All Forum Posts by: Hadar Orkibi

Thanks @Douglas Skipworth, Interesting to hear that you purchased units in Memphis (MFH), so it can be done and probably worth doing. saying that, together wit few other Memphis based RE professionals on BP you have "unfair advantage" - which is fair enough, considering its your market.

No money down with owner's finance in good location at good price is no brainier.

Yes I also have this philosophy that you make your money when you buy and allays buy well so if you need to off load the asst you can sell it with small profit or no loss.

Thanks.

Thanks for sharing this @Douglas Skipworth it is interesting to see. 

when you mention that you personally added 100 more units, are they SFH in Memphis?

out of interest what level of returns are you aiming for? ie. Gross rent ratio to purchase price and discount bellow retail after rehab. ?  i.e in NZ I buy minimum 7% Gross yield and 15% added value opportunity or bellow retail. 

I would have thought been in the industry and local player you will have some good off market opportunities.

Thanks in advance for sharing.

Welcome to BP Ant, i suggest reading the NZ Property Investor magazine and joining your local Auckland Property Investors association.  APIA 

fee free to ask questions

Thanks for sharing @David Hutson, yes i was referring to re-financing the deposit out of the deal. 

when you say "little under the appraised value" are you referring for few grands or do you aim for any percentage? 

How much per door do you aim to net cash-flow very month?

Cheers 

@David Hutson sounds like you done well in Memphis and happy to continue buying.

Do you mined sharing if you are buying from turn key and if you managing to buy under retails price and recycle your deposit out, that's assuming you don't buy cash.

If you don't buy from TK then how do you buy?

Thanks in advance, Cheers

Did you estimate the cost of repair on this @Haim Mamane Palman ?

Welcome, feel free to ask any question. There is no such thing as silly question and it's good way to educate yourself. 

@Simen Gundersen I have been considering investing in Memphis 3-4 years ago and decided not to, (im investing and flipping in New Zealand already) As at that time I couldn't get conventional loans, all i could get is expensive money from hard money lenders that was killing the deal. 

Been out of town makes it harder to fined great deals at bellow retail. and the deals make no sense at TK Retail prices in market with No rent or capital growth. 

My situation is different then yours as im a US citizen by birth and now working on qualifying for conventional loans. As long as it takes, when i do qualify i will start buying and regularly vising the market meeting and networking with people on the ground.

That Deal you posted Simen doesn't look like a deal, it is bellow the 1% rule (or 10% gross yield) and will get you nowhere.  I suggest you first get your ducks in a row and organize better finance. 

As @Curt Davis mentioned https://limaonecapital.com looks like a good options to start with.

Then go to the market and try to understand what a good deal is. you will need to look at over 12% gross yield and minimum 15% bellow retail value for it to be a reasonable deal. remember you need that discount OR equity upside as its non appreciating market and you want to recycle your money/deposit out. great deal will be higher yield and better discount.

Don't rush in to the mark, it will not appreciate anytime soon, in fact "its on fire" so better buying still to come!!

there are 2 types of obsntee landlord youn will find.

1. The one who is an investor/ owner who is not motivated to sell and would be harder to get a deal with. ie. " I will sell for the right price". ALLWAYS start a discussion and see where are their price expectations, usually they want a premium but you maybe surprised if you start asking questions. Like: who is managing the property, how are the tenants and how long they been there, did they had issues with the pm, tenants or any maintenance over the years. Etc etc..

2. The tired obsentee or these who were thinking about selling but didn't do anything about it are the one that you can possibly buy from. 

Ask them all the question and let them tell you all the reasons and possible motivation, why they may want to sell. Then work on finding a solution to the motivation. Be flexible on therms but less on the price. 

When an owner give me their asking price I ALLWAYS ask them how do they establish their asking price. 

 In Auckland in the last 3-4 years 5%-8% rent increase pa was the norm and expected by tenants. some areas had bidding wars like auctions on rentals. you will have 30-40 people coming to the showings. this City has around 40k-50k new migration incoming a year for the last few years.

I never lost a tenants do to rent increase, I use property mangers for all my buy and holds as i don't invest where i live. and i take their feedback regarding rent increases.
I only self manage one Commercial property which is the only investment we own in our town.