All Forum Posts by: Lana Lee

No, not OOS.  All within 2 hours of San Francisco Bay Area. 

Yes California has crazy prices but with large multiple deal funnels and being disciplined in your underwriting, there are deals out there. We probably look at 50-80 MF deals a month, more on the high side since now we are branching out into other markets both in California and out of state. All Class B and C MF properties 10 units and up. Out of that deal flow, we probably underwrite 10 or so that catches our eyes, walk them and make offers on a couple. We have a network of brokers, property managers, etc that help with the deal flow and constantly network to increase the funnels. We also follow strict guidelines on making sure the ROI % are up there, ie. 10%+ ConC day 1 and good pro forma upside, depending on the deal... 15%+. For value-add and with exit strategy, ROI's are usually higher 25%+ annualized.

We have a network of lenders from private institutions, hedge funds, to conventional/your typical banks.  We look at the deal and see what type of debt works best for it.

I have seen that trend as well...more newbies than experienced investors.

I remember when I started out about a year ago, I was reading through all the posts on on BP, absorbing as much as I could and asking questions. I have a commercial property for many years but didn't get smart about REI until recently. Met awesome folks on BP and deals paid for my pro account fee many times over. Flipped a house earlier this year and then got into MF full steam with our team we put together. Went from 0-31 MF units in 5 months locally and another 14 units we are working on. Setting our goals for larger and larger properties going forward.

I post as much as I can to help newbies but I agree with most here, time is limited with a full time job, finding deals, underwriting, analysis, walking properties, networking with brokers, investors, lenders... it's basically a 2nd full time job!  Been posting less on BP but try to whenever I can as well as learn from more experienced investors.

My loans are usually less than $50k so I’ve only used my lawyer. But if I was going above that I would probably use an MLO (mortgage loan originator). I don’t plan on selling any of my loans. I like the cash flow. I get all, more, or most my investment back on the down payment. 

@Lana Lee The benefits to seller is they get to spread out their capital gains over time, gives them a nice cash flow. The mortgage secures the property so if the buyer stops making payments they get the property back and can repeat with another down payment,etc. If note is written properly it can be resold after seasoning.  

@Lana Lee This explanation might help to put them in their comfort zone. "I know owning properties can be a headache, so I'd be willing to help you. I'd be willing to give you some money up front, and then give you a little bit of spending money each month for the next XX years. I'm sure it would be nice to get some money each month and some immediate cash in your pocket."

Its also good to refer them to your website, facebook page, etc to show them what you have done in the past. Don't rush them to give you an answer on the spot. Its a process. Have them become your friend.

Hey Everyone,

I have recently been promoted in my job, and I will be moving to Philly in a month or so. I am going to rent for a year, and save money for my first investment property. I want to get into small multifamily properties and I was wondering what you think is the best market in the Philadelphia area for that investment. Any advice or insight would be greatly appreciated! Thanks for your time!

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