All Forum Posts by: Lauren Sanders

Yeah I think they probably would want some amount down, I was going to find a partner to come in with the cash if I end up going that route. I might try calling some companies tomorrow and I'll let you know how it goes although I'm in Florida it could still be useful info.  

I’d really appreciate you sharing! Thanks!

Maybe talk to some construction companies about building a multifamily? I'm thinking of doing that myself because they are so hard to find. 

I come on this site to be helpful, and not argumentative, but I think your position is a bit -- hmmm...  'rough'

I've seen "buyers" come and go over the 14 years I've been buying.  They wanted 10 caps when the market was at 8.  Now all those properties that were 'too expensive' and 'not a deal' have doubled.   Now they all want 6 caps when the market is a 4 (obviously roughly speaking).  And most of them never bought a thing.

So yeah, hold to your guns.  Say "I REFUSE TO BUY UNLESS I CAN GET SOMETHING 70% UNDER MARKET!".  And then see yourself 10 years later with zero properties and posting on BP all day about how there are no deals.

In the last 3 years I've done almost $50m in purchases.  Some of the best deals I've got.  Yeah, they're not as cheap as they were a few years ago. So in that regard they look "pricy".  But on the flip side my borrowing costs are dirt and you can still find deals that throw off good cash flow. 

So OP:  Remember when you're trying to buy a 1-4 family, you'll always be competing with home buyers that don't give a rip about the 'financials' as an income property -- because they just want something to live in.  AND you'll be competing with people looking at those same properties for investments that may not care about as high of a return (i.e., a doctor with $1m in the bank making .5% will be happy to buy a $500k house in cash that throws off 4%.   Thus, you'll always struggle to find deals. 

It's a bit easier in 5+ unit land so if you can get here, the water is still warm.  

It's a tough market for buyers but if you want your offer accepted today, you have to get more aggressive. Go back to the 10+ offers that you lost on. What was the final closing price? What was your offer? You have lots of data that can help structure a better offer. If your price is too low then get more aggressive on price. Price of your offer higher, structure better terms. 

Once you have this information you can make a more competitive offer. Ask your agent what you can do to make it more competitive? There is difference between putting 10 offers that are competitive and 10 offers that never had a chance. Good Luck 

House hacking right now is tricky as an investor, depending on how you're running your numbers. Some house hackers are looking to cash flow WHILE living there, and that just isnt possible for most deals.

Make sure you're making offers based on fully occupied with paying tenants.

FHA is also the weakest offer you can make, so I would focus on making conventional offers to increase your chances.

Id be happy to review your strategy in depth, if that would be helpful. Feel free to reach out.

@Lauren Sanders

It is pretty tough out there right now. You are definitely not the only person going through this pain.

Keep on grinding and you will find a great property.

Stay true to the numbers. If you come across a property that you could afford overpaying, go for it. Just like fine wine, good properties mature with time and numbers get better. What might not look like the best deal right now, could certainly look like one a year or two from now.

Don’t get discouraged.

Good luck!

A conventional mortgage for a multifamily with zero down? I haven't heard of that one before. Just because they will give it to you doesn't mean it's a good idea. E.g. the 2009 housing crisis.

Just keep making offers...I say it takes 100 No's for that 1 Yes.

MAKE OFFERS AND DO NOT STOP OR GET DISCOURAGED!

It's an insane market and a lot of it is just a numbers game. Lots of offers, patience and what you're doing. If you look at a property that is in good condition, you might want to consider waving that inspection period. When buying a home myself, agents basically told me that was a must. You can still go in afterwards (or at least should be able to, you'd have to ask the agent but they should allow it) to put together a scope of work. If it's much worse than anticipated, then walk from the EMD. Cost of doing business in a market like this unfortunately. (So make sure to walk the property very thoroughly before offering.)

As for other tips to get your offer accepted you could offer a downpayment for your FHA loan or you could use a conventional loan to make your loan type more appealing. Have you considered that your niche may be too saturated for the area and you may wish to house hack in a different way? Also, is the area worth paying extra for as it's likely to appreciate? That being said if multifamily is what you really want to pursue just keep analyzing deals and don't give up. The right property will come to you and you'll be ready to snatch it up.