All Forum Posts by: Deion Alaei

Hi BP,

I wanted to get some opinions from other bigger pockets members.

When it comes to deciding on a type of property to acquire/invest in,

how do you feel about investing in SFR package deals as opposed to multi tenant properties such as apartment buildings, shopping centers, etc.

The reason I ask is because when it came to which was a safer investment, I've always thought of multi tenant properties as better acquisitions because having multiple tenants is obviously better than being dependant on one tenant.

If god forbid the one tenant decides to take off, bam there goes your income. That's why I wanted to get your opinions - if you had the option of getting a 10 SFR package or 1 multi tenant property - which would you choose/prefer - or does it even really make a difference at the end of the day - because of the safety net of having multiple tenants.

I welcome and appreciate any responses/opinions.

Thanks BP

@Rusty Hamontree Thanks Rusty, I appreciate that. I'll check it out.

@Scott Anthony Thank you for your response. I couldn't agree more that education first and foremost is important. I also very highly agree with your point on having a team. It really sets the tone for a good foundation and can greatly increase your chances for success - which would partially explain why big corporations are so rich - good team/delegation :). You're absolutely right, BP is a great place to learn and I'm very fortunate to have found it. I've been on here for a while and been a member for a while but most of the stuff I look up have been mostly buy and hold investing and wholesaling - which would explain my relatively lack of info on rehabbing compared to the aforementioned aspects. I apologize for having too many questions - I do have a tendency to talk/type as I think, like a stream of consciousness, and sometimes thinkin out loud has its drawbacks lol. I do appreciate your response and I thank you very sincerely.

@Bryan L. Thank you for your response. It's nice to get insight from someone in the field who's been there and done it. I most definitely appreciate the details. If I may ask - on the rehab deals you've done - did you find yourself, overall, paying for a lot of the costs out of your own pocket or did you have a source of financing? Thank you again for the response Bryan.

Hello,

I wanted to ask the bigger pockets community a question about rehabbing properties.

I've never thought about getting into that area of real estate, and truth be told, I think I'm familiar with the process but I'm not 100% sure.

Can anyone explain to me the basics and process of an investor buying a property to rehab and flip it - from the first step to the last?

I'm very curious specifically about the costs of it.

For example, do they pay out of pocket to buy the property and fix it or do they get financing - like from hard money lenders?

Do they pay out of pocket for escrow fees, holding costs, etc.

Between the point an investor buys a property to the point they officially flip it, what are the costs that specifically come out of their pockets as opposed to the costs that they can get financed?

do hard money lenders have strict rules about ones personal income/credit?

I'm mostly confused on the costs/finance part of the process, as you can tell.

Overall though, the more detailed you can be in explaining the process overall, the more helpful because I'm always trying to learn as much as I can - especially in real estate.

Also, I'd love to hear from you the pros and cons, the risks and rewards, would you recommend somebody get in that side of the business and tips/warnings for when they do, etc.

Thank you everybody.

Hello,

Let's say a real estate investor is trying to finance a commercial property with investors through an investment bank.

If he/she contacted more than one investment bank,
and more than one responded back with interest and wanted to do business with him/her further, what would be the right and ethical thing to do for the investor?
Should he/she respond to both or tell each of them that theres another investment bank thats interested or is that disclosure gonna upset them?
It can be a delicate situation for a real estate investor raising money from an investment bank for the first time, and I just wanted to know what would be the proper thing to do at that point when he/she is faced with multiple interested investment banks?

Thank you

Brian Burke Thank you for your response. I appreciate your words of wisdom, and you have made things a lot more clear and understandable. It's always nice to learn something new and get more knowledge of something, especially when coming from a professional such as yourself. You've been very helpful. Thank you again.

Brian Burke I forgot to mention in my first response something else. Does it make a difference to the investor if I have a real estate team with a great track record? That includes a Realtor, Mortgage Broker, and Real Estate/Corporate Lawyer on my side. Does the quality and track record of the team behind the buyer inspire any further confidence or comfort in potential investors? I only ask because I'm genuinely curious and am trying to learn as much as possible. My partner and I have been trying to acquire a commercial property, and any further insight or education we can acquire for our existing knowledge would be of great additional help in our endeavor and journey.

Brian Burke, Thank you for the response. It was very detailed and easy to understand. I am still a little confused on a couple of issues. The main thing being that if the property has professional property management in place, and if the entity itself would have experienced management in place, then why would it matter about my personal track record to an investor? Shouldn't a property thats big enough with a high enough price and financials be qualifying enough that financing can be determined based on it's own merits? I thought large established commercial properties that are big enough is more than enough to attract financing, as long as the deal and numbers make sense. Am I missing something? Thank you again for the response, and I very much appreciate it

Hello,

What are some suggestions or advice can anyone offer in regards to finding investors for a commercial property investment. If the debt financing portion of the price is already covered, how would one go about finding investors to cover the 20-30% of the purchase price? Are Real Estate Investment Banks the only option? What does one do when they're struggling in trying to figure out where or how to find investors? It should be helpful that a property is established and has great financials, tenants, and overall quality. If anybody has any suggestions of words of advice, I'd greatly appreciate it. Thank you.