All Forum Posts by: Noah Levenson

Wow @Arlen Chou, just the Bay Area? What sort of criteria and deals do you look for? The only time my father bought any investments here was during down-cycles (i.e. 2008-2010) which appreciated tremendously but in general new deals here fit his criteria (value-add opportunity, priced appropriately, no appreciate betting). Super curious to here how you found your deals here, and the criteria / rationale behind purchasing.

@John Warren great advice, I'm actually set to go to an auction next month, and am looking for some distressed stuff / house hacks. I probably need to do more than just chat to brokers, MLS and auctions to really find a good deal.

@Scott Morongell thanks for your feedback, totally agree that scale can mitigate risk. (I manage an ~8 figure budget in my day job and 100% agree -  through scale a lot of bumps can be smoothed over). I'd be interested in syndication too with my personal cash but only if I get a real hands on learning experience, which is an equal goal of mine along with financial performance for this first deal. That's been tough to find with syndication.

Hey @Arlen Chou that's really, really solid advice. Thanks for taking the time to give your 2 cents, I agree 100%. When I was younger we definitely clashed on various things, it's like that "Mark Twain" quote: 

"When I was a boy of fourteen, my father was so ignorant I could hardly stand to have the old man around. But when I got to be twenty-one, I was astonished at how much he had learned in seven years.

Whereabouts do you invest, and what sort of properties? Thanks again Arlen!

@John Warren thanks a lot for the advice, I hear you. I'm looking into FHA 203k deals that could work in my area but man the Bay Area is expensive, almost 0 chance of cash flow that way but could potentially lower my rent, get some equity through paying down the loan and learn at the same time.

Actually talking to David Greene about this & trying to find a deal here that could work

@Brian Ploszay

Thanks for the advice, totally agree that multifamily pricing is crazy. Hence the fact that option 2 will take a lot longer as my family’s business has strict criteria and is fine waiting 1-3 years before purchasing, I on the other hand am eager to get hands on experience quicker.

That said, I’m not willing to lose my shirt on a bad deal just to learn so I think I need to continue exploring both paths: looking for personal deals and deals I could bring to the business (and which I could invest in).

Thanks @Mike Krieg and @Alina Trigub appreciate both your thoughts. It's funny, I've grown up in REI all my life, and in a way that lead to me not appreciating the value of it as a business; but after 5 years of startup/corporate life my eyes finally opened to how powerful it is, thanks to my friend, @Ryan Mapes. 

I just thought it was normal that my father was always around, not going to an office, but on phone calls/email. Now I understand how incredible of a life REI can provide when done diligently. Really appreciate this BP community as well and hope I get the chance to work with some of you folks down the line. : )

@John Warren thanks so much, that's where I've landed at about 90% confidence, the only "issue" really is my impatience, so I need to be more disciplined. Their criteria are rigid and hard to meet in this current climate, so I'm concerned that if I go that route and it takes 1-2 years to get in the game then I'm missing a lot of learning opportunities from just buying my own small deal to learn the ropes. 

Do you have any thoughts on thinking through the opportunity cost in that regard? Is it silly to buy a small/semi-decent deal just to learn versus focusing 100% on finding large apt buildings that I can go in on which could take much longer?

Hey everyone, I'm looking for some advice here. I have two paths forward to get my first deal done, and I'd love to tap into the collective wisdom of the BP community for feedback.

Option 1: Buy my own small multifamily (2-4 units)

• However, it's been difficult to find actual "deals" and candidly I haven't put in the effort to go all out, with direct mail, digital ads, out of state owners, etc. mostly just working with brokers and looking at the various online sources. 

Option 2: Partner w/my family business on a larger deal (80+ units)

• I'm in a lucky spot where REI is my family's business. The company has cash on hand that I could contribute too and begin looking for a larger property. Our criteria is 80+ units unless we can buy up nearby properties or it's near something else we own.
•  So if I could invest and get 10% ownership of a larger deal, with the efficiency that brings in: solid property management, less volatile vacancy figures, etc. would that be a the better route than trying to do it on my own with a much smaller deal?

I think there's pros and cons to both, but to be clear in other scenario I want to lead or be actively involved in finding and managing the deal so I can begin to build up that muscle. The question is, with the opportunity to partner on a bigger deal with people I trust 100% i.e. my dad and brother, does that accelerate my timeline to really making a successful RE portfolio?

Thanks so much and please feel free to send any deals my way too! I'm actively looking!

Noah

@Logan Aardrup there's definitely some interesting stuff not in Missoula in terms of vacation rentals for hunters, nature lovers, hot springs, etc my family has owned a few different spots there but never in Missoula. You just need to find a good manager or B&B it with a live-in manager/host.

Hey guys, my family is selling this vacation rental over there if anyone's interested.  http://jacksonhousemt.com

Hey @Tim White thanks so much for the offer to help & for the feedback, much appreciated.

As a true testament to BP's great community, I actually had quite a few people reach out, so I'm going to hold off on getting more intros for the moment as I don't want to over-commit and drop the ball on anyone, hope you understand! 

Once I'm further down the line on a few interesting deals, would love to connect and get your thoughts on some of those deals, especially being OOS.

Thanks again!