All Forum Posts by: Chris Grenzig

Brady Hurs I would have to agree with Joshua Fulenwider on multifamily. There are plenty of ways to lower your tax burden through multifamily investing. Most of our investors are high net worth guys who are trying to lower their tax burden and have cash flow come in on a regular basis. I'd recommend digging deeper into that avenue and if you think you can manage it yourself, then go with that, or look for an investment firm or syndication that can keep you as a passive investor; allowing you to focus on your business. Hope that helps and if you have any questions feel free to reach out!

Joseph Salegna welcome to BP! We host a free monthly real estate investing meet-up in Westbury, NY centered around multifamily mostly, but we do have quite a bit of networking as well. Good opportunity to meet people a bunch of like minded individuals and hopefully learn some more about investing. Let me know if you would be interested in coming down or even if you want to schedule a call just to have a chat, let me know. Or really any other way I can be of help let me know.

Phillip Vaughan we have property manager oversee all rehab on properties when it's out of state. On sites that need less lifting like just some interior renovations, than it's less important to go out and see it as frequent. On the flip side we've also bought some more run down stuff that needs a lot of work and we'll go out somewhere along the rehabbing process of it as well once it's done. Also have our property manager do tours of the properties and take videos on the more run down stuff so we can get an idea of how it's going. I would also suggest, once in a while, visiting any property you own with little to no notice so you can see how it actually is on a day to day and not after a PM has cleaned it up knowing you'll be there. There's no right answer of when you should or shouldn't, it'll all depend on what will make you comfortable and what you can afford.

Kenny Oliver biggest thing you have to decide on is what submarket you want to get into. A good deal in a bad area can turn into a bad deal in a few years if people are leaving, job growth is stagnant, or rent growth can't support the median income, etc. On the flip side a great area with an okay deal can improve because rents continue to increase rapidly, occupancy stays low because there are always people looking to rent, etc. Obviously you want to find a great deal in a strong area, but the most important thing about real estate is location because that will never change. Why a lot of people like to pick areas close to them is because they probably know a great deal more about it than any numbers you can search online, or it is very easy for them to become intimately knowledgeable. Nothing wrong with out of state if you take your time and do you're proper due diligence, it's just not always easy for someone who doesn't do real estate full time.

@Joshua Palmer The high level numbers look very good and solid. The things I would start to dig into is the expenses and rent. 

How does the rent compare to the rest of the market? Above or below? Is your projected rent a huge increase or is it the current rents? Can you push rents more with a little bit of renovation? Is it not worth the cost of renovations to push rent?

What do your expenses consist of? Will the purchase of the property affect your taxes at all? Does the property have any deferred maintenance? What were the 2016 expenses? 

Also, make sure any numbers and figures given to you that are projected by a broker/seller are checked by yourself to make sure they are legit. They are trying to make a sale and will not hesitate to give inflated numbers or slightly more aggressive figures to make the returns look better to potential buyers.

I would also check to see what your break even occupancy would be so you know how much of a cushion you have until you start paying the mortgage from your own pocket. What's your return if you go to 90% or 85% in case you struggle to get a unit rented. These are good things to know so you don't get surprised. At what point is it better to give concessions to get someone in vs when is the concession become to costly.

Pending the authenticity of the numbers and the exact market it looks like a strong deal. Let me know if you have any questions and hopefully I helped some.

@Diane G. maybe I was a bit harsh, but people do need to understand no investment is a guarantee/ensured. I'm sure you know that, but it is important to make sure. However, if the proper due diligence and research is done it is actually quite simple to have a good investing experience. I agree with @Jeff Wallenius that transparency is absolutely paramount in any private investment. I guess myself, I am a fairly conservative investor/underwriter and like to do my homework before anything else. Definitely didn't mean to scare anyone lol.

@Kimberly Lu Welcome to BP!

I got started by investing some money into a 8 Unit complex and asking a ton of questions and learning as much as I could through the property I was invested in. Couldn't have been better because I do it full time now and I still am invested in that deal. I would highly recommend finding a mentor and a great way is offering to invest in their deal if they will help educate you in the process surrounding it. Or I would suggest contacting experienced people and asking how you can help them in exchange for education/help. It's tough to get people to help you out when you don't bring any value you to them in exchange. Capital is an easy way to bring value, but it also could entail answering phones, putting up bandit signs, mailing postcards/direct mail, or whatever they need. Only way to know is if you ask. 

@Anna Scherrei Rental properties are all about supply and demand. When looking at markets, look for how many new units are being planned and/or scheduled to be delivered in the next few years. Less supply is generally good for markets because then tenants can only go to existing buildings. Look at job growth, unemployment, population growth, home-ownership rate, top employers, new companies moving to the area, look at areas just outside these areas for possible cheaper options, etc. If people are moving to the area then there will be more need for housing and vice versa. If there is more demand for housing then supply, rents will naturally increase and value will go up. 

@Diane G. Unfortunately there isn't too much you can do to ensure anything, except the track record of the individual/company, meeting/interviewing them until you feel comfortable with the situation and doing all your own research into the proposed property/properties.

One of the things we tell new investors, if you're thinking about investing $100,000 and aren't 100% sure, invest $50,000 and try it out. If it's $1 million invest $250,000. Basically invest less, see how comfortable you are with the process and go from there. You may find out you don't like the company, the process, their investment objectives, etc. and that way you have significantly less skin in the game. Or you may be very pleased and have much more peace of mind going forward. Obviously there may be minimum investment requirements which would hinder that somewhat, but it may help. Hope that helps somewhat.

@Garmeon Y. You can always bid lower, its just whether they accept it or not. Is it a broker or the seller directly? I would find out why they want to sell and the more motivated they are to sell, the more likely you will be able to reduce the price. If they're just selling because a broker promised them $1,400,000 it will probably be more difficult.