All Forum Posts by: Jeff Greenberg

Some great discussions here. I would add that I usually tell the broker that I am looking for an 8+ cap with value adds. I like to buy at a 9+ but I don't start the conversation there. As stated previously most 10-12 caps are going to need some work. Make sure you do your DD so you know what you are in for. Getting a 12cap and running out of money on the rehab isn't where you want to be.

The statement."if they are making 10% why would they sell" makes no sense. Any property can be a 10cap at the right price. Again there are many reasons for selling including death, divorce , partnership breakup, balloon due, capital needed for new project, retirement, and on and on.

I might agree with you on quantity of units in Austin vs Houston yet I don't know for sure. I am looking for 50-200 units and the Cap rates in Austin don't compare to what I am seeing Houston. Not only that, the competition is stiffer in Austin. My model can't compete with the insurance companies and hedge funds, that may be happy with a 4% cash on cash return. We have to do better than that.

Excellent post Dion. I think that should clear it up.

Welcome to BP, there is a wealth of information in here.

I would strongly disagree. There are some great values in the Houston area. Houston being local gives you a great advantage. You will get much more bang for you buck in Houston. Don't get me wrong I am looking in San Marcos, Austin, and Houston, but the values are in Houston.

Back to your question. 100k is not a lot to get into MF. You could find a small MF, but make sure you don't stretch yourself by not leaving enough in reserve. There are several other Investors from Houston in BP who are looking to break into CRE. A partnership with them might help you all get into a larger property.

I am actively looking in the Houston area and would be interested in partnering with someone on the ground. A good way to break into CRE is to work with someone with experience. If you find something off market that is larger than you can handle yourself contact me.

Coming into an investment as an Equity Partner/Passive Investor also gets you most of the benefits of owning CRE without the burdens. Of course you are putting your faith in someone else so you must do your due diligence.

Be careful about putting all of your cash into the down. Properties without sufficient cash reserves will quickly go into disrepair and will spiral downward.

Make sure that you include in your calculations the loss of tenants during your rehab. If they expect rent increases after the rehab, you will lose more.

Sam contact me when you find the 14 CAP deal. I have investors interested in anything North of 8 CAPs in you area.

Congrats Brian. Where is the MF prop?

Welcome to BP