All Forum Posts by: Steve Olson

Hi @Benoit Roddier, there are a few ways to do this (and I don't pretend to be an expert on all of them, or even KNOW all of them). But a few posters have told you to not ignore Loopnet and I agree with them.  There's a tired joke out there that Loopnet is where deals go to die.  But that doesn't mean there isn't anything good on there occasionally.  But more importantly, that's where you can find agents that are active in the multi family and commercial space.  Call them to talk about their opportunities and ask if they have anything else coming.  Stay in touch with them regularly so you're on the top of their mind.  I started marketing a new construction fourplex project in Houston recently and had a list of probably 15 agents and/or buyers I could go to.  But there were a handful of them that got the call first because they stayed on my radar.  It's not that I don't want to call or email everyone...it's just that there are so many hours in the day and you have to prioritize.  So call those agents on the Loopnet listings or wherever you see them and introduce yourself, learn about their listing, ask what else they have coming.  And repeat.  You're going to have to make good on one of them eventually so you don't develop a reputation as a time waster though.  

@Benoit Roddier all these posters have given you some great recommendations! I would say the most important tip is to network with the right agents and sellers (pick up the phone, send mailers...get their attention however you have to).  They get 90% of the deal flow and can let you know about opportunities before they hit the market. I sell multi family properties and right now they're mostly sold before I can even get them to those sites like Loopnet. That's because those buyers network with me and when I have an opportunity they are the first ones they think of. That's your job now: be the first investor that the heavy hitters think of when something comes available. Good luck!

@Account Closed nailed it. If you don't have the 20% plus closing costs, maybe gramps will cut you a deal. Just record that deed of trust and then do the refinance when you're able, or even better if it goes up in value and you end up with the needed equity spread! Good luck!

HI @Yuvaraj Vimawala you're definitely experiencing the fact that real estate has "low barriers to entry."  That means anybody can get in...even people who don't answer the phone.  

I list fourplex projects for a builder and right now I'm fortunate enough to have the problem that there are more buyers than there are fourplexes.  So listing agents, myself included, go with whoever is easiest to work with.  But when I'm deciding on that, persistence of the buyer pays off.  If somebody politely persists, I'll get back to them.  It's not that I don't want to get back to everybody...but there are just so many hours in the day!  Keep contacting them and staying in touch.  Worst thing that can happen is they eventually tell you why you're not getting the attention you want.  Then you at least have something to work with.  

Sounds good!  We're launching a few fourplex projects here in UT and in TX as well this week so I'm jammed up pretty good.  I'll PM you for a time next week...

Hi @Taylor Hansen, welcome to BP!  I'm an agent with RE/Max Equity here in downtown Provo.  I work exclusively with investors and focus mostly on multi family.  I'm sure our paths will cross at some point!  Welcome to Bigger Pockets!  You can learn 50x more here for free than most seminar companies will charge you $30,000 for!  Feel to reach out anytime you need assistance.  

@Account Closed.  He's the guy to talk to.  

@Cody L., I agree.  My point is that those kinds of deals aren't rolling off the turnkey conveyor belt.  They're more of a rare find.  But if you're coming across them all the time, then you and I need to tal asap :)

That sounds like an awesome one you got into!  I'm all for "buckets of cash."  

Hi @Liz C. thanks for the update!  I can understand wanting to get a cross country move in the rear view mirror before you really drill down on investments.  

Between now and August, I don't anticipate the market changing "too" much, but its certainly possible.  For example, a year ago, I was seeing rent to value ratios in decent neighborhoods at above 1% (like 1.1-1.4).  Now?  Unless you're in C class neighborhoods in places like Cleveland, Chicago, Memphis, Birmingham, etc, you're likely going to be at anywhere from .8% (that's for new construction or A class neighborhoods in growing markets) through 1.1% (more B class properties in the 80-110k range in places like Kansas City, Indy).  

Bottom line, if somebody is showing you a deal with a rent to value ratio in the mid 1% range...something's up.  If a deal can cashflow that well, why would a seller give all that money up?  

Anyways, this isn't intended to open a big can on what metrics to use when evaluating income property.  There's much more to it than a rent to value ratio, cap rate, cash on cash return, etc.  But when you're ready to chat in August, I'll be ready too!  Have a save and successful move!  

Just read through @Larry Frieds article.  It make some great points on the pros and cons of the three approaches.  I invest in all three options myself and think it's a good way to have a balanced portfolio (within real estate of course).