All Forum Posts by: Joshua Hill

Originally posted by @Hadar Orkibi:

Sounds like the 1% rule.  100k income 1mil rice.??

In saying that it's actually not that great for MFR.

2% is much better. 200k gross income $1mill purchase.

Because from the $200k income about 50%-40% off for OPEX.

Another way is to do a market research in the rents and notice of the current actual rents are bellow market.  10% or more bellow market can be a sign for good value add opportunity.

Multifamily is more complex to underwrit then houses but not rocket science.

Thanks for the reply. What tools do you use to find the current market value of rents?

I was watching a video on "100 percent financed" youtube channel and the guy mentioned one way to vet loads of deals (quickly) that are sent to him so he knows which ones to further analyze and which ones to let go of.  What he does is, he takes one percent of the selling price, and compares it to the monthly gross income of the property. If the gross monthly income is greater or equal to the one percent price, he knows to further analyze the deal.

I was browsing through loopnet trying it out, and its been mostly duds. Just wanted to see if anyone else was using this same method or knew of any other methods.

(Btw, just in case you're wondering, I'm just a potential multi-family investor at the moment trying to soak up knowledge)

Does anyone know how I can requests listings of properties that have closed code violations like uncut grass, ect..?

@Andrew Michael @Russell Brazil I often hear the BP crew say to travel at least an hour outside of where you are if the local markets aren't booming much. So since Im in Woodbridge I was also considering Fredricksburg to Richmond strip, Bowie/Annapolis area, and Warrenton/Gainsville area. Have you all had any luck in either of those part?

@John Underwood what parts of south carolina do you invest in?

Originally posted by @John Underwood:

@Joshua hill

My brother went to a tax deed sale in Virginia. He said people where paying retail prices at the sale he went to. There isn't any speculation as you are buying the tax deed on the spot. A tax lien state you are bidding on properties knowing that the large majority of properties will get redeemed and you will get a small percentage of properties.

Most wholesalers buy lists of addresses and send out a mass mailing trying to connect directly with a motivated seller before their property goes to a public auction or gets on MLS.

 For the most part that is true however, after reading a book called "The Deallionaire" by investor John Lee from Missouri (He was a guest on the Jennifer Hammond show), He talks about selling properties that he has bought  for less than $1000 using both conventional and unconventional means such as advertising a property via craigslist, social media marketing or selling through realtors and word of mouth.

I'm mainly looking to venture into North Carolina, South Carolina, Georgia, Texas and possible New Jersey for this.

I have heard both John Lee and Ankit Duggal (A guest on Bigger Pockets show) mention buying into tax deed/tax liens AFTER the main auctions by simply requesting a list of properties that were still unsold.  So I imagine that for a newbie like myself, I may have to build a strategy around that since the "big boys" are dominating at the auctions.

Hello, Im looking into starting my real estate investments in tax deeds amd wholesailing. Just wanted to see if anybody has any info on the  current climate of buying tax deeds?

My strategy would be to buy the properties, advertise them as is and sale them.

I would love to know how you all feel about making maybe 1/3 of your units more affordable than the rest especially in or around major cities where the cost of living is significantly higher(DMV, NYC, California ect). 1. Is this a good longterm strategy for Apartments? 2. Do you need HUDs permission to do this? 3. Will you consider slightly raising rents over time for that 1/3 of the unit or will the price stay the same?

Originally posted by @Chris Tracy:

@Joshua Hill- You have to develop relationships with brokers, then you can get the good stuff.  "Top notch" or "Good" is irrelevant.  Also, don't sleep on Loopnet... I know people who have bought solid deals from there... not many... but every once in a while you may find a gem on there.

Now if you were me, a potential real estate investor with no experience or prior connections to any brokers/agents, what would your pitch/script be as you begin to call up the first couple of brokers/agents to let you in on the first come first serve deals?

Hey guys, I've been watching a good number of Grant's videos on getting started on multifamily real estate and I've noticed he does a quick calculation when he's skimming over examples of deals. It deals with the  Buying price, around 25% down payment, the cap rate and all of a sudden he has an estimate of the Income that the property could bring in.  Does anyone know specifically how he does it or know of a similar calculation?

Also, do you all have any tips on finding good/top notch brokers that will give me access to looking at the prime deals and not the left over loopnet ones?