All Forum Posts by: Greg Kasmer

@Chloe Calder - You can provide an LOI (Letter of Intent) on the purchase without having a down payment... If you want to get practice making an offer. Sometimes people will ask for proof of funds, but most of the time they won't in traditional multifamily as they assume funds will be coming from multiple sources (i.e. syndication). If you just want the practice I would underwrite the property and come up with a number that makes sense to you - then take another 5-10% off the offer to see what they say. Good Luck!

@James Clays - I echo other's sentiments here, but I would also add that once you have a good contact (plumbing, electrical, painting, etc..) make sure to always as them who else they know in the business. Additionally, if you're targeting a certain area it's always good to ask the local township/borough office on who typically pulls permits and/or works in the area. Chances are they know the area and are at least decent if they continue to get work in the area. Good Luck!

@Mitchell Rosenberg - I think the overall thinking is that most prefer areas that have a growing population with a growing/stable economy base that is diversified. There are some public sources (www.city-data.com) that can provide good baseline information. Once you're narrowed your market to a DMA you can also use some subscription services (i.e. CoStar) to understand the rental market (rent amounts, absorbtion rate, etc..) but that service is fairly expensive. There are other ways to determine rental amounts like researching in zillow and/or rentometer, which I typically reference. However, the best way to get a feel for rental rates compared to values is to review/underwrite properties in the area - only after reviewing/underwriting many will you begin to see a pattern. Good Luck!

@Paul Florez - Would you consider a partner in some capacity? Either as a JV partner with equity or a private lender that would lend you money towards a project. I think the opportunity to scale rather quickly will depend upon using other people's money. However, if you'd like to develop a portfolio that is 100% "your own" that would be another path. In that case, I would vote for you to refinance at a lower LTV (~80%) to ensure you are breakeven/some small cash flow at a minimum. Good Luck!

 @Daniel Sabato - Ensuring that you have accurate market rents is probably the biggest driver of pro formas and ensuring that you hit your investing criteria. Easier ways I do this are using a site like rentometer.com - which is a subscription service that provides market rents by address with comps OR using zillow and/or craigslist to see what rents are in the area/zip code. However, the best way to get market rents is to call local competitors of multifamily buildings and "secret shop" them as if you were a renter. You can ask the rents as well as other details on the listing such as utilities, amenities, etc... You'll get a real feel for the market! I'm near Philly and also investing in multifamily so let me know if you want to connect!

@John Friendas - Are you talking about a second mortgage on your owner-occupied property or your existing quadraplex? Getting a second loan on an investment property will be more difficult than the property you live in. 

@William Johnny - I'm local to Philadelphia suburbs and have been investing in SFH for a while and within the past two years investing in small-mid sized multifamily. I would say that Philalephia is general is not a "sexy MF market" like you hear about in the SunBelt or South and I think there is less inventory in general. However, I have seem some deals after a LOT of looking and networking. Let me know if you'd like to talk!

John - I would check with Steadily (associated with Bigger Pockets). I used them earlier this year for an insurance quote with a quad I purchased and was very happy with their service and price point. Good Luck!

@Karolina Powell - I am also targeting 10-30 unit properties and have underwritten 75-100 or so... It would be interesting to share some information and maybe we could underwrite it together and/or compare notes. Let me know!

Andrew - Could you comment more on how you used your HELOC to buy multifamily properties? Did you keep that money in the multifamily or were you able to pull it out after driving up the value of the properties? Curious as to how you utilized those funds repeatedly. Thanks!