All Forum Posts by: Matt Teegarden

Good evening,

I am searching for multifamily opportunities in Alamogordo, NM near Holloman AFB. If you have anyone you have worked with in the past or heard good things about, I'd appreciate the referral! 

Thanks in advance!!

@Megan Moody

Repairs, maintenance, contract services, utilities, advertising, PM (and all encompassed fees associated), insurance, tax, payroll.

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@Evan Polaski

Thanks for the reply!

There's definitely something to be said about the fact that there's "all this money to be made" and the seller isn't making it...The value add a portion of this is making a bit more sense the longer I look at it. For clarification, the rents are at an average of $910 currently, and they're projecting $1,300 within a few years.

Probably not a deal I'd jump into as a new guy but it's interesting to see where these numbers are coming from at the least. 

@Ethan Wagner

Go to the "Due Diligence" tab and check those numbers. 

@Ethan Wagner

There's a PDF with everything laid out. That's why this is so confusing! They have the ProForma that says one thing, then the PDF with the "actual" numbers that say something else. 

@Ethan Wagner

Oooh, I think I see what I was missing. As you said, since it is a value add, increasing the rent up to market would increase the NOI (and consequently the ROI and CAP Rate) substantially.

I'll have to play with these numbers a bit more before they make sense to me I think.

I appreciate your response!

@Ethan Wagner

Thanks for the reply! 

I still don't see how I, a brand new investor, could make an offer on this property without getting my email immediately deleted. (I know that's more of a personal problem...)

Any suggestions?

Hello BP!

I'm running numbers to get some practice and I came across a property on Crexi that just doesn't add up for me.

I'll lay out the numbers if anyone would care to chime in, maybe I'm just missing something. There is a lot of info not listed so I did my best with the calculations and assumptions:

- Multifamily Apartment - Value Add - 32 units

- Total income / year = $256,264.97

- Total Expenses / year = $234,781.81

- NOI = $21,483.16

- Average rent in area per rent roll & rentcafe = $1,200 / unit so $460,800 / year (which is different than what is shown on ProForma)

Anyway, I go to use the valuation calculator on Crexi and the first number that makes sense for a purchase price is $500,000 (super low for a 32 unit complex). When I enter $500,000 for purchase price with 30% down ($150,000) it still spits out these super low numbers at me (4.3% CAP, 1.75% ROI, $2,623.12 Annual Cash Flow).

Would anyone please help me make sense of this?

Here is the link to the listing (maybe someone will find this an awesome deal).

https://www.crexi.com/properti...

Thanks in advance!

Zinyor,

Happy to hear you're ready to make the leap. As a fellow newbie, I can tell you that some of my friends and family have a lot more cash sitting around than I would've ever thought. It's just a matter of asking a lot of people the right questions and structuring the deal in a way that is appealing. That being said, it shouldn't be too difficult to offer someone better returns than they are currently making in a savings or checking account.

There's a book by Matt Faircloth called "Raising Private Capital". Definitely worth a read! (link below)

https://www.amazon.com/gp/prod...

Best Regards,

Matt Teegarden

Good morning BP!

I am interested in hearing about your first few pitches to investors. Finding funding as a newbie is tough and I'd appreciate any/all experiences you're willing to share, good and bad.

Thanks in advance,

Matt Teegarden

WOW, thanks everyone for the warm welcome and words of encouragement! 

Like I said before, we're really just awaiting our stateside assignment before we pull the trigger at this point. @Greg Parker, I'll definitely reach out to Mr. Carey if we get picked up over at Maxwell. I'll start doing some research of my own until then!

@Chris Levarek I have listened to David Pere's podcast a few times but since it's been recommended by some many, I'll take a deeper dive into his company and see what they have to offer! I've heard so many good things about "War Room" but never put the 2 together. I will keep you and your family business in mind when we decide to move of the commercial MF! Thanks again!

@Rich Carey I'll check out your platforms for sure (minus TikTok, not my thing). That's so awesome to hear about your flips while stationed over here, very inspiring. Like I mentioned above, if we get pulled to Maxwell, I will reach out for sure! Please also feel free to reach out between now and February if you need some of the delicious Japanese treats sent your way!

@Doug Spence that is a really solid piece of advice! Something I've consistently struggle with growing up was sticking to the long term plan because it seems like there is always a new variable in the short term. I'll tell you the same thing I told my teachers in school; I still don't know what I want to be when I grow up... Nevertheless, I will take this advice and sit down to really try and see the future I want for my family. Additionally, I am inquiring on the War Room as we speak! I'd love to surround myself with like-minded individuals and your testament only makes it that much more appealing! Thanks again Sir, I will reach out if I have any questions.

Again, I truly appreciate all of the support.