All Forum Posts by: Dave Bingham

@Hermilo Garcia 

Welcome to BP Hermilo! Regarding your problem with buying real estate out of town there are multiple ways to solve this quagmire. I'd start by quantifying what type of asset you're searching for. Are you looking at office, industrial, MF, SFR, etc...? Then I'd refine it further by the quality of the instrument. Are you buying AA, B-, D properties? After you do this I'd look at specific markets and your goals. Are you wanting emerging markets, maturing markets? What type of financing are you going to employ? Once you have these types of answers you can then go to the BP forums and look up nearby investors that fit your niche. You can also call those local REIA's. You may also follow the sales of the types of properties in the locations you want via court documents. Reach out to those investors that are buying what you are interested in.

Good luck friend!

@Jennifer Talcott 

Welcome to the world of RE investing Jennifer!

@James Consworth 

Hi James! Check out this book: "The valuation of apartment properties" by Mills and Reynolds. It's a hard read as it's about as exciting as the inner workings of a rock but the information is very accurate. 

Good luck !

@Chase Dunlavey 

Look at multi-family Chase. 

@Jason Cobb 

It's cool how you are looking at the problem and trying to quantify it in different ways. However as @Brie Schmidt said anything over 5 units is based on income. There are three approaches to value with real estate. They are economic, comparables, and replacement value.

With an underlying asset such as apartments you would give the most weight to the economic approach (cap rate derived value).

Almost any commercial appraiser looking at your property would no doubt assign at least 90% of the total value to the economic approach. What comes next is the "art" component of appraisal. Some appraisers may decide to make that 95% or keep it at 90% and average the replacement costs and comparables for the other 5-10%.

Trying to disentangle the financials the way you are doing is very fascinating but will not give you a number that can be justified by folks in this industry.

Good luck with it!

@Jason Cobb 

Jason, I'm confused. Are you basing the value of these units on a % increase of appreciation since a given date?

@Chris Fiore 

Hi Chris. Welcome to the site!

There is no wrong technique to do it. Some start in SFR and earn cash for multi's and others go right to gaining investors. One thing to keep in mind is that once you do earn enough and sink it into a multi you're broke again from a liquidity point of view. You'll be stuck doing SFR's again to earn enough for your next acquisition. If you're looking to acquire many units than I think you can see how this could be a tedious and time consuming process. If you want to accelerate the process, cultivate investors that specifically want multi-family. Some people hate that and want to go more slowly and not feel so out of control. I'd think about each path and decide which is for you or maybe do both. As noted earlier, there really isn't a wrong way.

Good luck friend!

I might @Trey H. 

I'll check with him.

@Brian Johnson 

Have fun in Tampa. It's a beautiful city!

@Jesse O. 

Maybe we should all meet. It appears you guys know something I don't!