All Forum Posts by: Cedrick Mahieux

@Justin GoodinIn on of my latest deals as an equity partner, the sponsors underwrote with a cap rate expansion of 27 bps/year (0.27%/year). So conservative that the numbers (COC, IRR) were ok, not outstanding and a lot of investors failed to look into this until we mentioned that to them. With a more typical conservative approach of 10 bps, the numbers were great.

@Joseph KimJoseph, related to this, there is a very good book from Bill Ham on the topic called Creative Cash he recently published. Bill is an expert in the field and you can be sure that what he describes in the book is legit. I know because he is my coach too :) 

I hope it helps

Cedrick

@Lionel Miller . I could give you a list of questions but it is critical you first understand and define few things before jumping in asking question to a broker or a seller. A lot of things to consider; you need to make sure you have identified a market that suits you, understand its dynamic (net migration, economy, Crime etc...) and then have your criteria fully defined: What type of property, size, what is your business model, what perfs you want, how you are going to structure the deal (JV, Syndication)? Stick to the number, your model. Then you can look at the property.

If you have no experience in this field prior to that you might also want to find some partners (in any case it is a teamwork so always good to have partners), mentors, start as a LP so you can learn some of the rope and ask any questions you have to the GP, and potentially join a community to accelerate your development

I would suggest that your first step and taking the time to educating yourself (reading, podcast, learn the lingo), attend meetups to meet people with same interest and potentially future partners. All these avenues should help you in refining your approach before you can ask questions related to the type of debt, data (T-12, RR), reasons why the owner is actually selling so you can define what approach to take in term of financing

I hope it helps

Good luck

Cedrick

@Mulugeta Berhe Good initiative. you will learn a lot and will meet tremendous folks, which will lead to create opportunities. if interested in Commercial Multifamilies I would highly recommend reaching out to the following gentlemen @Hendra Tambunan@Christian Bowen @Vinay Ari; 

Hi Patrick, when you say Multi-families, do you mean Duplex, triplex etc... or commercial multi-families? For the latter, different approaches:

you can use some platform such as Reonomy or even Costar but the price for this one is fairly stiff. The "old fashion" way would be to go to Apts.com for instance, to a certain extend, Rentometer where you can search for apartments in a specific area. Instead of getting a general list, I would suggest you define some criteria, what you are looking for: for instance apt. classes (A, B, C, D), neighborhoods (A-->D as well), age of the properties, size (depending on interest and budget) you are willing to invest in. It is unlikely you want to invest in all the area of your county so adding some filters will help you to narrow it down. I hope it helps

Good luck

Cedrick

Simple: The People: this is a team effort. You can't succeed alone. Your network is really your net worth. 

Congrats @Ryan Maguire in starting a new chapter; I started myself focusing on commercial real estate family a year ago almost to the date and can share a bit. 

Related to books, I would recommend "Crushing it in apartments and commercial real estate"  from Brian Murray (featured in BP podcast#126), Creative Cash from Bill Ham if you talk specifically about commercial real estate. 

Related to gurus, I am part of the Jake and Gino community and I really enjoy the journey with them. Bill Ham, I just cited, is actually one of my personal coaches. I think there is no right and wrong answer on how to approach and develop in this field, you need to choose something that fits you, fits your budget and goals, how you work and what kind of environment you need to develop as an investor. It also depends if you see the expense as a debt or an investment on yourself.

Good luck

Cedrick

@Tabitha Cooper Thanks Tabitha for your comment. I am glad you like it and "motivates" you to do the same for your project. I would be happy to talk with you about your project. Please DM directly so we can discuss further. Thanks

Hello @Christian Bowen and congrats in your journey in starting in Commercial real estate and MF. If you are looking for like-minded people I would recommend getting in touch with some of the great guys leading the San Francisco Multifamily and more investor clubs. They will have all the resource you need. I can put you in touch with them if you want. I also know very good agents in CA, but not specialized in MF. If you are looking at other markets (and I would personally), I would be happy to chat with you as well in what to look for for selecting your market. 

DM if interested.
Good luck

Cedrick

@Jorge Ramsés García, Hello Jorge, Good work! I am also interested inthe Famous Four and did compile some data for the first 365 podcasts.

Here is the link in case you are interested

https://www.biggerpockets.com/...

if it does not work search for "famous four" and it is down on the first page; I hope you find it useful

Don't hesitate to reach out if you have any questions