All Forum Posts by: Jason Matthews

Hi Sousie!

I would reccommend protecting yourself in terms of the legality of the transfer, ensuring there aren't any violations, 3rd parties requesting some claim of ownership of the property, most importantly the structural integrity of the property overall is sound and there aren't any big ticket items the current owner should righfully be taking care of that will then be additional issues you inherit. 

It's difficult navigating the home purchase process in general, but a lot of more difficult buying something with costly surprises you didn't plan for. 

Depending on how you're planning on financing the property, also ensure you are protected with some contingency just incase the property is not worth what the seller is asking for in this market. Message me if you have any additional questions. 

Hello! 

I am actively seeking commercial multi-family properties in Orlando or Jacksonville for an investor client of mine with a budget of $3 Million. My client is looking for stabilized assets that cashflow. They are open to properties that need renovations or may not be fully occupied. Capitalization rate minimum would be 6% and higher is always preferred. They are very active and ready to tour properties as early as next week! 

Hello Bigger Pockets! 

My name is Jason Matthews, I am starting my journey in the Commercial Multi-Family investment space and would love to connect with existing REITS, Syndications and other large scale investors with access to value-add multi-family deals. I am focused on anything between 400 - 5,000 units and will gladly offer a finders fee for anything worthy of buying. I look forward to sharing posts of what I learn and engage with you all along the way!

 Understood @Alex Lee if those numbers are confirmed with a specialist regarding the construction costs. The only other existing variable not mentioned so far is the cap rate, which will be essential in confirming for the intention you have for the property as a rental building instead of a condo building. 

After subtracting 30% - 40% of the gross profits, does the Net Operating Income suffice for similar rental buildings of similar size in that area of Brooklyn. 

Hey Alex!

This is a great topic, regarding analyzing the deal some key questions to ask is:

- what is the best and highest use of the land (If rental properties are what's best for that specific location based on the rental return, job market and demand for apartments in that area then so be it)

- Regarding commute, how far is the location from shopping centers and essential services such as Hospitals, Fire Department, Police Stations, Banks etc. 

- Would you have to install a sewage system or is there a preexisting system (If there isn't, is that factored into the cost for constrction?)

- What is the cost for labor for the construction in that general region realistically for a project of that size?

- What is the cost for material realistically for a project this size? 

- Are construction costs projected similar to the real costs of those separate items combined?

 - How long is the project expected to last?

- Most importantly if the project is being financed, what interest rate will be associated with the financing of the project?

- After all of these variables are factored in, find out if the Cap Rate of the subject building with the rental income provided is close to the local market performance or way below. 

Hello Christian, 

The price of the lot will depend on several things, zoning, FAR and if there are approved plans. Based on that key information we would then identify what is the highest and best use of the that land for where it is specifically located. I will send you a quick message in the DM so we could discuss further. 

Hey!

Great topics and question. One recommendation I can provide is getting familiar with the "Family Offices" in your neighborhood. Family offices are pretty much the investment vehicle for affluent individuals that is a combination of Real Estate Porfolios, Stocks, Business Acquisitions etc. This way you go directly to the source of the owners and by-pass the slew of middlemen like myself and then if you do get some off-market deals that you might not be interested in, I can provide the purchaser for those deals that don't work for you!

Let me know if this made sense and was helpful!

Hey Yobani! If the appraisal came back good for the accepted offer amount but the bank is the reason for the pause, I would suggest exploring other lenders/banks if possible to get a second opinion. I know HDFC buildings have to approve the lenders for the financing of units in their buildings but it's worth a shot. Feel free to DM me, I know how lengthy the sales process can be for these types of co-ops without these obstacles from selling an HDFC unit so that the seller could purchase a larger unit in the same building which I was also selling. The most difficult part was getting a new individual into the building.