All Forum Posts by: Chris Field

I was not satisfied with the existing inventory so I built my own, but I operate in a very specific niche.

Generally first you need to identify an area that people generally want to live, which in CT means they are a bit more expensive. Not necessarily Fairfield county prices but not  warzone pricing either. If you invest in an area people live because they want to, not because they have to you will get a better tenant. Better tenants mean lower turn over and generally less BS which costs you money and reduces profits. The old adage you get what you pay for very much applies to multifamily housing. 

New Haven for example has some excellent streets near Yale that are very desirable, Startford has some great areas. Bridgeport has very high taxes which must be factored in. Plenty of areas, pick one you like and learn it.

Once you identify an area, now you have to do the hard work part, turn up a deal.

I have done a number of HM deals and still do, but honestly I don't know why you established guys still mess with it. Its expensive as can be, great for getting started but once your past that point other options open up. 

I have been doing more and more with a commercial bank, they love lending me money at 5%, its far better than paying the 12% vig the HM mafia wants. Will my bank do 100%? No! But I don't want to do 100% financing anyway, I built and invested threw 2008 I know exactly what 100% financing does when the markets turn. 

IMHO this new surge in HM interest is because the markets are heating up again and a lot of new people are getting in. A lot of these new people have never been threw a recession so all the bad ideas are sounding good again.

Any decent HML is going to want a new investor to have skin in the game, and yes contrary to the guru's that means money. Any HML that does not is either playing a very risky game or likes the newbies deal and is hoping to get it from them.

Real estate investing is actually a pretty hard way to make a living. A lot of people see the end product, people who are already successful who have nice things or do a very nice deal. They don't see the 20 years of hard work and hard won knowledge that got them their, just the Porsche or $500k in profit. 

Of the 10% that do something, only 1% of them will make decent money in real estate. Most will do a couple of OK or so so deals and be done with it.

That's the way a lot of people are in RE. A lot of experienced people will rob anyone they can as well, its not just newbies. 

I love real estate, and I love to talk shop.

If you don't love your business your in the wrong business.

Everything in the islands is for sale, and everyone is a real estate investor. 

My friend kept his boat at a private dock on Cayman for a couple of years and we got the full tour of lots and houses for sale.  Had drinks at a number of $3m-$6m houses their that are for sale as "investments". I guess if I was a Russian or a Chinese with $6m on hand that would be a good investment.

I view them as a playground for people who already have a lot of money, not a way to build wealth.

Stay out of the valley unless you really know the area its a great way to lose money. All the rentals up their look great on paper, as does communism. 

Your in Stamford stick along the coast, New Haven can be great if you pick your streets. Startford,  West Haven. Milford has crap multi inventory if you can find one that's not overpriced go for it, but most are overpriced. Branford is great, etc.

Lots of great buys in CT.

10%-12% with 1-3 points up front, terms up to 2 years maybe. 

Hard money is typically short term but you never know, no rules so it doesn't hurt to ask.

Were talking about a 1/4 point its not that big of a deal.

Eventually mortgages will get back to where they usually are.

How much money and experience do you have?