All Forum Posts by: David Acosta

Congrats, @Gorden Lopes!  Love the construction contingency take away -- and then using this added buffer to back into your offer price.  Best of luck with the refinance!

Congrats on the recent success @Ki Lee -- looking forward to following along!

Hey @Elliott Perrigo - I love that you're using the Covid period to stay productive and grow.  There are definitely a few Southern California investors here that feel your pain and can relate with your dilemma.  There are certainly different ways to go about this, and I think that the best decision will come down to your comfort level and criteria.

Outside of using a low-money down option to house hack a small multifamily, I would take a look at your out of state options.  If you like the idea of hanging on to your location and fixed living expense, this could be a good alternative that would allow you to enjoy the boardwalk and build a portfolio (just elsewhere).  BP has a book on long-distance investing, and there a few players in your area who are doing this successfully. @Lee Ripma is an investor who comes to mind -- really sharp and has made it work.  But again, this will all come down to your comfort level and criteria.  
Best of luck moving forward!

Hey @Erik Martin -

1. For market selection, take a look at Marcus & Millichap and the IRR viewpoint reports. This will give you a good indicator of how markets are performing. Overall, you'll need to define your needs and criteria, and then use the data as a backdrop for filtering your shortlist through.

2.  As mentioned by others, this will depend greatly on your criteria and priorities. 

3.  My biggest piece of advice would be to go and spend a few days in the actual market.  Get boots on the ground and break bread with the players doing business there.  It's a relationship business. You're not reinventing the wheel, but market knowledge is extremely valuable and can truly give you the investment edge when it comes to identifying opportunities.

Best of luck moving this forward!

Hey, @David Walkotten - curious what the USPS currently has issue with?  If at all salvageable, we've had luck with replacing just the mailbox doors, opposed to the entire outfit -- similar to kitchen cabinets.  This may be a cheaper alternative for you.  Recently, we got quoted ~ $3,000 for 48-units for a complete replacement.  Everything is market-specific obviously, but hopefully that can provide some perspective on pricing.

Hey, @Joshua Robinson -- in line with the BRRRR strategy or value-add commercial deals, I would look to buy properties that you can add value to. In a perfect situation, you would be able to perform a cash-out refinance on this new investment once renovated(improved the value), and replenish the funds you used for its purchase(the homes you own outright). As mentioned, I like the idea of using a HELOC on one of the properties in your portfolio. So here, you could tap into the equity when you find a good deal, otherwise, it stays in the home. But again, just one strategy.

Congrats on the position, @Joshua Robinson, sounds like you've got a really strong operating position. As you mentioned, the conservative route is probably your best option -- to me, in this situation, that's hedging a portion of your portfolio into lines of credit while leaving a solid portion paid off. As you look to scale, the HELOC will give you quick access to capital when a deal pops up, while allowing you to keep your equity in the home until it's actually needed. When you create equity in your new acquisitions, replenish the existing lines of credit so that you keep your foundation intact. Just food for thought. Best of luck of moving this forward, and congrats again on all the success!

Hey @Ryan Rader - I would put together a really solid deal package outlining the business plan and returns, and then make your local MeetUp rounds (probably virtual for the time being).  If you have a deal, getting it in front of investors with capital and pitching it is probably your best bet.  Most events have a needs/wants portion where you can present.  On the financing option, you may need a hard money lender to bridge you over due to the current condition.  

Hey @Jeremy Christ - I would echo much of the above.  Being a commercial property, the business plan, and the performance of the property are going to be a major focal point for your lender.   They want to feel comfortable with the story and you as an operator. With the current environment (increase in delinquencies), the simpler the plan the better.

If you can put together a proforma on the property and provide personal financials that should be enough to firm up your debt assumptions.  As @Karen Schimpf mentioned, speaking with a bridge lender here may be a good bet.  Take the terms provided, build them into your model, and use that to adjust your pricing.   

Hey @Bobby Shell -I haven't invested myself, but it seems to be gaining traction or at least interest. From the conversations I've had, one of the main benefits appears to be the ability to supply a secondary market for shares issued through a syndication. Overall, this provides an immediate liquidity opportunity for investors. Again, I'm incredibly uneducated in the space but tracking.  Some great insights can be found here: https://jobsactlawyers.com/