All Forum Posts by: Yousif Abudra

Ronan - good to connect.  E-mail me your criteria and we can schedule a phone call. yabudra@bena-capital.com

If you wholesale small MFH properties, we want to talk.  We are a cash buyer looking for properties that meet the following criteria:

Metropolitan Area:

Population: Growth last 20 years with forecast to continue growing Employment: At least 3 major employers, more is better. Unemployment Rate: At or below 4% Poverty Rate: At or below 15%

Property Specific: Price: $200k-$1MM

• Value-add preferred (vacancy in good location, repairs, mismanagement)
• Ability to achieve an 8% cap rate either going in or post-repairs
• High growth, lower crime area or areas in positive transition 
• Per unit rents above $500/month

Happy to chat further. We are actively looking to buy with the criteria above.

I will be very curious to see responses to this post in 4-5 years' time.  Right now, I am looking at sponsors advertising IRRs in the high teens, with little to no operating experience.  And the poor investors have no way to compare investments other than to compare the promised percentage returns and equity multiples, as if that is actual analysis.

What I do expect to see is that many of these syndications and syndicators, especially those who have not been through a down cycle, will suffer significantly if either a) their operating skill is not as good as they have said it is, or b) the market decides to be disagreeable.  There are so many assumptions built into their models around rent increases, minimal opex increases, and further compressed cap rates 5 years out, that there is little to no buffer in case anything goes wrong.

If you are looking to invest in a syndication, look closely at these assumptions and compare them to the local market's demographics (population trends and job growth).  Do they align?  If someone is promising an exit cap rate lower than what they are buying it at today, in a city with decreasing population, run for the hills.

@Andres Osorno Excellent question! First and foremost, real estate is a relationship-based business. So talk to the sponsor and have them explain their why and their how to you. Their why will tell you why this is meaningful and why they will work hard for you. Their how is their process / secret sauce. If they can't explain it in a clear concise way, politely move on. The deal details and market research are less important. Get to know the person and the team behind the deal first. If their business plan and experience make sense, ask to talk to some of their investors. Ask to see their latest quarterly report. Lastly, these folks should not be pushing you to invest- that is a red flag. It may violate all sales rules, but I tell new investors fairly regularly not to invest when I feel their objectives are misaligned with the fund we are offering. Investors and relationships come first.

@Melanie McDaniel This is one of those cases where you need to have dug the well before you need the water. Yes, theoretically you could find one or more partners and put the deal together, but unless you hve done it before and have a lender lined up, the odds are not in your favor. A family office is highly unlikely to jump on this deal either. My recommendation is to see if your experienced partner can bring in the lender and the investors. If not, this may not be the best use of your time.

Sent to you both

Fully occupied 12 unit multifamily investment property for sale in the South End (good neighborhood) of Hartford, CT.
It is priced at just $529,000, well below market value of $600-$700,000.

Generates $8,715/month in income.

Tenants pay all utilities, except for 4 units where owner pays gas & electric.

Great South End location, brick building, newer windows, near stores, banks and all tenant services, bus route, laundromats, schools, churches etc.
12 units-10 1 bedroom and 2-2 bedroom, separate heat, separate hot water, separate electric.

4 newer furnaces installed and 8 brand new uninstalled furnaces included in the sale, for easy installation when needed (over $15,000 value)!

Must close by Oct 15

Building Size 9,486 Square Feet Gross Rent Multiplier 5.05 Property Sub-type Garden/Low-Rise No. Stories 3 Property Use Type Investment Year Built 1928

Address: 19 Kenneth, Hartford CT

Financials and rent roll are available to serious buyers.Do not disturb tenants. Offers subject to inspection.

We are cash buyers looking for high vacancy / mismanaged properties. If you have CoStar access for a city, state, or especially nationally, we'd love to talk and have you run a search and be compensated on the deal. Please reach out to me.

@Richelle Bryan  We make offers all the time at percentages far below and far above asking price.  The asking price is, in theory, irrelevant.  The market (buyers) will pay what they are willing to pay.  In reality, the asking price can sometimes give you a guide as to the seller's ballpark range, but not always.

My suggestion is to run your numbers and offer what makes sense for you for the particular deal.  Trust me, more times than I can count, our offers were rejected, only to be accepted a few weeks later.

@Aaron Lawson I agree with @Juan Vargas in that we use ballpark percentages for the initial screening.  And these vary by state.  For example FL and TX near the coasts have higher percentages due to wind/water coverage.  And if you are in a flood zone or earthquake region and decide to cover for those the percentages need to be higher as well.  But these percentages are only used for initial screening.

We immediately shop the market for insurance brokers if we enter into contract as we refine our numbers, as @Gino Barbaro mentions.