All Forum Posts by: Justin Elliott

@Leigh S.

That’s a bummer! What about selling it?

@Mitchell Toney

Hi @Mitchell Toney

I don’t know of any websites but I’ll be following this thread to see if anyone has that info. My go to move for this is to establish a relationship with a property manager that can give you all of the expenses for a similar property. So if you are underwriting a 70s vintage 80 unit property they can give you their P&L for that same asset type that they manage ideally in close proximity which could also help you with rent comps. Hope that helps.

@Jonathan Mueller

It’s always a good time if the numbers work. Just make sure to adjust your underwriting according to the times. We are underwriting 15% physical vacancy in markets that have 4%. And 5% bad debt where the standard has been .5%. We are being very conservative on exit cap rates and reserves.

@Jeff Copeland

Agreed although sometimes 4plex owners don't that a T12 readily available. It would be great to know rents and what all his monthly expenses are and what significant capital expenditures need to be done. As a general rule if you can get a purchase price that follows the 2% rule your golden. But make sure to find out as much info as you possibly can on expenses so you don't have any surprises. Asking for bank statements isn't out of the question.

@Jason Ma

I always rely very heavily on the property manager that I’m going to use to tell me if certain rents are attainable. Keep in mind that they will want to give you a conservative number that they know they can hit. Get a second and third opinion from other property managers as well. Good luck!!

I agree with @Rick Martin. You could buy a $400k 2-4 unit. Put $50k down and use the other $50k to rehab. Or partner up to get something larger. Perhaps with someone that really knows a market and has had some experience.

@Nate Morris

Multi South is a PM to consider. Reach out to Brian Hey.

@Michael B.

Hi Michael. I think the two biggest ways you can bring value to a sponsor and potentially be a part of their GP would be finding the deal and/or finding the money.

I would get to know every GP by going to their website and signing up to get to know them. Then ask what their deal criteria is. Then go dig under some rocks and find that deal. Learn how to underwrite so you know it meets their specific returns.

The other option is to raise money and get your friends and family interested in investing. Get some knowledge in investor relations so you can handle that role for the GP team.

Good Luck!

@Kal Seirafi

Hi Kal

When I first started reaching out to brokers outside of my hometown I hired a VA to go on to Loopnet and put all of the info from the Multifamily listing brokers into an excel spreadsheet with email phone and website. I also had the VA research the top 10 or so property management companies in town. It gave me a good list to start cold calling brokers. I let brokers know I had just done a cash out refi and that I had certain specific criteria. But I would recommend reaching out to the property managers first. Let them know what you're looking for and which brokers you should be talking to. Then call the broker saying you were referred from the property manager. It will help build a bit of credibility with the broker. Hope that is helpful!

Justin

@Brian Geiger

I’m seeing 70-80% for LPs In almost every deal I look at.