All Forum Posts by: Max Lichtenstein

Quote from @Max Lichtenstein:

Hi BP community,

I am looking to purchase a multifamily two unit apartment by next summer. I have contacted a couple agents in the location and explained my story/ where I am at. Do they underwrite a property for you?

Underwriting is something I understand the basis of but not much after that. I would like to learn much more if anyone could provide some information, would be much appreciated.

Max,

underwriting is a process that’s typically done internally by each investment group, and good brokers/agents will perform a preliminary underwriting for you as well (although typically their numbers are known to be inaccurate). You’re not going to find agents that will typically offer to perform UW work for you on the size of deal you mentioned, but they will for larger properties.

if you’re interested in learning underwriting, I would recommend downloading some pro forma excel models to get a better idea of how they work. There are also certificate courses through universities and private groups (such as adventuresincre.com). 

Ultimately, I think it’s unwise to buy any property without performing some kind of financial analysis of the property and your business plan to operate the property. It would be best to dive in and learn it to avoid potentially getting ‘burned’ by what you don’t know.

Feel free to DM me to chat!

Quote from @Obed Calixte:

Just wondering - have you played with the Biggerpockets calculators as of yet? Or are you looking for something further.

 I agree with Obed. Use the BP calcs and the only thing you need to change is the rental income. You can also follow Rentalstowealth on Instagram. They are habitual househackers and routinely post videos on how they run their numbers. Great content and info!

Just wondering - have you played with the Biggerpockets calculators as of yet? Or are you looking for something further.

@Max Lichtenstein

Here are ways to find off market deals.

1. GO DIRECTLY TO THE AGENTS

Just because a real estate agent hasn’t publicly marketed a home yet, doesn’t mean they don’t have hot leads for you. People may discuss selling their home with an agent before it’s time to put up a “for sale” sign. If an agent can make a sale without putting any marketing work into it, they’ll likely be happy to oblige.

Compile a list of local agents and start making some calls. Be specific in what you’re looking for, and they may have the perfect match for you.

2. RENTALS BY OWNERS

Landlords likely don’t want to be landlords forever. So when you see a “for rent” sign, don’t ignore it. This could be the perfect timing to convince a property owner it’s time to collect their final check for the house.

The key to this tactic is finding a landlord in the right spot. This is by no means a 100% guarantee, and you’ll hear many rejections. But contact enough owners of rental properties, and you may find a yes.

3. MAKE IT PUBLIC THAT YOU’RE LOOKING

Just because a seller is being discreet doesn’t mean you need to. Let the sellers come to you. Put up signs, social media posts, and listings. Specify what you’re looking for so you don’t have to wade through useless replies. But letting people know you’re interested may be enough to get a homeowner to go from considering selling to sealing the deal.

4. ESTATE SALES

When someone passes, their family often ends up with the home. At a real estate sale, so soon after a loved one’s passing, family members may have the intention of selling but haven’t started any marketing yet. If you come in the right offer, you could walk away from an estate sale with much more than just some new decor.

5. ONLINE PRIVATE LISTINGS

If homeowners are looking to sell without a real estate agent, they’re likely on social media. Check out common places online for buying and selling, like Craigslist or Facebook Marketplace. There, you may find people who are casually looking for buyers while you avoid stiff competition.

6. PUBLIC RECORDS

When homeowners can no longer make their mortgage payments, they foreclose on their homes.

Public records will reveal if a home is in the pre-foreclosure stage. Before a home goes to auction, you can swoop in and buy the house. Check for pre-foreclosures, and see if someone is ready to release the burden of their mortgage and give you a great deal on a home.

7. WORK WITH A PROFESSIONAL

Wholesalers are people who contract with sellers of distressed properties and find buyers for quick cash. While this doesn’t cut out the middleman completely, you can find excellent investment opportunities for flipping houses at a much better price than you’ll find on public real estate markets.

All the best!

Quote from @Max Lichtenstein:

I am a new investor and looking for an off market/ Market multifamily deal in the Greater Boston area. My reason for the post is I am having trouble find deals whether it be Market or off Market. Where do you suggest starting at to find an Off Market investment?

Thank you

Hi Max! That is very exciting! I highly second @Kwame Amoako and recommend starting with a off market direct to seller campaign to generate some leads. There are multiple ways to do this, I personally have sent out direct mail in a few different fashions, and cold called as well. I am going to start another campaign in the very near future once one of my units is filled again to look for the next project. I would be happy to jump on a call and share my resources/techniques I have used in the past to get you started :) Send me a message! 

If you have the extra time, I recommend spending some time calling owners around your area. That is how you are going to get the best deal. If not, find an investor-friendly realtor who owns and has bought off-market properties themself.