All Forum Posts by: Nathan G.

@Joel Owens Thank you very much. I have friends in NNN who love it, and I'm very interested in retail/hospitality NNN in the future.

I definitely expect there to be competition everywhere. We've been successful getting multifamily deals by offering aggressive closing terms in our offers, and a reliable reputation with brokers.

I've just had it up to my head with the rent regulations in California and need to head into a new value-add commercial asset class that we can at least move some of the way up the learning curve with our residential experience and team.

Thank you @Scott Meyers, @Jeff Wallenius and @Taylor L. 

From a value add standpoint, massively forcing equity in a short amount of time, it really seems that Self Storage is the most conducive to that strategy.

Appreciate the insight here, and will continue to do my research, education and networking with a new groups of brokers, managers, contractors, etc!

Thanks @Barry Ruby @Jeff Wallenius @Greg Dickerson @Brant Garner for these great comments.

I think this is going to be an interesting conversation for many of us in California who've built a great value-add process with the plentiful MF assets that are ripe for turn-around here. 

Self Storage, Office and Retail is very interesting, Self Storage probably being the closest asset class to MF, but there are far fewer deals to be found compared to MF. 

I think the key will be A) locating deals, priced attractively, that have a clear and forecastable plan to increase NOI, B) attractive debt options, and C) the right contractor/vendor team that will probably be different than what we use for MF.

Thanks again for the insight, it's greatly appreciated.

I've had great success with both a 6-unit and 14-unit value-add multifamily deals in Long Beach, CA. 

With the continuing regulatory jungle of California, I'm looking to other commercial RE asset classes, in California, that are the next best transition for value-add investments. 

We invest with our own capital, no syndications. 

I'm interested to hear from anyone who has transitioned from multifamily to a new asset class, specifically for value add deals.

We like 1-3 year hold periods, in which we are at least doubling our equity invested in that time period. 

Thank you and looking forward to any thoughts!

@Amy J. Tsang congrats! What are you looking to acquire? Long Beach is a great market. I recently sold a 6 unit and closing on a 14 unit this week.

LA South REIA is a good one. Some nights are focused on local multifamily.

@Christopher L., there are bridge lenders that will lend up to 90% on 2-4 units, plus 70-100% of the rehab costs in Long Beach/Los Angeles. These are for value-add deals though, so the interest rates are 8.5% - 10%. 1-2 points origination. 

I've used a similar loan on a 6-unit in Long Beach, but it's only to turn it around and then refinance into conventional financing. 

Basically it allows you to get into a property for 15-25% of the ARV once you go through the rehab and refinance.

I own a new-construction Duplex in Bastrop. My experience has been a soft rental market for higher-end, large (3/2) units. I think smaller and more B or C class properties have more tenant demand in the area. 

Beyond the cash on cash return, I think it's also important to consider your overall return during the lifespan of the investment. 

Different investors have different goals with their capital. Some may just want a yield, and some may want capital growth, and others a blend of the two. 

My partner and I are focused on capital growth, and so the deals we're offering on have lower initial cash on cash returns, but immense upside potential from forced appreciation.

We were delivered an off-market deal by a broker in a very hot market near LA. We communicated laser-focused criteria and they were confident that we'd perform....and we were lucky enough to be meeting with the brokers a few days after Christmas when many other investors were on holiday.

I bought a dozed vacant land deals last year off-market, but find establishing a strong broker network better for multifamily.