All Forum Posts by: Account Closed

Hello Tiara, I started my house hack with a duplex in the Cincinnati/Cheviot area. I used a FHA loan last October (30 years at 3.875%) and I received grant funds equal to 5% of the purchase price of the home from (OHFA) The Ohio Housing Finance Agency. I saw in your bio that you mentioned that your husband was military so you have even greater no money down type benefits if you intend to house hack.

Basically I only used 3.5% down  and the extra 1.5%( went towards closing cost. Grant Money totaled over 6k) and I asked for seller paid closing cost around 3%. 

Side note..I close on my second deal Friday..a SFR in Carthage. I used Wright Patterson Credit Union, terms were 15% down payment 30 years fixed @ 4.75. Carthage are also has multifamily properties available. I'd say it's a B-/C+ area if you wanted to house hack.

I'd try Norwood or Oakley as well. My next deal will be targeted in he Oakley area.

@Account Closed I'd do with your land what I am doing with my 89 acres in Columbus county NC. Look at every option to look at what is possible. If you give me a PIN, I'll give you my opinion;) If it's not been managed over the years, that kind of acreage can get out of hand and overgrown. Then it takes some effort (and expense) to get it back in shape. I am speaking from experience...

@Joel Owens,

Neither your investor A nor investor B sound like someone I'd want to do business with.

Investor A might be the right guy, but doesn't know how to achieve his goal. He's not educated. He knows he shouldn't be using his own money / credit, but doesn't know how to do it within those constraints.

Investor B doesn't know he shouldn't be using his own money or credit. He's not educated, either. Sure, you can prey on him and get your fees and commissions, but I wouldn't consider that either proper or ethical.

My ideal would be Investor(s) C. This/These guy(s) should come in talking about his/their business(es), their business resources and financing and their investing goals for the commercial MF being sought. 

My $0.02 ...

@Account Closed -  Good for you!  We are also looking for multi-family units in Memphis!  Have you attended the Memphis Investor Group Multifamily meetings?  They are lunch meetings once a month.  You can find the schedule here:  http://mig.clubexpress.com/  You don't have to join MIG to go.  Just show up for lunch!  Great folks there with lots of wisdom and lots of wannabe owners like me! :)  Let me know if you decide to go so we can meet!

Tiara whether it is an investor,broker or both everyone has to (dig for the diamonds) these days.

I have thousands of contacts nationally in the retail real estate space with property managers, direct owners,developers, and other brokerage companies.

The Fed is talking about raising interest rates 3 more times possibly in 2017. This can have an impact on pricing from both the seller and buyer side.

Whether I am developing land for a commercial project myself, looking for an existing investment myself, or finding my buyers the property directly they want it takes a bunch of time,effort,and energy to do so. There is an adjustment and (meeting of the minds) in the middle for what a seller wants and a buyer wants to put a deal together.

There is no easy money in today's markets and you have to find the property or land with potential and create the value. I look at over a thousands flyers and OM's a week and only like about 10 to 20% of them. 3 to 4 years ago I liked about 50% but there was more quality product on the market to choose from. These days many of those buyers are in a hold position because they used a 1031 exchange and would not have something with the same quality and cap rate available to exchange into today.

One example is an owner I came across that had a 3 unit retail center with all national tenants in a great location for about a 4 million value. He bought 3 years ago for a 7.7 cap rate. My client would like a 6.8 to 7 cap. This owner if he sold the difference between the 7.7 ( likely close to 8 cap with rental increases now) and the 7 is only 100 basis points before resale costs. The owner could not find that same cap rate and quality in today's market as developers are having to pay more for land costs before construction so selling at 7 cap or below. If developer can't get their price for new product they simply refi out to 70% of the newly constructed value with a hold and go keep developing. So in that situation the owner had no interest in selling understandibly.    

It might take me months sometimes even with all my connections to find the right property for my clients and then another 3 to 4 months to close. So maybe half a year but I am making at least 6 figures at a time and have different clients at different points in the process.