All Forum Posts by: Amir Khan

Quote from @VeinTwain Herron:

Hello need some advice on how to get investor clients in Williamson and Travis County to trust me managing their properties. I have a really small niche I only do multi unit residential and commercial leases need Ideas on where to prospect for clients. I've been in industry for 12 years and licensed for 7years, but I'm still finding it difficult to get my feet into the management realm.

A suggestion; do you help new investors buy investment properties? If not, then you should (promote yourself as 'investor friendly' and be the most knowledgeable in your market). And when you do help non experienced (and experienced investors), you can offer to manage it for them. If you can help them find, close on good deals, they are more likely to trust you to manage them (as they will know you understand their investment strategy)..

Quote from @Veronica Giggers:

Hello BP family. We are considering investing in a MF, it is 12 units with over 90% of the property empty, and needs renovations to all the units. I know there are variables to ever situation. But, approximately how long does it take to turn a MF property over, and reposition it for refinancing? I have done some calculations on rehab cost, but not sure how long it will take to start getting cash flow.

I know you are only considering this property and not sure how much experience you have in commercial multifamily. But perhaps a better strategy would be to find a stabilized property (with occupancy over 85%), that does require update in all units. It would be easier to finance such a deal (as it is producing cash flow), you could then update as vacancies happen. Once you've improved NOI, after seasoning, you can refinance. Perfect BRRRR.

Just trying to get some ideas about how much you pay for painting small 1 bedroom apartments in your area. The unit is only 350 sq. ft and I am in Texas...

Quote from @Taylor D'Ambrosio:

Hello,

I'd like to get your input on how you would invest 400 K. I am a 30 year old middle earner in finance and live in the Midwest. I do not work in real estate but understand the basics. I have 400 k that I would like to deploy for real estate and would like to start soon. My goal is to invest the 400k and have good positive cash flow a year at least 30k. By the time I'm 40, I'd like to be around 80 - 100k. I would like the investments to be mostly passive but hands on is fine too.

The asset category I am considering are single family/mulit long term buy and hold rental properties.

Should I split the funds and use down payments/mortgages or purchase cash and get HELOCS?

You all have much more experience than me, so I am hoping that you all will give me a sense for how you would handle things.

Thanks!

Yes, if you buy all cash, you can buy small multifamily in Texas and possibly get 30K in cashflow. I am sure there are other markets where you should be able to do it as well.

Quote from @Scott Michael Gross:

Hi All- I am considering my first purchase of a property with more than 4 units (9 for this one, to be exact). My broker told me that most appraisers do not include repairs or vacancies when calculating the NOI. As I am trying to get an estimate of what the ARV will be, would the BP community agree with this? Obviously, there is a big difference in ARV with and without these items.

Thanks!!

In commercial multifamily, your ARV would simply be 'what your units would rent for after they are repaired/upgraded'. That increase in rent, should translate into increase in NOI, which would be your new value.

@Bobby Paquette I am an investor, so I have my goals laid out for the 5 years, 3 years and 1 year. I use 12-week year system (from the book with the same name) with great success. The 12-week year breaks the long term goals into 3-month increments and further into weekly tasks. A weekly task could be as simple as search and underwrite 1 deal. If you are underwriting 4 deals a month and placing offer on 1, you have a greater chance of buying a deal in 3-6 months.

@Tara Duval Hmmm maybe no response from anyone yet because you used "reputable" in your post? 

I am joking of course, many syndicators are not doing that well at the moment unfortunately...specially the ones who had rushed to put deals together to refinance out at lower rates.

Quote from @Timothy Christian Jr:

I determined the cap rate for this duplex in Greenwood, Indiana, earlier today, and it was a 7 cap in a B class neighborhood. How can I calculate my market cap rate (CR) with this data? How can I determine if a deal is excellent after I know my markets' (CR) and my rental property's (CR), based on whether my (CR) is lower or greater than the typical markets?

As mentioned by some others as well, when analyzing a residential property (1-4 units), you don't need to use cap rates (which is for commercial properties 5 units+). Rather you should be using CMA or comps (ask help from a local realtor and they can do it for you). 

So in this case, I would look for comparable duplex  starting within the subdivision of subject property, if you can't find anything, then you increase your search area till you start finding comparable units. You will also compare the properties based on year built, no. of bedrooms/baths, square ft., condition and other features (parking/garage) etc. This would give you a more accurate valuation plus this is how your lender will also value the property.

Quote from @Marquis Cobb:

Quote from @Amir Khan:

Quote from @Marquis Cobb:

The mentorship mainly focused on the education and coaching. The creator of the program does sponsor deals however they focus on much larger deals

 @Marquis Cobb I faced the same situation (however I did not join a mentorship program). I did educate myself about syndication, networked and put together a group of high net worth people interested in doing what I wanted to do (we tried to syndicate, came close but failed). So I tried and succeeded in alternative strategy; I started with smaller commercial multifamily deals that I could do myself. I've already done one cycle (BRRRR) myself without partners and I am on track to buy bigger units, so it can be done.

@Amir Khan did you just get your investors to fund your smaller multifamily deals?

@Marquis Cobb I went in myself without partners/investors...

Quote from @Marquis Cobb:

The mentorship mainly focused on the education and coaching. The creator of the program does sponsor deals however they focus on much larger deals

 @Marquis Cobb I faced the same situation (however I did not join a mentorship program). I did educate myself about syndication, networked and put together a group of high net worth people interested in doing what I wanted to do (we tried to syndicate, came close but failed). So I tried and succeeded in alternative strategy; I started with smaller commercial multifamily deals that I could do myself. I've already done one cycle (BRRRR) myself without partners and I am on track to buy bigger units, so it can be done.