Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Simon Leger

Simon Leger has started 2 posts and replied 11 times.

Post: I want to buy Multi family in NYC/Yonkers

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

"If you looked at the SP500V Index, the Index traded at a value of 460 on Jan. 2, 2009.

Today, it's at 1,014. That's a 115% increase in 8 years or an average of 15% per year.

If you bought NYC Real Estate in good neighborhoods with 20% and an 80% loan, you would have done FAR better, and I certainly HAVE."

=> If you had bought the S&P with 25% down (as known as 4x leverage) you would have down better. If you pick the good neighborhoods that's comparable to picking the good stocks which would clearly outperform those.

Anyways, that does not change how great your success was, so congrats for this :)

Post: I want to buy Multi family in NYC/Yonkers

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

"And if you really think about it... had you invested in NYC from the Financial Crisis until today.... you would easily have been on your way to be a $millionaire."
If you had been leveraged long the S&P500 from the Financial Crisis you would be even reacher. That does not prove much. Back-trading is easy.

Post: Portfolio of family homes analysis

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

Anyone know a bit about this area or has been investing over there (rochester / syracuse in NY state) ?

Post: Portfolio of family homes analysis

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

Yes the seller is mentioning lower expenses than this, but even with 50% maintenance cost it is still very profitable so I like to be conservative and make this assumption and if it ends up being less it will just be the cherry on the cake...
Yes they are liveable (there is a brand new C of O so they have been inspected).
Financing should be doable also I have not dig too much yet into this especially for the fact that it is a portfolio of properties.

Your last question is one I've asked myself and to be honest no there is no discount but it is also much less time for me to spend looking and finding properties. All being in the same neighborhood also make it convenient and will make management fees lower.
It seems like these deals of multiple portfolios are mostly priced on financials and less on the property values.
I am assuming there is a 10% mark-up for being put as investment properties and being all rented with good financial track record over the past few years (all documented)

Post: Portfolio of family homes analysis

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

Hi,

Since I'm new here and I dont want to make stupid beginner's mistakes, I would like to get people's advice on something like this :
http://www.loopnet.com/xNet/MainSite/Listing/Profile/profile.aspx?STID=&LL=&LID=17813031&SRID=3065307937&PgCxtGuid=a29353b7-f9c5-4f3c-a547-948ae9f17334&PgCxtFLKey=Profile&PgCxtCurFLKey=Profile&PgCxtDir=Up&EBrokerSent=Y&MessageSent=
It is 12 homes and 4 duplexes (20 units) with 25k sqft total asking 650k (let's assume it can be brought down to 580k) 100% rented for 14,220 per month (or 170k per year). Expenses with management company (i dont want to do that) is max 50% of gross rents so 85k per year which leaves with 85k per year before financing costs.
This is a 15% cap rate on the deal value if paying cash.

With financing it is much more...

What am I missing here ?

- I realize these are low income rentals so potential issues with tenants, vacancies...
- Condition of property is fair but there will be some maintenance (there is a brand new C of O so condition can not be that bad ?)
- I dont know the area well, is it declining like crazy there ?

Any comment is welcome, thanks in advance.

Post: New ! Looking for large multifamily in PA or FL

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

Thanks all for the feedback. Going back to my original question :
I didnt find the correct place in this forum to post prospective deals (links...) so that experienced biggerpocket(ers) can give their opinion, is there such a category ?

Post: New ! Looking for large multifamily in PA or FL

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

Yes I have a visa, I work here, I have income here and have already been pre approved for mortgages.

Post: New ! Looking for large multifamily in PA or FL

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

Yes of course I look at the quality of the property !
The reason I mention the amount is that since I want right now to buy around 2m worth of properties I do not want to do that on the first deal since I'm new here, I first want to see for a few months things go well, see how much of my time it takes etc... before I put in the full amount. For that reason I dont want to buy a 2m property now.
I also found some lower ones (150-200k) yielding nice returns (rent roll 35-40k) but this would only be a 50k investment for me (down payment) and not so sure it would be worth my time for such a small amount to visit, do the mortgage, tax etc...
I am trying to get over 10% after all reasonable expenses on the property price (so 30-40% on my money).
The reason I mention PA (Lackawanna area) is that I know people there who have done this that I trust and that will help. FL again, just because it's sunny there so wouldnt mind too much going down there over the week end to visit, do some paperwork etc...

Post: New ! Looking for large multifamily in PA or FL

Simon LegerPosted
  • Investor
  • New York City, NY
  • Posts 16
  • Votes 2

I am not a US citizen but live in NY. I am looking to invest at least half a million (before leverage) so buying a total of around 2m worth of properties but not at once.
My idea is to buy one between 400 to 800k first then 3-6 months later another one and so on.