All Forum Posts by: Joshua Nicholas

Hi Anthony,

Thanks for clarifying.

I would say you're smart to not pay the $10-$20k on coaching even if you had the money. You can probably learn everything you'd need to know for free on here and blogs, and definitely everything you'd need to know by spending under $250 on Amazon.

Unfortunately, if you don't have a lot of money yourself I would say NYC is going to be a VERY uphill battle at best, and most likely you won't be able to invest here. 

If you know a lot of wealthy people maybe you can make it happen, but this is a hyper-competitive market where there are no shortage of super rich investors so you might want to consider looking elsewhere.

I don't know if you have any specific questions but feel free to message me with anything you're curious about. 

Step 1: buy Dave Lindahl's book "Multifamily Millions", Steve Berges "The Complete Guide to Buying and Selling Apartment Buildings". 

top 5 fallers? what does that mean?

Michelle,

You're not going to get an answer here because the question is too vague.

Do you want cash flow or appreciation?

Do you want to preserve capital or grow it?

Where do you live?

How much money do you have?

What experience do you have?

Each of these things will impact your opinion on the best markets to invest in.

 Anthony, can you explain to us what your experience, finances, education (real estate specific I mean) look like?

We need to know that to be able to help.

Overpriced given what it is and ripe for a correction.

I was just in south FL two weeks ago from NYC and looking at deals in Miami, Ft. Lauderdale and WPB. Never seen so many cranes in my life. 

I would also say, given how low cap rates are in WPB, why not focus on Miami instead. Not THAT much more expensive in terms of cap rates but much more liquid and stable.

Sid not to be a jerk but it doesn't seem like you've done much research.

Your criteria is way too vague and broad for anyone to start searching for properties for you.

You didn't tell us: 

-How much money you have? Is $350k cash or is that with 75% loan to value?

-Experience level?

-Competitive advantage? (Are you a contractor? Agent? Lawyer?)

-Location (Anywhere in the U.S. is a nonsense statement, Sam Zell wouldn't say something like that and he owns 100,000+ units.)

I think you should do some more thinking and get clearer on your thoughts then we can help. Not trying to be rude, just a suggestion.

Hey bud,

You said something disconcerting, "it sounds really good".

Have you not taken a look yet?

That's step 1. Go to IREM.org, find some property managers in your area, look for the ones with the best reputation and have one of them walk the property and run the numbers with you.

If the numbers check out, then I would suggest talking with friends, family and your real estate attorney for the money. $125k + $50k + closing costs isn't as daunting as it seems, you definitely can raise this for your first deal. You could also fund this with your IRA if you have that.

And not to be a pessimist but a 12% cap rate is likely a fantasy # based on no repairs, no management fees, no vacancy or credit loss, no reserve allocation, etc. I would triple check your numbers before believing any property NOT in a war zone has a cap rate above 8% today.

Omar, it depends on where you were. Cap rates didn't expand by much in NYC so if you could service your debt the banks basically let you skate and extended the maturities till you could refinance. I think if you look historically, maturity defaults are the problem more than payment defaults. If you have debt with a long enough duration you can get by even with some sub-par underwriting.

Matt I don't mean to rain on your parade but you need a more realistic view of things. You're not getting 10% cap rates in good areas today, and you'd be lucky to obtain a 6% cap rate in West Palm Beach.

If you want to buy today, you need to have CLEAR exit strategies (and multiple exit strategies as well) or buy with 10 year money and a 25-30 year amortization. Make sure your debt service coverage is 1.30+ if you really want to be able to weather any short term blips in the income and service your debt.

Buying good deals all cash is also a decent strategy that guarantees you won't lose your properties in a downturn. I'm doing that right now and should be generating a 8%+ yield unlevered net to investors within 90 days.

@Darrin Carey In the words of the inimitable Ron Swanson, "I don't like to generalize......but all contractors are criminals."

@Mickey Kropf while that idea is sound, I think Ian needs to focus on tightening up his business plan and getting his first 10-30 unit building and then building from there. Short term rentals are a niche business that is an advanced strategy.