All Forum Posts by: Gwyeth Smith

@Jon Schwartz.  You might be able to secure a 25 year amortization from a local community bank.  I have two smaller MF's that I put 20% down, 20 year amortization, and 20 year term.  I purchased a bigger one with agency debt with 20% down, 10yr term, 30 yr amortization.  I've been speaking with another local bank and was told they would do a 25 year amortization.  It doesn't hurt to ask.  Just do so respectfully and reasonably. 

@Allyssa McCleery You can check out local commercial brokerages and see if they have newsletters.  One brokerage that I deal with sends out a weekly newsletter that details activity and news stories with regards to real estate in the area.  Also, I set up google alerts with certain keywords keywords such as 'city name,' 'jobs,' 'real estate,' etc.  

Hi @Darius Howell, All great suggestions here.  If you're using Joe Fairless's book as a guide and you haven't already done so, he offers bonus material by writing a review on Amazon and emailing a screen shot to his team.  One of those  bonus items is a market analysis spreadsheet.  It's a pretty helpful tool when comparing multiple markets.    

@Allyssa McCleery, I agree with that rationale.  One of my mentors experienced one of his best years during the last recession.  Part of that was the fact that Pittsburgh was not affected as much as other markets; in addition to what you described in your post.  With that said, I've noticed some of my units taking more time to turnover over the past 8 months or so.  Part of that stems from the amount of new construction in PGH and the falling absorption rate.  I guess it ultimately comes down to knowing your market and underwriting specific to it.

@Michael Henry, I like your plan and vision.  I too am looking for acquisitions in lieu of a possible recession.  I'm accounting for a higher vacancy rate, healthy reserves, and paying more attention to break even occupancy in my underwriting.  Are you accounting for a possible shift in yours?

@Michael Wintermyer, I don't set any limits.  If a market starts checking all the boxes I'll keep digging on it.  I may connect with someone and if I can see us doing business together I might evaluate the market that person is in.  My method is not down to science, as it should be!

@Michael Wintermyer.  My criteria varies to a certain extent.  I'm also in the midst of a market analysis of sorts.  The market I'm currently invested in misses on the population growth mark and I'm looking to expand to others that have shown better past performance.  I'm personally looking for markets that basically beat the averages (i.e. less than national unemployment trends, population growth, etc.)

@Michael Wintermyer.  Here are some popular metrics to consider

• Population growth (5 yr trend)
• Unemployment rate (5 yr trend)
• Diversity of job market (no one industry accounting for 25% of employment)
• Supply/Demand (vacancy rate, absorption rate, etc)
• Tenant vs Landlord friendly state

You can find a lot of this information at factfinder.census.gov or by simple google search.  I'd start by creating a spreadsheet and plugging in this information for any market that you have even a remote interest in.  The ones that check these boxes might warrant further consideration.  

@Hakeem Valles.  I agree with @James Masotti regarding connecting with @Darren Sager.  I have not attended a NYC meet up but have heard good things.  I'm not sure if you're willing to cross rivalry lines but Brandon Copeland of the New York Jets (LB) is also a real estate investor who I think does flips.  I also hear he will be teaching a financial literacy course at UPENN in the offseason.  It may be worthwhile to connect with him for the obvious NFL/Real Estate Investor relationship.

@Matt Kurkiewicz in addition to what @Jeff Kehl suggested, Colliers Intl puts out reports as well.