All Forum Posts by: Roshan K.

Just the MLS, I need a better marketing funnel.. things are SO competitive now.

 No! I stick to brokers. I've connected with you so we can stay connected about OKC! I'm curious how on market properties are going for you though! What rates of return have you been able to snag? 

@Dan Schweit my strategy is a bit different from @Roshan K. in that I don't play on market. There are too many pain points. I don't have the time to filter through everything on market, hopefully, beat the other investors, hopefully, make the just low enough offers and then get to inspections and way more work needs to be done than was disclosed and the seller, of course, is only doing as-is. And how are you supposed to do all that out of state!

I'm all about doing everything off market with a team that does everything for you. 

 Thanks Roshan, Kiera mentioned the area as well and you both have good numbers. I will dig deeper into the area and add it to my list. 

Hey All. Need advice on how, or where to find properties that actually have cash flow. Im in CA, and even though rents are high, they are not comparable to what a mortgage payment with 20% down costs. Now I know digging for deals and finding a really good one will help the numbers, but I still don't see it being a good cash on cash return. Are any of you investing in markets across the country that have attainable returns for your upfront cash?? I believe there are markets out there that produce returns of 5-10%, but im not sure where. Hoping the community can help point me in the right direction. 

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $500,000

Cash invested: $100,000

11 Unit Apartment Complex

What made you interested in investing in this type of deal?

I became interested in this deal because of the success had from two previous Multi-Family investments.

How did you find this deal and how did you negotiate it?

I found this deal by searching every single multi-family property through out the county assessor website. I then narrowed down a list of properties that would be within my purchase price range. I found the owner's address and went to their doorstep asking if they were interested in selling. At the time they were not interested but asked me to check in with them at a later date. A year later I wrote a handwritten letter and received a phone call stating that they were ready to sell.

How did you finance this deal?

Initially the seller wanted to sell the property through conventional means, but through my Biggerpockets education I was able to confidently explain property valuations and the benefits of owner financing. The owner agreed to a down payment less than the conventional financing requirement. I purchased this property at a 9.7% cap rate.

How did you add value to the deal?

I plan to reduce management, and landscaping expenses and raise rents to market rent. There is also a large storage unit on-site and I plan to rent that out as soon as the previous owner removes their personal belongings.

What was the outcome?

This is a new acquisition and the outcome is yet to be seen. I plan to refinance through conventional means once I have effectively raised the NOI.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Cheryl Lakey of Chicago Title has set up the financing documents. Strongly recommend.

@Roshan K.  While I don't believe my Realtor is an idiot, it does seem there are differing opinions on this.  I suppose it is market dependent.  

Thank you to everyone for your comments and suggestions.  Regarding inspection contingencies...I posed this question to one of my Realtor contacts and he responded "I rarely submit an investor offer that includes an inspection contingency."  So while the strategy sounds good in theory, in many cases it just doesn't work because my offer likely won't get accepted if I include an inspection contingency.  This means I will have to learn to do my own due diligence before submitting an offer, which will be a long learning process.    

@Account Closed  Nope no property under contract yet.  I'm just trying to connect with one or more GCs now so when the opportunity arises I can call them up and say "hey there is this property I'm looking at making an offer on could you take a look at it and give me an estimate?"  However what I'm hearing from folks on here is that is not how it generally works, and I need to get the property under contract first.  To me that seems like putting the cart before the horse.

I have for my family, four separate mortgages on one name, each is 30 Year fixed-rate mortgage, from local bank. 

It is possible with Residential Investment mortgage, with 25% down, from almost any bank - if you put it on your personal name and with acceptable credit score. For this only your personal Debt Ratio, Income and own cash for down payment along with proper acceptable value of the propoerty is appraised by bank for property in ready to rent habitable condition.