All Forum Posts by: Jason Stubblefield

@Crystal Wilson Good question. I think a lot of people are experiencing this with the high property values. What I recommend is to really think about your future. Where you want to be 5 to 10 years from now. After you become clear on that I would then take the money to pursue that avenue as aggressively as possible. Maybe you invest in some sort of training, but you make your next move the best move. Doing that will allow you to put yourself on a trajectory towards your ultimate goal instead of just making a decision because you have the money right now. Hopefully that helps.

@Logan Pourbaix it seems like you could be looking at low-income housing tax credit properties. These properties get a large sum of the equity from institutions. They may not necessarily be section 8, but there will be rent restrictions on them. From what I know this can be a very lucrative win-win for the tenants and for the community if done properly. Hopefully this helps.

@Ignacio Linares I think you have nailed the major factors to look for in a market. We are exiting a property in Kentucky because even though it has historically been a landlord-friendly state they are very close to the line. There have been eviction moratoriums upheld, higher taxes, and a overall feeling that the government wants to increase their tax revenue through landlords. I will look at some of those issues before investing there. I own in Tennessee as well and it is landlord friendly as well as Georgia. Hope this helps.

I think @Robbie Young was most accurate when it comes to your question about speed.  You can make purchases faster with single family but you'll grow wealth quicker with multifamily. The reason is that you you have much more growth opportunities.  Making a $1M from a single family flip is almost unheard of yet it isn't that unreasonable at all with multifamily.  The reason is that properties are evaluated on income approach.  24% growth in single family means the market just has to appreciate by that much.  24 % growth in multifamily means you increased income by 24% over 1 year which is easier to do. Example if a property makes 100,000 per year, 20% growth is an additional $24,000 per year.  However, you have 12 months to do that so... $24000/12 = 2000 per month.  Now divide this by however many units and you see that this sort of growth is very reasonable. With a 20 unit property this would be a $100 per month increase and there you have it. 
@Robbie Young

We are a multifamily acquisition team looking to add an underwriter to our team. We are looking for an experienced underwriter who can turn marketing packages, T12, and rent roll data into a proforma that lets us know how much we could potentially pay for any given acquisition. We have a current model that does this and our ideal client will be able to understand this model as well as improve upon it or use their own. Candidates should also be able to verify rental comparisons through market data. Experience with purchases in TN, AL, GA, and KY is a plus. Please email your credentials to [email protected].

Write-Up - Chris has been actively investing in real estate since 2012 and owns a real estate investment portfolio of more than $1.5 million. Chris has experience as a business owner, turnkey, and multifamily investor. Chris will share his knowledge as a passive investor in single family and multifamily real estate. Not all passive investments are created equal and in this meetup Chris will highlight some very big differences that you may now be aware of.

If passive income is your goal then this is where you want to be. Our meetups focus on learning everything about the numerous benefits of apartment investing. There are no sales pitches. Our primary focus is on multifamily investing and generating long term wealth. If you are an apartment investor or thinking of becoming one then this is the group for you.

www.snscapitalpartners.com
Format
1) Room Introductions
2) Monthly Multifamily Topic Discussion
3) Need and Wants - Tell the room of anything you may be in need of
4) Post meeting networking at Mod Pizza

Here are some of the topics that We'll discuss
Why Multifamily
How to Analyze a Multifamily Deal
Case Studies
Where to Find Apartment Deals
Making Offers
Qualifying for a Multifamily Loan
Financial - Due Diligence
Physical - Due Diligence
Raising Private Money
Passively Investing

www.snscapitalpartners.com

If you made the request to a broker then they should have this information readily accessible to you. If you are direct to owner it may take a little bit longer. Any serious MF owner should know that a rent roll and T12 are essential documents for a sell. However, if you're working with a self managed property owner then anything goes.

As mentioned above I think giving away an equity stake in the deal is the best way to go. If it is truly a deal someone should be happy to earn a return on their 50k.  If you have a good relationship with the owner, maybe he/she would be willing get creative with giving him the 50k.  Maybe you put down 25k and finance the rest.  You could also offer to pay higher interest on the seller financing for less money down. 

I agree with everything mentioned above. The lender will value the property based on T3 income over normalized expenses. If you are looking to BRRR the property then you will need to create a proforma where you project future income and expenses to determine your future value. A good property manager in the area should be able to assist you with determining expense ratios as well as future rent growth.

I would talk to a local property manager who may be interested in managing this asset for you.  They should be able to give you a clear picture of what the rents could be as well as expenses for similar units.  I'd expect to get a deep discount on the property for assuming the risk.