All Forum Posts by: Dan Bernstein

@Sean Stewart Consider a 4 unit with a FHA loan, 3.5% down and a loan limit up to 1.2 Mil. If you go residential multi, you should try and max out the number of units to 4. The numbers get a lot better when you increase the keys in a building. DC has way more options than MD or NOVA. @Russell Brazil is right, however, you need to move quickly when you find one, since DC is very competitive.  

@Carlos Pelegrina - I just changed brokerages from KW to eXp this past week.  I was with KW since 2014.  Training as a new agent was good. KW is a training and recruiting company and not focused on developing the mid to high producers unless you can move into the ownership or leadership roles or pay tens of thousands for coaching.  KW has profit share, but nothing compared to the potential revenue share of eXp.  KW is also very expensive when you compare to other smaller cap based brokerages or transaction fee brokerages.  In my mind brand does not matter unless you go with a Sothebys or other high end luxury brand.  In some cases, having no brand is better than having an established brand.  PM me and I would be happy to elaborate.

I think eXp has a mentorship program, but it is oriented towards agents who have experience.  The cloud based brokerage is going to blow up the classical brokerage system because of the cost of doing business.  Also, eXp gives back most of its revenue back to the agents and the profit share is not dependent upon the profitability of the office.  Since each office of KW is independently owned and operated, they will not give profit share unless the office is profitable. 

Hope this helps.

Best of luck!

@Lisa S. I PM'ed you, but didn't realize you were talking about DC.  You have many options in DC.  I would consider selling your 4 unit on the open market, but after you establish a solid tenant situation.  In DC, its more valuable to sell the property vacant, so if tenants move out and you are thinking of selling, do not replace them with more tenants.  Depending on the area, you also have the option of Joint venturing with a developer and popping the top and gut renovating, then selling the units as condos.  In DC, if the property is metered with multiple units, by right you can convert them into condos.  If you are having issues with a tenant currently and they are taking you to court, I would not sell now and deliver TOPA, because you could have some serious issues with the tenant.

Happy to chat and fill you in on multiple scenarios and options.  Good Luck!

@Austin Wise...why not consider using an 3.5% FHA loan to buy a 4 unit multi? Loan limits go up to 1.2 million for the DC Metro. You will have to live in the property, but the other rents will nearly cover your entire mortgage.

@David Crumley...why not just buy a commercial asset with 30% leverage, 10-15 year note, 7-10% cap.  10-15 years from now you would have tripled your investment assuming zero inflation and you can focus on other ventures.  10-15 years later leverage against the property or 1031 exchange into a larger asset.  

@Olivia Byanyima, Welcome.  Trinidad is experiencing heavy development, flipping and condo conversions.  Its a great place to buy into.  We are currently working on a condo conversion project in Trinidad and would be happy to chat.  Good Luck!

@Barri F. you can expect to get between a 7-9% cap rate here in the DC Metro on investment properties.  If you have enough capital saved up, why not go commercial?  Buy a larger multi or small strip mall property.  The more doors under one roof, the lower the relative maintenance.  Happy to chat, and good luck!

@Julius F., your agent should be able to answer all of your questions, especially the estimated rental rates.  Take a look at the rental comps and Good Luck!

@Julius F....unless you are buying directly from the owner off market, there is no real benefit to work without representation from an agent/broker for an on market property.  I would recommend finding an agent/broker that is a good fit and used to working with investors.  If you are buying an on market property, the commission is offered by the listing agent.  Typically, if you work directly with the listing agent, they will get both sides of the commission.   In a dual agency situation, the listing agent can't legally advise you and they will always be more concerned with the owner's interests because of future business and referrals from their client.  

@Julius F. your management fee should be 8%.  Its hard to give you advice on rental comps without knowing the specific neighborhood and condition.  I actually happen to live 2 miles south of the Huntington metro and your numbers seem high for rent unless the condition of the home is very good.