All Forum Posts by: Brian Plajer

I think you may be missing how Multifamily (commercial over 5 units) are valued and how value can be created quickly vs SFR in which the value is determined by the comps. The value-add growth potential is huge in multifamily

I imagine you may have to give-up more of the deal, until you get a few under your belt, then the money finds you once you have a track record. 

@Robin Simon we are looking for 75-200 units

Hello,

  My investor group is targeting an apartment building in the Charlotte area.  I am hoping  to develop relationships with commercial lenders in the Charlotte area.  I'm also happy to discuss our criteria with commercial brokers, as well.  Let me know if you'd like to connect. 

Thanks!

@Josh Oaten how did you pay the bills while you offered your services for free for many years to learn?

@Evan Polaski thanks for expanding. Everything you said makes sense. I think the purchase price falls somewhere between the current worth and adding additional for the opportunity. The tough part is, as you mentioned, is markets are changing and just because someone else is in a position to overpay doesn't mean it's a smart move. I'm going to grab my crystal ball!

Hello,

I'm looking at an apartment building that recently hit the market. The calculated purchase price based on actual numbers is significantly less than the calculated purchase price based on the proforma (best case scenario)  which requires capex improvements to increase the rents over a few years. Looking at similar properties, recently sold,  the Proforma price seems to be more in line with what it will sell for. My question is: aren't you giving up all the value/growth  by paying a  price based on the proforma which may or may not come to fruition? Seems like the purchase price should be somewhere between the actual and the proforma, acknowledging that improvements MIGHT increase the value to some unknown degree but certainly not a guarantee. I appreciate all of your expertise, suggestions and comments.

Hi Jack,

  Congrats for thinking about investing in real estate at such a young age. Its the perfect age to taek advantage of long term appreciation while your tenants pay off your mortgage.

Hi Larry,

It sounds like you have a great property and there is potential to increase cash flow with minor updates. I would invest in the property you have and get the most out of it. Then it will appraise higher and the cash out refi may make more sense depending on rates at that time.

Very helpful. Thank you for taking the  time to reply