All Forum Posts by: Pratik P.

Although I disagree with John about the unlicensed brokering thing,  I think he's absolutely right about rentals.  If financial freedom is what you're looking for,  I would strongly consider building your rental portfolio as soon as possible.  I personally am looking to assign deals to my rehab partners for short term income but close on the really good deals myself and rent them after rehab.  

Hit us with the numbers! 

I don't know much about being an agent and listing properties but from a business perspective,  wholesaling is something you could automate and scale up.  Being an agent isn't really scalable since you HAVE to be there or money doesn't come in.  I'm sure you can make a lot of money doing either though.  

I agree 100%. If I ever find out that a property is already listed,  I don't even bother with it.  A wholesaler brings value to RE by finding off Market properties,  solving the seller's problem and makes himself and the end buyer money. 

I think people who try to wholesale MLS listings are just uninformed in what wholesaling really is.

 Hey Andrew! 

No I don't currently own any SFR. My partner and I are actually wholesalers. I plan on purchasing the really good deals we find and turning them into rentals. That way I have both long term and short term income streams. Hopefully I can use the same marketing skills to find off Market value add multifamily properties to purchase as well!

Thank you guys so much for all the great responses!

I know $200/unit is ideal but what I've been seeing is much lower,  which is what confused me. 

I've actually been seeing somewhat better cash flowing properties in surrounding cities like Stockton.  Although there isn't much chance for appreciation there.

Hey everyone!

I've been constantly looking at large multifamily deals in the Sacramento county area (on loopnet) and have been noticing very low cap rates (4-8%). After expenses and debt service, cash flow is coming out to be less than $200/month per unit. Are investors actually purchasing properties with these numbers or am I missing something? I feel like the best way to invest in large multifamily might be to either purchase out of state or Brrrr off-market properties, but obviously on a much larger scale. Thanks for your input and comments!

Pat

I think it's really about knowing your seller. If you build a solid relationship, you won't need a large deposit for them to take you seriously. For bank owned/HUD/Auctions, you'll definitely need to hit their set requirements. Not everyone starting out is going to have 10k checks for each offer they make.

You're right. A four-plex at that price is crazy! I don't know who bought it or what they were thinking. Maybe I'm missing something here too!

Absolutely wholesale it!