All Forum Posts by: Josh Eitingon

@Billy Guyette, as you know it is all negotiable.  Something you could consider if thinking long term would be a preferred returns.  Something like 6% preferred and then all dollars after that 50/50.  The preferred would mean that all dollars out of the property would go to your investor until they reach 6% on their money then every dollars after that is split 50/50. Just an idea, you can certainly structure in a lot of ways..

Best of luck!

@Jerry Kisasonak, I think that is a good point- most conventional lender will not like seeing a second lien.  That said, for 20-30% of the purchase price I think many lenders would be willing to accept personal guarantees. 

You can definitely get creative.  Especially if you are willing to give up a piece of the deal -- which I think long term can be more advantageous as your investors are seeing you as a successful operator, more likely to invest more in the future..etc.

@Wesley Merville, equity partners mean that have ownership in the deal itself.  Cash partners can mean a few things but, likely that they are debt investors (ie., lending you money while you retain ownership in the deal.)

Agreed with @Ashley Pimsner, local/ community banks will likely be your best bet in that space.  I would suggest leveraging your property manager/ broker for suggestions to get you started.  

Looking forward to the next Long Island Multifamily Investor Group:

How to Find an Apartment Deal

For many investors, this topic is a challenge. How do YOU find apartment deals?

I truly believe that there is an apartment deal out there for each unique investor, but you need to understand how to look for apartment deals.  

Join us for our March meeting of the LI Multifamily Investor Group, where in addition to multiple networking breaks we will dive into:

- Initial Deal Scrub – Telling the “Deals” from the “Dogs

- Deal Sourcing – the most proven ways to build your pipeline

- Dealing with Commercial Brokers – What to ask, what to know

Bring your questions to this forum, we welcome questions and want to be your local resource for all things multifamily.

We were standing room only last month, make sure that you register here!

https://nationalreis.leadpages.net/limig102014/

We are hosting this meeting March 12th at the Hotel Viana, 3998 Brush Hollow Rd., Westbury. We kick off the meeting at 6:30!

Free for first time attendees.  Repeat attendees will be charged $25.

Hey Andrew,

The next one is March 12th.  First time attendees are free:

https://nationalreis.leadpages.net/limig102014/

-Josh

One bedroom units are often the easiest to rent.  They appeal to both single individuals and couples.  Whereas 2brs could appeal to couples and a family with children.  One bedroom units are also the units that have the most turnover as that tenant base is less "tied down."

Turns for 1BRs should be lighter as it's usually just one or two people without kids and there is less square footage.  Yet, there are usually more turns.

Average turnover per year nationwide is over 50%.  Depending on the property, and the area, I might assume as high as 60% for heavily 1BR units.

I started in Cincinnati and my first 20 unit distressed purchase there has likely been the most successful deal % return wise.  I am now purchasing in Northwest Florida.  I'm a big believer that there is opportunity in any market it's just a matter of understanding that market, and the submarkets.  

Hey @Alan S., 

I'm from LI and only invest of of state.  That said, the deals I have seen fail are usually the ones in rougher neighborhoods without the proper management in place.  That said, as an owner, it is not always easy to find a deal that hits your yield requirements and meets the "invest in a property where you want to live" requirement.  I have not problem investing in a true C/C+ neighborhood if you have a solid management team in place.

I know it is pretty common in Ohio as it would allowed you to avoid the tax reassessment at the newly purchased price. That said, it is getting less common as local governments are catching on to it. I'm all for it but, I would not bake that into your going in numbers. If you can successfully transfer the LLC and not get hit with the tax hike then I see that as just a bonus.