All Forum Posts by: Suhaib Rehman

I am Suhaib ur Rehman from SF Bay Area, an engineer with a passion for real estate. I was a residential real estate agent for a few years. I started attending BP podcasts and topics on this website about commercial real estate, especially multifamily since last year.

While I am venturing into multifamily commercial real estate, I started to think about the larger problem of financing and how we can make it easier for people, especially homeowners, to invest in such deals through a technology platform that makes their primary home a profitable asset while they own it. This will drive the business for investors. Since many of you have achieved great success in this business and are very knowledgeable, I am wondering if you are open to a small chat, and your valuable advice for fellow BP community members,  about the customer problem I mentioned. I am open to sharing details in PM.  This will really help solve the right problem for the right audience. Your help and advice will go a long way.

I proposed this idea in front of a start-up incubator which they quite like it. I truly believe that there is value in it for everyone, homeowners, investors like you, and in general the economy.

Regards

Suhaib

Fellows, 

I am finding the cap rate difficult to grasp especially how it is used in the deals. What I am  not clear about it whether cap rate determines the property value of property value determines the cap rate

Cap rate = NOI/Price

Price and cap rate are inversely proportional to each other.

Let's say you are looking for a deal, the purchase price is 1Mil, with NOI is 50k. Going in Cap rate = (NOI/Price ) in percentage

Now, the going-in cap rate is 5%. Let's assume that this is for a class B property in Nashville TN. For going in rate, as a buyer we can negotiate the price down, which will increase the cap rate. What makes a good cap rate for this property class in that market, so we know what to offer for that property( consider that the rest of financial CoC, IRR are up to the mark)? As a buyer is our intend is to bring the going in cap rate to market rate, or higher than marker rate, for class B property in that market so that our offer become attractive to investors?

Now consider the exit/terminal cap rate, exit after 5 years,. which we want to calculate during our underwriting process and also include in the PPM.  I noticed that various underwriter use a exit cap rate to value the property in future. Which is opposite to what we did during purchase where we use the proposed purchase price to calculate the cap rate. What is the intend of exit cap rate here, and how is it related to goin in cap rate? 

Thanks 

Fellows, I am Suhaib, and am pretty new to real estate investment. I am interested in commercial real estate, especially multifamily apartments. 

For all of those who are in the same real estate space. what means do you use to discover deals?

There are some open listings like LoopNet, and Crexi which I was told are not the best deals to look at. I have looked at costar which is too expensive for me at the moment. 

I am wondering how you find these off-market deals. 

For off-market how do you approach? I read that one of the strategies is to connect with the multifamily real estate broker in the market you are interested in and build a business relationship with them, for them to send you the off-market leads. How strong is this strategy and will it work for first-time investors?  I am kind of now sure how to discover the brokers in any market.

The other strategy, I am thinking of is to filter the properties which are not for sale and reach out to the owner/llc if they might be interested in selling the property.  How do you find such not listed properties and how do you find the contact (PM/owner )contacts

Regards

Suhaib

Good day fellows,

I am new to multifamily real estate. I am 

I am wondering what CRM marketing and communication helper tool you use. What I am really looking for is a cheaper, preferably free, platform where I can create a separate bucket of  contact lists of Brokers,  investors, Contractors, Property Managers, Real estate Peers,  attorneys, etc. 

For every contact in any of these buckets, I can leave notes/comments and also add triggers to remind me of my next call (scheduled or periodic). I am new to Sales so I don't know much about sales tools. Just want to hear what you have been using. 

Thanks 

Suhaib

Thanks Gualter, I am looking to invest 100K and if I can diversify this across more than one property that will be best. Since you mentioned wholesale, I am explore this career  choice as well. as I just started my career in real estate as an agent. 

A quick question,  to me it seems the finding a wholesale property is like finding a seller listing. The effort is immense. I am wondering how do you find leads to such properties.  I missed the week call but I will look forward for future programs.  

I am new to real estate investment and plan to purchase properties within an aim to rent out and sell out in a few years times.

I am in bay area where the housing is expensive. I am open to areas outside the bay area (fresno, merced, sacramento etc).

What can a budget of 100k achieve? What sort or property(ies) shall I consider?

Can you share some of the hot markets or will be hot markets in a few years time outside california?

Thanks

How do you manage to put 20 to 25% down on each investment property. I live in bay area where SFH on average go over 1 million dollars. Thats 250k for each property.

Hello all 

This is the follow up of my earlier question about tax deduction on investment property

In case, if i purchase property as second home. Then can i claim

1) property depreciation (27.5 total life) per year

2) property tax deduction if first home property tax is 9000 and this second home taxes are close to 6000. Is there a cap

3) maintenence and repair cost for tax deduction

4) mortgage insurance, pmi, mortgage interest

Regards

Suhaib

Hello everyone 

I am considering purchasing an investment property in collins county texas. I am a little bit concerned about the interest rate however if the tax deduction offsets this, that will help me do the purchase confidently

I wish to know

1) is there depreciation tax deduction. If its there, how is it calculated and how much a year

2) is property tax tax deductable

3) pmi tax deductable

4) mortgage interest tax deductable

5) what maintenence and repairs are tax deductable. Please feel free to send me a link to what is dedictable and what is not. Is there a cap on how much deduction can be claimed for maintenence and repair

6) if mortgage is 1000 dollars for example and rent is 700, can i claim the tax deduction for this 300 dollars loss per month. A total of 3600 dollars in one year

Thanks

Suhaib