All Forum Posts by: Michael Ealy

Hello,

I have been doing a combination of house flipping, wholesaling and building a small portfolio of 40 rental units over the last 7 years. Currently doing about 8-10 flips a year with a 4 man crew and self managing my rental units.

I am looking to move into larger multi family properties through syndication. Does anyone have any guidance or recommendations for someone with real estate experience looking to get going with syndications?

Also, is there any recommended coaching programs or potential mentors that would be worth recommending to help prevent as many beginner mistakes as possible?

Thanks in advance for any input and advice. Happy investing!

@Michael Ealy county record or mortgages? Not sure what you mean by that. 

Looking for a best case scenario to find an owner financing opportunity. 

@Dominique Mitchell

I check loopnet daily. I’ve bought a few properties that were listed on the site. You’d be surprised what you can find. The good ones go fast and even faster in this market!

I have been pre-approved to get a home and I have seen a few places and also put an offer on 1 but it didn't go as planned. I have mainly been focusing on duplexs but my area doesn't have them on the market as often. So I have branched out into the bigger cities near me and found some triplexs and quadplexs! "Personally I don't want to invest in another state yet mainly because I'm learning and also have a life long goal on rebuilding my small town". After running the numbers and seeing the amount of cash flow I would make from a tri or quad it has made me not even want to look at duplexs anymore... Is it bad to only focus on a 4 unit or maybe a 3? I want to house hack for my first ever property and SFH doesn't even seem like a good idea for me and duplexs are covering my mortgage and maybe a small profit but triplexs and quads are seriously almost bringing close to what I make at my W2 job. I'm afraid I'm going to be waiting too long until I get myself a property to make some money from but I also want to have a good cash flow from my first property as well. This has kinda been stressing me out and I just feel asking here would help me figure out what would be best!

Do you guys think it's okay to wait for a tri or quadplex in my area? Or would it be smarter to try and get into something sooner rather than later? 

Like some members in this forum I'm also new to investing in multi-family rentals but I've been educating myself about it for the past couple of months. I'm a little late coming(hopefully retiring in about 5 years) in to this field but I think I have enough resources to (cautiously) dive in and get my feet wet. With my primary residence free and clear and using the equity on it with an average 830 credit score our local credit union estimated that I can qualify up to mid 200k on a heloc. I am mostly invested in index funds on my retirement and non retirement accounts and have had tremendous gains past few years but the uncertainty has always been a concern. From what I've read so far investing in 5-plus unit apartments would make more sense and may provide better ROI than single family assuming good cap rates and cash flow. Not sure if I can find potential investment here in Colorado Springs area since the market here seems to be peaking at the moment. I've also looked at some RE syndication companies offering attractive IRR with some tax benefits. I'm pretty sure I'm not the only one in this community with a similar situation and experience and would like to know what you think. Thanks and I appreciate your comments.

I want to invest in multifamily apartment buildings how do I research markets to find a market where there is job growth, migration etc?

Let's say an apartment building with multiple units has cashflow can I put down a downpayment, finance the rest as a non recourse and interest only loan with no personal guarantee needed as long as the DSCR is good like 1.25 or above even if it's my first property and I don't make a lot? Could I close this loan in a property LLC with just the property?

Steps for getting a commercial loan?

I'm getting ready to buy my first rental property within the next 2-3 months . I have 13k saved up and I intend to use an FHA loan.

The multi family properties in my area are about 300,000+ for a 2/1 duplex . I found a realtor and he advised that it would not be safe to get a multi family just yet . He said having only 13k would be spreading myself too thin because things could break right after I buy and it could be difficult if both stoves broke for example .

He advised that I should start off with a condo that was 115,000 in a 55+ community , which I could rent for 1600 and get a feel of land -lording . If something broke , it would not be as expensive versus if something broke in both units of a duplex . He thinks I should get a few properties under my built before I buy a multi family .

My original dream and strategy was to get a multi family as my first investment . But I also am aware that if a strategy can’t work for the moment , another strategy can . I feel a little unsure on what step to take . What do you guys think ?

Thanks for all the advice in advance .

@Michael Ealy

Way to go and thank you for sharing. I am working on a 28 unit deal where the owner is willing to do a 20% carry back. Any suggestions on how to get a bank to let me close w zero money down using the carry back? This is a first for me.