All Forum Posts by: Charles Seaman

@Justin Frank you're welcome

@Justin Frank that number definitely is high for properties with no payroll expense.  When you're looking at larger properties that have payroll, then 50% is a realistic number.  If you're looking at a well run smaller multifamily property where rents have been maximized (or close to it), then 35% to 40% is a realistic number.  If it's a smaller multifamily property where rents haven't been maximized, then that percentage will be higher and can vary widely from deal to deal.

@Ahmad Gul You can reach out to Aram S. Gosdanian.  He's the owner of Abbeyhill Realty & Management and is a reputable property manager.  I'm unable to post his contact information because it violates the forum rules, but you can do a Google search for him.

@Salome D. there are many good groups to work with that fit the criteria that you're looking for.  Many of the people that post frequently in this forum are in the syndication business (myself included).  The questions that I would ask you are as follows:

1.  What is your definition of a great track record?

2.  What type assets are you looking to invest in?  Multifamily is the most common one, but some groups also do self-storage facilities, student housing, commercial properties, and others.

3.  Do you have any geographic locations that you prefer to invest in?  The Southeast and Texas seem to be favorites amongst many people on here, but you can definitely find groups that invest in other areas.

4.  What type of returns are you looking to get?

@Erik Hatch not yet.  It'll probably be released in December or January.

You're welcome @Hedi B.

@Account Closed That sounds good.  Message me and let me know your availability and we can either connect by phone or get together for coffee.

@Ray Williams the best way to properly evaluate these deals is to underwrite them.  Most people use some type of spreadsheet based program for this.  They either create their own or buy one that's on the market.

I bought the one in the link below a few months ago. It's called Landlord's Cash Flow Analyzer Pro and it costs $99.95 (it includes everything but the IRA module).
https://www.rentalsoftware.com/real-estate-investing-software-features/

Another really popular one that a lot of syndicators use is Syndicated Deal Analyzer, which was created by Michael Blank.  There's a link below to it if you want to check it out.
https://themichaelblank.com/syndicated-deal-analyzer/

When you're looking to buy properties (and this applies to properties of all types and sizes, but especially to larger commercial properties), think of your job as being similar to a private investigator.  Your job is to uncover anything that could potentially be a liability or cost you money at some point.  So when you're speaking with brokers or sellers, you first want to establish rapport and then you want to get them to give you all of the information that they're not necessarily looking to share.  For example, the OM might include really good pictures of the property because they didn't include any pictures of the siding that's in poor condition and needs to be replaced.  So you want to get them to divulge information like this before you waste your time going out to visit the property.

Conversely, you also want to do the same with any potential upside that the property may have.  So if the broker tells you that rents can be increased by $140 per unit, then you need to call all of the nearby properties in the area and find out if the information that they're giving you is correct.

Always start with your financial analysis before you ever waste time going to check out a property in person.  If it has potential, then check it out in person and keep digging further.

@Hedi B. The Milken Institute produces an annual report on the best-performing cities.  It focuses largely on job growth and high-paying jobs, amongst other things.  It doesn't include the supply and demand information, but it can be easily obtained through CoStar like Joe said.  There's a link below to the most recent report if you want to check it out.  The new report will probably come out somewhere around late December.

2018 Best-Performing Cities Report

@Hedi B. The Milken Institute produces an annual report on the best-performing cities.  It focuses largely on job growth and high-paying jobs, amongst other things.  It doesn't include the supply and demand information, but it can be easily obtained through CoStar like Joe said.  There's a link below to the most recent report if you want to check it out.  The new report will probably come out somewhere around late December.

2018 Best-Performing Cities Report