All Forum Posts by: Trevor Richardson

I’m not going to pretend to know the SA market, but in general, from what we are seeing, we are nowhere close or will be close to 2011. Even if the housing market crashes, apartments will do very well. In 2011 people literally lost their homes in masses then had to move into apartments. Apartment rents were lower because the economy completely cratered, but demand was there. Whatever we are seeing today ain’t 2011 IMO. This is such a smart time to buy right now. 

What we always hear today “man if I could go back to 2011 I’d buy everything.”

What was said in 2011 “everything is a mess why would we invest now, housing is awful it would be stupid to buy property”. 

Zillow pulls from MLS and the local assessor. Start there.

But for the sales data MLS is a restricted platform to be used by realtors. The actual data is input by agents under regulations. The system allows for the regulated entry of (clean) and up to date data. If everyone had access to it man would the world of property data be screwed. See LoopNet for what that looks like.

For an off market transaction you want to come in at the max number you would pay. If it doesn’t work, on to the next deal.

Reno, NV

Stabilized - 4.5-5% or lower if it’s great

Value Add - 3.5% to 6%-6.5%, exit back at 5%

We are seeing deals 50-100 basis points higher on caps than 2021-22 which is making some fantastic deals right now.

Agency is one of the best if not the best way to learn the real estate industry. Get a license and join a team. You will make money while learning the fairly complex world that we operate in. You will be helping folks and providing a service while learning the ropes.

Small multifamily 2-8 units are mostly done on MLS via residential agents. Larger multifamily is going to be run out of a commercial office typically or a multifamily brokerage. They will most likely list in LoopNet or do off market.

For multifamily (1br to 2br) schools aren’t that important. Typically the tenants won’t have children. 

For houses it’s more important. I would analyze neighborhoods based on your investing goals. To me in any market the best neighborhoods are the working class neighborhoods where employment is accessible and nearby. And the market is stable. Properties in this area may need work and may not look the prettiest. But that’s where you as an investor add the greatest value. Fixing a home in an “ok” area because more than likely you got that property for a great price. IMO look for the “fringe” areas for investments. 

Any property you are planning to renovate is distressed. It’s t he value added “value add” strategy that you would be executing.

A property could be distressed physically, poor management, bad debt (foreclosure). Either way you are going to add value to the property by renovating, managing it better or acquiring it from a bad debt situation. Finding deals is one thing, without question the most difficult is adding value by renovation. That’s where the rubber meets the road and separates aspiring investors from the real ones.

In short yes you are looking for distressed properties. The only time an investor is not looking for something distressed is if they want a stabilized coupon clipper investment that a value add investor is selling them. 

It changes lending and could alter something like insurance, taxes depending on where you live. Other than that, there really is not much else that changes between 4/5 units. The term “commercial” to me really only applies to lending. Multifamily, like single family is “residential” if it’s a single unit, duplex or 300 units by definition. Your buyer or seller pool are essentially the same. If someone wants apartments and have X to spend they will have purchasing power for 4,6,10 units. The underwriting may change slightly but either way the asset is providing housing.