All Forum Posts by: Matt Prater

@Doug Smith. Appreciate the reply and intel. I have had a portfolio LOC on those properties through a community bank. Losing that buying power would be unfortunate

I recently came upon an opportunity to purchase an expanding healthcare business. In order to do so, I would have to sell 7 SFR I own outright. Hence, losing any leverage/future buying power with a LOC against those 7 properties. The jump from a real estate strategy to a business acquisition is a tough decision. Just hate to pass up at least considering in these tough deal finding times. Thoughts?

Is there a software or information bank you would like to see that currently does not exist and would aid in your real estate journey? 

@Drew Cheezum Yes sir! Appreciate it. I’m sure you know the feeling of strapping up and getting to work on a potential deal. Juices are flowing. Appreciate the advice

Thanks for replying @Drew Cheezum. Only one day in on this thing. Not contacted broker yet. Just getting thoughts on the deal/potential offer amount here on BP. I own 7 SF and 1 Duplex. Strictly interested in MF consisting of 8+ Units. This is the first potential deal I have gotten a hold of in 3 months of focusing all attention on Commercial MF. Just bending ears before moving forward. Slightly intimidating without a mentor/team

Thanks for the reply @Greg Scott. As an off market deal they only sent me rent roll for one month and a few monthly expenses (utilities, lawncare, etc.). They won't give any T12 intel or other expenses unless under contract. In this area, apartments aren't trading often at all. No agent has a clear idea on commercial MF cap rates. One says 5, other says 8, other guesses 10.

The NOI at asking price (3.3M) would be 175k/yr. At 50% expense rate, that makes 5-6% cap

NOI with rent bump would make 6-7% cap

NOI at $3M offer with rent bump = 8% cap

If $1M raised for purchase, closing, and renovation of non-renovated units, etc., COC after rent bump would be 22% (this seems high)

Super conservative COC with no rent bump still comes to 14%

Again, these are with minimum rent roll & expense info. Really looking for insight on how to proceed with an offer. Thanks again

Just got a bite on an off market 48 Unit Complex. Details:

- Built in 1986

- $780k in renovations since 2017 that include: new blacktop, all new roofs, new windows, new sidewalks, new landscaping, new on-site laundry, new boiler, and half of the units have been completely renovated.

- All Units are 2Bed/1Bath

- Rent ranges from $695 - $705

- Market - $720-$770

- Total Rent Received Last Month - $30k

- Total Potential Market Rent - Approx $36k

- Property Manager hinted owner might not take any less than $70k a door ($3.3M)

Thoughts on taking it to the next step?

Love to find a good meet up! I’m in KY & wouldn’t mind a drive or virtual

@Brian Fuerle Thanks for the reply! I have two potential apartment deals I am looking to get details on soon through an agent friend. Slightly intimidating as a first solo move, but that’s what its all about if the deal is right. Going to set all options on the table and make a decision I Imagine. Keep me posted on your progress! Good Luck Brother!

I inherited 8 properties. 6 rental properties, a lake cabin, & an abandoned industrial building zoned for business only (has studio apartment in great shape on top/2nd floor). All properties are paid off and all 6 rentals are rented. I have been self-managing & rehabbing, etc. I am itching to expand my portfolio and take this thing up a notch. I have not made any moves in terms of new purchases on my own as getting those properties in shape took time and $. I am now ready to get serious and grow. Have the abilities to flip. Getting financing lined out at the moment to see what kind of LOC can be achieved. Thoughts on next moves/purchase strategies, etc? Current cash value of all paid off properties is Approx. $400k. Thanks for reading