All Forum Posts by: Quy Huynh

Hey guys - I listened to the podcast and it was mindblowing. The reason why I was getting carried away with this struggle was with the 40k "pigs" I can pick up the tax deed auctions in the southeast parts of the country, my COC will be about 15-20%. These are paid for cash, no leverage.

The other property I was looking at was using the same money and buying a multi family, leveraged but the cash on cash was only about 8-10%. 

After listening to the Podcast, it dawned on me that that's just year 1 cash flow I"m looking at. If I looked at the WHOLE deal and at my IRR, it'd be a totally different story. I guess what I'm saying is all I want is my monthly expenses to be covered by cash flow. Although that could be done quicker with the pigs, to grow true wealth, I should most likely look to leveraging and trying to figure out how to grow my wealth that way in the long run.

how do I listen to that specific podcast? thanks man! 

I've been torn between the follow decision. A 10-unit building financed making 10% cash on cash annually VS 10 single houses paid for in cash making 18% cash on cash annually I want to obviously go the 18% route but if ask myself why do I go this route when all the big players buy bigger buildings? Am I maybe trading risk for return? What have you guys done or experienced?

@Daniel ChangI do live in Socal however, the property in question is in Florida, but thank you! 

@Joel Owens: "You want to set annual rent at no more than 10% of expected sales."

Joel, let's say their expected sales are $1,000,000 per year. The Ground Lease should then be marketed for $100,000 annually and for the sale side, if the cap is, let's say, 8%, the value would be $1,250,000?

If I am incorrect, please give me an example. Thanks Joel! 

I have a piece of land that's zoned retail at a very busy intersection. Rates in the area are about $20 NNN annually. How do I go about figuring out how much I can get for a ground lease? The lot is a little over an acre so I believe the large footprint tenant opportunity is there. Thanks!

Good info here everyone. So it seems like there are still ways to get lending after the 4th property, you just have more hoops to jump through and it seems like you must speak to local banks and not the national ones. I'll start hitting the phones and walk-ins to find the right lenders.

This makes me wonder what happens after the 10th one. No one mentioned anything past 10. More hoops? Relationship-based? 

Jane - From what I understand when the property is commercial, the # of loans doesn't matter. It's the residential loans that they care about. What do you mean by using up all the residential loans possible? Do you mean 4 properties and then move onto commercial? Peter - is this a local bank nearby the properties you're investing in?

Hello,

I am having an issue with loans. Conventional loans will only let you go up to 4 houses and that's it - can't buy anymore homes. How can you find lenders that will loan more then that? The most I've heard of is possibly up to 10 homes with a portfolio lender, but what happens after that? Private money only? A hard money lender would not be preferred in this scenario due to the goal of holding these properties long term.

Thank you! 

Hi everyone,

I have $100,000 and am so indecisive of what to do. I'm stuck at a fork in the road and I'm hoping for some help from some of the smartest guys on the web. 

The first option is buying single houses with a friend via tax deeds in the Midwest of the US for about $45k all in and the rents are $900 per month. I plan to purchase all cash and since this house will be worth about $65k, I plan to refinance, cash out and do it again to another 3 properties or up to 10 if I can find a portfolio lender. My cash on cash if I bought all cash would be about 12%. If I cash out and get my $45k back, I then have $0 invested in this house and the returns would be infinite (until a new roof, HVAC, etc is needed). Yes, I've already confirmed with a lender that we can do this, but of course the limitation is 4 properties (or 10 with a portfolio lender, if I can find one!)

The second option is multi-family. I'd use the $100k and buy a $500k 10 unit and my leveraged cash on cash would be 10%. I can't do the cash out refi to get my $100k back to buy multiple properties. With this route, it'd be a 2-5 year hold and anticipate rent increases to sell at a higher price via cap rate. The benefit I see here is really the possibility of forced appreciation and scalability.

I truly see multi-family as the better option because this was how I built my portfolio in the past, but the reason why the single houses are singing to me is because 1) the 12% returns and 2) the cash out/refi option. I don't want to rule out single house just being I can sometimes be bias and egotistical by wanting bigger things, so am turning to BP for guidance. 

My background is I got a divorce last year, lost all assets and am rebuilding my portfolio. If you were in this position, white route would you choose and why? 

Hi all,

I'm doing an analysis on a 30k SF retail strip center and wanted to ask how much PSF do you typically budget for: 

- leasing commissions (property is 90% occupied as of now)
-capx / reserves

And lastly, do you typically pass the property management fees through the cam so the tenants pay for it or is it an owner expense?

Thank you!