All Forum Posts by: Brian Garrett

Commercial properties are indeed valued based off market cap rate and NOI.

They do take price per door into consideration but the income is more heavily leaned on.

@Danny Randazzo Creating a list and starting to market directly to owners is next as mentioned in the post. Just seems like it's so saturated with people doing that around here. Everybody is doing direct mail, skip trace and calling or text campaigns, bandit signs, SEO, blah blah blah. Still have to give it a shot though I guess!

I've been having a tough time finding a value-add multifamily deal in Palm Beach County, Florida. Specifically in the 5-15 unit range. I've looked North into Martin County but there's very limited inventory and in St. Lucie County they seem to be in the rougher areas of Fort Pierce for the most part. I'm not particularly interested in going South to Broward or Miami. I'm looking for a C+ or better asset that can be repositioned. I've been trying all of the normal channels (MLS, Loopnet, Brokers) and next I'll start some direct marketing to owners. I haven't found any wholesalers who specialize in 5+ unit deals they all mostly have single family and occasionally a small 2-4 unit multi. Anyone having better luck in this area? I'm really trying not to venture into other markets or go out of state since I have all my contacts and resources here locally but I've got to get some capital to work!

I've been having a tough time finding a value-add multifamily deal in Palm Beach County, Florida. Specifically in the 5-15 unit range. I've looked North into Martin County but there's very limited inventory and in St. Lucie County they seem to be in the rougher areas of Fort Pierce for the most part. I'm not particularly interested in going South to Broward or Miami. I'm looking for a C+ or better asset that can be repositioned. I've been trying all of the normal channels (MLS, Loopnet, Brokers) and next I'll start some direct marketing to owners. I haven't found any wholesalers who specialize in 5+ unit deals they all mostly have single family and occasionally a small 2-4 unit multi. Anyone having better luck in this area? I'm really trying not to venture into other markets or go out of state since I have all my contacts and resources here locally but I've got to get some capital to work!

No this will not qualify for a residential loan since it's 5 units.

Residential is considered anything from 1-4 units and anything 5+ is considered commercial.

You should expect anywhere from 20-30% for a down payment on a 5 unit building.

You should never disclose having $300k cash on a public forum especially when you mention that you don't know how to invest it. Be prepared to get a lot of colleague requests and inbox messages from people looking to sell you what they specialize in or people telling you how to spend your money on what's best for them rather than how to invest it in what's best for you. With that being said my advice would be to first ignore those colleague requests and messages and second to listen to all of the podcasts here on BP, read through all of the forum posts, attend some of the webinars and really learn about the various ways to invest in real estate. There is a wealth of knowledge here and virtually anything you can think of has already been addressed and discussed.

Good luck and congrats on deciding to start your investing journey!

I would suggest you dive in and learn with something smaller than a 107 unit $10.7M portfolio of properties.

Find the best comps within the closest proximity and then adjust using price per square foot.

If the comps you find are selling at $100/sqft and they're 2,000 sqft that would be $200k value.

So in this example your property is 3,100 sqft so that would make it worth roughy around $310k.

You don't have to buy outright with cash.

You can use partners, HML's and even traditional financing if the numbers still work.

No the value is based off the NOI and the cap rate not the gross rents.