All Forum Posts by: Patrick Nickerson

Hey everyone! I’m looking at a few off market deals one of which being a broken condo complex.

For example..the property has 3 or 4 condos individually owned within another 50+ units that I’m looking to acquire. Brokers and the owner of course suggest that I buy the rest of them out of their condo which sounds easy enough...

Can anyone offer their experience they had from a similar situation? How have you seen this play out with the individual owners in past deals?

For all the multi family investors out there... what are your thoughts on buying a broken condo multi family complex? Is this something you avoid? Does it matter to you? 

Brokers... how is your experience with this? Does this make them harder to disposition/sell down the road if I can’t acquire those last 3-4?

Thanks in advance! Excited to hear your responses!

What are best practices when sourcing OFF MARKET multi family properties? I’m looking for 50+ door properties under $10M! Aside from buddying up with brokers - what’s the best way to find these deals consistently? Also, what’s the best way to get linked up with the potential sellers? 

mailers? call offices? Programs like reonomy? What’s working for all you multi family investors out there? 

From the old days of SFRs - I think the one that got me the most and gave me a good laugh is when they’re already late and call you and tell you to stop by for rent. You tell them you’ll stop by tomorrow and then tomorrow they don’t have it because they spent it on medicine, groceries, or gas for car. I learned real fast if they call you to pick up when they’re late - you better go get it!!

The other one I got every so often (not even in the same property) was “utility payments were high”..And when you maintain a good standard of living for your tenants and they start complaining about efficiency, quality of property, etc it’s usually a tell tale sign you’ll be in eviction court soon!

@Dale Abella if you hold a personal mortgage on the property a lot of times you won't be able to "transfer the deed" to an LLC. A fix would be to refinance into the name of the LLC. If you have equity in the home a refinance could also present a cash out allowing you to go make a principal/down payment on another home!

Just because it's not titled in the name of your LLC doesn't mean you can move into another home and rent out your current home. Banks often times will consider the rental income to offset your debt to income.

This is my experience in NC so this info may or may not be applicable in your state.

@Wayne Brooks LOI submitted and pending! Just pondering other options.

@Aaron K. I was thinking the same. Their deal is contingent upon the achievement of an acceptable occupancy. From what I understand they've made multiple extensions and sellers aren’t extending again. So there is a chance the deal could flounder but I don’t want to sit, wait, and hope! Thanks for relying!

I have a property that a broker contacted me to submit an offer on as a back up offer. However I’d like to try and buy the other buyer out of the contract. Anyone have experience doing this on large multi family?

Asking price of $8,915,000. How much would be appropriate to offer on such a deal?

@Greg Dickerson

Appreciate your insight and POV on things like market trends and pricing per sqft! Really valuable!

Have been giving some thought to developing multi family. Can anyone with recent experience in NC share their expertise?  

In a market with few quality “value add” opportunities(sub $10M) and lower yields,  I’m wondering how the returns on developing a complex(under 100 units) stack up to simply waiting for the market to produce a value add. 

Met a multi family developer the other day and they seem to have multiple projects underway or in lease up.

Thanks in advance!
  

@Danny Randazzo thanks for the references! Ill check them out!