All Forum Posts by: Enrique Huerta

@Chris Svendsen

I don’t know the location or your investment criteria, but I wouldn’t buy this deal personally.

What are your goals with this project or any other project you’re looking to buy?

This is an old post, but in general it's not as simple as wholesaling SFR. There's a podcast on @Michael Blank's platform where he interviews a wholesaler who happened to do 1 apartment deal. Made a killing but would not do it again.

I recommend you listen to that. And no one is being negative, they are painting a realistic picture of the outlook for you. We encourage everyone to do the things that are the best use of their time to get to the end goal quicker - financial freedom!. Attempting to get in the middle of 2 sophisticated parties with a competitive middle man already in the market (commercial brokers) is tough. Commercial brokers are not the same as (most, not all) residential brokers. They are typically more like good residential brokers in that they know their stuff very well and are highly connected.

If you want to "wholesale" apartments, why don't you just become an apartment broker? I really don't see the difference and more end users (sellers & buyers) will be responsive. There are plenty of licensed brokers who specialize in off-market product, so they are arguably wholesalers, but they have the reputation and backing of the shop they have their license at. Get your license, do the prospecting activities, and find the buyers. Same job, different reputation.

My $0.02. Take it for what its worth. Just an opinion.

Best of luck!

Hi @Jian Lin,

I wrote a great post on what I believe are the 5 fundamental books:

https://www.biggerpockets.com/forums/12/topics/672939-best-beginner-real-estate-investment-books

We're more active now than a few years ago. Phoenix is a target market. At this point of the cycle, underwriting changes but we are still active buyers. If you only show up in a recession or when there's "blood in the water" it will be difficult for brokers and owners to take you seriously as a reputable buyer. If you buy all the time, they will know you and provide you with great deals by the time there is a true recession and "fire-sale" deals.

Similar to dollar-cost averaging in the stock market. You buy some low, some high, over time real estate goes up (Past Performance isn't indicative of Future Performance...blah, etc.) but in general, our economy is driven by fiat currency and hard assets are good to hold.

Some UW changes:

-Less Leverage/More Equity Down

-Higher Exit Caps

-Less Rent Growth

-Ensure a Discount to Replacement Cost

-More Capital Reserves

-Greater Focus on Sensitivity Analysis

What kind of deals? SFR Flips?

Hi @Laura R.,

Given your interest in passively investing, I would look into being a passive investor in a multifamily syndication. Main things to look for are an experienced team, strong track record, geographical presence in a location you'd like to invest in, and preferred returns with a conservative analysis done by the deal team.

This route would check off the below options:

"- Find a local commercial project or apartment building where I can become an investor partner and get some % of the rents each month. Would need to use savings funds for this. Not sure how to go about finding something like this."

Regarding the economic cycle, its a valid concern. Now more than ever, conservative underwriting, experience, and location are critical. There's opportunities at any point in an economic cycle!

If you want to put your money to work while you focus on your day-to-day life, I'd look into passively investing in a multifamily syndication and working with an experienced sponsor who pays preferred returns.

@John Casmon, Thanks for the input. Let's assume the investor base wants more details than monthly financials. How would you approach that?

@Greg Scully, Have you ever conducted a monthly call or webinar?

All,

What kind of monthly, quarterly, or annual investor reporting do you do other than financial statements? Does anyone build out great presentations, run a webinar, host a conference call, etc?

Looking for ideas and input.

@Stephen Brown, Folio is a free gmail plug-in that does that for you.