All Forum Posts by: Hedi B.

@Brenna Crowe Congrats!

What did you buy the property for and how much do you anticipate it will sell for? Would love to hear more details about this deal (e.g., type of property, level of rehab, etc.).

I’m by nature a do your own research, believe it when you see it kind of guy, so this totally works for me.

Btw, how was your experience being coached with Joe? Any learnings you’re willing to share here that helped you operate at a higher level?
   

Hadn’t heard of Michael Blank. Thanks for the info Joseph! 

I found an article on Michael’s website where he recommends looking at employment growth and good returns. For anybody interested, Michael also lists his 12 top markets for multi-family investing in this article. Here’s the link (fyi - this article was published in Aug 2019 - so pretty recent): https://themichaelblank.com/vi...

On another note, Michael shares an interesting statement I noticed to be true in at least one market I looked at: the often hard to justify cost of building B and C class multi family properties.

In Miami, for example, building such a project west of the I-95 (less desirable but cheaper neighborhoods to buy lots) can cost more than what someone has paid for a similar, existing property. You really see this when you recalculate sale price/unit on multi-parcel transfers.
 

Thanks for the Milken report Charles! 

Agreed - it would be helpful to layer some absorption rate (and population growth) stats to determine supply and demand.

Hi all,

I just listened to BP podcast episode 227 with Joe Fairless. Joe went from a few SFRs to $130M by the time he was 35 years old.

In the episode, Joe unpacks three indicators that help him find "good" multi-family markets. He explains that some of these data points are easier to get access to than others, and based on some very light research this still seems to be the case. 

I personally love finding and putting together useful datasets, GIS maps, and organizing data that lives in different places, especially when the end product means a more insightful and accessible source of information.

My question to you is: if I can bring together the data for the indicators Joe shares and present it in a digestible format (ex: Excel CSV file), would you be interested in a copy of the dataset? 

Here is a summary of the three indicators Joe uses to qualify multi-family markets and a few details he shares about them in episode 227.

1. Unemployment, including how it's trending and vs. national average.

2. Employment diversity. Joe believes no one employer or industry should make up more than 15-20% of jobs. Based on some preliminary research, this data looks fragmented and lives on different county and/or city labor statistic webpages.

3. Supply and demand. Joe recommends looking at absorption rates based on existing and upcoming inventory. He mentions that you may need access to a platform like CoStar or receive this information from your RE agent or a property management company.

My goal is to get as granular and go as wide as possible, offering the data at the city or metro level, and, if it's not too much of hassle, ideally nationwide.

Let me know your thoughts, if you have any questions, suggestions, or if you know where all this data might already exist - which would spare me and possibly others a lot of data wrangling :)

Yardi Matrix if you’re looking to purchase multi-family above 50 units. The property data they have will inform your market research. They offer insight into actual rents for individual buildings, anonymized expense data for multi-fam properties (they’re affiliated with one of the largest accounting softwares for property management companies), sales data, and owner contact info, to name a few things. 

For smaller properties, I’d look at census data and speak to property management companies and agents specialized in the areas you’re looking into. They both have an incentive to help.

@George Yu Congratulations on your first multi-family project. A few questions:

1. What can one expect to net per month after building and renting out a project like this (i.e., monthly net profit from rental income after all expenses including loan payments)?

2. What was the timeline on the project from the moment you started looking for a site to fully or near fully occupied?

3. What does your pre-offer due diligence look like?

Thank you

Hi all,

I'm looking to know what is the most important hard-to-find piece of information about a property you need before submitting an offer?

I'm polling the BP community to better understand a) what informational hurdles we share and b) start a discussion to identify where this information is best found.

Please be sure to include what kind of real estate your answer applies to and where (ex: determining if there are existing water & sewer mains in front of a vacant lot in Miami).

Looking forward to everyone's answers.