All Forum Posts by: Braden Smith

@Joshua Nguyen I can tell you anything you'd like to know about our local market. It is very competitive, with many buyers and little inventory. Multifamily rentals are out there, but it has become difficult to find ones that will cash flow. Prices are at a premium in the New Orleans area, although we are starting to see a bit of a market correction in Orleans Parish as prices are down for the first half of 2017 in OP. 

Here are a couple of good articles to read:

http://www.nola.com/business/index.ssf/2017/08/new...

http://www.nola.com/business/index.ssf/2017/08/hou...

http://www.nola.com/business/index.ssf/2017/08/hom...

http://www.nola.com/business/index.ssf/2017/08/new...

Let me know if you have any questions and I'd be happy to answer them.

Hey @Joshua Nguyen. I am a local investor and a realtor in the New Orleans area. I do the majority of my investing and realtor business in Orleans and Jefferson Parishes. What is your plan with the multifamily? Do you plan on house hacking it, or just keeping it for a rental?

Hey @Austin Hughes, I have had some luck dealing with larger multifamily properties off market. Many sellers of these want to sell discreetly so that they don't lose tenants and/or employees. 

First and foremost, you need to have all your financials ready. As you said, any investor will want to see the numbers so be prepared to show your gross income, operating expenses, NOI, and CAP rate for at least the last two years and have your T-12 handy. Also have your insurance docs and all service contracts handy, and be sure you have invoices/receipts for any and all cap ex items over the past two to three years.

I'm not sure what condition your property is in, but most investors that buy these type of properties are going to be looking for a potential upside, wether that be through raising rents or decreasing expenses. If neither of those things can be done, then you will have to market the property based on its current NOI and CAP rate. In my area most investors are looking for about a 10% cap rate or better.

I would put it out at the local REIA, talk to any lenders and commercials bankers you know that may have clients looking, ask your CPA and other accountants, talk to title companies and attorneys, any other investors and contractors/builders as many of them own real estate investments also. And of course put it online anywhere and everywhere you can such as BP market place, Craigslist, Zillow, etc.

And if you know any commercial realtors, you should ask them as they may have a buyer looking right now.

That happens here in my market also. These wholesalers are posing as actual buyers and getting the property under contract with the intent to assign it and NOT informing the listing agent of their intention. Things get messy in this situation.

I agree with @Doug McRae. Many times the auction sale for a property will get stopped. This could by by the property owner getting the payments caught up, or it could be done with a ratified contract to sell the property. 

@Aaron Hearne in order to buy the property you mentioned you would need to write an offer on it and get it signed buy the seller, then present that ratified contract to the foreclosing bank.

As with any legal matters, I suggest you speak to an attorney in your parish to determine the specific rules and regulations in your parish.

It depends on the zoning. If it is zoned as a R1A then no, you cannot legally rent it out. The R1A zoning is for single family residential only. You could do so "off the books", at your own risk of course.

See here for more info - http://www.jeffparish.net/index.aspx?page=656

And here - chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/http://www.jeffparish.net/modules/showdocument.aspx?documentid=15682

Closing costs can range from 3-5% typically. To get an accurate number for your specific closing costs you need to ask your lender and title company to provide you with that.

Hi @Marcea Schwilke. I am a local investor and realtor here in the New Orleans area. As you may have noticed we have a rather unique real estate market here. Most other major metro areas have clearly defined lines between good and bad areas, where here things can change drastically from one block to the next. This makes our market much more of a challenge than most, as you really have to know where the lines are. Property values can be quite different from one block to the next. This just takes time to learn.

As far as an average ROI for multifamily... that would be hard to say. I look at cash flow rather than a percent ROI.

Our market is completely saturated with real estate investors, so finding good deals has become quite difficult. You won't find them on the MLS that's for sure. Check out or local REIA which is NOREIA and connect with some of the local wholesalers. But the best way to find good deals in our area is direct to seller through whatever means you choose, wether it be cold calling, direct mail, internet, etc.

I'm not sure what price you are looking for, but prices in Orleans parish are at a premium, even for average condition properties. In our area we only have so much land to go around as we are surrounded by water with the lake to the north and the river to the south, and this drives prices up. The demand is high and the supply is low. The areas you will find lower prices are in not so good neighborhoods. You may be able to find some things in a decent price range in neighborhoods that are in transition, but that all depends on what you feel comfortable with.

If there are any questions I can answer for you, fell free to reach out. 

Are you looking to mail yellow letters or just looking for a direct mail provider?

If you are in a market that is saturated with investor and one where there are many new and rookie investors I can tell you that there will be TONS of people mailing the standard "yellow letter" and yours would just get lost in the shuffle.

Here in the New Orleans area, we are completely saturated with investors. The typical yellow letters are everywhere, coming from everyone and anyone. They don't stand out in such a crowded market.

In my opinion, it is better to go with something unique and/or strive for brand recognition with your mail pieces.