All Forum Posts by: Account Closed

@David Smit If you feel the need to unburden yourself I may be willing to lighten your load of too many properties. Bigger Pockets is such a benevolent group I am sure folks would be willing to purchase your entire portfolio. They may even be willing to purchase them for what you paid to make sure there is no profit. It really is a very supportive community!

@Ronny Perez Just my experience, in the past I have been able to make offers in my name, or an LLC to be formed. If the offer is accepted and the purchase is moving forward I can create an LLC. If the deal doesnt work out no LLC is formed.

@Rob Hayes if you provide the location perhaps someone with a rental in the area can provide some input.  I would be suspicious of a seller who pays the utilities and doesnt have any record of the cost.

@Brian P Carolan completely agree with Martin.  I have used CNB for years, they have been great.  If you need a contact for a 2-4 family please let me know and I can provide you contact information.

@Frankie Woods have you tried a  direct mail campaign?

@Bruce Corey

Bruce, do you mind sharing what other markets you are purchasing in?  Thanks

@Jacob Treptow 

It is not just you, it has been tough to find good deals in the areas you are looking.  That has come up in a few recent podcasts about the need to create good deals as they are increasingly hard to find.

I tend to focus in the same areas as you and have had the same dilemma, lower the rate of return you are willing to accept, or wait it out.  The dangers of both options are obvious, and who knows when, or if, we will get back to the cap rates we have seen in the past.

Just my perspective but I have maintained my minimum return requirements while exploring some additional options.  The podcast with @Dave Van Horn was great and provides an alternative way to make a solid return, with reduced hassle factor (as my wife likes to call it).  

I have also looked at some other smaller markets that are closer.  Places like Geneva have seen some good growth recently, but again there are the risks of smaller markets.  

Something else to consider overall is the state of New York and how landlords are treated.  Legislation is working it way through the system to prevent landlords from outright refusing to accept Section 8.  Hard to say what that may mean long term and if New York will be increasingly hostile to landlords.  There may be an opportunity for some lower end housing in all of that, just not an area I have much experience.  

Good luck with the search and please post what you are thinking about doing going forward.

Scott,

Hope all is going well.  Great to hear you made an offer, even if it was not accepted.  You had a series of goals and it looks like you are making great progress.

Good luck with your search.

From my experience the office property has been about the same as my multi-family investments.  There are pros and cons, guessing volumes have been written about which is a better investment and why.  At a high level the occupants tend to be there mostly on business days during business hours, which means fewer after hours calls.  No kitchens and fewer bathrooms also mean fewer calls, which is great.  

The length of the vacancy, and the cost to turn over the unit, are the other side.  Multi-family is usually a quick turn around, some paint, carpet and rent it out.  The commercial could mean significant changes to the unit, even structurally, to meet a tenants needs.  The cost can all be negotiated, but the vacancy is longer and more expensive.  

The leases tend to be longer, which hopefully minimized your turn over.  That is why people swear by storage units, no toilets, minimal renovation if at all.  

If you follow your vacancy projections you should be good, just make sure you are setting aside the money to handle a vacancy, it can be tempting to use the reserves for other investments, but you really need to have a deep capital reserve.  

Russ

One more through as I hit post, the structure of the financing is going to be very important and will determine how good the deal is.  Keep in mind that interest rates appear to be rising, if your rate resets in 5 or 10, consider that an increase in a few percentage points may do to your debt service.  Again, I don't know if you are planning to cash out refinance in the future, or will look to pay off the property, just a few thoughts.