All Forum Posts by: Sterling Williams

I wouldn't give up on the small commercial multifamily as an individual investor just yet. There's still opportunity within the SA market to find a stabilized commercial multifamily with CAP rates between 7-9% in the $750k-$2M price range, while still yielding an opportunity for some value-add. Granted there will be some wholesalers and agents who will tell you that they regularly have an inventory of 13%-17% CAP properties however, I would advise staying away from most of those opportunities due to the extensive rehab, stabilization and possible rebranding you may have to go through (unless you have a trusted contractor and property manager locally to help manage). Commercial multifamily is generally sold off-market and you're even starting to see much of the small multifamily inventory sold off-market as well. Start to reach out to agents within the stated markets and see what opportunities are out there, you may be surprised.

@Brooke Noth with Guild Mortgage. Can't say enough good things. If you're looking for an experienced investor/lender, she would be a good resource for you. 

Robert,

I wouldn’t make it too overly complicated. Figure out what your desired returns are and start analyzing markets to see if the properties coming available net those returns. I don’t have a crystal ball, nor does anybody else on this forum, so I wouldn’t suggest that you stand idle while good deals pass you by.

Within the past 18 months, multifamily properties have been in short supply in San Antonio up along the I-35 corridor. This has been common throughout many major MSA’s nationwide. There has been a limited supply of new construction multifamily, but those properties have been a better fit for 1031 exchange investors or owner occupant investors living locally. Most investors coming to San Antonio are looking for an affordable, stable and growing market. Being that you’re an out of state investor, I would look for turnkey, 1%, B class multifamily property with some value-add potential whether it be through rent increases due to it being under managed or small upgrades that you can complete during the next make ready to increase rents. If you had an established and trusted team of contractors, I would say that there is a tremendous opportunity for value-add opportunities throughout SA. If you’re looking for a turnkey multifamily investment property, I wouldn’t suggest a partnership. However, if you’re looking at an extensive value-add opportunity, then I would certainly advise that you look for a local trusted partner.

I can’t speak on Portland or the Pacific NW markets, but I’m sure there is someone that can give you further insight. Best of luck moving forward!

I'll be in the area on Friday, shoot me an invite and I'll be there. That pocket over there has sparked my interest. 

 Anthony,

I would beg to differ… Multifamily properties are a very popular asset class for buyers within San Antonio and Nationwide, so inventory has been in short supply making for a competitive buyers’ market. With that being said, buyers just need to be on their toes and have their ducks in a row to be competitive. San Antonio has a multitude of submarkets that serve investors looking for turnkey buy and hold, Value-add with a 5-7 year exit strategy or a quick fix and flip etc. The issue is that buyers and agents aren’t quick enough to capitalize on deals when they come available. When a good deal presents itself, it doesn’t get sold in day’s it’s sold in hours. Does that mean that there are no deals to be had? No! It’s just an indication that the investor needs to fortify his team and make sure they are quick to act when that opportunity does present itself. Start building your trusted team (wholesalers, agents, lenders, personal contacts etc.). The deals are to be had, the question is whether or not the investor is prepared to act when the opportunity comes available? This is not a market where you can sit and wait for a deal to present itself and analyze for a few days and make an offer. You need to start analyzing anything and everything, so when the time comes, you know it’s a deal and you can pull the trigger immediately. There’s a good number of us local BP members who you can reach out to if you have any additional questions. My advice would be to schedule a call or meeting and see if your goals are in line with their services. I wish you the best and I assure you that you can still find some great opportunities. Good luck!  

 Jaime,

Great to see you back on BP. How is that 40 unit project going for you?

 Mike,

Welcome to BP! If you have any questions regarding submarkets in SA for single-family flips, reach out to @Tim Macy and let me know if you have any multifamily questions. Lot's of knowledgeable members on here from San Antonio that would love to help. Good luck moving forward!  

The Texas Triangle has a multitude of economic drivers fueling growth and investors have a tremendous amount of options. As stated above, there are way too many numbers that can be rattled off, but I’ll just attach this video which does a good job illustrating why Texas is a great place to invest for the long-term. 

 Angela, 

We also do single family. Reach out if you have any questions.