All Forum Posts by: Jeffrey Donis

Hey! Here are some things that could help you find an area where you are that would be considered a good market to invest in-
1. Population over 200,000
2. Long-term population growth of at least 50% of the national average (preferably more)
3. Diverse economy
4. Labor participation rate at or above national average
5. High relative cap rates
6. Pro-business, pro-landlord climate
7. Limited risk from climate change
8. Close enough to home for you to oversee easily (one-day round-trip preferred)
9. “Anchor” is a bonus – not necessary, but great to have. Avoid bad anchors, though

1 Vote

These are some things to keep in mind when choosing an MSA-

1. Population over 200,000
2. Long-term population growth of at least 50% of the national average (preferably more)
3. Diverse economy
4. Labor participation rate at or above national average
5. High relative cap rates
6. Pro-business, pro-landlord climate
7. Limited risk from climate change
8. Close enough to home for you to oversee easily (one-day round-trip preferred)
9. “Anchor” is a bonus – not necessary, but great to have. Avoid bad anchors, though

2 Votes

Congrats! I 100% agree- the most important thing is to know WHY you are doing this in the first place. It will get you through any and all adversity.

0 Votes

Great post!

We make sure to invest in "landlord friendly" markets- and stay away from markets that are known to be to lenient on tenants and evictions.

2 Votes

Originally posted by @Keisha D Dobney-Boykin:

@Jeffrey Donis awesome! I'm working on my excel today so I'll defiantly implement, thanks. You mentioned "anchor" if you have time can you explain? You also said "cap rate", I have no idea what that is... 😒

Here is cap rate explained-

By Anchor I am referring to things such as major universities, hospitals, etc- things that add to a markets dependability.

1 Vote

Originally posted by @Tyler Vogt:

This is a great deal and I’m trying to find a way to finance it. This is my first commercial deal so I’m still learning how it all works. My brother and I have enough for 20% down payment. Or should we go hard money and keep our cash for other properties?

You have gotten great advice already- great job taking action and getting started! Best of luck on this deal.

0 Votes

Originally posted by @James Hamling:

@Vicky S.

On the partner protection side; you have them sign a NDA with a non-compete component. That's simple enough, just hope you don't have to enforce one because that can be a drawn-out nightmare so don't blindly trust that paperwork will make everything go a-ok, it only empowers your ability to seek relief/damages after the fact if. So best action is to really vet your prospective partners first.

If it was one of my deals, you don't get around the POF, period. I have 0 interest wasting my time with tire-kickers, and there is no shortage of "wanna-b's" out there who don't have a snowballs chance in hades yet they will want to play out a deal to then attempt some stupid-ploy like subject-too. POF is a simple method to weed out actionable and non-actionable. And it's a good sign, it says whoever your dealing with they are serious about getting a deal done, not just exploring opportunities.

100%!!!

0 Votes

Originally posted by @Jim Kittridge:

@John Cameron

If a syndicator doesn't have funds for EMD out of pocket, that would be a sign that they don't have enough experience. I'd be willing to bet they are fresh out of a bootcamp or training seminar.

In my opinion, you should start with smaller deals and cut your teeth on those. You will learn a lot and be able to do better by your investors in the future. A $5,000 lesson across 300 units is painful.

Great point!

0 Votes

This is an article on some of the cities in FL with the most recent transactions-

https://www.multihousingnews.c...

3 Votes

Some things we look for when picking markets:
1. Population over 200,000
2. Long-term population growth of at least 50% of the national average (preferably more)
3. Diverse economy
4. Labor participation rate at or above national average
5. High relative cap rates
6. Pro-business, pro-landlord climate
7. Limited risk from climate change
8. Close enough to home for you to oversee easily (one-day round-trip preferred)
9. “Anchor” is a bonus – not necessary, but great to have. Avoid bad anchors, though

6 Votes

All Forum Posts by: Jeffrey Donis

Jeffrey Donis has started 15 posts and replied 1176 times.

Post: Multi Family Investing in DFW (Good Agent, Best Area?)

Post: Looking to invest in the FL market

Post: I quit my CPA Job to buy Large Apartment Buildings

Post: Judge: CDC Eviction Moratorium is Unconstitutional

Post: Categories to compare cities to invest in

Post: 7 unit multi family house with tenants in all units

Post: Finding JV partners/ co-GP

Post: Using private capital for EMD on Multifamily property

Post: Looking to invest in the FL market

Post: Categories to compare cities to invest in