All Forum Posts by: Robbie Reutzel

so are you guys out of business?  Website not there and email bounced???

@Alonzo Avents

This question is really too broad to answer as there are so many types of deals especially since you're asking about anything 5-1000 units. I would start by reading The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges. That covers a lot like basic management, value add, financing etc.  There are so many others though. Michael Blank has great resources as does Joe Fairless and Brandon's book on getting creative is a must read.  

I can tell you one thing, in order to get the returns you are looking for, buying right and market selection will be key. 

Good luck!

Hi @April Chim

Throw a rock, you'll hit 50 in this market :-)

Seriously, you can use BP to start the search but the best way I have found is through networking with other investors. Find the nearest REIA to you and start talking to people. That's how I have made the best contacts in this business.

Good luck!

@Matt Anderson

We are located in Woburn and rehab within an hour of there including Boston and Southern NH. We own rentals in Southern NH and Central Mass as well as several other states. 

We do a ton of direct mail and cold calls. I also have ppc, and Facebook ads running. If I was just starting out on a budget I would drive for dollars, cold call and door knock. 

@Matt Anderson,

I agree with you for the most part but I think you are missing another option which is to find off-market properties (distressed sellers) where you can do more creative things like owner financing, master lease options etc. If you are not familiar with those terms look them up. Banks are great but other ways of financing allow more creativity. I am in Boston but have buy and hold properties in central mass and southern NH. We have not bought a property on market in over 4 years because of competition and over pricing. 

Just my two cents. Good luck!

Hi @Robert Blocker

Good question. Getting a POF letter is easy but what you really need is a closing attorney who understands investing, particularly wholesaling and double closing.

The best we have dealt with and the only ones we ever use now are Grugnale & Schlesinger in the Boston area.  I am happy to send you an introduction if you PM me.

Thanks and good luck!

Hi @April Chim,

Direct mail is still very effective for 5-20 unit properties. We do a ton of it. Your message will likely have to change but it still works. 

Thanks,

Rob

Hi @Alisha Decoteau

You can still calculate your COCR even if you are paying all cash. COCR is simply your ratio of annual cash flow to the amount of money invested. So for example, if the property costs $100K and rents for $1500/month and you don't leverage, your COCR: annual cash flow (let's say $9000 for arguments' sake i.e. $1500*12-expenses (50%))/amount of money invested ($100K). You're COCR in this case is ~9%. If you leverage it will definitely be more.

If you are paying all cash then there is no loan so no mortgage.

@Remberto Teos

Working with wholesalers and agents for pocket listings are valid methods. Keep in mind that this means you are at the mercy of a 3rd party for dealflow. And we all know dealflow is the most important aspect of the business. 

You need to realize that you are both a real estate investor and a marketer. We've done hundreds of deals and the best ones, with the highest ROI, unquestionably come from internal marketing efforts. I strongly urge anyone getting started to learn marketing and sales. It will transform your business and dealflow.

Best,

Rob

@Alisha Decoteau

Basically that's how it goes.  There are a lot of other steps for due diligence usually.  Also, in my experience, most of these types of smaller deals have terrible record keeping which can make it challenging.  I also agree with @Ian Whitney that you need to know your market cap especially if you plan to refi or something.  Cap rates need to be viewed relative to the market as mentioned.  An 8 cap here in Boston is amazing but in other markets we invest in those deals are on the lower end of acceptable.