All Forum Posts by: Jordan Santiago

@Jordan Santiago

But do you have acquisition/asset managers? (Yes) Secretaries? (No) Cold Callers? (You can hire VAs)

How do you compensate them? (VAs are hourly! Asset Managers all performance based.)At what point did you bring them on your team? (Brought acq. on fairly early to assist with the deal flow) How did you find them?(Created my own multifamily meetup in my market and the relationship happened organically through my meetup)

This will be different for every operator as some will hire these positions and some will partner with others who fulfill the roles especially if you are looking at a lot of deals

Personally I have always had an office manager and a CFO. I look at every deal and opportunity myself first and if it looks good enough to pursue I pass it on to my CFO to fully analyze and underwrite, procure financing and prepare for closing but I lead the rest of the team that is all outsourced ie. PM, Brokers, attorney, architect, engineer, GC etc. depending on the project or deal.  

@Jordan Santiago

I base my offer on what the property is worth today. As a general rule, I try not to compensate the seller for work that I’m going to put in in the future.

If the goal is cash on cash return, then I would analyze how much you can pay to achieve that % return and subtract out your value add costs, and that should give you your max offer.

If the goal is getting your money out in 18-24 months, I would analyze what the property will be worth when you finish (based on area cap rates), take 75% of that, and then subtract reno costs, and that’s your max offer.

Yep, you pointed your opinion out already saying you think 8% is good.  I was offering my criteria as someone in the trenches for 17 years.  Ideas, ideals, opinions are one thing...

Your idea of a decent COC isn't abnormal and why I am selling much more than buying. 125+ tenants and toilets for 8%? The definition of a free and (mostly) efficient market. I will be on the other side of your closing table, but mine are stabilized and performing.

Value add year 1 COCRs will vary widely. I would oncentrate more on the metric of IRR in those cases. Mine I purchased at a 12-14 cap and am sitting at an avg market cap of 6. Buy above the market cap, too..

Leveraged, mid-teens COC. Cash buys 7% ROE, but larger equity capture and IRR expectation.

I'm with Caleb.  For 8%, I'll buy an index fund or something with liquidity, without headaches.

@Jordan Santiago 8 percent doesn’t get me excited enough to deal with all the headaches that come with owning rentals, and the risk.

You can get that in the stock market with a lot less risk and headache. Just a thought.

@Jordan Santiago incorrect, there is limited inventory, 2 , 3 years ago, as many as you want, now  try finding a good deal on a 4- 10 unit in the cleveland markets .Try finding one under 30k per unit, not going to happen , I can :) 

Good Luck 

@Jordan Santiago I can you cant :)   I provide about 10 -14% net caps, NOT soliciting admin, 

@Jordan Santiago  ALL IN 40K, rent net 7300 on gross of 12k , all in 50k net 10,500 on gross of about 18k, . all in 60k net 13k on gross of 24k,, all in 375k, net 85k , all in 800k, net about 250k, on gross of 500kish ,, Its all about knowledge and your team . THIS IS NOT A SOLICITATION ADMIN, JUST EXAMPLES .  

Good Luck