All Forum Posts by: Matt Engle

@Maria Luna I agree with Danny Randazzo. Also, because the property you’re buying has 8 units, it is technically a commercial multifamily property so the lenders will be more focused on the deal and business plan than whether or not you have a W2 income. That said, you may also want to look into having someone be a key principal on your deal should the banks/lenders have a strict net worth requirement.

@Corey Russo commercial property is technically 5 or more units. However, commercial sites like loopnet often have residential listings in the 1-4 unit range. The listings on loopnet won’t usually be great deals but take note of who the listing brokers are and reach out to those who are listing the type of properties that you’re looking for.

@Kyohei Yoshida To be a syndicator you do not need to be an accredited investor and you don’t need to make a certain income. The first step is to learn as much as you can about the business; read books, attend courses, and network with people who are already doing what you want to do. Look for a multifamily investing meetup in your city.

@Pete Harper often times sellers won't provide actual financials until an LOI (letter of intent) is submitted and accepted. If you are not yet under contract, you may be able to ask the seller specific financial questions about the property's operation without seeing the actual financial documents. For example, you can ask for the average gross rent per unit per month, the average operating expenses per unit per month, and from that you can get an approximate NOI (net operating income) and therefore the value of the property (NOI / Cap Rate = Value). You can also ask for the costs of specific expenses and that will help round out your initial analysis. Then, once you are under contract, the seller can provide the detailed financials.

@Brad Swearingen have a conversation with the owner. Understand his/her motivations for selling and ask clear questions about the financials you are looking for.

@Omar Ismael what an inspirational story! Keep it up!

@Thomas Richardson we invest in B and C class properties. In our experience, the ideal scenario is to find a C class property in a B class area and similarly with B class in A class areas. This gives us the opportunity to add value to the property in addition to the stabilized cash flow.

@Emily Laughlin it is not required to have a buyer’s agent for multifamily investing but as you search for larger properties, the broker/agent you have a good relationship with will help bring you deals that you may otherwise not get to see. Good luck!

Congratulations @Holly Williams That is amazing!

Hey Everyone, My team and I are in the negotiation stages of a 126 unit apartment deal and the seller is asking for the following conditions: 1. The purchase price is to be firm as the seller is not interested in re-trading the deal in the future. 2. The seller would like to add a 21-day financing contingency in the LOI. 3. Closing on or ‪before December 14, 2018‬. 4. The buyer is responsible for any title insurance. Are these reasonable requests and can they be met for a property of this size? Any and all advice is greatly appreciated. Thanks!