All Forum Posts by: Naaman Newbold

@Joel Owens Thanks for the response. Perhaps we're barking up the wrong tree. My understanding was that working with a commercial broker would help us source properties in the 10-20 unit range. Is there another mediator that works with those type of properties?

My wife and I are venturing into larger properties and are running into our first snag: we're having a tough time getting in touch with commercial brokers. Over the past 9 months, we have built a portfolio of 5 properties (11 doors) with our largest being a fourplex. We also have a few deals in the pipeline. The team of property managers and brokers we've built, however, does not have exposure to larger properties. We're looking for properties in the range of 10-25 units (as a basic filter, but not married to those numbers) and we're generally open to any area. We're based in SF and our properties are currently in WI, TX, and TN.

So far, we've tried using our team to find larger properties and reached out to brokers listed on specific loopnet listings. We also plan to meet with a mentor during the holidays to get some advice on approaches. Does anyone have any additional strategies for getting in touch with commercial brokers?

Thanks for any advice!

Thank you, @Kyle J. That's a great explanation. Assuming we can front the cash, is it typical to then refinance the property after it's been seasoned (presuming no pre-payment penalty)?

I forgot to mention, the deal is in the broader Nashville area in Hermitage.

We're looking at a deal with an assignment clause and it's the first time we've dealt with this clause. Overall the deal looks good, but our broker won't do a deal with an assignment clause because it raises "red flags". After talking through it with our broker, the red flags are really a measure left over from the 2008 bubble that prevent flippers from speculating on properties. The way I understand it, the wholesaler is arbitraging the market by getting into contract at a below market price, selling it for market value, use the mortgage company to cover the cost of acquisition and close simultaneously with us. According to our analysis, the price we're paying is still about 10% below market value. So, we can start looking for a bank that can get the deal financed, but it's unclear to me if there's some hidden concern over an assignment clause that we should model. I really appreciate your help. Thanks, Naaman

I have the exact same need for two duplexes on the same block.

@Ray Slack, I'm mainly trying to trust but verify the cap rates and other info our broker is telling us.

@Account Closed, thanks, that's pretty much what I was looking for.

Hi All,

We're taking a look at some deals in a new market and we're not familiar with typical numbers like cap rates in the area, appreciation forecasts, etc. Are there any resources out there for finding some baseline metrics to analyze deals in a new market? I've found a number of pricey reports produced by PWC and the like, but am looking for a lower barrier to entry.

We threw out some previous metrics we have on our current market (Milwaukee) and our property manager and broker thought we were nuts (past couple deals in Milwaukee were 7% cap rates).

Thanks for the help!

My name is Naaman. I'm a full-time programmer living in San Francisco, CA. My wife and I began investing in rental properties in April. We're focused on the Austin and Milwaukee markets as a means for generating cash flow. We currently have two properties and have three deals in contract.

I found out about bigger pockets from a friend that listens to the podcast (great show, btw). I signed up to connect with like-minded investors, share what we're learning, and get advice on new challenges we encounter.