All Forum Posts by: Franklin Bird

@Yannik Cudjoe-Virgil - thanks Yannik!

@Matthew Baltzell - thanks Matthew, interesting read. Good to make sure to consider more thorough valuation metrics than just cap rate.

@Dan Sheeks - thanks Dan, that's good to know.

Thanks all for your responses - Merry Christmas and Happy Holidays to all.

@Dan Sheeks - thanks for your response. Is the 5-unit threshold a hard cut-off? Can a 4-unit property still increase in value if you improve the NOI? Or is it purely based on comps at that point?

@Diana Muresan - Thanks for the advice. This is the first I've heard about Freddie Mac Home Possible loans. Are there any catches or downsides? I see on this link that the first row, Non-occupant Borrower can have 95% LTV, but it seems that that's just for a 1-unit property. Am I missing something?

For context, I have very good credit scores and should be able to pull together enough capital for a down payment of 20%, especially if just on a 1-4 unit property. So I'm wondering how the rates might compare, among other things.

@Kenneth Garrett - Good idea, I've been planning to start reaching out to bankers and realtors in Reno and make a trip to meet some in person. So, the Freddie Mac Home Possible loans have a $1M loan minimum? I also think finding a partner would be a great idea. I'd love to be involved in my first deal as a passive investor just to learn the process.

@Henri Meli - Thanks, I do believe I have a solid grasp on conservative underwriting for commercial properties. I come from a fairly analytical background and have put together a spreadsheet model that has pulled from Michael Blank's Syndicated Deal Analyzer as well as others I've found online. With that said, any advice that you can give would be much appreciated!

@Ned Carey - thanks. When you say "smaller building", is that a building with a minimum of 5-units? In other words, is the 5-unit threshold a hard cut-off? Can a 4-unit property still increase in value if you improve the NOI? Or is it purely based on comps at that point?

@Mike Krieg - thanks Mike!

Hi all,

I’m brand new to real estate investing and hoping to escape my analysis paralysis by connecting with fellow investors, lenders, brokers, and property managers interested in the same area(s) as me as well as starting to actually analyze deals.

I’m currently looking at 5-10 unit properties in Reno, NV as I’m based in the Bay Area and it would be nice to be able to drive out to see properties and meet agents/PM’s etc. I am open to looking at other geographical areas, however.

I have a few questions:

- I understand that there is a difference between seeking a loan for residential multi-family (< 5 units) and commercial (5+ units). Can someone confirm/deny this for me? Are most commercial lenders looking for someone with investment experience?

- However, I've also heard that the commercial properties will be valued using NOI and cap rate whereas the residential ones are more based on comps? Is this true? If so, this makes me thinking I'd want to seek out a 5-10 unit property as I have a bit more control over the value through rehab and cost-cutting.

- Does anyone have any recommendations for agents or property management companies in Reno? Anyone with experience doing multifamily investing there?

Thanks in advance! Looking forward to connecting with people - it’s my favorite part about BP.

Franklin

@Matt Thompson Do you have a link to David's meetup?

@Account Closed - appreciate the insight, good to know about those taxes up front. Initially was looking into Austin as I have a friend who has a few rentals there and thought he might be able to help me make some connections for property management, contractors, etc. Did you end up choosing another city?

Hi @Gorden Lopes,

I'd be interested in a meetup or general networking as well. I'm located in SF and am looking to make my first out-of-state investment in a buy and hold rental property. I've been looking at Austin, TX and Nashville, TN, but may start looking at other locations listed in this thread as well.

Franklin