All Forum Posts by: Norman Berman

Hey folks,

I'm in contract on a property, and asked three lenders for quotes. One of them came in at 3%, way lower than the others.

Winner, right?

But, what's the right way to break the news to the other two lenders so that they'd be willing to consider me for future opportunities?

Or, what's the right way to ask them if they wanna get more competitive?

Thanks!

Hey folks,

New investor here. I'm researching multi-family buy-and-hold markets in the Great Lakes region.

I've noticed that Great Lakes cities rarely end up on the current "next big thing" lists. Grand Rapids seems to be the only one, and that was a few years ago so I suspect I'm late to that investment party.

I see Buffalo and Detroit mentioned a bit, but those cities seem to have serious systemic problems they haven't licked yet.

Where would you suggest looking right now?

Hey folks,

What are your thoughts for how the multi-family market will respond to the election?

Since Washington D.C. has stalled a further stimulus bill, layoffs and unemployment filings are continuing apace.

The housing market has been strong in many areas, due to earlier stimulus efforts, low interest rates, and flight from densely-populated areas of cities. Where I live in NorCal, the suburbs are booming, the cities are declining.

So what do you think will happen next in the multifamily market after the election? Is Q4 the time to invest, or wait till Q1/Q2?

Please no political arguments. Let's keep this on the data. Links to specific reports, analysis, and data would be helpful.

Thanks to all who responded. It's good to hear different perspectives.

Let's change the scenario a bit:

Let's assume all of the properties in question cash-flow at the same CoC return.

Does that change your opinion?

Hi folks,

New investor here, researching out-of-state multifamily for a buy-and-hold strategy.

I have enough starting cash that I have a choice:

I can buy 1 property that is larger, has more units or bedrooms, is in an A or B quality neighborhood, is in better condition, and is in a city or neighborhood where values are currently appreciating.

Or, I can buy 2 or 3 properties that are smaller, B or C neighborhoods, might need more rehab, and are located in a city or neighborhood where the market is more stagnant.

How do I weigh this decision?

Thanks!

Hi folks,

I'm researching out of state multifamily investing for a buy-and-hold strategy.

Is there a general minimum number of years you plan to hold a property before considering selling? Let's assume a market that's not appreciating wildly.

Thanks!

Hi folks,

I'm registering a new LLC with which to invest in new properties. My estate will be the 100% sole owner.

Currently, my investment capital is sitting in my personal accounts.

In order for the LLC to purchase and hold title, does the capital need to season first in the LLC's bank account? That would suck, because it'll put the brakes on my ability to find a property for a few months.

Thanks!

Hi folks,

I'm evaluating regions for OOS multi-family buy and hold.

I understand price to rent (P2R) ratio is a useful metric. However, the sources I've found say that a middle-of-the-road P2R -- around 15-20 -- is ideal.

This doesn't make sense to me. Wouldn't you want the lowest P2R you can find?

Hi folks,

Working on getting my holding LLC off the ground. I'm going to set up my LLC in Wyoming (even though I live in California and properties will be located in other states, Wyoming has very favorable LLC laws).

Is this something I need an attorney for? Fees are steep.

Thanks!

Hi folks,

I'm researching out-of-state multi-family properties for a buy-and-hold strategy. I plan to leverage my investments.

Since I'm planning to invest out of state, does it matter where my lender is located? Should they be:

• In the state where my properties are?
• In the state where my LLC is filed?
• In my home state?

Thanks!