All Forum Posts by: Marjeanne Fields

Responding to:

Reid Matthews - Just FYI - I'm really disgusted at the snarky (if not outright rude) tone in some of the replies you received. Some of the responders may not have the wherewithal to realize their tone is condescending and rude. I'm sorry you have to put up with that, considering you asked the "community" a support question.

To those of you that indulge your ugly sides, please learn the difference between money and class. Everybody needs to put that "I'm so brilliant" attitude back in their whazoo, or participation will start to decrease. If your time is so valuable, why would you waste it writing snarky comments? Being nice is free, doesn't cost you a thing...

To Bigger Pockets - It won't be much of a community if new people become leary of asking questions in this forum.

@Jennifer Merrick- You are so right. @Reid Mathews should not have to justify his profession just to ask a question. Arent we all on here to learn, help each other, and get better? Keep asking your questions Reid. 

@Gregory McKinley Happy to help! 

@Kenneth Williams I PM'd you. :) 

@Reid Mathews Are you looking to buy MF as a manager or are you looking to invest in MF as a passive investor?

Recently was at a family office event. Was 5 feet from Grant Cardone as he was talking about his company and his plans for the future. I personally have heard better returns from many other people. You would be investing in his name and the "cool" factor. In my personal opinion. 

Sorry if this isnt the answer you wanted. Was really cool to see Grant. Was surprised at how short he is! LOL

@Craig Bellot GREAT CHART! Thanks for sharing

@Davey Davanoski

We ALWAYS hire a property management firm. No way I am dragging my behind down to the property on Christmas to remove a toy from the toilet! As long as you budget the cost in when doing your underwriting you are good. Make sure you read their contracts fully!!!!!!! A lot of property managers throw a ton of extra fees and restrictions in their contract. I have seen extremely one sided contracts pro prop manager. Not accounting for those fees can kill your deal. Best advice I can give is pop on BP and ask for a property manager in the area where the property is located. You can also browse online on apartments.com or similar sites. Look at the properties and how they are being advertised. Look at the reviews. If it looks good, call the property manager and ask them if they are looking to take on new projects. 

Would not suggest doing it yourself. Especially in multi family. That will restrict you from buying more properties. 

A lot of MF investors start their own firm after purchasing a few properties. Completely up to. 

@Bryson Rogan I have properties open for JV partnership in Big Spring Texas. PM me if you are interested.

@Gregory McKinley As long as we have it actually under contract (meaning not an LOI) we do not make people sign a NCND.

For commercial loans you have to have two things:

1. Experience in the same product type (for instance if you are buying a 10 unit they want you to have experience successfully operating a 10 unit)

2. Net worth. They want to make sure that you can pay off the loan with cash if need be. Even though they are often non recourse. 

Typically, multifamily investors will work with a sponsor. This person brings the experience and net worth needed to get a loan. I also have "investors" that are on our management team. This allows them to get income from the property, as well as experience. My suggestion here would be to find a group who is already buying MF and see how you can help. Make sure they put you on management on the docs so you can start to build your track record to show the banks. 

Yes. MF is all based on NOI. No matter if you buy a 5 unit, or 500 unit, the value is based on the income it produces. Why not buy larger? You make a LOT more money for the exact same amount of work. Typically, its easier to purchase a $10mil property than a $200k property.

I have people in the Bay area and Sacramento I can connect you with to help you. PM me. 

Keep in mind- property managers like economies of scale. We get charged 4% management fee for our properties because they are large. If you are buying under 10 units I suggest budgeting 10% management fees plus all of the expenses that go with property managers. Make sure you know how to underwrite or you could find yourself in big big trouble down the road. 

Just FYI- we started buying over 50 units. When you buy that large you work with a team. Which makes the amount of work YOU do much lighter. Highly suggest going this route. You simply make more money for less work.