All Forum Posts by: Joe Potenza

BiggerPockets world I am in need of some wisdom from you BRRRR investors. I am looking at a 4 unit completely vacant property in Bridgeport, Connecticut. The property has fire damage on the top floor and needs an entire remodel. I wholesale and have completed a single family residential flip, but this is massive compared to the flip.

The property is in a bad area (but directly across from the high-school) so I am not too worried about location.

The numbers work and I think once I refinance I should be able to generate ~18%+ CaC and tie up an amount of equity I am comfortable with. My question to all of you, is do you think the rehab itself is to large of a project for my second investment? Secondly if anyone has any great contractors in Connecticut, I would love to speak to them.
Thank you!

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Originally posted by @LeAnn Riley: LeAnn thank you for an awesome response. I will certainly check out your real estate channel on youtube!

@Joe Potenza

In Minneapolis starting to see deals in multifamily. Particularly in the areas that do have C class AND in the areas that had riot damage - even has spread further into what would have been considered B area - Uptown. The landlords are reporting trouble not so much in being paid rent but with renting units. The amount of rent in those areas is falling. Crime is rising.

Now....that is when there will be good deals but you need enough cash to hold through the rough time ahead. The values will come back as this is area's around our lakes in the city...that geographic plus remains. In the long run the area will be rebuilt. Be ready to hold.

I believe there will be even better deals as others said when the stimulus shakes down and the moratorium subsides on evictions. Get your cash together now. I speak about Mpls trends on my you tube in Covid times.

One more thing about C properties. If you can have Section 8, then the rent is guaranteed. Not a bad thing while you wait it out. I built a multi million portfolio in C properties with Section 8 rentals. In fact, bought condemned buildings and brought them back to life. Sold when the price got high and traded up into larger multifamily.

You just need a system to handle that class of properties to hold people accountable.

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Originally posted by @Dan Biber: Super helpful. It seems even the brokers I have been working with, have limited deal flow on those off market opportunities. Thanks for a great response!

Of course, everything is speculation at this point. We've never been through such a pandemic where literally the entire planet shut down. As far as metro Atlanta deal flow, it's certainly slow. Hardly anything comes up on CoStar, Loopnet, etc. Most MF owners who need to sell, get a local MF broker on board and they market the deal to a handful of buyers without spending the time/money on putting together an offering memo. Yes, the current terms from agency financing certainly helps. I have not seen any on or off-market opportunities that are priced lower than pre-COVID. I forecast some opportunities on smaller MF deals where the following happens: mom/pop operation or residential type mgmt, non-agency financing debt that's maturing soon, sub-standard mgmt pre-COVID that's exacerbated today with collection challenges.

Again, pure speculation.

Thanks for reading.

Dan Biber

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@Jordan Burnett Agreed, it seems like with the stimulus ending and foreclosure restrictions in some states being lifted the normal vacancy pattern we might see in a recession environment could start occurring in the next couple of months.

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@Jordan Burnett Thank you very much for the post. That is some great information. The space I am looking to buy in is the Class C and lower Class B. Do you predict the collections in class C to continue decreasing due to the removal of COVID related stimulus (the additional $600 a week, that ended 7/31)?

Just a couple of weeks ago stumbled upon the old capital podcast and have been working through the content, so thank you!

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@Bryan Mitchell Very helpful insight, I personally think as the government stimulus run out, Multifamily apartments will see increased pressure with tenants struggling to pay rent.

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Hello Bigger Pockets, I run a wholesaling operation in Connecticut. My bread and butter has been using pre-foreclosure lists and out of state owners with equity lists. My primary means of outreach are cold calling and SMS blasts.

I have found that the out of state owners with equity list is not as effective for finding MOTIVATED sellers. I come across plenty of out of state investors who would gladly sell but for market value.

Curious to what other wholesalers are having success with in terms of marketing lists. What are your go to websites to purchase lists from?

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As a young investor, I have been speculating that we should start seeing some price concessions in the multifamily space. For better or worse I have yet to see many opportunities that would be classified in this bucket. Frankly I am still seeing low deal volume in the 30-60 unit range.

I am curious to what you more seasoned and experienced apartment investors are seeing? Speculation on what we should see over the next 6 months is encouraged on this thread!

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@Daniel McNulty Daniel appreciate the comparison to my world.

It has been an interesting experience adapting my conversation about the investment to my work colleagues and then friends and family.

Thanks again!

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@Greg Dickerson Makes sense, thank you Greg!

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All Forum Posts by: Joe Potenza

Joe Potenza has started 7 posts and replied 21 times.

Post: Guidance Needed! What is too large of a first rehab project?

Post: Multi-family apartment deal volume and predictions

Post: Multi-family apartment deal volume and predictions

Post: Multi-family apartment deal volume and predictions

Post: Multi-family apartment deal volume and predictions

Post: Multi-family apartment deal volume and predictions

Post: Wholesaling resource guide

Post: Multi-family apartment deal volume and predictions

Post: Active LP investors and or Syndication Proffesionals

Post: Active LP investors and or Syndication Proffesionals