All Forum Posts by: Mike A.

Able to multiply properties faster so I can buy larger apartment buildings and complexes.  

Always looking for more info on these syndication deals.

Most is locked into the buildings as I bought them for cash during the correction. I would either have to sell them or get a mortgage. I've tried to get a LOC on them, but the banks I went to weren't too keen on giving me a LOC on any of them. I'd be able to gross profit off a sale from 20% - 60% per building should I sell. However, since most are in C areas, it's not been the easiest to sell. That's what I'm running into.

A class A property in Stamford or Greenwich would be 5m +. A bit too pricey for me right now. The net throw-off wouldn't be very good either. 4% ROI?

Was never a fan of partners.  Too many cooks in the kitchen.

 I've gotten rid of the properties which were yielding low or no return.  However, I just find it difficult to obtain the 2 million dollar properties + since I'm not really growing from the small ones.  They throw around 15k off a month net.  Now, to be honest, I did three rehabs last year, so that may be the issue, but only time will tell on that.  The portfolio should be throwing off closer to 30k net.

Working on it. The city is not being helpful, nor are the politicians. It's a good way for them to deter me from investing in the city again.

Not exactly sure what commercial syndication is.  Could you elaborate?  The smaller properties weren't exactly cheap, they're each worth about 120k - 150k each.  I bought them between 75k-90k and did some rehabs.  They throw off about 20%-25% gross, but with many of them, there's a lot of chasing with at least a third of the tenants. I liked that I didn't have to worry about a mortgage, as I do with my two complexes.  The complexes bring in more money because they are more units, but in a C area and the buildings are old and we're finding out the previous owner really didn't take care of them.  Roof issues, plumbing issues,etc.  All are headaches.  Should they be located in another part of town, they'd cost 5 times as much. I can sell them for a 22% return, but after repairs, I'll net around 75k.  So, in order to avoid the taxes and depreciation, I need to 1031 into another building.  It just seems growth is taking forever.

Always looking to improve my strategy.  PM sent.  Thank you for the offer!

Hey all, 

I've been in the real estate game for a good many years, and I will say I've learned more from my failures than my successes.  I originally started with 2 and 3 family homes, which I purchased with cash.  Then I purchased one rehab in a good area, but been fighting with the city government on approvals for the last year.  And I purchased so far one multi-family in a good area, which is doing fine.  The others are in C areas and I own them outright.  I tended to buy the small buildings because I can buy them for cash and not have to worry about a mortgage.  Since most of these tenants are, well, low income, section 8/dss or blue collar, we've had a few evictions over the year.  It's annoying enough having to evict and turn over the unit, but it's even more annoying and stressful if I had to also pay for a mortgage.  I am thinking maybe I should shoot for larger 1.25 million dollar properties or higher so I can take advantage of the Freddie Mac Small Balance Loan program.  I do not seem to be growing with this small units.  I believe it's partly because over the past two years I had to rehab two buildings completely and redo and rebuild a commercial space.  I am still fighting the city on a downtown building, which is taking forever to get approved (they approved the work, but not the materials if you can believe this).  I can sell the building vacant and unfinished, but since I dumped 200k into the building (after completions, the building will be worth over 600k. Paid 35k for it), I think these three buildings have been taking a lot of my profits to get them completed.  Two out of three are now complete, so things should be hopefully smoother.  However, me and my team seem to always have to run after a handful of tenants to pay their rent.

So, in terms of DRTL, should I look into slowly selling off these small buildings (I'd profit 30%+ on each) and look for more expensive ones so I can grow?  I just do not feel like I am growing anymore.