All Forum Posts by: Adam Adams

@Sam Grooms I’d like to get you on my podcast to share your story.

@Andrew Neal

My first deal was land in 2005 but the second one was an “apartment hack” on a 3 unit multifamily.

Today I have a little over 600 units and only about a dozen of those are single family.

You asked why: Soon after I bought the land, I learned that Robert Kiyosaki said he made his wealth in apartments, not single family, so I skipped single family all together.

Looking forward to it!

Awesome!

Adam Bradley , I truly thought municipalities were no longer allowing new development of mobile home parks. If you end up getting this done I’d very much be open to interviewing you on my podcast so you can teach more people how you did it. Very cool! I hope to hear more soon! Keep us updated!

Steve A. Something I’ve found is that the 5 unit to 70 unit space isn’t as coveted by many lenders. You’ll see the loans getting great again once you get above 70 units.

Steve A. I’ll address your quoted question here: “Also if I want to buy apartments, how do I accomplish that? It’s  not as easy as loading up Zillow and combing through. Loopnet seems to be garbage. A commercial broker seems like maybe an option but I believe they are limited to the state in which they operate? So if I want to cast a wide net and search in several metros, I would need to have like five different brokers searching for me? Is that correct? I see some commercial properties on here but most seem to be either 1) gigantic and out of my range or 2) quirky. I prefer simple, uniform properties, not ones that require tons of work, creativity, or time investment. I Ann just too busy running my main businesses for now. Can anyone give me some guidance?” —————— I’ve purchased hundreds of multifamily doors and have interviewed dozens of other apartment investors on my podcast and will attempt to share some of what I’ve learned over the past 10 years: 1) Loopnet has some great opportunities hidden within that junk. 2) you need to underwrite about a hundred opportunities to find one that truly works anyway so don’t be afraid of Loopnet 3) commercial brokers are a great way to start but if you’re new... they are only going to give you garbage... no better than Loopnet 4) is recommend if you went the route of brokers that you’d want to have 3 brokers per sub market and you’d want to contact each of them often. 5) nothing is “gigantic out of range” everything is obtainable via strategic partnerships 6) quirky is often a good thing. 7) simple uniform properties will be the most difficult to find in this current market, you may want to consider the ones that take creativity and time... again this can be more easily done via strategic partnerships 8) being too busy isn’t necessarily an issue if you utilize a strategic partnership that can create a win win. Hope this helps?

Very great topic! Certainly love multifamily investing!

Dave, who’s idea was this?

Originally posted by @Account Closed:

@Adam Adams

3 appartment buildings and 6 houses with 40k in hand

121k gross income at say 10% annual that's 1,2m worth of real estate 

That's a 30:1 leverage...or 97% LTV

I want the name of your lender

Honestly after the subprime crisis mess, i thought they would ban that kind of excessive leverage but it seems it is back to business as usual

My average LTV is closer around 55% *NOT 97% 

The part you missed is: I'm not paying market value: 

To be clear, my lenders are private lenders.

For example:

Step One: 40k in the bank

Step Two: Purchase 100k worth of property which grosses 18k/yr. My purchase price is 28k.

Step Three: Finance the property with a private lender. The loan is 40k (AKA 40% LTV)

Step Four: 52k in the bank

Step Five: keep doing the above

This makes LTV (loan to value) <55%. Even though LTC (loan to cost) is closer to 97% 

(when you did the math and got LTC @ 97%)