All Forum Posts by: Elijah Brown

@Matt M. Can you also send me the contact info for your GC?

@Erik Arntsen Read "Raising Private Capital" by Matt Faircloth. You can buy it here on Bigger Pockets.

I agree with @Michael Ealy. You should definitely find a partner who has done major commercial renovations before and beg them to work with you. I would even go so far as to offer them free equity in addition to the equity they may purchase. Having the right partner can help you avoid so many issues with your first deal.

I've also been looking for very similar deals over the past 3 months, as I work with investors and have roughly the same amount of cash as you to work it. Would love to combine forces and get a deal done.

One piece of advice: rather than starting with a laundry list of specific criteria, you may have more luck starting out with 3-4 criteria and then looking for all deals that meet those criteria. Then you can evaluate each deal and see which ones are the best. Each deal is super different, so it's not likely you'll find something that fits into an exact bucket.

Just as an example, my criteria for searching for deals is as follows:

- Must be located near the Orlando MSA, Atlanta, East Memphis, Las Vegas, or Phoenix

-Must be between 4-25 units and a max price of $2 million

-Must have rents below market

I then look for everything that fits into those buckets and can then evaluate from there. Yes, I have a specific IRR, profit multiple, and NOI Yield on Cost that I must attain, but there is always a purchase price that makes the deal worth it.

Also, I wouldn't worry too much about finding all your team members right away. First focus on getting a deal under contract and then put the rest of the team together. I'm sure your broker will refer you to a property manager, who will refer you to a contractor/plumber/electrician, and so on. Also, it's very easy to quickly find any of these team members online and interview them over the phone in one day.

Please feel free to message me if you'd like to connect.

Ask your lender if they can include a clause that will let you sell one of the properties, pay off that portion of the note, and release that property from being considered collateral. 

From my understanding, if you are financing both properties with the same note, you will be cross-collateralized and cross-defaulted. This means that both assets are posted as collateral for each other, and if one asset defaults, the other asset is also considered a default. In your case, if you sell one of the assets, there will no longer be sufficient collateral for the note and you will default. Your lender may allow you to add a clause that says in the event of a sale, you can use the sales proceeds to pay off that portion of the note, which will then release that asset from the collateral agreement.

Any experts here who can confirm or deny my thoughts?

Does anyone here have any good Orlando multifamily deals? If so, please message me! Looking to buy ASAP.

Zillow offered me $170k on one of my properties. The CMA my broker did came back at $180k - $190k. Seems that they are low-balling.

@Cameron Lam Your story is super inspiring. I'm on a similar journey myself. Main difference is that I've raised most of the money I've invested through syndication. I reckon you could grow you business a ton by raising money from other people. BP has a lot of forum posts about this topic, but please reach out if you have any questions about how to do it. With a track record like yours, I'm sure people would trust you to manage a deal or two.....the management fees you earn from syndicating could allow you to quit your day job and focus full time on real estate quicker than a few years.

@Erik Lopez I’m not from Atlanta, but Atlanta in general is a strong and growing market. If you think you can find tenants, anywhere is good to house hack. The point of the house hack is to have financial freedom by eliminating rent and/or mortgage expense. I wouldn’t worry too much about the zip code. Just focus on finding a good deal in an area you know you can find tenants.

@Jason Pennington I’ve always been able to find a contractor willing to walk a property with me and provide an itemized quote. I would call as many as you can until you find one willing to do it.