All Forum Posts by: Quinn Konitshek

@Michael Williams Multi-family lending is deal specific, so lenders would be able to help you even more when you have a deal to talk about. I would do both simultaneously and work towards finding the right property and the right lending partner. It will take time to find a good deal and when you do, you want to act fast. 

@Snehann Kapnadak I use RedIQ and I love it. I couldn't imagine underwriting a deal without a program like that. I haven't used Enodo, but I'm sure they're pretty similar. RedIQ is great for rent-rolls, which is what I use it for. 

@Lance Neighbors

In addition to what everyone said above, I would add two things:

1) Get creative: Everyone looks at Loopnet and Zillow, while at the same time everyone is not a millionaire real estate investor. Creativity, problem solving, and ingenuity will lead to great wealth and success in real estate.

2) Relationships: Real Estate is still a very old-fashioned industry in some way. A lot of great deals are never seen on the MLS/Loopnet, etc. and are driven by the relationships with brokers. You need to build these relationships, and I would include other real estate professionals such as lenders, accountants, lawyers, etc., who could potentially share with you an opportunity they know of. Make a note to grab lunch with a broker frequently and I'm sure your inbox will start to fill up.

@Tanner Vandevere 

Yes I work in Private Equity Real Estate. Feel free to PM me. 

@Manmath D. 

There's a few buckets of money to think about with financing apartments:

Agency (Fannie/Freddie): This is going to be your lowest rates and best terms (Starting in the low 3% on the deal size you're looking at) but the hardest for the property and the sponsor to qualify for in most cases. They look to finance properties that are stabilized and sponsors with a net worth of the loan amount and good liquidity. 

Bank (Credit Unions - Large Banks) This could be from your local credit union or the Well Fargo's of the world. The rates will be slightly higher than agency debt, but they can close faster and may have less stringent requirements. For someone starting out, this would be your best case scenario. Agency debt is usually reserved for people who have a deal or two under their belts.

Debt Fund - This is private money that offer the most flexible terms and have the fastest closings. This is an excellent source for deals that don't meet the bank's requirements, the property needs some rehab, you need to close quickly, etc. This isn't to be confused with hard money, but their rates are definitely more than a bank.

Overall you'd want to shoot for the best, cheapest money with the best terms, and if you get told no go to next in line so you can get a deal done. Once you build a track record you can play in the cheap debt world and continue to grow your portfolio and investor base. 

@Zaid Bender Both have their advantage, however the best terms/rates are going to be agency debt hands down. On the very large apartment deals right now you can get financed in the 2.85% range fixed. Banks cannot get nearly as low (Starting at high 3-4%), however they will be able to close faster and possibly be less stringent on the borrower. 

Agency debt wants the borrower to have a net worth of at least the loan amount and sufficient liquidity. Banks could do a deal with less liquidity requirements, less net worth, etc.  

Agency looks for the property to be stabilized, so if it's a value-add deal you're looking at a bank or even debt fund if it is more opportunistic. 

Questions you should be asking: What is my strategy? Am I a long term holder? Is this a stabilized asset? What does my personal financial statement look like? 
 

@Jonathan Mueller I'd say it's a great time if you're prudent and buying cash flowing assets. There will be some buying opportunities from now through the end of the year, and multi-family hasn't been hit as hard as other asset classes during Covid. 

I would suggest looking at Florida from a landlord friendly state perspective, in case you do have tenant trouble from a continued downturn. It's also an excellent state from a supply, demand, and future market condition standpoint. 

Interest rates are very low, and lending has been picking back up after a slight pause during Q1.

@Izaak Ruiz The Woodlands is a great area and has everything you will ever need but it more geared towards families. The Heights and Midtown will offer more of a nightlife and ability to connect/network with people your age. It is a tough drive to do everyday for work, so I would recommend to look at yourself and what you want to do when you're not working or investing in real estate. 

You don't have to live in either to invest in Houston, as there are so many markets within a decent drive away that you will want to look at. 

@Jesse McMullen  There are a ton. What asset class and strategy are you looking to achieve?

@Bernice Hampton I would drive down the I-45 a little and invest in Texas. More supply and growth!