All Forum Posts by: Charles Seaman

@Dexter Harris Your numbers look good, but the deal doesn't make sense unless there are value adds that aren't properly accounted for.  Are there any value adds that you haven't factored in yet?

@Dexter Harris Assuming that the numbers you posted are correct, then the cap rate, DCR, and cash-on-cash return that you calculated are correct. Using the holy trinity described in the RE Mentor model (I also took courses at RE Mentor), then this deal wouldn't pan out, unless there are value adds that haven't been accounted for yet. Are you looking to see if the deal makes sense or only to make sure that you calculated everything correctly?

@Joseph Koury To the best of my knowledge, there is no legal obligation to disclose it at the current time.  Any moral obligation is at the discretion of the individual.  Just keep in mind that doing so may have adverse financial implications, so be sure to thoroughly consider all sides and then make the best decision that you can with the information that you have.  Even though many people have already been diagnosed with it and the fact that it's all over the media, it'll impact people differently when it hits close to home.

@Joseph Koury You can disclose it if you want to, but it'll likely frighten most of the residents, which may lead to negative results (ex. residents asking for credits on their rent or other types of concessions due to being exposed to the virus).  If you do disclose it, you'll want to keep the disclosure very high level and general to avoid violating any HIPAA rules.

@Rebecca Kirkwood I'd recommend calling other property managers in the area to find out what they do.  You should call as a prospective owner/customer and see what's standard in the marketplace.  This will help you gauge what the competition is doing.

@Jason Johnson If you haven't already done so, then it might be worthwhile for you to speak further with those investors and ask them outright how you might be able to add value to them and/or their business in exchange for knowledge, assuming that those are people that you want to learn from.  If you know them well, then you might also see some holes in their business that could be better filled by somebody else with a neutral point of view.

Make sure that you're looking for people that are where you want to be so that you can learn from somebody that's doing what you want to do.

@Jason Johnson Before you jump into anything, you're better off learning about the asset class and the industry first.  There are many courses out there that you can learn from (one of which is Michael Blank's as @Roni E. suggested above).  There are other ones that I can recommend as well.

However, spending money on a course isn't your only option.  It's very likely that you can find a local investor in your area or somebody here on BiggerPockets that you can learn from for free in exchange for doing things to help them grow their business or to just simply optimize their life.

Most importantly, learn any way you can so that you understand what you're looking at.  Otherwise, anybody can present you with a bad deal and tell you that it's a good deal and without the proper education and knowledge, you won't know the difference.

@Jason Johnson Your best bet would either be syndication or finding a money partner or money partners to invest alongside with.  In either case, you'd likely be the one putting in the sweat equity.  It'll be helpful for you to have knowledge of multifamily properties and the overall market.  Do you have any currently?

@William J. Morgan Real estate is always a great investment vehicle and has been throughout all of history.  There's NEVER a bad time to buy real estate, but it is a good time to be smart and make sure that you don't overpay.  As the previous cycle ends and we start heading into a buyer's market, many sellers and brokers will believe that the prices people paid a month ago will still be relevant.  They won't be, so don't make the mistake of paying those prices.  It'll likely take sellers and brokers a few months to accept that reality, so be patient and wait it out rather than rushing in to buy a bad deal.

@Hunter Leggett Are you looking to get approved for this loan to purchase a multifamily property for investment purposes?