All Forum Posts by: Robert Rixer

It would be hard for anyone on here to speculate with any degree of certainty. However I will say financing 95% at today's high interest rates with 33% of the units not generating income sounds like a tough hurdle to overcome in this market, even if you're pulling in strong W2 income.

Go with your gut. If it doesn't feel right, trust your judgement and move on.

These higher rates need to stick around for longer, for the health of the market and the overall economy. The longer they stay high, the more investors who thought it was a good idea to buy 3% cap buildings on cheap debt a few years ago are going to get bled out. And hopefully that means more deals  for the sound investor out there.

Unfortunately I consider myself somewhat of an expert/victim in this area. I've tried locks, cages, cameras. Nothing will cure it 100% as many of the offenders will just leave trash next to the dumpster as others have pointed out. These people just don't care.

Best success I've had is shifting the location of the dumpster to be out of sight as possible. Not possible with all properties and of course it still has to be accessible for collection.

Ignore list price, offer what you would pay for it. Worst case your offer gets rejected and you've lost nothing. Many sellers asking ridiculously high prices to see who will bite. If your offer is fixed to a list price you're going to overpay. I've seen an offer in the past week alone for 50% of list price so 10-15% below is nothing. A building is worth what the market is willing to pay for it - you are the market.

Yes to increasing rents, value-add and appreciating markets as others have mentioned. But most of all I've seen a lot of buyers purchasing on the speculation that interest rates will come down in 2024 (as the Fed have suggested). Paying 6% interest today on a 5% cap property can make sense if you think rates will be back in the 3's and 4's in 6 months.

This is a tough one, would definitely recommend to consult an attorney. As for HOA's in general, the risks are you don't have controlling vote with 40 out of 220. Special assessments are always a risk especially with owning a large number of units. My experience with HOA's is that most of them are largely inefficient in controlling expenses and managing capex.

I would only touch condos if you were getting an absolute screamer of a deal - versus buying an entire multifamily building.

I'm no lender but from my experience scaling as an investor, the lower the purchase price/number of units, the more emphasis is put on the income of the borrower. As you start to make more and larger acquisitions, more emphasis is put on the property financials and your experience as an operator. The catch is the lenders typically won't let you go from a 4-unit to a 100-unit, so you have to build up gradually.

The situation sounds like a planned re-trade. Win the bid by coming in high then figure out a way to get the price reduced..

Stay away from these mentorship programs!