All Forum Posts by: Tyler Bains

I think geographic area, attractions, etc play a huge role in which way I would recommend you go. Could you make a vacation rental a call memorable place? Do you want to deal with short stays and quick turn around or do you want to deal with long term tenants?

I think both can be good investments just depending on what you want to deal with.

As has been stated multiple times I look as CoC ROI on a deal like this more heavily than cash flow. Do you want that money "tied up" four years in a cash purchase?

You take away the ability to recoup your investment quickly when you pay cash on a deal like that BUT if you want to keep it 20-30 years then yeah if you can afford it then cash is a viable option. If you want to continue to invest and build your portfolio then finance away!

20-20% down is standard on a commercial loan. Locally I have been seeing 25% down with an interest rate of 4%.

@Sam Starbuck don’t get down! A lot of high level brokers do indeed look down on the little guy that doesn’t have a firm but it is crap and we all know it.

I would find an excellent RE agent who does commercial in your area and connect with them. Let them guide you through the process.

Where are you at in the country? Are you trying to do this locally or from a distance as that plays a big role.

Lay out the numbers for me and I will help you. Cap rate is very helpful in commercial land. CoC ROI and all that matter but occupancy, cap rate, lease terms, etc. are very important.

Just post up the info you have on the financials and I will analyze it too.

I don’t think we will see the mass exodus that was feared. I have seen a very strong market in student housing locally. If you are near a major university and perhaps some community colleges I think you will be fine. You could potentially market to starter families as well depending on your location and the set up of the properties.

1.Why do you want to go the true syndication route vs a partnership?

2. Do you have a good CPA and RE attorney? If not jump on that ASAP to determine structure and to minimize tax liabilities. 

3. Find a quality RE agent that is known for working with investors and actually understands the numbers.

4. Networking is geographic in my opinion when it comes to an actual deal. Is there a certain part of the country you are looking to invest in?

5. What are we talking for multi-family? 1-4 units or 5+ as that makes a huge difference in financing and investment numbers.

Let me know!

As a RE agent I would highly recommend you interview multiple agents KNOWN for working with investors. Not every agent understands investment real estate and they can lead you far astray.

Know your numbers and dive into the forums and info on BP.

Meet with a RE attorney to determine structure and get advice on the best place to start with your financial capability.

Get a GREAT CPA to ensure your tax liabilities are minimized to the greatest degree.

Find an INVESTMENT banker in your area and establish a solid relationship so when you find a deal they are willing to help you out. This might be the most important part.

1. R.E. attorney is absolutely the way to go in this situation. They are a wealth of knowledge and can explain exactly how to structure the partnership.

2. Get a GREAT CPA!! This is extremely important as they can also give insight into structure and minimize your tax liability.

3. Have everyone attend the meetings with both of the above. I would not chance someone being upset because they weren’t fully informed.

As everyone above has stated the Cap rate give you a picture of value but is a better indicator once you move into the commercial realm. CoC ROI is king in my opinion under 5 units.

I think Single family 1 is a bad deal but the other two looked decent. 

I see the deal fell apart due to condition and location but the multi-family units sound promising. 

I would personally try for a Quadraplex, it is my favorite investment property for a multitude of reasons (One roof, one yard, one veneer). I think you should wait for that to pop up if they’re coming on the market every week in your area.