All Forum Posts by: TJ Addison

I’m just starting to look at note investing and feel a little over my skis. I’ve got 27 units but this note investing stuff has me all mixed up! I’ve got the general idea but have so many questions. I’ve read some books and watched quit a few videos but I’m still not feeling comfortable. Any advice or help would be appreciated! Thanks

@Daniel Judge

Hi! - I've got about 30 units in town but am working on my first BRRRR now. Most of my stuff is small multi family several duplexes up to a 12 unit. I'm always up for discussing real estate. If you want AB neighborhoods you will be paying a premium but being out of town maybe the less work the better.

I’m also an NWU grad ‘03

When purchasing you should look at the property as it is now, currently. If there are 3 vacant units and the NOI is lower you shouldn't base your numbers off of an NOI at full occupancy. You are correct, it is all based off the NOI nothing more nothing less. Take the NOI divide by, in our example 6% cap rate and that should be your number but you still must consider other factors like capital expense (roof, sidewalks, etc...) but the starting point should be the NOI/cap rate. Not sure if this helps but this is how I look at it.

My realtor just told me the other day he has been using 6%.

I would look around the East Campus area or around NE Wesleyan.  Those would be areas that I would think have houses that would cash flow and are in close proximity to students.

@Chris Mason thanks!

I’m at that point where everyone begins to either grow or become stagnate. I have used all my money and now am looking for some private money. I am wondering if anyone out there has had any luck getting loans for down payments without being in 1st lien position. Hard money lenders want to finance it all and be in that spot but I’m not interested in that. Other option is partnering but i wanted to see if anyone had success just getting loans from others.

Thanks all

TJ in NE

Welcome @Sedrick King!  I live south of Lincoln.  My focus is on small multi-family.  Maybe I will run into you at a meeting or around Lincoln.  All I can say if your getting started is to try and learn as much as you can, take a little risk and don't give up when adversity hits.  Good luck!  I'm always up for talking real estate.  Shoot me a message if you want.

TJ