How many deals are you looking at?

Question

Those who are active investors,

-How many deals are you underwriting each week?

-Are you making offers primarily more on off or on market deals?

Chris Blackburn · Answer

We closed on 2 deals last week.  Keizer, OR Verda... 114 unit build overlooking a park.  (Keizer is wonderful to build in)  https://www.loopnet.com/Listin...  Also just closed on this adaptive re-use project today...  https://www.loopnet.com/proper...   At $30 a foot plus 2 acres of blacktop- I could not replace it for $6M on a build.  We may have a lease to buy on the building then putting self-storage (automated on the 2 acres) will accept about 40,000 sq ft of self-storage.   We have offers in on 4 other multi-family/housing projects that look great.  2 of these are big swings and will require more capital than we currently hold and or they may fall to the wayside.  If I can continue to keep costs from rising too fast we can provide 5 years of multi-family projects that move to 35-year hud financing with 80% LTV.  Just need to fire up my syndication side, (Currently using Appfolio syndication)  and I am off to the races.  Every dollar we make goes into more projects so it is an exciting ride!   We look at 3-5 deals a week- make offers on 2-3 a month.   We just started our first project with a 50/50 partner.. They contributed the land- we do everything else.   We are only working in our local area (Salem/Metro- Oregon's second-largest metro area).  Our current syndication model is a 30%/70% split where we get 30% for securing the land, loan, oversite, liability.  The other 70% represents ownership and required cash for the whole project.  We end up contributing our development fee (earned last) so typically we will own over 50%.  Our track record is solid with the projects- we have a great team and risk our own capital.  Investors come first... we eat last.  We use a bridge to HUD construction loan process, if everything works right- we have the OPPORTUNITY to return some or all of the contributed capital to the investors.  Loans go to a 35 year fixed rate in the low 3% Chris Blackburn  Clutch Industries.    We currently only work with very simple, 3 story garden walk-up apartments- Super nice- made to appeal to women, stainless appliances, quartz surface but still affordable to build.  (I have seen too much destruction from developers doing luxury apartments)  I see no lack of demand over the next 10 years.  (Oregon is not easy to build in and Salem is very hard to build in:(

Eric James · Answer

A few a week until I have a backlog of rehabs to catch up on.

Bjorn Ahlblad · Answer

Looking and underwriting. Nothing has rung my bell in a long time!

@Justin G.

Marc Ferguson · Answer

Hey Justin, I'm new so I'm not familiar with underwriting. If I remember what I've heard it's simply making an offer?! When you underwrite does it guarantee that you'll get the property?

Charles Seaman · Answer

@Justin G. I typically underwrite anywhere between 1 and 8 deals each week.  More of my offers are on on-market deals.

Nico Salgado · Answer

I generally underwrite a deal a day (or someone on my team does). We like to talk with brokers regarding most of these deals to stay top of mind with them, even if we don't submit an offer. We are also looking at off-market deals but oftentimes it's challenging to get a hold of financials so UW can be tricky.

Justin Goodin · Answer

Wow nice! You are finding and closing deals from Loopnet?

Justin Goodin · Answer

I’m underwriting 1 or 2 deals a week. Not a crazy amount. I should probably increase this.

For the last few months, I have only really considered off market deals.

Relying on hits from my direct to seller efforts or looking at deals that a broker may send me off market.

I just got another lead today that came from a simple back and forth email conversation with an owner.

How many deals are you looking at?

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