All Forum Posts by: Ellie Perlman

Hi Ted,

Determining property value is part science part art: you'll need information of similar property sale price (in the same location, vintage, type, etc). Look at their cap rates to understand what cap rate this property should sell for. You also need to calculate the NOI (net operating income = income - expenses). The ratio between the NOI and the price should give you the cap rate. That's in a nut shell, and I encourage you to learn more about it before making any purchases.

As for rent - engage a reputable property management company that can advise you on rents and expenses. Look at market reports (we use CoStar) to see what other nearby properties charge, and if you don't have access to these reports, make phone calls and/or shop these properties and see what they offer (amenities, how nice the apartments are, what's included in the rent, their other fees, move-in specials, etc) to determine if and by how much you can increase rents.

Again, I encourage you to learn more before making you first purchase.  Read books, listen to podcasts, and dive deeper before becoming a real estate investor.

Ellie

Definitely a red flag. Try to get to the bottom of it - some of the best opportunities can look like this one. But understanding why it has been vacant for 12 years is the key here. Plus, using the building for a different purpose can be interesting. I would proceed with caution, ask around - neighbors, city officials, etc.

I believe CoStar has a feature that helps you locate owner info.

@Jeff Garrett - I'am also active in the DFW market and would love to help out any way I can. Email me and we'll take it from there.

@Ethan Aycock - it depends on your strategy. I live in LA, where cap rates and (cash flow) returns are compressed - which is great for investors who are interested in appreciation (vs cash flow). So if you want a (potential) high payout somewhere in the future, than core markets such as LA/NY/SF etc will be good markets for you. On the other hand, cash flow investors, like me, tend to invest in secondary markets. I invest in FL and TX, where appreciation might not be a s high as in LA, but the cash flow is significant and much higher than in core markets. 

Hi Charles,

The main brokerage firms that are highly active in DFW are ARA, Marcus and Millichap/IPA and CBRE - if you are looking for 80+ units. 

Ellie

@Adrian Hollifield - welcome to BP! I'm in Santa Monica too. I think that the best decision ANYONE can take is start EARLY in real estate, so you are on the right path! 

Hi All,

Our event is in full capacity right now and the waiting list is open. If you haven't yet, please RSVP HERE. We'll do our best to get everyone in, but please register to the event as soon as you can.

Thanks,

Ellie

@Yannes Chiang a good way to get referrals is to ask brokers and lenders. 

Welcome to BP, Bryce! Great to see that you have such precise goals! Starting with MF is THE way to go! You don't have to do it on your own; you can partner with an experienced investor and be a partial owner of  20, 50 or even 100 units. Find a way to add value (find properties, analyze them or raise money).

Good luck!