All Forum Posts by: Justin Goodin

 You bet, Justin! Support is what this community is all about. When I'm not chatting here I'm working overtime to arrange complimentary transportation to get you to court and should you have pending business there secure lodging near the courthouse with complimentary shuttle service on any court dates!

I'm thankful you decided to bring yourself to my attention.

Quite a snarky response from someone who has their hand out here for investor dollars, but cannot rise to comment on what deals they actually were or were not involved in, what their involvement was in the deals they claim to be involved in (including in this very thread) and what properties on their company's "portfolio" page are actually owned by that company. 

What we do know about you is that you and your firm claim credit for projects that appear to be the work of others. The project in THIS THREAD appears to be one of Kent Ritter's projects. I have reached out to Kent twice for his feedback on your involvement or lack thereof and he has provided none. You are unable to unwilling to clarify your role. 

I wonder if anyone has sent you money, what they received for that money, given that neither you nor your firm have any verifiable real estate investments to your credit. Perhaps a thread should be started for those "investors" to share their experiences.

@Justin Goodin My first investment property was a SFH. I bought at precisely the right time for cash and it cash flowed beautifully. I ended up refinancing it later and it is an average asset now but has appreciated like mad so turned out to be great!

I then started to focus on economies of scale and got into multis. I started with a duplex that I house hack and now primarily buy small commercial multis 5-15 units. These are big enough to make financial sense but aren’t out of my price range while I continue to grow. There are also properties of this size in my target markets which don’t really have properties that range in size from 15-50 units.

I will still buy SFH and 2-4 unit properties but prefer to be a little bigger in size.

@Justin Goodin

I will have to concur more with @Robert Rixer. The comparison is a bit misleading on the OP.

I started with SFRs and moved to multifamily. I will likely go back to SFRs if the opportunity is there. And back and forth again as needed. They are both have their merits and downfalls.

Here is the simple truth, it would take roughly the same amount of rentals, with a few exceptions. One multifamily building with 20 rental units should achieve roughly the same as 20 SFRs. I use that number because that would seem to be the bench mark for FI from W2 for many people, with basic life styles. Double that to 40, either SFRs or unit counts in multifamily, and it should cover most people's FI number for comfortable living standards. If those numbers do not fit FIs, then it is likely bad investing strategies or one has an unrealistic outlook on living standards.

The example takes into account to average cash flow of $200-300 per rental. At 20, that would equal to $4000-6000. At 40, that would equal $8000-12000. Those are some comfortable living standards for most people.

As for capex events, they are not too far off. Rental units within multifamily buildings with have individual A/Cs, heaters, and boilers. There are some exceptions on the boiler. Thus, these things go out and cost similar to SFRs.

In essence, when comparing the same number of rentals, regardless of type, would yield about the same fluctuations in rent. The advantages of SFRs is the quicker ability to partially liquidate. That advantage can translate into quicker growth or plugging holes during recessions by isolating and eliminating low performers or paying off higher grade individuals. That cannot be done with multifamily. The advantage of multifamily is the better control of valuation by the owner and the ease of operations since it's all localized.

There are much more nuances, but thats the most apparent.

Just my 0.02

As a real estate agent specializing in off-market properties and currently tasked with sourcing apartments for a prospective buyer, I'm seeking guidance on effective outreach strategies. What pertinent questions should I pose to property owners when initiating contact? Additionally, I aim to refine my approach to financial analysis by adopting a structured formula for calculating investment metrics tailored to my investors' needs. Any insights or advice you could offer in these areas would be invaluable. Thank you in advance for your assistance.

Hi,

I’m starting out to look for investment opportunities in real estate syndications. Some funds offer preferred equity and common equity in the capital stack. What are the pros and cons of each option and in what scenarios would you pick one over the other? 

Many thanks in advance for the discussion! 

Penny

I don't care to spend my time researching you. Yes, I have not purchased any real estate yet. I made one LP investment. Who cares? I am here to learn and network. I still find it odd you cannot state you own or do not own the properties listed on your profile? Are you afraid of misrepresenting yourself to investors who already gave you money? Its very strange you cannot anwer such a simple question. BTW, your post about single family vs. multi-family is as amateur as it gets. 

 What are you comparing this to?!?

A roof replacement or other large systems in a multi-family building is going to be very costly...

Not sure what the point of your post was.  Did you just discover multi-family investing?

@Justin Goodin

There are advantages and disadvantages to both which is why institutional investors are also buying single-family homes. Investors starting out or in new markets can benefit from the relative liquidity of a SFH. Easier to buy and sell as a stepping stone to buying more multifamily in the area. In the Reno, NV market there are better cap rates on single-family than multifamily because the the supply issue of multifamily. It really depends on the market, an investors goals, and their individual situation if an investors would switch to multifamily.