All Forum Posts by: Rafael Esteves

How do you find locations to invest in? How much/what type/how much research do you do before you invest in a market?

@John Warren Thanks for the advice. I agree it's definetly a good idea to move up to commercial real estate at that point. From what I know, the interest rates for the loans on commercial properties are much higher than bank loans. How do people make money on these larger deals if the interest rates they pay are so much higher?

I am confused as to how you are able to keep buying buy and hold properties once you are past the point of bank financing. How can you produce profits when your financing options have interest rates that are much higher than those offered by banks?

Thanks!

Hey friends,

I am wondering how large syndicated properties make the profit they do. In deals supplemented by a bank loan, many investors look for a 10% return or more; however, this return is only possible because they are financing 80% of the property with a fixed low interest rate loan. 

In syndication deals, many LPs are guaranteed between a 5 and 10% return and the GPs are still able to make money. This means that on these large deals there would need to be a high return without utilizing any leverage. How is this possible? Is the markets for commercial properties just that profitable or am I misunderstanding something?

Thanks 

I was wondering how investors know when to properly analyze a deal? Which ones are worth it? Furthermore, how do you conduct a detailed analysis of a deal?

I was also wondering what my loans would look like given that I have no credit history. I will try to get a credit card soon but I am unsure how using a small credit card for a few months would affect interest rates and such.

Hey everyone! I am currently a freshman at college and have been learning about real estate. Specifically, I am interested in renting out multi family homes. I was wondering if it would be a bad idea for me to start investing now given that I literally have no saving and no income. I am aware that there are options for me to do so but I am worried about defaulting on my loans. Literally if I lose any money in any month I will default on my loans.

It might be worth noting that I am studying computer science at a pretty good school so I will probably make a decent amount of money when I graduate.