All Forum Posts by: Josh Eitingon

It depends on the goal.  Seattle is pretty hot now and you'll see cap rates inching down pretty aggressively these days.  I think there is a lot of opportunity on the south east and mid west to achieve true cap rates in the 7-9% range on solid clean opportunities.  That's a bit of a vague answer but, we are big proponents of following the jobs while searching for markets that have supply/ opportunity.

It's a pretty complicated formula but, if you google IRR definitions there are some pretty decent explanations.

Within Excel you can do: =IRR(cell range including total equity in the cell all the way to the left as a negative, followed by each of the year by year cash flows)

@Nicholas Moffett we'll primarily look at two numbers.  

The annualized cash on cash like @Michael Roy described and IRR which takes into account your time value of money-- ie., $40 in your pocket today which could be reinvested, etc. has more value than $40 in your pocket 6 months from now.

We'll target 12-20% IRRs depending on the asset class and risk profile.

Hope that helps!

I do think there are deals to be found on loopnet though, the majority are overpriced.  I user it more (especially as I got started) as an entry way into conversations with brokers, to build those relationships 

@Chris Wood I'm bias but, am a big fan of coaches and mentors.  Three years ago I paid a lot for a year of coaching.  Right now, I'm closing on my 4th multifamily deal, a 70 unit syndicated deal where I've raised the equity and the acquisition fee is $60,000 plus asset management fees, and share of cash flows.  So, it obviously paid for itself.  I can say without a doubt that I would not be in a position to do what I am doing without that instruction/ coaching.  

I 100% agree with Ned that there are a lot of people out there that will take your money and not be worth it and screening is often easier said than done.  Do your diligence before jumping into anything.

I don't see coaching as a necessity but, I do see it as an accelerated and a backstop to catch costly mistakes.  

*Disclaimer that I do now work for a coaching company (though I bring a unique perspective having seen both sides of the coin)

Best of luck with whatever you decide.

I like Powerhouse Principles by Jorge Perez.  It isn't very technical but, a good book nonetheless. 

@Jamie Garcia, I think that your best argument is the economies of scale argument and @Gregory H. makes great points.  If you and/or your dad are self managing to any extent there is a pretty significant advantage to being able to utilize professional property management in the multifamily space as you scale...allowing you two to focus more on asset management, acquisitions, and less on the day to day.  

Chances are if it is on loopnet it is ;)

That said, there are definitely opportunities to negotiate off of the asking price on loopnet.  I think there are good alternative ways to find apartment deals.  For me, at this point, building strong relationships with brokers have been my best competitive advantage to source properties.

Welcome @Charlie Palmeri.  From Bellmore, right next door.  I'm a multifamily investor and also focus on the longer term buy and hold strategy.  I agree, that strategy can be tough local to us.  That said, there is definitely opportunity outside LI.  Definitely take your time building up the knowledge base before jumping in.  Best of luck and always up for talking apartments if you'd like.

Hey Dennis,

Also live in LB.  We host a monthly meet up, specifically around multifamily real estate investing.  It is free for first timers:

http://www.meetup.com/Long-Island-Multifamily-Investor-Group-Get-Involved/events/220414897/

**Disclaimer that I work for the company that hosts the event.

All the best,

Josh