What is one thing you are struggling with right now?

Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes

For years I had a passion to pursue investing in real estate and I never got much traction until I was so clear in my mind on my desired outcome.

In 2011 I quit my job and set out to buy and sell multifamily.

Early on in my journey, I struggled to find investors to fund deals. Now the flip has happened for me where I don't have enough quality deals to present to my investors.

What are you struggling with right now?

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JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

Finding anyone worth a crap to do work of any kind. The work ethic is the worst I've ever seen in my life at this point and paying more money doesn't seem to have any real effect. I have maybe another 10-15 years maximum in which I can do all of this stuff myself, at which point I will probably sell my entire portfolio unless something dramatic happens with the willingness of anyone to come out and do any kind of manual/physical labor.

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
4y
Finding anyone worth a crap to do work of any kind. The work ethic is the worst I've ever seen in my life at this point and paying more money doesn't seem to have any real effect. I have maybe another 10-15 years maximum in which I can do all of this stuff myself, at which point I will probably sell my entire portfolio unless something dramatic happens with the willingness of anyone to come out and do any kind of manual/physical labor.
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Skyline Properties
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Jim Pellerin
Real Estate Consultant · USA · Member since 2014 · 1k+ posts · 751 votes
4y
Quote from @Brian Adams:

For years I had a passion to pursue investing in real estate and I never got much traction until I was so clear in my mind on my desired outcome.
In 2011 I quit my job and set out to buy and sell multifamily.
Early on in my journey, I struggled to find investors to fund deals. Now the flip has happened for me where I don't have enough quality deals to present to my investors.
What are you struggling with right now?

I wouldn't say struggling. I have lots of good deals. And lots of buyers looking at them. Just making sure I manage everything so nothing falls thru the cracks. I had a good $300M+ deal fall out because the sellers broker misrepresented the property and got the buyer upset so he walked.
1 Reply
Brian Adams
OP
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@JD Martin I totally agree with you. I use a 3rd party property management company and we have had an okay time finding quality contractors to do work.
I own a 1,000 unit apartment complex, so decent recurring work for the contractor.
1 Reply
Brian Adams
OP
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
Quote from @Jim Pellerin:

Quote from @Brian Adams:

For years I had a passion to pursue investing in real estate and I never got much traction until I was so clear in my mind on my desired outcome.
In 2011 I quit my job and set out to buy and sell multifamily.
Early on in my journey, I struggled to find investors to fund deals. Now the flip has happened for me where I don't have enough quality deals to present to my investors.
What are you struggling with right now?

I wouldn't say struggling. I have lots of good deals. And lots of buyers looking at them. Just making sure I manage everything so nothing falls thru the cracks. I had a good $300M+ deal fall out because the sellers broker misrepresented the property and got the buyer upset so he walked.

Thanks @Jim Pellerin. In case you come across any product that would be a fit for me, I am looking for value-add multifamily properties, prefer off-market, that are built after 1980, B/C class property in B area with pitched roofs, individually metered, with value plays such as low rents, poor management, high vacancy and a motivated/flexible seller.
I am targeting properties 200+ units, although I really like 500+ unit deals for the economies of scale.

My primary target markets are Dallas, TX and Atlanta, GA and will consider other markets with strong job and economic growth.

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Madison Wilson
Real Estate Agent · Austin, TX · Member since 2022 · 33 posts · 33 votes
4y
Hi Brian! The market is definitely a little scarcer than it has been during the great rate drop of the century. Have you tried exploring other markets? You may work with multiple markets as it is, but maybe check into other large cities near you that you could feasibly maneuver and work in.
I find myself as a brand-new agent, struggling with as you said, willing, ready and able to buy clients. I am pretty fresh so I know it will come with time. I also, as a new agent am going to have to work a bit harder to learn my market (Austin) both with market trends, and with the geographic aspect since I am originally from a different city entirely. I am sure you will find a solution that works for you soon!
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Brian Adams
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Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@Madison Wilson from a buying perspective, I am actually really excited to gobble up properties in Atlanta, Dallas, Phoenix, and Denver to name a few.
I follow a very conservative investment strategy buying deals on actual performance and I believe some buyers have overleveraged and bought assets based on aggressive proformas.
1 Reply
Madison Wilson
Real Estate Agent · Austin, TX · Member since 2022 · 33 posts · 33 votes
4y
I 100% agree with that! I think that can also come from working with an agent who knows a strong investment, versus someone just interested in a paycheck. All great points! Since you specialize in multi-family, I know you are no stranger to the rain in that aspect. If you haven't already considered buying in Austin, the rental market is very hot due to extreme lack of inventory. I haven't checked into Dallas as much, but I know from family members living there that is has been just as crazy as it is here. I've heard tidbits on Atlanta and Denver as well, but I have only just begun to scratch the surface on nationwide market trends. How do you find yourself able to keep up with the larger scale trends? (Websites, social media, newsletters, other agents, etc.).
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Brian Adams
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Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@Madison Wilson I have kept my eye on Austin, and as you said, the market has been red hot and I haven't been able to pencil deals.
Just like the sequence of Winter, Spring, Summer and Fall, real estate markets follow a cycle. I use different tools to track the migration of people, birth and death rates, jobs created, economic growth, occupancy, absorption, rents, etc.
I also like this chart from Integra Realty as it helps me visualize where markets are based on their research as of 1/1/2022. I use this as my starting point and do my own independent research to validate key metrics.
With the fed pushing interest rates up and since there is a correlation between cap rates, values will drop and more markets might accelerate from the hypersupply phase and transition to the recession phase.
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Madison Wilson
Real Estate Agent · Austin, TX · Member since 2022 · 33 posts · 33 votes
4y
Very nice. Beautifully said! I will 100% heed that advice to expand the resources I follow. Thank you!!
My team and I are always open to working with referral partners if you ever explore the Austin area trends, we are happy to be a sounding board for opportunities with clients of yours, and vice versa. My mentor/ team lead Bryan Noth is a top BP forum producer for Austin, and is heavy in investment clientele here in Austin as well as out of state. It has been awesome to connect with a likeminded and experienced individual! Thank you so much again for your input and advice!
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Lauren Stark
Real Estate Agent · Madison, WI · Member since 2021 · 60 posts · 33 votes
4y
My hang up is my husband and I are doing a live-in renovation so we don't have extra money to use as a down payment on a property. I continue to reach out to sellers about seller-financing but no one is interested. Any tips on how to use private money for buy and hold properties is greatly appreciated! That is likely what I'll look into next. We already have one investment property but I am hoping to get another one by the end of the year.
0 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Brian Adams:

For years I had a passion to pursue investing in real estate and I never got much traction until I was so clear in my mind on my desired outcome.
In 2011 I quit my job and set out to buy and sell multifamily.
Early on in my journey, I struggled to find investors to fund deals. Now the flip has happened for me where I don't have enough quality deals to present to my investors.
What are you struggling with right now?

I think the hard thing for me has been finding quality workers. I have been looking for an assistant and the turnover is crazy.
1 Reply
Brian Adams
OP
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@Lauren Stark oh my goodness YES...I remember the frustration of not having access to private money to close a deal.
I have raised over $75 million to fund my deals and have followed a process to locate investors for my deals. Feel free to send me a message and I will send you a couple of tips.
0 Reply
Brian Adams
OP
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@Steven Foster Wilson have you tried using Upwork for an assistant?
I use Upwork and have been very happy with my VA (virtual assistant).
0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
@Brian Adams annoying tenants. Bugs. Rodents. Ummmm what am I not dealing with? Hahaha the $ is good though.
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Brian Adams
OP
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@Bud Gaffney I let the property management company deal with those headaches...
1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
@Brian Adams yes Brian! I need to eventually do that. I am self managing right now to keep the $ in house…but I will be making the transition soon. How many units do you have with a Pm?
0 Reply
Brian Adams
OP
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@Bud Gaffney the PM manages my 1,000 unit apartment complex.
0 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Brian Adams:

@Steven Foster Wilson have you tried using Upwork for an assistant?
I use Upwork and have been very happy with my VA (virtual assistant).

Yeah, I have. It just takes a long time for the interview process. I have someone right now that I am finally happy with.
0 Reply
Aaron Gordy
Real Estate Broker · Austin, TX · Member since 2012 · 1k+ posts · 1k+ votes
4y
@JD Martin I think that when unemployment starts to creep up you will find that the work ethic will probably tick up a bit. Unemployment will eventually tick up as this time frame of low unemployment is an anomaly, historically speaking. As it is currently there are more job openings than job seekers. https://www.cnn.com/2022/08/30...
As a side note, we are feeling the same thing here in Austin. As an example, my wife is a forewoman at a big commercial construction company here. The first thing that she and the owners do every morning at the crack of dawn is to reach out to subs and confirm that they are going to the job and then stretch hard to keep the solid subs happy. Its a daily thing. They are doing a ground up mid sized office building and they are a bit stressed for the same reasons that you are complaining about. Its certainly not easy.
0 Reply
Holly Barrett
Real Estate Agent · Dawsonville, GA · Member since 2017 · 206 posts · 144 votes
4y
@JD Martin ^^ What he said!
0 Reply
Yangyang Jin
Member since 2022 · 52 posts · 25 votes
4y
I am rookie investor looking to build my portfolio with multi-family assets in New Jersey area. After thinking through what is the most practical way for me to start, I have narrowed down : 1. The size of the deal I am able to afford with 25% down payment, 2. How much value added rennovation work I am able to take on, 3. The towns I am interested in investing. I still struggle with below:
- No resources/ connections with lenders who can lend to 4+ units. I have came across a very interesting deal that's within my budget, but has 12 units, and the lender I have gotten pre-approval from would not be able to help me with the deal.
- I would love to take on value added opportunities so later can do a cash out to continue my investment journey, however, I have very little experience with renovation or have the vision how a property can turn into a functioning and attractive asset ( architect connection or background needed)
- No resource to off market deals, the good deals that's available on MLS usually are gone when they are just listed (I think I need a more connected and experienced real estate agent in the multi-family area)
- I am looking for positive cash flow with these deals, but a few deals that I have analyzed, all run negative cash flow. Are the asking price too high? Are the current rents under market value? My model of calculation is very easy- includes principals & interests, taxes, insurance, maintenance and monthly income.
Would love to hear anyone has advice and resources to introduce, and look forward to connect with my fellow New Jersey Real Estate investors agents, lenders, contractors, architects.
1 Reply
Joseph Guzzardi Jr
Rental Property Investor · Member since 2019 · 411 posts · 148 votes
4y
@Yangyang Jin best advice I can tell you is network with people. You can network with people who can help find you deals. Network with lenders who are lending in the type of asset you are looking for. Network with people who are already doing what you want to do.
Lastly it's rare to find a great deal that is cashflowing from day 0 if it's off market and requiring "value add".
The value is stabilizing the product, Reno and raising rents, decreasing expenses etc.. You need to create & the deal not just buy it.
2 Reply
Walter Olmstead
Member since 2022 · 3 posts · 2 votes
3y
My struggle is the Dollars. I had some struggles early in life and I'm currently recovering from them. I don't want to wait to get into my first deal and I'm struggling to find financing

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