All Forum Posts by: John Blanton

I see WeWork is starting to stop/ defer payment on many of their current office locations. 

What do you think the outlook of co-working spaces will be post Covid?

@Charlesa F. If you look within the filters of Listsource and select property type under the property tab you will be able to select the different type you want to target (single family, multifamily, condo, etc)

@Joe Ansley I have used Listsource before and it can be great, but I have also ran into issues in regards to how multifamily and multiple occupancy buildings are labeled in different counties/ municipalities. I would recommend speaking to others in the area and see if properties are labeled as multifamily, # of units or by square footage. In some of the lists I have run some extra properties were captured (townhomes, condos, etc) in the data and it also left out properties in the data based on the filters that I ran. More of an art than a science.

I use Reonomy which is a bit more expensive, but allows you many filters to search and is a lot more intuitive than listsource. It is way cheaper than Costar, but does require a decent outlay of money. Depending on how many counties and number of properties on Listsource it could cost you a couple hundred bucks. Reonomy annual subscription is a couple grand, but in many instances they have already pulled the contact info of the owner directly for you in the database.

Good luck!

Hey @AJ Felix there are a lot of good rental return calculators just like the BP calculator on this site. You are correct your all in cost is $35k, but you are not accounting for other costs such as repairs, insurance, taxes, etc. A good back of the napkin approximation is running at a 50% expense ratio, this is just an estimate so you could be able to run leaner or expenses could be higher. With rents that low I would personally lean a little higher in the expense ratio. 

So yes your annual income is $3600, but after expenses it may be closer to $1800. $1800/$35000 = 5.14

But you also need to add in the mortgage payment which would be around $3600/yr. Now your $1800/yr cash flow turns into a $1800 deficit. I personally wouldn't do this deal, but depending on your investment goals it may work for you or if there is potential upside in the rental rates.

Good luck!

@John James starting off without any capital can be difficult, but try to look at the value you can provide to others. Many successful in real estate started out just like yourself. How much have you invested in networking with other local real estate investors? 

What could you do of value (potentially without taking compensation) from them to be able to build trust that you could leverage their capital as either a JV partner or as a hard money loan further down the road? Or you could even learn from them on a current deal they are doing that could help you become more knowledgable on your next solo deal.

For me it all starts with the power of the network and luckily that is free to all!

Thanks @Greg Dickerson! I know it was a loaded question and appreciate the feedback. To your point will focus on more conservative business models regarding value add and rent growth until there is a bit more clarity in the world

As an LP, how should I compare the track record of a sponsor that began with experience in the market prior to the Great Recession and weathered the storm vs a sponsor that spawned post 2012? 

How much credence do you give to successful exits between 2017 and 2020 pre-Covid (proper implementation of business plan vs  overall cap rate compression)?

I know many of these may come down to case by case, but curious if there are any generalizations.

Hey Courtland, there is opportunity out there, but as Caleb eluded to for the most in demand properties you will have to move fast. There are still some duplexes in Durham and some parts of Raleigh you can get at reasonable prices, but the lowest prices will come with having to put in some to a lot of work. Also, try looking up Triangle Dealmakers session, they are doing a virtual meeting next week, can also get you in front of some wholesalers that may have more distressed properties that could work.

I have a broker set me up on alerts so I see all the small MF come to market in the area @Tiffany Alexy give her a shout, very knowledgable of the market and house hacking

Good luck!

Hey Adam, I would speak to @Tiffany Alexy she has a good background in house hacking and the overall real estate market. Best of luck!

Hey @Sri Tulls just DM'd you a few names, good work and value