All Forum Posts by: Robert Rixer

This is the equivalent of a car salesman pitching the "monthly payment" of a car instead of the actual price of the car. Knowingly buying into the red just because of financing terms is a very unhealthy way to invest.

In the buyer line we would always write "*entity name* and/or assignees". Keeps it efficient

Love the strategy of doing the work that so few others are willing to do. Honestly your approach may be a bit rough around the edges, but actually getting out there and trying to find deals through grit and hard work is the best way to start. You will then naturally refine your approach as you get feedback from results.

Not being able to rent out units usually just means the price is too high for the market. See what the competition is out there for rentals and price accordingly. Just because you want to hit a specific number doesn't mean the market will meet you there.

Great example of how Class C properties may appear like great cash flowing investments on paper - meaning fully rented, paying on time and normal levels of maintenance. But the opposite is often the case.

Stay away from any gurus. You can find almost everything you will need online for free. If you feel the need for in-person mentorship, reach out to prominent local investors and try and strike a deal to learn from them. You want to learn from people who are spending most of their time actually doing deals, not marketing their courses.

Being resourceful will get you far in the real estate industry. To some extent, those seeking out gurus/mentorship programs are lazy.

All well and good to dream big, but you need to understand the practicalities and probabilities of getting the deal to closing. Waiting until you get a deal under contract to then see if you can put together the debt and equity is a recipe for disaster. Talk to lenders, potential LP's and partners to see if there is even a pathway for you to get a 100+ unit deal done, and if so would would the parameters of the deal need to be. 

My belief is that if you can find a good enough deal, you can make it work - even with limited track record.

The theory is spot on, in practice however that logic rarely plays out - at least in recent years where multifamily has been crazy. Having said that there is no unreasonable number, you never know unless you ask the question. There's no shame in buying at your market valuation, as there is a ton of upside to take advantage of. 

Same principles apply - being busy will create opportunity. Start with Reonomy or Costar to identify all the 100+ units in your target market (on and off market) and then see if you can get into direct contact with some owners. At the end of the day, whether small or large deals it always comes down to relationships.

I can't help you with Jersey specific questions. But 3) Try multifamily specific brokers, crexi and loopnet, although 2-4 units maybe scarce.

4) A home equity line of credit is a good source of funds however it will generally make your overall monthly payments higher, so unless a deal is very solidly cashflowing, a HELOC may put you into negative cashflow.

7) Typically electric/gas are paid by the tenant - however this isn't true across the board. These are some of the questions you have to ask on a case-by-case basis.

LLC's are still the way to go but yes you can't tap into owner occupied mortgage tools such as HELOC's or high leverage. Unpopular opinion since I know you're trying to buy the next property, but keeping your equity in a deal is gold. Payments stay lower, cashflow better and it'll boost your balance sheet not to mention lower risk when things go awry.