All Forum Posts by: John Andrews

@Joseph Barnes, sounds like you need to connect with @Pamela Sandberg. As she mentioned, good investments begin with encyclopedic knowledge of the market you're investing in...or being advised by someone with that knowledge. 

The AirBnB model works well, but it requires more initial management. Good operators build a great infrastructure to keep the machine running smoothly. You need to keep your crew humming along and keep your rental clean, and match the experience they might have at a comparable hotel while providing a financial benefit for renting from you. 

Keep your ADRs up while still providing that value add experience and hopefully you'll fill your calendar. 

As a side note, I'm a middle market multifamily guy...but talk to owners in my market all the time following the program having great success...managing 100+ doors all on that model

Always great to have an alternate worst case scenario plan..in case your municipality does away with STRs...If the City of Boca Raton allowed them, I'd acquire way more deals..

@Ryan Proffit

There is definitely an art to underwriting multifamily deals. It’s extremely important not to miss the boat on property taxes..and estimating the new assessed value after your purchase.

Look at the actual tax bill..find the millage rate..if you’re underwriting conservatively take about 90% of your PP x millage rate..don’t forget to add in your non ad valorem taxes.. if you get a discount for paying early, consider that also. Here in palm beach county FL we save 4% if paid in November.

Happy hunting!

@Alejandro Antonio Taylor JR

First..don’t rush it. Sitting on the sidelines to identify the right deal is way better than buying an average deal.

I’m sure if you’re ready for this type of investment you’ve likely already defined the perfect deal..Identify very specifically what the right deal looks like way beyond just 20 units.

Investors are trading into the South Florida market for many reasons. If you’ve ever thought about investing in multifamily in Palm Beach County or Broward County, we should connect.

Best of luck on the hunt.

@Robert Carlson everyone’s gotta start somewhere..developing relationships with brokers, lenders, investors, GCs, subs...anyone who may play a role in your investing career is a good place to start.

If you don’t have that track record yet, you’ll need lots of people who know, like and trust you..and know you’re well educated, hungry and hard working. There’s no silver bullet to break into this business. You’ll have to bear the risk financially at some point.

Street cred always helps... best of luck to you. It’s sounds like you’re on the right track. I’d just lean away from the whole OPM line to start.

@Robert Carlson adding to what @Greg Dickerson said..

Education comes first, and it never hurts to have a good broker on your side who can help identify a potential deal for you. A good broker will absolutely work in your best interest, and help identify properties that match your criteria. You’ll probably look at more properties than you’d like before you can even get to that inspection stage.

Reality is that MOST multifamily deals that you’ll be able to find without a broker have likely been underwritten improperly or poorly..which means you may waste your time looking at “deals” that turn out to be duds in the end...or you might miss “easy” money.

If a broker can help you identify and structure a deal that will make you look like a stud in front of your business partners and make everyone money, he’s doing his job.

Hey BP members I hope you all are having an amazing holiday season.

Thanks for all of the insight you provided..I’ve made the decision to focus on the commercial side of the business. When it comes down to it..I’m not a residential agent.. I know I’ll get bored in the residential world.

Specifically, multifamily investment sales in Palm Beach County and Broward County..from 5-100 units will be the target market.

If I can help anyone answer any questions please reach out here or DM me.

I’ll follow up soon with the announcement on which brokerage I’m partnering with. Although I’ll be focused on multifamily, I can help with any niche whether it be a land deal, hospitality, industrial, etc etc.

Thank again for the input. Make 2020 a great year!

@Chris Nerio how long has the property been on the market? Has it been under contract previously? Have you worked with this agent before? 

@Nicole Heasley Beitenman Yes I am an investor on the SF side now...but wanted to get more insight on the career path on the Agent/broker side, not the investing side. 

Offer the number that makes it work for you, and stick to it. If it's not worth it just move on to the next. 

From personal experience...Before I landed my first "deal" I only made about 8 offers, and pulled the trigger on #9 by coming up to the seller's asking price. 

I'm not going to say that I shouldn't have done the deal...I learned a lot..but the cash outlay, sweat equity put in & opportunity cost vs. the return was not worth it. 

Stick to your numbers. Get an investor friendly realtor who's a good negotiator. 

Hey BP members, I'd appreciate your feedback and insight based on your personal experience working as a real estate agent. 

I'm at a crossroads in my young real estate career...I'm trying to decide if I should follow the commercial or residential path..

Which side are you on? 

What led you to choosing one over the other? 

How many years have you been an active agent? 

In your experience, what's the good, bad and ugly in each field?