All Forum Posts by: Chris Soignier

The problem w/ making an unrealistic offer is that it often repels the seller, whereas if you made a low offer but within reason, they'd be more likely to negotiate w/ the intent to find a mutually acceptable middle ground.

Good for you trying to steal a deal!   I wasn't trying to imply there's anything wrong w/ that, I just don't think it was a very realistic offer.

You're trying to buy 20 units for $7,500/door, and only 15% down?    W/o seeing the numbers,  or having familiarity w/ the market it's in, I can only assume that you're trying to steal it for a small fraction of market value.     Not surprised at all that your offer was declined!

My advice is to stay away from commercial property until you understand how it's valued, and can perform a proper due diligence and valuation.    The #'s are big enough in multi-family that mistakes can be very costly.    You might want to consider hiring an experienced MF mentor to assist in properly evaluating the transaction.    The cost may seem high until you realize how much buying a bad deal can cost you!

There is no ARV for true (5+ door) multifamily. Looks don't matter, it's all a function of how much you can increase NOI and what the market cap rate is when you sell.

@Yadira Gutierrez, I highly recommend that you hire a real estate lawyer to review the contract given your lack of understanding it.   It's a high-value contract (relative to other things most people buy and sell), and the contract can significantly impact your net proceeds as well as seller liability.   Don't be cheap, hire a pro!

Having been relo'd a few years ago, my relo company exerted a lot of control over the entire process, which I was OK w/ since they took care of many details, and guaranteed a buyout of my house @ market value if not sold in 3 months.    They really wanted me to use a Certified Relocation Specialist, though a realtor friend was able to get approved w/o that designation.    They also really cut the listing agent's fee pretty significantly vs. the prevailing 3% rate in the area.    If your dad is OK w/ it, have him contact the relo company to request approval to list with you (I'm assuming your parents live in the Charlotte area?)

Do you really feel like you'd be able to do your parents service in looking for a new home remotely?    You won't be able to show them homes, won't know much about markets or neighborhoods,, etc.    Your best bet if the relo company allows it is to provide a referral to their buyers' agent.

If you focus on serving your clients better than anyone else, and not worrying about helping yourself, you'll be better off long term.

In my market, at least, you're interviewing the broker more than they're interviewing you.   Many charge a monthly fee, plus get a split of your earnings, w/ very little incremental cost to you being on the team.   I have yet to talk to a broker who wouldn't be happy to have me join the team, and that's been consistent from before I was licensed to my current rookie real estate agent status.

Syndications are a pretty broad investment vehicle.   What underlying assets are you interested in?    What's your investment time horizon?    Prioritization between yield vs. total return?     

Track record and reputation of the sponsor(s) is important, but you also need to feel comfortable w/ the asset(s) being invested.    Look at pro formas, question assumptions, and make your own guesstimate as to what's realistic.    Does the lead compensation appear too aggressive?  I want leads' comp aligned w/ my returns, as opposed to scenarios where they win regardless of how passive returns perform.    You'll have a better feel for that when you start evaluating many deals from various sources.

Jim Silvis

http://www.silviscpa.com/

He's based out of the Austin area, and I like him enough that he does my taxes remote.    I used to be a stubborn DIY (w/ TurboTax) guy until the IRS informed me I screwed up on my taxes a few years back, and I couldn't get myself out of the problem.   He took care of it, and saved me some $ in the process so I got an incremental refund.    He's done my taxes ever since, and does a great job.