All Forum Posts by: Chris Grenzig

@John Casmon agreed unless you're investors understand, or you more focused on cash flow, or you're definitely not going to go significantly shorter than the term, or if you think rates are going to U-turn and increase substantially in 5 years, it could be an attractive assumption which then it doesn't matter. I know rates have just stalled and dropped, but no one 18-24 months ago was talking about cuts, it was only about continued hikes so it's not a crazy thought lol

I think you probably know more than most lol

@Kayla V. I wrote this in another thread about red flags to look for, thought it might be helpful to evaluate different deals and different operators:

1. Are they co-investing in the deal or are they just collecting fees and operating? Do they have skin in the game?
2. Are their percentage growth numbers on income and expenses very different (5% vs 2%), and just understanding why that is. Could be a good reason, or could be someone trying to make the deal work.
3. Whats their track record and do they have any deals that have gone the full cycle? (buy, operate, sell, make money)
4. How has their track record performed financially as compared to their budgeted numbers? So many people have made great returns because cap rates went from 6.5% to 5.0%, but their projected NOI was off by 20%.
5. They won't admit to any losses, errors, misses, incurred problems, lower than expected returns, etc. They're either lying or haven't been doing it long enough.

Hope that helps!

@Travis Houck some other mentions I know of from their deals I've actually seen and do a really good job, find good deals.

Reed goossens (Wildhorn Capital)

Chris Jackson/Krista Testani (Sharpline Equity)

Josh Eitingon (DXE properties)

Sonya Rocvil (Berry Rocvil Enterprises)

Jake Stenziano/Gino Barbaro/Dylan Marma (Rand Partners)

Omar Khan (Boardwalk Wealth)

Sam Bates (Trinity Capital)

Sapan Talati (Enzo Multifamily)

If I remember some others I'll post them too.

@John Casmon we've been going with step down agreements and paying a slightly higher interest rate, this makes prepayment penalties a known number (depending on the year) and makes our projections significantly more certain (on sale costs). We feel the couple of extra basis points are more than worth it and usually are much lower than what yield maintenance would be anyway.

@Charlotte Dunford any cost to acquire a deal is 100% out of the GP's pocket until the deal closes and then is reimbursed as a closing cost. If the deal doesn't close then you're out of luck, thats the risk of being apart of the GP. If you don't want to take the risk, find a partner or two to spread out some of the risk for the first couple/several deals.

@Tate Siemer call the 10 surrounding properties when a deal gets listed. Try to get for a discount to that, call every 2 weeks and keep checking in.

@Levi Steven maybe someone else can help, but it's not enough for me to give you a real opinion. 

@Brian Toy I'll keep it short and a few points to look for.

1. Are they co-investing in the deal or are they just collecting fees and operating? Do they have skin in the game?
2. Are their percentage growth numbers on income and expenses very different (5% vs 2%), and just understanding why that is. Could be a good reason, or could be someone trying to make the deal work.
3. Whats their track record and do they have any deals that have gone the full cycle? (buy, operate, sell, make money)
4. How has their track record performed financially as compared to their budgeted numbers? So many people have made great returns because cap rates went from 6.5% to 5.0%, but their projected NOI was off by 20%.
5. They won't admit to any losses, errors, misses, incurred problems, lower than expected returns, etc. They're either lying or haven't been doing it long enough.

Hope that helps!

@Bertram Scroggins if you're buying rental properties, especially MF, taxes are priced in so if their $1 or $100,000 or $1,000,000 its part of the expenses and any deal purchased on a cap rate basis will price that in. Whats more concernign as a buyer is how are taxes reassessed and how will it impact after you acquire it.

If you're talking single family homes, well for starters you're in the wrong forum section (lol), but then yes it does matter and it's probably way too much for Long Island. Are there pockets that could be sub $10,000? Sure, but they are few and far between or way out east.