All Forum Posts by: Chris Grenzig

@John Lubin we own and manage our own MF properties in Jacksonville. We've bought 150+ units and we currently own and manage 51. We also do 3rd party management for other owners too. We've been managing our own properties for 4 years and for other owners for the past year.

We use an attorney because this is a legal process and I want to make sure the right person is doing everything correctly so that we get possession back. We usually post no later than the 12th which we can then send to court on the 5th day (The day of posting doesn't count as the 1st day and you have to give them 3 full days, so that's why the 5th day). 

If you want to tell me what you were quoted for repairs I can give you my opinion on the cost, we're processing dozens of work orders every month. 

The cost of stuff today is absurd, especially since we only use licensed and insured vendors who don't require deposits upfront for work. 

Why no deposits? It means I know they're not running off with our money and the work doesn't get completed. (Sometimes larger jobs do require deposits, but we are working with companies we have used many times in the past or have some sort of draw schedule as work is completed). 

Happy to talk about any aspects of PM from both the ownership side and as a PM operator side if you think it would be helpful, but I would want my PM to use an attorney and I would be happy to pay it. 

@Andres Rodriguez and @Srikant Puvvada Southern Impression Homes is a pretty reputable group from what I've heard, but I haven't interacted with them myself. I know they're selling some new construction quads in the Mandarin area which are in a pretty solid B/B+ area and I think they have some quads on the westside too, probably more like a C+ area but I haven't been past the property in 2+ years so it could've changed. We own some MF in the Riverside/Murray Hill area and we're selling a turnkey triplex right now in Murray Hill too which might be of interest. Let me know if there's anyway I can help, happy to do so if I can. 

@Prithvi Raj Sendi I would tend to agree with @Shawn McCormick, he knows his stuff. We look for multifamily 10-80 units in Jacksonville and Orlando and it's tough to make deals pencil right now for all the reasons Shawn said. However, I do think if you can hold out for 1-3 years you might see rates drop a bit and insurance drop a bit, and I feel pretty confident we'll start seeing 3%+ organic rent growth per year in the next 2-4 years again. So you might get a property at a slight discount to values in the next couple of years, but it might not "pencil" great on paper today. Just depends on your strategy. Happy to help look at properties in the Orlando area too and we do manage for other owners too. 

@Matthew Rolf I know the post said wholesalers but we acquire multifamily that we self-manage and also do 3rd party management, based in the Apopka/Wekiva area with our office in Baldwin Park. Happy to connect and see if there's anything we can help each other out with. 

@Tommy Brant I have heard that there is some insurance relief coming into the Florida market, especially for new construction A class properties. Some carriers are starting to come back and bid down premiums. 

However, I think it's still pretty early to trend back to 3% growth, especially if year 1 is going off their new quoted policy. We haven't bought a deal in 2.5 years in large part because I am uncertain about how to underwrite insurance, but it does seem to be plateauing, and maybe some early signs of dropping. 

I would not use any percentage over an in-place policy though, but I doubt that is the case for anyone serious. Always use a new estimate/quote. 

@Sean O'Keefe if any of your clients are looking for another option we just expanded into the Orlando area this year. We've been investing in multifamily in Jacksonville since 2017 and started self-managing our properties there in 2020. We've bought 150+ units there and we currently own and manage 51. We have several 3rd party clients as well in Jacksonville, Leesburg, Palm Coast, and Orlando area and we manage about 110 doors total. We've been finding a lot of traction with owners because we're rental owners ourselves too which I think benefits owners in at least a few different ways. If I can ever be of assistance please don't hesitate to reach out

@Vitali Ganon we own and operate several MF properties in Jacksonville and we 3rd party manage for other traditional rentals 1-80 units. I've been investing in Jacksonville since 2016 and we are still actively looking to buy properties there. My wife and I recently moved to Orlando to be closer to family but hasn't slowed us down one bit. Happy to connect and help in any way I can. 

@Gabriel Shapira we own/manage several MF properties in Jacksonville and also 3rd party manage for others. I lived in Jacksonville for 3+ years but recently moved to Orlando to be closer to family. We are still actively looking for properties to buy in the area and manage for other people. I have a decent network in the area too so if I can be of assistance please let me know

@Matthew Rolf Hey Matt welcome to the area, we moved here from Jacksonville about 8 months ago. We buy and hold MF and do long-term property management. Happy to connect and chat and be a resource for each other too!

@Carleton T. Shawn's advice on how to structure it is a great option, obviously have an attorney weigh in, but should be one of the better ones. 

We have bought several MF properties where we are doing extensive rehabs and re-renting at higher rates, and I have talked to other contractors about potentially partnering at cost for equity. 

From the ownership side the advantage is if we project the numbers wrong and the value is less post-renovation, my all-in cost is less which makes it less likely to lose money. 

Ex (random numbers pulled out of thin air)

$100k purchase $160k ARV

$30k reno but $20k at cost

$15k holding costs

Total Cost:

$145k cost or $135k with contractor

With the contractor at cost, I have an extra $10k of margin where I don't lose money, but obviously not ideal for the contractor since they would make less.

I think a good way to price it would be the equity would equal your profit if you did a fee construction at slightly below the projected ARV, and slightly below the projected hold time. This way there is an incentive for the contractor to work well but quickly. Then if the home sells at ARV and quicker the contractor makes a little more and the investor slightly less, but like you said less oversight on construction for them.

Also, I would expect the contractor to also sign on for the loan personally.