All Forum Posts by: Mormon Redd

I suppose it couldn't hurt to give that a shot! It's a pretty small town and things move very... slowly around here, but I'll see if I can't stir up some interest. 

Any other ideas?

I recently moved to a small town in Alabama and happened across a great real estate investment. It was a 4-plex that was cash flowing nicely and was still way under market rents. I bought did some renovations, pulled up rents and everything was great when my agent brought me another deal very similar to the first but the numbers were even better! I was ecstatic but low on cash so after some creative financing and a personal loan I was able to invest in this one as well. Since then these deals have been popping up all over the place and right now I have 5 potential deals in front of me all of which would turn an average of about 50% ROI before an investor split.

I've been trying to find ways to snatch them up but I'm completely out of cash and to be honest very poorly connected. I've tried friends and family but none of them have the capital I'd need to jump in to more than 1 or 2 of these and would need more hand holding than I'd like to do if I can avoid it. I have a friend who is connected with some large investment funds but they won't look at them because they are "smaller deals than are worth their time." 

So I guess I really just need help with the networking piece... How do you find investors with the cash to invest in these deals that won't turn their nose up to them because they aren't over half a million dollars?

All, thanks for the responses. I guess it will just be more of a waiting game then, I just couldn't believe people were posting their properties with such misleading numbers and figured I must be doing something wrong! @James Dickens and @John Brady, have you found there to be a significant difference between the older and newer property expenses that would justify adjusting the expense ratio depending on age or is it close enough that it should just be kept around a 50% estimation?

I am trying to get in to multi-family apartment investing (5+ units) and have been searching for a property that I could reposition. In a training program I did I was taught to estimate costs at 50% of gross income when analyzing the financials, but after looking through dozens of marketing packages I have only found 3 where reported expenses even approach 40% and most are around 30% or closer to 20% of the operating income. Is this 50% being too conservative? Those of you who have owned multi-family, what percent of operating income have your expenses been?