All Forum Posts by: Hadar Orkibi

I get the infinite return when there is no money in the deal. all my buy and holds are like that now in NZ as its essay to pull the money out when you have 10-15 growth per year. 

I take it that you guys don't regard yourself as TK @Dean Letfus ,so you leave equity in the deal?

"The best way to make a small fortune in real estate in Memphis is to start with a large fortune and keep buying turnkey property at or above retail prices :-)."

Is this sarcastic mate or did i miss something in translation?

thanks Dean, it sounds to me that the only way to make a market with stagnation of rent and prices work is to enter the market for diversification from growth and no cashflow market. I.e Auckland for us.

Put 25% in on purchase then 6 month later after "seasoning" refi all or at list 15% of it out. 

Say you have 10% of the value in the deal as cash, returning reasonable cash on cash return and some equity. 

If this is doable then it's worth pursuing. 

For this to happen one need to buy under retail from turn key provider or commit to buying Volume from a provider so they cut thire margines. (Buying bulk). 

Hi Team of Memphis Investors, Experts and Property managers.

I'm doing some research prior to jumping in to the market and seeking to confirm what is the rent growth trend in Memphis. it is known that Memphis is more of a cash-flow Market then appreciation market, but I would appreciate some insight information about the rental growth in Memphis. 

I'm asking that as if one is to invest say $100k for property an say it is returning $12k per year with hardly any rent growth over the next 10 years (or just keeping up with inflation) and no capital gain as bonus then one is going backwards or just holding mediocre investment.

I have researched and found this Freddie Mac report, note page 10. stating that "Memphis will fall short of expected inflation" http://www.freddiemac.com/multifamily/pdf/2015_out...

Also here over 9 Years the rental growth in Memphis is gone up from $809pm to $851pm from 2005-2014 which is "bugger all" and hardly keeping up with inflation.

http://www.deptofnumbers.com/rent/tennessee/memphi...

Also i note that vacancy rates are trading down But seating at around 10.5% according to this info.

Any info and feedback from "Boots on the ground" investors and operators would be much appreciated.

Thanks Hadar

Does anyone here use Corporate Direct by Garrett Sutton? 

https://www.corporatedirect.com

Is this Arizona Dean? 

As the saying go "you make your money when you buy". 

I never buy retail, but sometime I do pay "asking price" if the asking price is under retail OR have an added value opportunity of minimum 15%.

By buying under retail value one can protect himself in case of unexpected event or change circumstances when he need to off-load the property.

Some deals have multiple exit strategies and some have Just sell. you want to make sure that if you are in the Just sell category at-list you are not running at a loss. and buying well is the key.

For how long would that loan be @James Wachob , Is it hard money?

Hi @Tim G. I cant comment on California and 1031, But can share with you that I also purchased a 4 unit block of flats back in 2012. after subdividing the units to separate titles and very good timing my 900k cost was now worth close to 2million. (this was in Auckland NZ which is the hottest market in the country).   at that stage i figured out that the added equity could benefit me better if utilized to create more cash-flow. same like you, the rent to value ratio wasn't great.

So i sold it, paid tax on the gain and shifted the money to pay off debt on Commercial property we own which is triple net lease (tenants pay for 100% of outgoings) And never looked back.

now, the cash-flow is great and regarded as 100% income for servicing do to been net income investment. i feel that the money is working harder now. Just some food for thoughts.

Hi Takashi,

you could potential achieve most of your goals in Dunedin, if working with someone like Kyle. 

But the growth there is not as good as Auckland, which is the best place for Capital growth in NZ but has the worse rent to purchase price ratio. The way the market is now in NZ it is hard to fined 10% gross yields deals from trade me or RE website. you could possible create it if you buy and add value. @Kyle Elmer should be able to advise what is Dunedin's long term growth %.

but you will need to get your ducks in a row and have finance available so you can act quickly.

The key is to concentrate on 1-2 areas and get to know them best... looking at multiple small towns NZ is waste of time IMHO.

The reason im here on BP is for Cash flow, as long as i can buy bellow market or add some value and refy i should be happy. im not expecting massive growth. for capital growth we can stay in Auckland. 

Im attending the NZPIF event in October. see you there @Kyle Elmer or who ever comes. 

Thanks for sharing @James Wachob, nice block. To be hones for 7% Cap and 35% down we can buy Commercial property in NZ which is what you cal triple net lease, so no hassle and the tenants pay for all outgoing. I sold 4 unit multifamily in Auckland NZ last year and paid off the debt on the Block of 5 retail shops and flat and never looked back. 

I also hear that as per @Alex Franks comment the MF in the US is at or near the top of the cycle (not surprising with such low interest rates), so unless its a great deal where one can dd value by tiding it up and increasing rents and NOI its possible not the right thing for me. I think that good single families, duplexes or triplexes would be the best option for starters.

In GENERAL looking back to 2008-2012 the US and NZ cycles are running somewhat parallels, so if this is close to reality perhaps in 24-18 months the markets will level off.

At this stage I'm trolling the forum, educating myself on the locations, returns and keen to interact with Key players in the locations. As a US Citizen residing in NZ I'm also investigating founding opportunities.