All Forum Posts by: Bryan Mitchell

@Jarvis Davis

Thinking like an investor is key. First and foremost, we look for deals. In fact, we need a good deal flow to be successful. In today's market, it is I'm difficult to have this. So look for great investment deals and build your buyers list. Here's the tricky part, simply having access to the MLS is not good enough. You need to find off market deals. To do this you'll need to build a system. This is the most important step. Think like an investor and see value where others may not. Good luck!

@Jason Malabute

“$9K per unit for updates”, I’m assuming the contractor walked all the units in advance of an offer?

@Jason Malabute

Yes,knowledge is potential power or power unrealized. As for your three points, I like where your head is on this.  I’d add that before underwriting you have your contractor provide an estimate of repairs or renovations and that being said, it should be inline with your inspection. Thanks again for your insight!

@Paul Moore, I’m referring to reinvesting the dividends (I.e. 8% preferred return) so that the 8% grows with an increased valuation or increased return. 

@Taylor L., REITs are not what he’s looking for. He wants true ownership and all the benefits from that. We’d like cash flow more consistently. I think he’s looking more for a partnership.

@Alejandro Stewart, all is well. How ate you?

@Mahinda Horapakse I’ve also seen this standard time period. It’s really how they are structured. If it didn’t follow this, you may consider it a like any other partnership. I’ve always thought a preferred return of 8% wasn’t all that great. However, selling the property and getting a healthy split of the net proceeds from a sale as an equity owner made things far more appealing. You’ve asked a great question. 

What would you choose between a 8% preferred return from an apartment syndication or an 8% return with compound interest? For the sake of the argument, both have the same tax advantages and appreciation upon liquidation/sales.

@Charles Carillo, I agree with this. It’s the safe bet. I look for properties that are already cash flowing and upgrade as we go. It’s a slower, steadier process, but I sleep very well at night and build forced equity as part of my long con. Also, you can perfect your technique with minor tweaks here and there by doing one unit at a time. Document your progress and more unforeseen opportunities will come. 

@Alonzo Morton, comps will be difficult. I would market to your customer, investors. As such, investors will be looking at rental comps to determine the anticipated cash flow. So focus on possible rents and base the asking price on that.