but in regards to doing it as an investment to not only a) live for free but to also b) cashflow, I would suspect that you would be willing to do whatever it takes.

When you get approved for the loan, in regards to getting the 3.5% I would market your plan to private lenders. Have you gone to your local REIA and started networking with investors in your area?

My proposed plan would have all the numbers for the deal, the list of repairs that are required and quotes that you've acquired for the work to be done. I would gather and collect the comps to find the ARV and new projected profit / loss statement after the repairs are done. You should know what the market rents in the area are going at and decide what you want to get per unit. This would help project for the lenders how long it will take to get their return. When you get the 3.5% down payment & interest paid you should start taking off.

I learned all of this from BiggerPockets, haven't done a deal myself yet, but would do all of what I just explained to you if I knew I was going to live in a multi-unit. I am planning on leaving the country sometime next year so I wouldn't qualify for a FHA loan since you have to live in the building for a certain number of years and I couldn't fill that requirement at this time.

 Anthony, thanks for this tip. I found this definition of the master lease online and wanted your elaboration on how it works: http://financial-dictionary.thefreedictionary.com/...

From what I'm seeing, I would negotiate a master lease with the owner for 0% down with the owner getting X a month. By him/her agreeing to the master lease, the leases that he currently has to the other tenants of the building would now become subject to my lease.

The questions I have are as follows:

• Does this allow me the capability to change the terms of the other tenants lease?
• Do I have to be a tenant to negotiate a master lease, or could I negotiate a master lease and take faux ownership of the building until the lease is up?
• I know that leases are usually only for a set period of time and when it's done you either have to renew or move on. Have you ever negotiated a lease-to-own agreement or is that unfeasible?

 Ah, I see. If you're open to discussing it, I would love to connect with you and learn more about your experience investing in Germany. 

 I see, I see. That's cool. I checked out your website and it's very sleek. Looks very nice!

If you're open to exchanging contact information I'd love to learn more about your experience investing in Belize. 

 Every place has their challenges as far as I know. What would you say makes UAE more challenging than any other place? Specifically for expatriates.

Language barrier is one thing that most people would say right away I'm sure, but what else? What are some of the deeper, unforeseen barriers to breaking into UAE as an investor?

 Sounds great, whats your experience in investing in Germany? Do you only buy commercial self storages? If so, how many do you have under your built, what type of funding did you use? What's the level of difficulty on a scale from 1-10?