All Forum Posts by: Steven Bond

There is also a pretty awesome loan program as a portfolio line with Mountain America Credit Union here in Utah. Non-owner occuppied loan with 90% LTV, 1.5% origination, little to no reserve requirements, 1-4 doors, max loan $417k, not conventional so will not affect your Fannie Mae limit of 10 loans and is a portfolio loan at approx 4.625%...NO MORTGAGE INSURANCE! Pretty sweet for a cash on cash return scenario.

For your team of brokers/agents are you looking for buy and hold, fix and flip, wholesale, syndication, SFR, multifamily, value-add, commercial, land? Many different markets, many different agents/brokers that specialize in those markets. One thing of note is that Utah is approaching the top of a cycle right now, but over the next 35 years will double in population. Focus on the reasons for that growth, the sustainability of which areas will be most attractive and you're investing in a great market if you have the right key indicators in mind and the right focus of your objectives. All the best!

We work with clients out of the state of Utah (over 60% of our investors come from out of state) that buy multifamily here in our market and Texas specifically for the cap rate benefits as well as the landlord friendliness and tenant quality.  For those that have invested with us in our developments (over 800 doors and $200M in sales) all but one out of state investor have flown in at least once to see the locations, economics of the area, traffic patterns, shake hands with the people involved (lender, broker, PM, builder sometimes, etc).  I like it because it adds to the human element of the great business of RE investments.  It's a great investment in your investment choice to ensure you're not just taking the bait, but you understand what the entire picture of your investment portfolio will look like in the future. 

All the best in your investment choices!

@Andrew McFarlane here is a good article that you should look into for your first multiunit property.

https://www.biggerpockets.com/renewsblog/2013/11/02/hack-housing-get-paid-live-free/

@Joslyn Perkins I would recommend that you start with the basics.  Look at Google Reviews.  Property Management companies are reviewed by tenants and landlords there and that can open your eyes to many of the potential issues they create in their business.  I would ask a few questions when interviewing the property manager.

1. What do you do to ensure top dollar and lowest vacancy?
2. What are your systems to re-lease property when a vacancy is imminent? (many wait till vacancy to start this process...HORRIBLE)
3. What software do you use?
4. How many people will I work with if I use your company to manage my investment?
5. What is your vacancy rate for rentals you manage? (compare to the market vacancy rates)
6. Can I speak with 3 landlords that are also out of state that you manage for?
7. What is your screening process for tenants?
8. What is the average number of CE hours your PM's go to per year for training?

There are other questions, but you'll get a solid gut check from those above. It's essential to have a PM that truly is vested in seeing you succeed in your real estate investment goals.  Cheapest isn't always the best....the best is the best.  Truly best wishes in your goals.  Very exciting for you to get your first investment!

Contact Mountain America Credit Union. They have a great investor loan for 10% down and no PMI. There are also no reserve requirements but a little higher origination and you'll have to pay for remodel costs or borrow that. Is the property able to be loaned on? With that much equity that may mean bigger issues that wouldn't support a mortgage.

Quick note. Look up parking as well. There are often issues on units that allow 3 singles but only two parking spaces. The zoning official can tell you but also CCRS may play a role as well.

I would call commercial brokerages and ask which title companies they work with. Then I would call the title companies and ask for the referral of a professional client advocate that seems to truly understand Multifamily details. Cap rates, vacancy, maintenance needs, employment impact on an area, government impact on an area, historic trends, etc Another option would be to search on Loopnet in Multifamily and see what broker/agent is showing up with the most inventory. They most likely have the pulse of the market. All the best!

@Jeffrey S. Breglio is one of the most proficient attorneys specifically in the real estate sector and incredibly investor friendly as well as a giver. He is involved in the local REIA's too.

Solid question.  Great to put some content to it.  For example. I'm looking for a performing multifamily property that has a .xx% cap rate.  I am looking for value add in an area that has new jobs and am considering the "your city" market.  Does anyone have options in this market and are my expectations in line?  Too high?  Too low?  Then the locals that specialize in that area will jump in and be of incredible help.  Happy investing!