All Forum Posts by: Account Closed

That's an inspiring story @Ryan Cox!  Congrats on your success.

The due diligence process - how to properly verify income and expenses as well as how to negotiate concessions during the due diligence process.

Originally posted by @Account Closed:

Originally posted by @Account Closed:

What type of properties are you looking for?  I don't think it was noted anywhere.

Depending on the type, size, and your investment objectives, you could probably eliminate a lot of markets without doing much work.

This is his goal,  "I'm not planning on using it to select a market in particular, but to value properties and see if potential properties are over or accurately valued in their asking price."

How would your suggestion accomplish what you said?

 I missed what he's using the information for.  

@Mat Deveaney - I took a look at the posting but didn't see any information on income of the units, what utilities are paid by the owner, etc.  

Since it's student housing, what is the lease term?  School year only or full year?

There is no such thing as a no vacancy deal, although many brokers will try to sell you that.  I agree that vacancy may be low given it's a student rental (assuming there is strong demand in the area) but there will always be some vacancy.

What updates have been done to the property?

Did the current landlord get parents to co-sign on these leases?

You can't make an offer without knowing some key points about income and expenses but the owner may not give you leases before having it under contract.  Make sure that you request leases during due diligence so you can confirm all information.

Hope this helps.

I found these two books to be helpful....

How to Read a Rent Roll - John Wilhoit

The Due Diligence Handbook for Commercial Real Estate - Brian Hennessey

What type of properties are you looking for?  I don't think it was noted anywhere.

Depending on the type, size, and your investment objectives, you could probably eliminate a lot of markets without doing much work.

@Bill E. What neighborhood?  

I personally don't like all utilities included, especially not heat and electric.  Was this a purpose built duplex or a conversion of a house?  I know we have a lot of those.  I'm wondering because it may be easy to separate the utilities if it's not a house.

I would read every BP blog post and listen to every BP podcast about apartments.  Read and listen to as much about the Subject as you can.  I've been in the apartment business in some form or another for the past 10 years and still learn something new everyday.

I agree with David Thompson . You can definitely figure it out on your own over time but working for an experienced syndicator can dramatically speed things up. Check out Kevin Bupp and Michael Blank's podcasts. A lot of great content on both. Joe Stampone also has a blog that focuses on his experiences with a startup commercial real estate firm.

I would start by reading as many books on the Subject as possible - due diligence, valuation, property management, market analysis, syndication, real estate finance, apartment investing, etc.  There are also many good podcasts that focus on/or cover apartment investing.  Check out Kevin Bupp, Joe Fairless, Bigger Pockets (some episodes), The Real Estate Guys, and Michael Blank.  

Once you've done that, analyze/underwrite as many deals as possible.