All Forum Posts by: Ellie Perlman

Geoff Garber - I'm active in DFW. 10% CoC is very hard to find these days, but 7% is reasonable. Are looking to buy on your own or with other investors? Which areas are looking? Are you open to other markets? I also like Florida and Georgia. Easier to find higher returns there, though 10% CoC in a solid area is still challenging today. 

It's no secret that real estate is HOT right now, and that many buyers pay top $$$ to buy properties. We all know that a recession/correction will come at some point, so should we wait for that to happen so we can buy cheap properties, or should we keep buying now?

The main goal of this session is to make sure you have a good basis so you can make inform decisions regarding investing passively in real estate .

Sometimes one piece of advice is the one thing that saved you from making a costly mistake...

Whether you are a seasoned passive investor or considering to become a passive investor, this session will bring you a lot of value.

This meetup will allow participants to ask questions and get to know other passive investors.

THIS IS AN ACTIONABLE, NO BS SESSION. The main goal is to equip you with the right knowledge of passive investing and to make you a more educated and sophisticated investor. Any sale or solicitation is not allowed.

What to bring? pen and paper or an ipad to take notes.

Parking: street parking (free) or public parking (first 90-min are free)

Please make sure to RSVP.

THIS IS A SOLICITATION-FREE MEETUP. SERVICE PROVIDERS ARE NOT ALLOWED TO MAKE ANY SOLICITATIONS OR PITCH DEALS.

RSVP HERE 

https://www.meetup.com/Santa-Monica-Passive-Investing-Club/events/260184860/

Here's what I'd recommend:

1. First of all, do research on areas, neighborhoods, employers, etc

2. Set up meetings with local brokers

3. Ask one of them to give you a tour if possible 

4. Ask all brokers for referral (RE lawyers, property managers, etc)

5. Meet/talk with property managers. Go see their properties. 

6. Send them deals that you like so they can provide feedback and tour the property and give you a budget before you submit an offer.

Good luck!

Ellie

It could be one or all three, depending on the guarantor. Most guarantors take 5%-10% (I know someone who took 20%) of the GP. Others get a fixed amount paid when you close the deal, but most guarantors are interested in equity. They can sometimes ask for a personal guarantee from you as well. 

Agreed with @Alina Trigub. Brokers spend their entire careers building relationships with property owners, so your best bet is to build relationships with them. 

How to do that?

1. Meet with them on a regular basis. 

2. Give them detailed feedback on why a deal they sent you didn't work.

3. Walk properties with them to get some face time.

Good luck!

Ellie

@William Orrock

This is what I look for when deciding which markets to invest in:

• Population growth – A solid market is one that has population growth. Markets that have flat or negative population growth can indicate a problem, while markets that continuously have people moving into them is a sign that there will be more demand for apartments. One of the markets with the highest population growth is Dallas, TX, while the Providence, RI market has shown no significant population growth at all. Where to find information? Simply google it! For example, search “Jacksonville population” and you’ll see the trend. Focus on the last 5-10 years.
• Job Growth – Population usually follows jobs, and a great market is one that adds many new jobs each year. I usually look for markets with an unemployment rate that is lower than the national average (4.1%). In addition to evaluating the city job growth, you need to pay attention to any major industry or employer that may be responsible for more than 25% of the market, because if the dominant industry or employer is in trouble so is your property (due to layoffs). A solid market is one that has steady job growth and a diverse economy. Where to find information? www.city-data.com and www.census.gov.
• Rent Growth – A strong multifamily market is a market that has increasing rents. If rents are in a downward trend, then your property might suffer from declining rents as well. This is also a rule of thumb, and each investment is unique, but general speaking I try to stay away from markets that have a declining rent trend. Where to find information? www.census.gov has information on the average rent in the past several years in major cities.

• Appreciation Potential – The lion share of the profits is made when you sell the property. This is why appreciation is key. I look at markets that have strong appreciation potential, and if property values are increasing, it is more likely that I’d be able to sell my investment at a significantly higher price than when I bought it. This is why I believe that you make money when you sell a property, not when you buy it. A word of caution, though: real estate is a cyclical business, and even markets with strong appreciation can suffer when the economy turns. A market with increasing prices is not a guarantee that you’ll make profit when you exit, but it’s a safer market to be in when you buy. Where to find information? Many large brokerage firms offer free reports that show rents and real estate prices. You can find the reports from reputable companies such as CBRE, Marcus and Millichap, Yardi Metrix, etc.

• Landlord Friendly State – Landlord-friendly markets have a direct impact on real estate and the return of the investments. Some states, such as California, are very tenant-friendly, which means that it can take up to 9 and even 11 months to evict an unpaying tenant while, in the meantime, you pay for the mortgage and the expenses. Other states, such as Texas and Florida, are landlord-friendly and provide owners with a quick eviction process. Where to find information? Simply Google: “How long does it take to evict an unpaying tenant in …” 

@ Kristin Shopp - this is a great place to start! I also invest in Dallas and would love to connect and share my knowledge about passive investing (especially in TX). 

@Zak Boca - read books, go to conferences and/or find a good mentor you like and trust. They can all give you knowledge and help you find your way. There are SO MANY ways to invest in real estate. By talking with people you can find the best way that actually works for you. 

Unfortunately not. This is a meetup that will be held at WeWork Santa Monica.

No one source is 100% accurate. I like Costar and Yardi.