All Forum Posts by: Nicolas Trejo
Nicolas Trejo has started 2 posts and replied 31 times.
Post: How to make money with cap rate lower than current interest rate.
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
Marry the real estate and date the rate =)
Post: "The Palms" - 10 Unit Apartment Community in Chula Vista
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
LOL figuring out how to use this platform =)
Post: "The Palms" - 10 Unit Apartment Community in Chula Vista
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
I own it. =)
Not for sale.
Post: Need advice / help analyzing to purchase 1st deal in CA
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
Quote from @Dan H.:
Quote from @Nicolas Trejo:
Stacy, I do not agree with that SoCal (San Diego) isn't a cash flowing market. It is just depends on the game you are playing. 2-4 units good luck finding cash flow. More speculation in that space and volatility due to the amount of leverage available to purchase in that market.
IMO 5+ units are the way to go to avoid the volatility, receive cash flow, and scale long-term. Even that market is seeing a pull back from buyers sitting on the sidelines waiting to see the next FOMC and elections around the corner. I purchased a 5+ unit in National City this year and got a triple on my $$$. Granted that deal closed April this year and that was a different market then. Different rules and different players in that space
Hit me up if you'd like to chat more.
Cap rate for class b of 4.4 (metro)to 4.7 (suburbs) implies with financing negative cash flow. If you perform a value add of some sort, then possible to cash flow which is same with 2 to 4 unit if the value add is not refinance (usually for 2 to 4 unit is refinanced to increase return).
I have never had a property yet that if I did not refinance it, it would not have had decent cash flow. Of course the LTV is low because of the increased value.
National city likely class c cap rate, but same idea. You likely cash flow because you increased NOI from purchase (the value add).
100%. Markets like National City are more of a cash flow play vs wealth preservation buying something along the coast.
Post: Need advice / help analyzing to purchase 1st deal in CA
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
Quote from @Nate Sanow:
Quote from @Tim G.:
Agents and lenders are desperate for business, I wouldn't follow any advice of anyone who gets a check from a decision you make.
The market is at peak, and dropping. I personally hope new investors press pause. I feel for folks wanting to get in, but the conditions are terrible. Overpriced homes that have not came down in respect to the interest rates. Even the advice here can be quickly filtered out by who is hoping to earn your business and who is here to talk real estate.
You make really good points sir.
Agreed. Barrier to entry for real estate license is low. Need to search for the guys/gals that control inventory and do a lot of deals!
Post: Seeking a Real Estate Lawyer (San Diego, California)
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
What kind? Transaction? Landlord?
Post: Underwriting Multi-family Deals
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
Practice makes perfect!
Post: Thoughts on El Centro, CA
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
Don't! That's it lol
Post: Active listing is down 60% from 10 year average
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
HI =)
Post: How to make money with cap rate lower than current interest rate.
- Real Estate Agent
- San Diego
- Posts 33
- Votes 17
Depends on the market space you are playing in. 2-4 units good luck cash flowing. 5+ units only 1031 exchange money or all cash deals happening. Rates should tick down Q1 next year. Once they get around 5% business will be back. Hit me up if you want to chat more.