All Forum Posts by: Robbie Reutzel

Hi @Alisha Decoteau,

You should request ACTUAL (not pro forma) rent rolls and actual expenses for the last 12-24 months if you can get them. You can begin the analysis at that point but will still need to assess any rehab/cap ex required. You can put together an LOI with a longer due diligence period to do it properly.

Good luck!

@Benjamin Verrill

Our preferred methods are direct mail, cold-calling and broker relationships.  The first two have been more successful lately since everyone and their brother wants to buy apartment buildings these days ;-)

You can target owners who have a balloon payment coming up, have high equity etc.  Those lists can be bought through a list broker.

Good luck!

@Hardik Patel, 

In our experience, the best way to find these properties, with the least amount of competition, is through tired landlords going through evictions as well as driving for dollars, code violations, fire damaged properties etc.

A lot of these types of properties can be found online but you can also pay for lists.  I prefer to have someone pull them for me as I know the information is fresh that way.  We recently landed a 6 unit property that was fire damaged this way.  Took ten months of follow-up but we finally locked it up.

Good luck!

Hi @Account Closed,

I know there are vendors who sell this type of data especially upcoming balloon payments.  RC Analytics and several others do that.  Depending on the state, you can usually get eviction data off of the court website.  That is how we do it in MA.

We just put a burnt out 6-plex under contract for $30K in a market near Boston. It needs close to $300K in work. We ran our numbers as a BRRR property based on what it will appraise for after rehab. Obviously you don't have to run it this way but it works for us.

Depends on how big.  Obviously if it is a very large complex the door knocking won't work but on smaller multis you can usually get the owner's information from the tenants.  Regardless, direct mail and cold calling work very well.

Direct mail certainly works but I would also suggest door knocking and cold calling. I have found much more success that way. A combination of all 3 is ideal as is creative financing. We also target evictions, upcoming balloon payments etc. 

You and everyone else :-)

Hi @William Pickett

Value=NOI/Cap Rate so figure out the NOI and then the cap rate you want to buy at for your valuation. You then back out rehab etc.

Not sure what your level of understanding is but NOI is basically annual income minus operating costs.

You should verify income based on rent rolls and any other sources (i.e. laundry).  If you haven't already, request rent rolls and expenses so you can underwrite accurately yourself.  Try to get the Schedule E and/or TTM from the owner.

You should also talk with some brokers to get a sense of cap rates in the area.

That should give you a good start.

-Rob

We have a two family in desirable lower Belvidere section of Lowell. 

This is a burnout, a 2 large 2 family with high ceilings, that needs a complete rebuild of the 2nd floor and roof, but the first floor and basement are in good overall structural shape. Along with new systems, and the rebuild for 2nd floor, it needs full cosmetics for 1st floor, we've budgeted to gut, treat with the odor-blocking primer and refinish all with everything new.

NOTE: There is a compliance letter on file with Bldg Dept on this property, advising current owner to "make safe or tear down" by April 28 2017. While obviously this date has passed, Nick has personally spoken with Inspector Paul Winchester and Commissioner Shaun Shanahan, who have confirmed that extensions and rehabbing the property are fine, so long as a proper redevelopment plan is laid out for them.

You can buy and hold as a two family rental, or the numbers for a fix and flip are included and attached.

Asking $130K or best offer.

Closing on June 30th, cash or private money preferred. MUST use Meghan Grugnale of Grugnale Law Offices as closing agent, as title work is already completed.

TERMS / NOTES:

CLOSE DATE is JUNE 30 2017

$9,000.00 (5%) Non-refundable Deposit Required ($1,000.00 at offer, $8,000 at P&S)

Must be OK using Meghan Grugnale, Esq of Grugnale Law offices as your or your lender's closing agent - e-mail [email protected] for details

Here's the link to the photos and the projections - house to be sold AS IS WHERE IS, and buyers to do all due diligence:

https://www.dropbox.com/sh/yo74pcqgwb85zxz/AAAJE6pXf2yLVjb8HjRNqwRta?dl=0

GROUP SHOWINGS:

Tuesday 6/13 5-6pm and Saturday 6/17 12-1pm

First to agree to the terms, provide their deposit and meet / exceed PP will have it.

Thank you all for your interest.

E-mail with questions, thank you!