All Forum Posts by: Sam Grooms
Sam Grooms has started 13 posts and replied 557 times.
Post: Bigger Pocket meet ups
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
Meetup.com, Bigger Pockets has a section for local events, Google search "REIA."
Post: Getting crazy high quotes to Resurface pool on Ahwatukee flip.
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
Use CDC Pools. It'll be less than $5k to resurface.
Post: Where do you get information that determines market cap?
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
A deal starts to makes sense when it reaches your return objectives. You only need a cap rate to determine your exit, if it's required for your chosen return metric (ie. IRR).
All of the large advisors/brokerages publish cap rates on their websites for free.
Post: First Big Complex in the Books!
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
Congrats, Peter!
Post: Opportunity Zone - For Real Estate Investors
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
Originally posted by @Nick P.:
Ahhhh I see, thanks for the clarification. That “substantial improvement” needs to be greater than your initial cost basis people have seemed to allude? So really they opportunity here is for the pseudo 1031 or new development.
Meh I’ll just start the next google in an opportunity zone and avoid cap gains in 10 years. This could be done as operations and business must be in the zone (90%) but income can be derived from outside the zone (ie. Online biz) Am I interpreting that wrong as well?
I believe it's your initial basis, excluding the land.
Post: CLOSED on a 98-unit TODAY!
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
@Tony Sera, Ben is correct in that you'd want to buy in a submarket that supply isn't increasing (ie, no cranes in the air).
To answer your question about where to find such information, most of the large advisors/brokers have this information for free on their websites. Just look at new construction permits, completions, and absorption rates.
Post: Opportunity Zone - For Real Estate Investors
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
Originally posted by @Nick P.:
Grave digging here but in my reading about the opportunity zone funds, I thought you could avoid the substantial improvement all together by using the property as it original use:
"The original use of such property in the Opportunity Zone commences with the Fund or the Fund substantially improves the property; "
https://www.dykema.com/resources-alerts-qualified_...
That seems to make me think a duplex would qualify
Interesting. I haven't heard this interpretation at any of the conferences I've been to, and I'd be surprised if that's correct. The motivation for this tax exemption was to spur investment in areas that need improving. If you aren't required to improve the property, how is their goal being achieved?
Post: CLOSED on a 98-unit TODAY!
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
Originally posted by @Konstantin Samorodskiy:
Looks great!
How much do you spend per unit on the interior? Any large ticket items (new panels/HVAC)?
We budgeted in our CapEx to replace 50% of the HVACS (including furnaces). We believe that will be closer to 20-25%, so quite a bit of savings there.
No new panels.
Post: Any ways to get a fixed interest rate on mortgage on 5+ units?
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
I'm willing to bet at least half of these credit unions in your neighborhood (most likely all) have fixed rate commercial real estate loans:
https://njfcu.org/business-accounts/commercial-len...
https://www.greateralliance.org/business-loans/
Post: Any ways to get a fixed interest rate on mortgage on 5+ units?
- Investor
- Phoenix, AZ
- Posts 583
- Votes 919
This isn't something you Google. These are small banks and credit unions that won't have a large online presence. They likely don't advertise their commercial loans. Maybe you can use Google to find small lenders in your area, but you're going to have to speak with someone at the bank to see what they offer.
Take a look at this credit union (scroll down to multifamily loans):
https://www.suncommunityfcu.org/Borrow/Commercial-...
Now, if you just searched "30 year fixed corporate loan," you wouldn't have found this lender. You'd have to speak with Rafael to know this lender's multifamily loans meet all of your criteria.