All Forum Posts by: Henri Meli

@Michael Turner . I'm curious where you would find funds to invest in Real Estate. Yes, you can invest without money down, but I wouldn't do so without better control/understanding of debt situation, credit score improvement. House hacking would be an option to consider. Wholesaling is also a possibility, if you understand how it works. 

@Yesenia Huerta  It is difficult to provide advise not knowing all the parameters.  You will need to do a more in-depth business analysis as well as understanding your own short and long term goals. 

Good Luck.

Congrats.

 @Joshua D. for following your dream. Prepare well, do the best to your knowledge and ability, be flexible and follow your dream.

Good Luck.

Amazing job. Congratulations. @Caleb Bryant

@Michinori Kaneko ... Curious how much cashflow you expect that will get you into multi family. I believe your strategy should be to hope that your 4SFH appreciate well enough, so that you can 1031 exchange them as a down payment into a MF asset. 

@Roland 

@Roland Osage What type of partnership are you looking to have with these investors? There are different types of partnerships. In a nutshell, deals and capital always help.  But there are other ways, depending on the type of partnership. 

@Jeffrey Fawaz . My only advice at this time (and based on what you posted) would be to learn how to analyze a multi family asset. Reach out to owner/brokers/sellers, get the P/L and Rent Rolls, then jump onto a deal analyzer tool... and start crunching the numbers ... Make sure to know exactly what you are looking for. Cashflow? Value Add? CoC? IRR? ... etc.

@Cameron Ysidron I'm assuming you performed an in-depth analysis of the numbers and they meet your actual and realistic goal. Hopefully you have not relied solely on the numbers provided to you by the seller. You MUST do due diligence on these numbers.  I'm also assuming you have created a realistic business plan around the goals you have for the asset. If you are planning to attract partners (capital partners, since you don't seem to have $$$), then you need to be twice as careful ... What level of experience do you require from your partners? Since you don't have a w2, I believe it will be quite difficult (not impossible) to get a bank to loan you money for this asset. 

@Jian G. Is this your first property? Have you self managed or dealt with a property management company before?

If you reach out to a property management company, do you know what you will be asking them?  How you will be vetting them? Do you have a game plan on how you will managing them?

Also, if you are buying for value add (then cashflow), I'm assuming NOI increase followed by a refinance. Correct? Do you have your numbers lined up? How much NOI are you looking to grow? In what time frame? and do you have strategies lined up to grow income ? Strategies lined up to reduce expenses? How will you be monitoring that you are meeting those goals? Hopefully you are writing them down ... and will be validating them...

@Joyce Orange . 

1. Understand how to analyze a commercial real estate deal.

2. Reach out to brokers or get on websites where you can retrieve deals

3. Start analyzing real deals and focus on the cashflow 

@Jose Ortega 

Not sure what your goals are, what your numbers are, what your risks/risk tolerance is, but below is the process I go through, whenever I analyze an asset.

1. Determine the purpose of acquisition of the asset (Buying for cashflow, 10 year hold? Buying for value-add, 3-5 year hold?)

2. Determine your numbers.  Once you know your goal, you need to attach numbers to those goals. Are you trying to achieve $5,000 per month in cashflow for 10 years? Or no cashflow, but I want double the value of the asset and exit in 3-5 years via sale? It is very important for you to know those numbers going in.

3. Determine your business path to get there. What actions do you need to take to achieve those numbers in the given timeframe?  (Spell it out with as many details are you possibly can). Will you be growing income? By how much? Will you be cutting costs?  By how much? Are your assumptions realistic? Are your estimates realistic? Who else has reviewed/vetted those assumptions/estimates?

4. What are the risks that would prevent you from achieving those goals. What would you do to mitigate/lower the impact of those risk factors?

5. What entry point are you comfortable with to be able to achieve my goals. What's my highest entry point.

I know a lot of people look at real estate as a passive way to generate income. But you should regularly review 1-4 to make sure you are on track to meet your goals. 

Good Luck.