All Forum Posts by: Paul Khazansky

Any other thoughts?

Speaking of direct marketing, is there an easy way to get a hold of a list of apartment complexes by the address by county in a given state? Any ideas? Thanks in advance.

Question for experienced multi-family investors. What sort of research/due diligence do you guys conduct on [b]local market conditions to get comfortable investing in areas that are far from where you reside? I figured job (population) growth level, unemployment rate, median household income (though that's probably not as vital if the focus is on B properties), proximity to major highways/malls/retail centers are some.

Lawrence B. whatever you decide to do, make sure that you have a clear understanding that the higher is your leverage, the more risk you are facing. Paying all cash for property is the other extreme, where it's almost silly not to take advantage of low interest rates on debt right now. Also, given that you have limited experience, consider either partnering up with someone who knows what they are doing, or educate yourself on CRE investing. Good luck!

Guys, one other question that indirectly pertains to IRR calculation. What are reasonable rates at which a seller is willing to carry a piece of the note when selling an apartment to you? What are you seeing out there? Say it's 20% of the purchase price amortized over 20 years. Thank you in advance.

Joel Owens Regarding getting a seller to carry some seller financing (2nd lien I presume), is it typical to see it around 20% of the total price? Also, what rate are you typically seeing on seller financing? Thanks in advance Joel!

Brian Burke, Frank Gallinelli and Bryan Hancock thank you for the elaborate responses. More on that subject, with respect to your projections, what percentage of that projected IRR is due to reversion value (which is obviously fairly tough to predict 5 years out)?

Also, do you always lock your investors in for 5 years, or is there ever a clause to let them exit the investment earlier? Thanks!

Joel Owens Thanks Joel. Do you have to be a member to track down brokers in the appropriate area?

Hey everyone,

I'm interested in purchasing an apartment building(s) in Maryland (30 to 70 units), and perhaps in certain areas of Delaware or Northern Virginia. Are there better ways of tracking down brokers in this space other than seeing who is active on Loopnet? Thanks.

Hey everyone!

What IRR returns do you target when looking at acquiring an existing multi family property? Let's assume it's a class B property, 10 units, you plan to gut-renovate it, and then lease it out for 4 more years for cash flow. Just want to get a sense of what other developers are targeting here.