All Forum Posts by: Chase Keller

I will update in a bit, but was just sent a quote for something around $400/mo for more ‘catastrophic’ coverage for two of us. I haven’t looked at the details of it yet. 

We are in our 30s and pretty healthy, so there isn’t a need for a lot of the smaller stuff. 

I have nothing at the moment, so I’m in the same boat. Let’s figure this out together. 

I agree, since neither of you are managing money for anyone else, it is not a security.  
BTW, kudos on the title.  It made me want to read it right away.

You have to know what the current numbers look like, but in this case it sounds like you are going to be moving towards that ‘potential’. 

If you don’t look at what those numbers are, you’re not giving yourself a true picture. 

We are obviously in a sellers market. So on average we are going to be paying more for the same Cashflow, or another way to look at it, we are paying for future Cashflow. 

Cap is a great number to look at, but it will never give you a good picture by itself. 

@Gino Barbaro,

Thanks!  Your community is quite impressive.  I really appreciate all the work that you guys do.  

We are pretty excited about the deal.  We purchased the 52 units for $3.05m, raising $1.07m that includes the $310k in renovations.  The property has great bones and had been really well taken care of and completely occupied, but not a ton of updates have been made since it was built in the 70s.  And the owner was an older guy and ran it very old-school so the rents were really low.  

The submarket has doubled in population in the last 15 years and he hadn't taken advantage of the market changes.  

At current performance, we bought at a 7.4% cap, average market is 7-7.5.  After increasing the performance, we should be around a 9-9.5% cap, but that will take a couple years to get it stabilized.  

We are projecting an 80% total return to the investors with a 5 year sale.  But my preferred exit would be to refinance, return the capital to investors, but everyone hold their equity share longterm.

Hey @Angela Meraklis-Lyons

I have done some direct mailing to multifamily owners. The response rate was far lower than when I do my normal SF wholesale marketing. But for the ones that did call, I got into active negotiations on most of them.

Last Thursday I closed on a 52 unit property that came from DM!  So it does work. 

I’d love to give you some insight on what I did. Granted, it’s not too scientific or tested, but it worked...

My verbiage is very simple and simila to what you said. These are typically sophisticated investors, if they’re in a place to sell, they’ll call. If they’re not, any verbiage used can get calls, but probably wasting everyone’s time. My opinion only!

I also use CoStar,  which has a ton of information, but isn’t cheap. 

@Angela Meraklis-Lyonsundefined

Hey @Chihiro Kurokawa,

I have done some direct mailing to multifamily owners. The response rate was far lower than when I do my normal SF wholesale marketing. But for the ones that did call, I got into active negotiations on most of them. 

Last Thursday I closed on a 52 unit property that came from DM. 

I’d love to give you some insight on what I did. Granted, it’s not too scientific or tested, but it worked...

I have only done letters, so I can’t compare to postcards yet. 

My verbiage is very simple and simila to what you said. These are typically sophisticated investors, if they’re in a place to sell, they’ll call. If they’re not, any verbiage used can get calls, but probably wasting everyone’s time. My opinion only!

Personally I do skip tracing after, but I suppose it depends on your list size. 

@Mitch H.  Yes, I believe that they are lower than today's potential sale price.  We are certainly in a higher than average market price right now.  Potentially the top, potentially still going up...who knows.  
I'm thankful that they are being fairly reasonable and not pushing the taxable value up as high as they could probably justify in the current market

Hey @Mitch H.

Property taxes do get reset upon a purchase.  While really slow and inefficient, they aren't dumb.  
Otherwise assessors are on a 2-ish year cycle for reassessments.  
As far as how they determine values...who knows.  They're consistently inaccurate in my experience.  However, they are typically a bit lower than what I think a sale could bring.  

@Rob Bruce.  I'd love to talk to you about the Ankeny Pine deal.  Give me a call anytime.  We are pretty excited to get that project taken down.  

Hey @Rob Bruce,

We should chat. I don’t know if I would be a good team member myself, but I’ve built up a decent team myself and I might be able to offer some contacts.  

I’d love to hear what ideas you are flying around and see if there’s any way that I can help.