All Forum Posts by: Mo Farraj

@Curtis Mears Thank you for the reply Curtis. I see that you are one of the few who actively buy from the MLS. May i ask what are some of your search criteria you use for properties that have sat on the market a while? Seems as though most investors feel like a lot of the deals come through off market from relationships and such.

What are some of the metrics you use when analyzing a property though MLS (comps, cap rate, rehab cost)? What are some things that stand out on paper to you that tell you "hey this may actually be a good investment"

@Aaron Gordy Great advice, thank you very much for the reply. Its all comes down to knowing your market and good math! 

@andy 

@Andy Brown Thank you for your reply, I am very interested in your strategy of house picking since you also have a FT job. Do you do most of your research from MLS posting your agent sends you? Do you cold call or send letters in the mail about buying properties? What has been the most effective strategy for you since you are busy on weekdays?

Thanks,

Mo

@Amber Gonion Great points Amber! Since I have a FT job, I’m hoping to find potential in properties that may sit a bit longer and give me a bit more time to analyze. In the end like you mentioned - it all comes down to math and things other investors may overlook.

@Matthew Reed Congrats on your first deal Matthew! Hoping to buy my first deal in 2019 as well!

@Llewelyn A. You make some very great points here Llew, thank you very much for all the advice. I agree with all you mentioned, especially in upstate I will be sure to look for towns with a lot of jobs and potential for big projects developing within a few miles of the property. 

Off topic but I would love to get your views on leverage. Since i was born and raised in Brooklyn - I very much know how much many areas have appreciated (good luck finding anything near Barclays for under 1M). How do you undertake in these type of projects? Are you using hard money on these deals and refinancing them once you rehab? On the other hand if you take out loans, what would you say is a safe percent leverage of your total portfolio? Ive watched plenty of videos of many multi family investors who say being about 50% leveraged loan to value is safe, what are your views on this topic? 

I plan to use cash on all of my deals upstate, however once I move into bigger projects I would like to understand the best way to start using leverage to my advantage.

Thanks,

Mo 

@Llewelyn A. I appreciate the reply, and this is extremely inspiring for me to read through. 

Regarding your comment about analyzing deep into your target property - what are some other metrics you may look at when a property has been on the market for 50+ days? I live in Brooklyn but hoping to start by investing in upstate NY to gain some experience before taking on bigger projects, what are some things I should be looking for or checking off to make sure a property is worth the investment?

Thanks,

Mo 

@Ned Carey Amazing gems, I really appreciate your reply sir. Thank you again! 

@Ned Carey Thank you for your reply. What if your average home on MLS in your area is 30 days, and you've found a potential property on the market for 100 days. Wouldn't you consider this a red flag?

In my mind the way I think about it is, MLS is a pool of smart/diligent investors all waiting to scoop up deals to adjust to their strategy. If something has been sitting on the market for a long time - this tells me I may be overlooking something (condition, price, current tenants). Do you ever wonder why other investors haven't picked up the property yet? If something could make money one way or another - somebody is bound to pick it up within the average time frame of homes in your area.

Would love to hear your thoughts, thanks in advance. 

@Russell Brazil Thank you very much, great way to put things in perspective. 

Out of curiosity, what would you do in my situation with having a FT job and most worthwhile deals usually sold on MLS within a few days of posting. Would you search elsewhere? Would you try and work with a broker on more off market deals?

I am starting to have the sense of FOMO, but also don't want to just choose any property sitting on the market for 50+ days because they are available. Having a FT job is holding me back from being as active as needed to grab a few deals hitting the MLS.

Thank you again.