All Forum Posts by: Rick Snow

Hey Shaun. I'm under contract on a Student Housing complex in Southern California. Let's discuss financing. Rick

Hey @David Toupin. Give me a call. Let's discuss our portfolio and your goals. Rick 

Hey @David Toupin. I'm under contract on a couple of off-market MF deals right now and interestingly enough, actively looking for other active investors to work with. One of my deals is a 32 unit next to the stadium of a university - 100 occupied with a strong NOI. Off market.

If you're a serious player, I think it's time you and I connect.  PM me 

Rick 

Is your multifamily considered your primary residence or a rental property? If you have equity and depending on what size it is you might be able to cash-out refi, 1031 exchange or leverage a line of credit against it. 

If 20k is your nesting money I'd go a conservative route and continue to build your cash reserves. 

Investing in turn-keys can be convenient but the operators can cut into your bottom line profits. 

My advice to you is to build partnerships. Help each other out and grow together! Find someone with mutual goals and build an empire together. Iron sharpens iron. 

BiggerPockets is a great place for networking and building partnerships. Stay active on the forums. Be generous and great things will happen. 

Hope this helped. 

Rick

Hey @Michelle K.

A wise investor once told me "Enjoy where you live. Invest where it makes sense".  I personally only do flips within a 2hr radius of where I live and will only invest in buy/hold assets where I already frequently travel.  Buying properties out of state could quickly turn into a nightmare - if A) you don't have the right team in place locally or B) you aren't interested in having a physical presence.  Being what I call a "surrogate real estate investor" is a terrible idea. If you're planning on buying out of state you'd better have an awesome/experienced turn-key operator in place, or plan on building your own team and adding quarterly visits to the property into your budget. 

I have experience building remote teams. If you need help just shoot me a note. 

Hope this helped. 

Good luck, 

Rick 

Hello @Armando Payano. 

I suggest finding a CCIM local to the area you are pursuing. If you don't already have a connection with one you can pursue one at www.findaccim.com. Get to know several of them. Build a relationship. Take them to lunch and be clear on what you're looking for and how you plan to finance the deal.  

I hope this helps. 

Good luck, 

Rick 

Hey Jordan, 

I would recommend staying away from Loopnet if at all possible. By the time the asset has made it to Loopnet it has already been passed-on by the listing agents preferred buyers list and backup list of buyers. 

The best way to source good MF deals (in my opinion) is to 

A) Research markets in the path of economic development 

B) Reach out to every CCIM you can find in that market. Note: A CCIM or Certified Commercial Investment Member is like having a .pHD in commercial real estate. They are the best people to have on your team if you are pursuing multifamily investments. 

C) Get on their approved buyers list and 

D) Follow up with them regularly 

You might also want to send them a POF (Proof of Funds) or SREO (Schedule of Real Estate Owned) document so they know you are serious. If a CCIM brings you a lead they hope you can close on it.

Once you get the lead make sure you have gone over the financials. T12, 3 months rent roll, CAPEX for the past 24 months and information on the existing debt.

When you're ready to put your offer in. Depending on how strong the deal is and how much you want it. You can offer an EMD (Earnest Money Deposit) be careful with this and make sure you have either inspection contingencies or financing contingencies in place or you could lose your deposit (or more) due to non-performance.

30 day Due Diligence and a 60 day close is pretty standard. However these terms can be negotiated with the seller. You will almost always split closing costs. 

Financing the deal is the final piece and it's really where science meets art. You can work directly with Fannie/Freddie or go through CBRE. CBRE is the largest provider of FNM/FMC debt in the world and (I have some really strong contacts there I coule give you if you contact me directly) Any lender will require a track record, HNW (high net worth) individuals, an operating agreement and an equity partners PFS (Personal Financial Statement) if you are bringing in help to complete the JV side of the financing. If any of this is confusing or you need help sourcing JV / Mez partners just contact me directly.

Once you get the deal manage it well. Keep the occupancy up, keep up on the repairs / maintenance / landscaping etc then sell or 1030 exchange into a larger asset. 

MF investing is the most fun you can have in real estate but it's tricky. Work hard and build the right team around you and you'll do fine. 

I hope this helped shine some clarity on the practice. 

Rick

...

Rick Snow: Real Estate Investor/ Multifamily Investments. Sacramento CA

Good Afternoon. 

Does anybody have a good underwriting template that I can use for MF opportunities. I'm looking for something that I can plug all the data into (T12, CAPEX, Rent Rolls, Taxes/ PM Etc)?

Any help would be great. 

Thanks everyone, 

Rick 

Hey Alex. Welcome to BP.  My advice is for you to continue learning the ins/outs of real estate investing by listening to the podcasts and staying active on the forums. 

You can also build a nice pipeline of income through single family rentals but perhaps you should also consider a small multifamily. It seems like you already have experience in managing a duplex. Perhaps you give a 4plex or a 5plex a try next. 

The sacramento market has been saturated with investors and quality inventory is in small supply, but available. My advice is to connect with every wholesaler you can. Give them your criteria and get added to their buyers list. 

Good luck out there. If you ever need any help just shoot me a note. 

Cheers, 

Rick

I may have what you're looking for.  DM me for details. 

Rick