All Forum Posts by: Canesha Edwards

@Frank Patalano

The thing that's holding me back is money and experience. I have dreams of being a developer, so instead of starting the traditional way with a flip or small MFR, I'm looking for value add apartment deals.

I’ve spent a lot of time building my knowledge base trying to learn as much as possible for experienced developers. However, my limited personal funds and lack of development experience has been a bit of a hindrance to say the least. All in all, I’m learning a lot along the way and know I’m getting close to my first deal.

@Eric Cady

Eric, my first advice would be to get educated. I would suggest reading @Jillian Sidoti book “The crowdfunding Myth”. It does a good job is detailing different ways to raise money under the different regulations.

I would also suggest speaking with a Securities attorney. Hope this helps.

Best of luck.

@Nick B.

Thank you for the simple break down.

Hello all,

How would you evaluate a property that reported negative cash flow for the previous year?

How do I determine an offer price? The property is located in a QOZ in a decent location that will see appreciation due to future approved developments, but I don’t want to over value the property based on “future” hopes.

The property is only 55% occupied which probably explains the cash flow problem. Most of the vacant units need to be rehabbed or updated.

Thanks in advance for any input.

@Jason Ma

Congrats Jason! This is well deserved!!!

@Ben Leybovich

If your underwriting works to acquire what will be $800 - $1200 rents, then you do it. What you are buying is affordable housing. In a market ranging from $500 to $1200, you'd need to stay in the $700 - $800 range, but this may represent difficulties relative to CapEx. Makes sense?

Yes, that makes sense. Thank you for breaking this down for me. So, what advice do you have around estimating CapX? I always feel I am either not allocating enough here or I’m being too conservative in my analysis.

@Tyler Erickson

Great post! As a new developer who’s primary focus is to rehab and develop affordable housing, the price of land, materials, and labor make it almost impossible to provide affordable housing, especially in the new construction space.

So, while the rental market is strong, and looks to stay that way in the near future, I believe there is exponential growth in the lower income rental classes. The question is how do investors/developers provide affording living, while still making a reasonable profit? I’m still trying to figure this out lol.

I know here in Atlanta, our economic development fund only requires 20% of units to be affordable if they are providing some type of funding. This simply isn’t enough in my opinion.

Either way, apartment investing is the way to go regardless of what asset class you invest in.

@Alina Trigub

Yeah, I may look into doing a JV. I was trying not to give away too much equity though. Thanks for the advice.

@Payton Chung

Thanks for the insight. In your opinion for multi family building, is modular or traditional building more cost efficient?

@Grant Rothenburger

Hey Grant, I think you’re right. Thanks for the input.