All Forum Posts by: Sam Rust

@David H. Welcome to BP! Your question is very broad, maybe you could narrow your scope a bit? Are you looking for help analyzing and selecting a submarket or do you want want help analyzing the actual numbers of a prospective deal?

If the latter, I would find a property that generally fits your investment parameters and run the numbers yourself as best you can, then provide those details for folks to review and provide feedback. 

@Brian Oberholzer First option I would explore is seller financing, then checking with local credit unions. Best of luck! 

I'm working to grow my broker/investor networks, and track individual projects better as I pursue my next syndication. I've heard several folks on various podcasts mention CRM's as a helpful tool, but rarely are names mentioned. I use a CRM (Insightly) in my 9-5 and see the benefits of such a system, but that specific platform isn't the best suited for the REI environment.

What CRM's are user friendly and helpful in the multifamily space? Thanks in advance for your recommendations! 

Thanks for sharing! Completely agree on all points, especially the need to practice. Knowing the questions investors will pose, and having your answer ready is vital.

@Sanjoy V. You need to determine what is most important to you cost, quality, or a mix of both. I'd start by attending a couple of local meetups and asking other MF investors who they use. I bet several names will keep popping up, I'd start there.

Best of luck!

I was involved in a similar situation earlier this year, and had significant issues finding financing. In my case the smaller house was considered a carriage house, and thus couldn't be split, but also couldn't count toward the appraisal. The deal was great from a cash flow perspective, but  I was looking for something with a bit more appreciation potential and passed. I would definitely second @Jaysen Medhurst, check out the zoning and verify the legality of the situation before proceeding.

@Eddie Delaney Great work Eddie, fun to see the pictures of the completed project. I'd second @Lexi Teifke, you should be able to pull out your initial investment and still own a cash flowing asset. 

Thank you to all who took time to comment on this post, it is greatly encouraging to me!  

@Nathan Bise I have heard of Pine Financial, but haven't used them in a deal to date. Best of luck!

@John Stoeber @Jeremy Tomes Myself and the 2 other MP's are the recourse guarantor for the loan. However, the process was pretty straight forward to meeting the net worth requirements primarily because we were working with a local credit union that knew the market, had prior experience with our property manager, and our collective balance sheets were sufficient.

@RJ Sidhu We got the property under contract, then raised the remaining funds once we had completed enough DD to know we wanted to close. Our investors were willing to move relatively quickly (45 days) once we laid the deal out for them. We didn't compromise on our underwriting, and kept it conservative throughout the process.

@Dan Wallace Good question, one I asked pretty early on when the deal seemed like a winner. This property was never on the MLS or Loopnet, but was marketed pretty widely by several local brokerages. It went on the market back in September '17, and was at 70% occupancy with several significant one-time capex charges on the T12. This made it nearly impossible for anyone to purchase with non-recourse debt. Several folks put it under contract, only for financing to fall through. In addition, the seller was VERY difficult to work with and wanted several extensions on any possible sale contract.

The seller hired a better manager in November, and committed to his own renovation program, but failed to update the T12 or RR in his marketing package. The listing broker happened to be one that I had reached out to, and knew the property was improving. It still took us almost 2 months to get the property under contract after submitting our initial offer.