All Forum Posts by: Chris Collins

@Matt Moylan got it, thanks!

There's a lot of high level, analytical greatness in this thread, but one thing to consider is the following criteria to even get to these places:  @Shriraj Shah

1. Your back yard (this is not an option for you, too expensive)

2. Somewhere you grew up (so you know the neighborhoods, and aren't just looking at data points)

3. Somewhere you have boots on the ground (so THEY know the neighborhoods, and aren't just looking at data points)

4. Somewhere you want to retire, or visit often (so you actually ENJOY your investing experience).

From THERE, you can go ahead with all the data points listed above. Otherwise, its easy to get overwhelmed with 'searching the US'

Also, go to udemy, search for Neal Bawa, and take his free course on selecting a marketplace based on data and analytics. That will be helpful :)

Report back, let us know what is peaking your interest and why!

How does this play when you make a claim against your insurance, let's say a car drives into a building. Sometimes the investor will say 'ugh, we should just pay out of pocket, because the insurance will go up too much.'  Does this help in that scenario at all?  Thanks for the value @Matt Moylan

@Brett Richardson what has been your real estate experience so far? 

See everyone there!

@Nicole Flakes I've read many of these, and Joe Fairless' book on syndication is my favorite by far.  Worth the $.  

If you're looking for perhaps a quicker read, check out @Reed Goossens book on investing as well for a solid education.

@Eric Jennings may I caution you on a 5 unit... It just barely steps you into commercial lending which is not good for you in this instance... I would much rather buy a 4 unit (residential loan terms) and then another, until you're more confident to get, say, a 12 unit or larger.  Just my 2 cents.

@Joseph Duenas 50% as a rule of thumb.  

Keep in mind though, that oftentimes lenders will run it at 55%.  

Best best bet is to find your property mgmt team first when you start running numbers in an area, then ask 'what should these type of assets cost per door on an annual basis.'  They may respond with 'these units should cost approx $4500/door each year to operate on average.'  This will give you your 40-55% operating expense.  

But yes, short answer, analyze at 50% to get going, and if that number gets you excited and you want to make an offer, then dig in and get more accurate with your findings.  (this 50% rule of thumb is also great, because if you see a propety operating at 65%, you know there's some great value add to be done by us 'problem solvers.')

@Jason Merchey Lots of good suggestions and wisdom on this thread. Also consider attending a couple IMN conferences. They're pricey no doubt, but if you're serious, and looking for 'the big dogs' then that's where they tend to hang out.  https://www.imn.org/real-estate/conference/Multifamily-Forum-West-2019/

To me, you're doing the right thing. Giving the brokers honest responses.  You could take a page from grant cardone and become 'super interested' in the deal at the beginning, to give them a warm fuzzy feeling...and begin early on asking about other properties.  They see you mean business even more so when you send them these points you've stated here, but since you've established the relationship already with positivity/forward thinking/flattery, they may be more willing to respond?  Just a thought. But yes, overall, you should stick with your numbers and point them out. They show you're professional and doing this for a living, not 'on a wing and a prayer.'  Brokers who don't respond probably aren't the ones you want to be working with at your level anyways.  You want pros who respect pros. Go get em!