All Forum Posts by: Ryan Webster

@Douglas Vogel

Always pay for what your buying never pay for what the future may hold.

We figure offers based on actual rent roll and expenses then use market cap rate to come to a value.

Always prove rent roll and financials through due diligence. I recomend 3 year tax returns to make sure the seller didn't drop expenses or push occupancy pre sale.

As far as market indicators the number one indicator of future performance is absorption to new completion ratio.

@Mansoor Ahmad

Depends what market are you looking at. Cap rates with fluctuate from market to market, sub- market to sub- market. Cbre provides a biannual cap rate survey for major markets. If your not in a major market rely on your local brokers and bankers to provide a market cap rate.

To quote Warren buffet " your better to pay fair price for a great asset, that a great price for a fair asset."

If you a buying sometime at a much higher cap rate than the prevailing market cap rate there is a reason. This is not always a bad reason maybe the seller has a situation in which they need to sell quickly and are willing to leave money on the table to do it. But most often a higher cap rate indicates lower demand for the specific asset or neighborhood. Its important to know the why and how it relates to your business plan if you plan to buy and hold forever, and you like the asset and the neighborhood buy it and collect your cashflow. If you plan to hold for a shorter term consider how the cap rate will effect your exit price and who you can sell to.

(Dictated not read)

@Jeff Quinlan

Your issue will be labor unless you use a refacing company the supplies both materials and installation. There are many affordable refacing products available, however there is not a surplus a of experienced installers. The nature of the refacing process makes it a one shot to get it right situation. Take care to hire the right installer. When sourcing an installer always ask for references, get pictures of work, and ask to walk through a completed job if possible ( often times you can ask the references if you may see their completed project they are more than happy to) cabinet resurfacing is good option if you want to maintain a stain grade product. If you want paint grade I would paint your existing face frames and order new doors and paint them to match. Make sure you are painting with an appropriate product do not just use latex paint. Hire a professional painter to mask and spray the cabinets in place. ( if smell is an issue I recommend sherwin Williams emerald trim enamel, or cabinet coat. Both provide a very hard durable finish. Be sure to use appropriate primer.)

@Phillip Rosin

We invest in the Tampa area. I can tell you it's a very hot market. Acquiring a property that yields 12%coc at aquisition will be hard and most likely be in an area you dont want to invest and with a tenant profile you dont want to manage. However finding a value add property with the opportunity to yield 12%coc is absolutely doable.

Tampa is one of the few markets left where absorption is still out pacing completion of new construction deliveries to the market. Which shows demand is higher than supply.

Rent growth year over year is just above 6%. Which means almost every property for sale should be showing loss to lease giving opportunity for organic rent growth just by raising rents to market prices. Combined with opportunity to reposition property through renovations and you could prove even higher rent premiums. Tampa's demand to supply spread also provides very low vacancy rate of 4.5%.

@Lauren Griffin

Depends on the needs of your business plan. Are you doing extensive renovations, do you plan on a mid term refi? For most cases institutional debt will yield the best rates and fair terms. Sometimes a bridge loan can save on early payoff fees if you plan to refi, and often raising the reno budget funds through debt is cheaper than with equity. If you need extremely flexible terms a private debt provider can provide about anything you need at a cost. You can leave money on the table by not matching the right debt to the right deal. There are alot of debt options available that any investors are not aware of. A good mortgage broker can assist in sourcing the right debt option.

@Justin Elliott

Holding cash is not an invesement. Cash loses value everyday. B and C class multifamily assets aften gain value through increased occupancy in an economic downturn as renters move down to more affordable rents. Multifamily assets are one of the most recession resistant investments available. During to 08 crisis morgage defaults rates for multifamily where .04% compared to the average of 4% of other assets. Not to say that multifamily assets can't lose value temporarily. But they also produce cashflow, and in commercial real estate as long as you have cashflow you'll have appriciation over time and more importantly you get paid cashflow distributions to wait for this appriciation. There are only three times you care about the value of your asset. When buy, when you refinance, and when you sell. The value in between these events is mostly irrelevant so long as you have cashflow.

@William Leavelle

I can bird dog for you.

What are your criteria?

# of units

Aquisition cost

Asset class

Sub markets of interest

Investment strategy

Asset Age

@Mike Bianchi

When looking for assets of that size the most effective approach I've found is to contact the owner directly for unlisted assets. Hire a VA through upwork or similar site. You'll need a web scraper to search appartments.com for assets in your market and meeting your criteria. Then have them cross reverence the data with local tax records to find the owner info. You may need to skip trace to get thier contact info. You can use been verified or similar service. From there review your list pick your favorite assets and make contact with the owner. Ask them if they would consider selling now or in the near future. If they are not interest now follow up with them consistently.

@Ryan Brakefield

Stop looking for the "best way" and find "a way". Many people spend so much time searching for the best way they never take the nessasary action to get started. You'll be able to develope a better way simply through the experience of doing deals. Make sure each deal you improve parts or all of your process and you'll be able to find an efficient way to identify, qualify, finance, acquire, and manage your deals.

Find a way to get your first deal with the resources and network you currently have and through experience you'll expand your knowledge, skills, resources, and network as you go. So get out there and do the dang deal.

Curious as to how experienced vrbo investors are doing under writting.

How are you pulling comps? What are the most important metrics ie( sleeping capacity, amenities, location, bath rooms)

Where do you find short team occupancy rates for your market?

Where do you find tourism statistics for your market?

Do lender structure debt differently for short term rentals?

How do you estimate cleaning cost, is it simply a multiple of projected occupancy?

What is the target cashflow when considering a property?

Besides cleaning, and platform advertising expenses are they any other expenses unique to the vrbo strategy to take into consideration?