All Forum Posts by: Heath Jones

‘He’ above is referring to my partner (who lives in the area), not the broker... just in case I wasn’t clear.

Anyway, discuss... 😁

@Heath Jones Recently, my partner and I submitted an LOI after walking the place. We were told by the broker that we needed to come up on our offer price. So he went back to the property (he lives in the area) just to see if there was something we missed. While there, a tenant was walking around and stopped to talk with hime. He asked about the property and current management.

After running our numbers again, we came to our top line and while he was relating this to the broker, mentioned he spoke with one of the tenants. The broker got super defensive and upset, telling him it was against professional courtesy to talk to tenants before a PSA had been signed.

Now BP family, let me know what your thoughts are on this... was this wrong or is the broker right?

Is it against professional courtesy to speak with current tenants in an apartment before having an accepted LOI?

@Victor Colon Hey Victor, we’ve lived in Enterprise the past 4 years and have bought a 4 unit, 16 unit and 3 SFRs here in the last year. The quad we bought is in a similar situation as yours. As you mentioned, there is really no benefit to putting in 5k in upgrades to make an extra $100 per door (if your lucky). If I was to raise the rents by $100, I would not be able to rent them because all the other quads rent for around the same price. And anyone who might be willing to pay the higher rent, more than likely could find a better area to rent in for the price. Send me a message and we could talk more about it and the area. Rock on!

@Tom Keller Buy a 4 unit multifamily property.

Find a fourplex and house-hack it for a year while renting out your current home. You get cash flow from your current place and from the other 3 units in the fourplex.

@Dan Mackin I think technically I’m a xenial, but could in some classifications scheme be considered a millennial...

1) Buy and Hold Multifamilies. Go bigger faster, starting to syndicate larger properties.

2) Been investing for a year. Have 23 doors across a 4 unit, 16 unit and 3 SFRs.

3) Move fast and get it under contract first! Then negotiate and get creative. If you waste time trying to be creative first, you will loose the deal.

@Michael Breedlove I have to say I'm partial to Multifamily (our first two investment properties where both MF), because you can still cover the mortgage if you have a vacancy. Although we did recently purchased some SFRs. It all comes down to what your REI goals are. Mine goal is to increase monthly cashflow as quickly as possible.

I’m of the mindset that the more doors you have, the bigger your monthly income stream is. I hope this helps, and if you decide on MF... you have to be on it, fast and competitive. Also, go 4 or more!!! Rock on!

I wish I had started investing back when I was in grad school. Granted, I made virtually no money and had no time to work on anything else other than my research... but I could have house-hacked if I had known about the strategy or had been given the push to do it.

Who out there is with me?

Who out there is currently in grad school or in their post doc?

I want to help out as many of you with what I’ve learned as I possibly can!!!

The Multifamily Real Estate Experiment (MFREE) Podcast released our interview with Matt Faircloth this morning!!

Please join us as we talk about raising money for purchasing Multifamily properties.

The episode can be found on Spotify, iHeartRadio and Buzzsprout!

https://open.spotify.com/episo...

If you enjoy hearing Matt talk about raising money and what he like to do for fun, please share!!

Thank you,

Heath and Hutch

@Joseph Cacciapaglia You are correct. Here are the deal terms.

$540,000 purchase price

$120,000 down

$420,000 loan 
5.5% interest rate 5yr balloon/30 yr am

We also put in an option to extend the financing for another 5yrs if needed with the rate being whatever average market rate is but no less than 6%. 

In 5 years, the total due should be ~395k so I feel that even if the crash is worse than the last one, I could at least at minimum get a loan for the remainder. And if not, I could exercise the owner financing extension. Plus, the value of properties of this sized are based on their income so I feel that insulates against market downturns. What do you think?