All Forum Posts by: Peter Nikic

Peter Nikic has started 6 posts and replied 305 times.

do you own properties in any or all of these markets?

I was in knoxville recently, I liked it.

4 Votes

You have good drive, it may take some time, but I'm sure you'll do it. It'll be hard in the beggining, just don't give up.

1 Vote

all good questions above, what's your location?

1 Vote

Chattanooga is great, I just bought a condo there, moving there soon. Let's connect, I'll message you.

1 Vote

Originally posted by @Justin Goodin:

@Courtney M. Going off of what others have said already, a broker to represent the buyer is simply not needed.

Speaking to your point about confidence, you should start by educating yourself in this space. Nobody, or very few, people will go after large multifamily assets alone.

I would start buy reading books about multifamily syndications, listening to podcasts, and networking with local investors in your area. If you feel that this is the path for you, the next steps could be hiring a mentor or adding value to a more experienced investor to help take down your first deal.

This. Also, if you're not confident enought to go on your own (by not using a buyers agent), then you should re-think going in at all. The buyers agent in these cases do not add any value to you, they only take away.

Having said that, there are some cases where it could be an advantage to have a buyers agent. Like if it's listed on MLS, there are already provisions in place to compensate the buyers agent, so there is less resistence to work with a buyers agent. There are also lots of reasons why an agent will list a multi family on the MLS, like as an example, the listing agent does not bring any value to the table (they were just in the position to get the listing), so they're asking for other agents to be involved because they need help. This would allow a savy buyers agent to benefit you by having more control over the listing agent.

Good luck.

2 Votes

memphis is cheap, yet rentals seem to be growing in income and demand. Although I've never been there, I'm just going by the data I've seen. I'm working on Chattanooga.

2 Votes

Depends on area, an apartment would be easier for you. Requires (generally) no exterior work/repairs on your part.

0 Votes

On the surface, not worth it. all this cash to get 9 rents @ $825 ea doesn't seem like a great return. Too many uncertainties and unknowns could make this very uncomfortable and risky for your partner. Since you have no $$ in the game, you could always walk away, but he can't.

2 Votes

Originally posted by @Robert Martinez:

We like to use a little thing we call the magic formula. $1/Cap Rate = Valuation

At a 6% Cap Rate, Every Dollar of Income is Worth $16.67 in Value. Why this matters to an investor when looking at a syndicator is to forced appreciation or added value. For example $30/month profit on flat-rate utility. On 272 unit property. Would equal $8160 x 12 months = $97,920.00

$97,920/6%= $1,632,000 added value!! This little nugget is definitely a GOLD mine.

I like this, I've been saying for years, that $1 increase in rent per month is equivelent to increasing the property value by $120+

1 Vote

Good for you, Huntsville seems like a great market. Message me for, I'll give yu some tips.

0 Votes

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All Forum Posts by: Peter Nikic

Peter Nikic has started 6 posts and replied 305 times.

Post: Top 5 best multi family markets

Post: Master Lease Agreement for an apartment complex

Post: Partnership - Apartment Complex

Post: Moving to Chattanooga and Looking for Rein members.

Post: Using a broker in multifamily

Post: First Multifamily Property - Where would you buy?

Post: Getting ready to purchase my first rental!

Post: My first 9 Unit: is it a GO or NO GO

Post: How do you add value or create value for your investors?

Post: I’ve found a multi family but now what?