All Forum Posts by: Steven Bond

Sounds more like a strategy for an agent to pick up listings. However, the multifamily market is incredibly tight right now. I am working with Robert Stepp who I believe is rated the #1 Multifamily specialist for the LA area. He is selling for another client of mine that is doing a 1031 exchange into my market in Utah for a higher cap-rate. I would highly recommend calling someone that is truly a legitimate professional that covers that area and ask this question. "What is the best I should expect with the current NOI, any maintenance needs, location, etc?". A solid professional will want to earn your trust, not just a listing. I would anticipate Robert to give you an honest approach as to what is realistic in this market for your area.

All the best!

Welcome to BP. What types of multifamily properties and financing options are you currently looking into for your next dive into the market? The market is incredibly limited with supply right now. Good luck!

Colin-I have a pocket listing inventory of just over $5M of which several are duplex units. Can you give me a little more criteria you'd like to see to review? Student Housing? Corporate Housing? PUD? Managed? Newer? Value add opps? How much cash you have to invest? type of financing?

don't need answers to all of the above, but a little more info about what you're looking to do will help me best point you in the right direction or send you a property immediately you can sink your teeth into.  Thanks

@Chris Turner welcome to the Utah multifamily and investment space.  Always great to meet another friend swimming in the same pond.  If I can ever be of value for your needs or questions drop me a line anytime.  Best to my actual email over through BP.  Love it here, but the email will hit my radar a touch quicker.  Take care.

@John P. I can appreciate your interest for the market. I've found that there is far more unsubstantiated emotion in single family and deals can be found in multifamily where you can buy at a 7-8% cap rate wholesale and the market is absorbing at a 5-6% thus you are buying equity. I specialize with new construction wholesale multifamily units throughout Utah and we have one new development in Houston TX.  Our entire model is based on a few key principles:

• MSA performance of unemployment
• STEM job growth in the areas we develop thus creating more recession proof economies
• Affordability index of rents vs income still having room for improvement compared to similar markets
• Low vacancy rates
• A/B properties to eliminate as much of the risk of payment, crime, and damages that come with C props
• Accessibility (we need solid transportation hubs to major economic hubs which attracts good paying jobs with lots of relocation)

If you'd like to learn more anytime drop me a line or give me a call.  We're HIGHLY considering going into Austin, TX next for our next out of state project in addition to a consistent flow of Utah properties coming on the market.  About 60% of our investors buying with FIG are coming from CA right now.  Typically our investors are experienced professionals (CEO'S, CFO's, Doctors, Dentists, Portfolio managers, etc)

All the best in your pursuit!

Good luck Spencer.  Having a clear goal is an excellent start.  I'd recommend joining a local Real Estate Investors association and getting an accountability partner who you can compete with for something like:

• Hours prospecting
• Conversion % of hours to appts
• Wholesale conversations
• # of investors lined up to buy your wholesale deals
• Etc

Don't rush to buy real estate just to buy.  This is like running to the mall every paycheck because there are sales and assuming because you saved 30% you didn't just waste the other 70%.  However, that being said, this is much like buying any appreciating asset consistently.  Buying RIGHT consistently over time it's better to own 10% of something positive than 0% of nothing.  Accrue your assets and if you partner have the correct partnership agreement that allows for you to liquidate if you have a great equity position, but not the best cash flow to sell and get into better long-term performing assets until you can own enough assets in your own name.  There is typically a tipping point where your properties will make enough income to start qualifying you for larger properties that are no longer single family and get solid commercial financing for larger mixed use, multifamily, or commercial properties with great performance numbers.

Good luck!

@Angela Jossy that's exciting you have so many pots in the fire and are so focused on making the most of your real estate career.  I would recommend one or more of the following tips.

1. Connect with an excellent REALTOR experienced with investments. I used to live in Gig Harbor, WA before moving down to UT and really appreciated the knowledge and professionalism of Mike Esteb (in Gig Harbor).  He has consistently bought one property a year.
2. Get established with a local REIA (Real Estate Investors Association) and network for a seller finance or potential partnership where you bird dog a deal and have someone bring in capital that doesn't want to manage it (some skin in the game will always help get someone else off the sidelines and bring them to your deal.
3. If you have solid credit call local banks/credit unions.  With a great market they start getting more competitive with creative financing options for your first investment property much like the prior advice things like lower down payments are an option.
4. Find the absolute worst dog of a home in a decent enough neighborhood (ensure it doesn't need to be condemned and no structural, meth, or mold issues that will supersede the overall benefits of it and flip it for a quick chunk of change).  Do this 5-6 times and start building capital on the side.
5. Find a place to do a TIC arrangement or a syndication deal where you line up financing for a deal that is a great multifamily project and you put all the moving parts together to make the deal work.

That's all I've got for tonight, but I truly wish you the best. I miss the PNW and can't wait to get back in just over a month.

Sophie Parthesius and Becca Summers thank you for your post. Happy to discuss in full detail anytime. There is a great report posted on the FIG website as well in the blog section talking specifically about Multifamily vacancy rates and also the amount of permits to build and how that will affect vacancy as a whole over the next few years. I subscribe to quite a few metrics followings and believe Cushman Wakefield puts out excellent analytics on the numbers and forecasts based on facts and not emotional poppy ****. Regarding historical performance every project we have done once stabilized has performed at or above our original projections used to sell them in the beginning. Thanks again.

Mark.  We are looking at doing a triplex and/or fourplex investment development in Roy in the next 6-12 months.  Great to meet you.