All Forum Posts by: Ellis Hammond

Michael H. Just closed a 144 unit deal in Memphis. B class property. Talked with another investor friend today who is closing on another 49 units in the Southern California region, all C and B class type properties. During last recession, default rate was less than 1% on all large multifamily B class properties. I’d like to take advantage of more weary investors during this time. Shortage of affordable living is a bigger concern in bigger cities than a recession in my opinion. As far as CA market as i have seen a couple ppl reference on this thread, is still a strong market across the board. Homes sales year over year have decreased according to Robert Cambells latest report (for San Diego) but other factors he tracks, building permits, foreclosure sales, home defaults are all strong. Not as strong as last two years so something to keep watch on.

@Alina Trigub yes that is the question to consider but if I am going to do all the work, as in @Mark Benevento case, I want to make more than I can in a syndication for Doing that. 

@Alina Trigub  @Mark Benevento if this is a condo purchase then his expenses may be ok. His vacancy is conservative, taking into consideration two months for turnover. 

As long as tenant is paying all utilities then I think you can keep expenses low as you have underwritten. If its a new unit, then you can get away with your cap ex budget but if not then make sure you have some other $$ set aside for things to go wrong. 

Bigger point though is that there isn't enough meat on the bone here for non owner occupied investment. You can get 8%+ in most syndications and all you have to do is just write a check. 

Keep looking and good luck!

@Robert Harris Welcome to BP and sorry for your loss, especially if you were close to this family member. I had a very similar situation but it also became my catapult into RE.

Being part of this community, it can feel like you have to make a decision or an investment right away but take your time to educate on which path you want to take. And don't buy any mentorship program until you have decided!

Questions to consider in time...

Do you want to be an active or passive investor?

Single family or multifamily? (there are other investments as well like mobile homes and self storage).

Is your goal appreciation or cash flow? This will determine what markets you should begin to look into. I invest in real estate primarily for passive cash flow but live in San Diego where the play is appreciation. 

Helpful Resources

Really enjoyed ABC's of real estate investing as an intro level book to understanding RE deals. 

I listened to every biggerpockets podcast. 

Joe Fairless has a real estate podcast that covers a lot of different sectors

and Hunter Thompson (cash flow connections) is a high level RE podcast I have come to really enjoy. 

Reach out if I can help or provide you with more resources. I write my own articles as well. PM or visit me at ellishammond.com

Cheers! 

I do not @Alon Rokach

JTree is also considered the desert.

I’m sure there is cheaper housing there but pretty far from any main industries.

@Alon Rokach San Diego is a great place to live and a great market to invest if you get the timing right! Not a market you want to come to at the moment if you are looking for passive cash flow. 

You need to be boots on the ground and doing significant value add plays for that.

But historically in SD (like a lot of CA) it has been a huge wealth builder for investors who bought low and sold high (huge surprise lol).

Pod cast and books! Joe fairless podcast Hunter Thompson podcast cash flow connection Passive real estate investing podcast (first 10 episodes or so) ABCs of real estate investing book was very helpful in starting out Alon Rokach Cheers! 🎉

Alon Rokach Make it the Canadian dream! Good luck to you brother!

Matt DeBoth Id beware. My team has been investing in the Memphis market since 2010. Just recently closed on a 144 unit place in Desoto county just across border and was 96% occupied. All of our other places are also higher occupancy. Memphis is a strong market still but like any growing city there are places you want to stay away from. Please reach out if you want to talk more directly. I’d also recommend talking to Steve Woodyard about areas you are looking. Very few deals happen in the multifamily space in Memphis without him knowing about it and will give you honest feedback.

@Arlan Potter what market?  

@Marty Summers here is a different perspective... 

If you want to scale then go bigger. Take your $100k and put it in your back pocket and go find 10 other people from your RE meetup with 100K and put together a larger deal in the Indiana market. You will have greater cash flow ,prob be able to hire some basic management so you can have less headaches, and get paid for putting deal together. 

I own a duplex as well. Im looking to sell and move equity into next bigger MF deal. It was a good start for us, taught me a lot.