All Forum Posts by: Taylor Shapiro

Thank you for your response @Michael Le. It's always reassuring to hear that the deals ares out there, especially when starting a new venture. 

@Account Closed I've been looking into private marketing for a few months now. It's getting more and more challenging to find deals on the MLS anymore so I'm interested to see how you fair with your campaign.

You mentioned you'll be sending to the same list for the next 6 months. How many pieces will you be sending to the individual? Are these postcards or letters? Will you send the same piece of mail each time or do you plan on changing it up each time?

Keep us updated and best wishes!

Single family flip opportunities are becoming more challenging to find here in CT. This time last year I would submit roughly 30 offers to get 1 accepted, now that number has increased to 40+. I still find them and plan on continuing, however, I'm gearing up to begin investing in larger apartment buildings. 

I'd like to get an idea of how your apartment investing has been affected as a result of the current market conditions. We all know it's a hot market out there, but how is it affecting your daily routine?

Are you sitting on the sidelines and waiting for the perfect time to buy?

Are you selling off everything?

Are you buying anything?

I'm able to look back at my 3 short years of rehabbing SFHs and notice an obvious trend in supply and demand, however, I don't have that experience with apartment buildings (30+ units) just yet. I've seen the rule of thumb: "look at 100 buildings, offer on 10, get 1 accepted" a few times but question it's relevance in todays market. Just trying to gauge what others are experiencing to give myself realistic expectations as I move forward. 

Thanks for the advice!

@David Johnson nice work on the rental properties! Seems as though you have a firm understanding of how to underwrite the smaller buildings and pull the trigger when you have a good deal in front of you. You're already far ahead of most "relatively new" investors. 

What do you need? What do you enjoy? When I started investing I needed cash now, which was why I began flipping first. Now that I have some capital to play with I've begun looking into larger apartment buildings as I enjoy the asset class and see the benefits of owning units. This came about through reading articles and books, watching youtube videos, listening to podcasts, etc. Figure out what you'd like to get into next.

You have equity in your units and equity in your stock portfolio. You have options!

-How are your stock returns? Sell and buy another duplex, triplex, quad?

-Sell stocks and pay down current mortgages if risk averse

-Sell everything and buy a larger buildings

-Read up on other strategies that excite/interest you

Keep it up!

Good to know. Thanks for sharing @Greg H.

I've listened to a few interesting podcasts where the investor's business model is wholesaling HUD houses out of state. Would anyone be open to sharing their experience with this model? I'm actively rehabbing 10-12 houses a year here in CT but realize I could be setting up systems to capitalize on deals outside of my immediate area.

It sounds like they're picking a few different markets and hiring someone (VAs) to bid on dozens of properties at a certain percentage of list price. Would love to speak with someone who's actively using this "strategy". 

My EMD is always $1,000. I never send an actual check, let alone a copy of one. If my offer is accepted, I'll mail or drop off the deposit then.

I've found that banks are only interested in the total offer amount, not how large of a deposit you put up. 

If I offer $100k on a property with a $1k deposit and you offer $90k on the same property with a $10k deposit, whose offer do you think the bank will choose? In the end, it's almost always the highest offer. 

What @J Scott said.

A few others to keep in mind

- weird, bad, "unique" layout

-close to train tracks, cemeteries, airports

-on a busy/loud street

I wouldn't say these factors are deal breakers but they might limit your buyer pool when it comes time to list.

@Adam M. the money I use for my deals is entirely private money. I have a close relationship with my guys who are more like father figures to me at this point. The terms we originally negotiated were $200k in funds, 10% interest, deferred payments, 12 month term. A typical flip will take 5-6 months from purchase to sale so I haven't had to re-negotiate the term length. In the event that it takes longer than 12 months, their return is increased to 13% interest. 

@Adam M. sorry for the confusion. This was all cash. I wanted to show the numbers as if I had actually gotten a loan on the property. I guess you can say it's my Flip-Turned-BRRR (kinda) Story.

At 10% interest to my investors, my monthly payment would've been $942, or $11,304 annually. We negotiated deferred payments until the property was sold. 

$18,703 (NOI)

-$11,304  (10%)

$7,399 annual cashflow ($616 per month)

Hope that clears things up!