All Forum Posts by: Erik Hatch

@Virgilio Mateo how large is the syndication?

@David Smith do you need to do any rehab or construction? in some instances you can get a bridge loan that is interest only that covers the rehab and reconstruction and for a period of time. interest only can be a plus if you are working from cash flows and need to reposition units. after the bridge loan then you refi into a permanent type loan. But as @Christopher B. mentioned, so far that loan looks pretty good. 

@Sara Simpson I think you are maybe missing a key point. I didn't detail my value add strategy and how small increases in NOI affect value and considering cap rates. Increasing NOI has a significant affect on increasing the value of your property and then opens the door to refinancing to pull your down payment out. This is also known as forcing the appreciation as opposed to organic appreciation. It works best with commercial loans and more than 4 units.

I think it depends on your strategy. I don't invest for appreciation, but rather invest for cash flow. I focus on cash flow, cost segregation, and then look at value add (forced appreciation). 

Just like everything else, earnest money is negotiable. Never hurts to ask!

@Jason Malabute many thanks for your inspiration, and best of luck on your business. You will be successful.

Agreed @Austin Sine, but I like the value add plays.

Certainly value add to force appreciation!

@Melody R.

@John Warren is correct  in my opinion that price is the issue. People are finding other options these days. I watched the news this morning and it was reported the New York City now has over 13,000+ vacancies. People are fleeing to the burbs or to another more tax friendly state. Its happening in the Chicagoland area too. So is this a short term phenomena? Does this present a buying opportunity for properties with low vacancy? One needs to think supply and demand.

@Raymond Troxell so here are some of the things I look for when researching markets. You need to ask yourself the following: 

Where are the jobs? 

What types of employers are in the area?

What is the age demographic? Are ages old or young? Younger individuals a more likely to be renters

Is the population growing or shrinking?

Is the average household income low or high?

What about the crime rate?

I think you get the idea. You need to know the area and be comfortable with it. Or find someone who is like local bankers and commercial mortgage brokers. 

Hope that helps.