All Forum Posts by: Zachary Ware

Hey Peyton, I would love to connect. What does your buy box look like and what markets are you focusing in? 

It sounds like you should be looking outside of growth cities and tertiary markets. You can even look to forecast which direction cities are moving and generate significant appreciation in the future. Look in states that are investor friendly such as Tennessee, Georgia, Texas, Arizona, and Florida. 

For deals this size, have options outside of commercial lenders. I would recommend talking with a DSCR lender for these types of properties.

Adventures in CRE and BreakintoCRE are great resources for learning the modeling side of things.

I think it really boils down to the growth and stability of the state. Below are 3 influential factors. 

1. Demographics: States experiencing population growth present excellent investment opportunity and is likely going to lead to property appreciation. Growing populations drive demand for housing, both rental properties and homeownership. 

2. Economic Growth: States with strong and diversified economies, low unemployment rates, and historical stability tend to be more attractive for real estate investment. Economic growth and stability create a positive environment for job opportunities, population growth, and increased demand for housing. Again, this leads to an appreciation in property value and rental rates. 

3. State Policy: States with pro-business policies and landlord-friendly laws are going to be favorable in terms of the investment process, protection of property rights, and efficient legal courses for eviction. A supportive regulatory environment will encourage investors and non-investors to enter the market. 

 Thanks for sharing your experience! I have heard good things about this workshop from more than 1 person now. 

I would recommend getting in touch with the county tax accessor. Not only will they be able to provide you with a solid estimate, but they will also be able to guide you through what their process is and how you can estimate changes on future deals. 

Being a Real Estate agent can provide valuable insights and advantages that can help you learn the business and kick-start your real estate investing journey. This is especially true if you are going to start investing locally. Below are the top 4 ways I believe being an agent can help the process: 

1. Market Knowledge: As an agent, you gain in-depth knowledge of local RE markets, including trends, property values, and rental rates. Because you can work with investors, you will be able to pick up where they like to invest and how they underwrite. This market expertise allows you to identify potentially lucrative investment opportunities and make well-informed decisions based on what you are seeing in the market. 

2. Access to Deals: RE Agent you will often have access to a wide range of properties, including off-market deals and distressed properties. This access can provide you as an investor with a competitive edge, as you can explore a broader range of investment options that might not be easily available to the general public. 

3. Networking Opportunities: Being a RE agent enables you to build a strong network of other industry professionals, including agents, brokers, partners, or mentors, and gain insights from experienced investors, helping navigate the complexities that real estate can have. These relationships can lead to not only access to off-market deals but also collaborative opportunities and overall professional growth. 

4. Transaction Experience: As a RE agent, you can gain practical experience in transactions, from negotiating deals to managing contracts and handling paperwork. This experience can be highly beneficial when it comes to purchasing investment properties, as you become familiar with the entire process and can apply your knowledge to your own investments. Seeing and working a large volume of deals being an agent can be equivalent to years of experience you would get only being an investor. Imagine as an investor you were able to buy one property every year over 5 years, you have gained 5 transactions worth of experience. Now imagine if you were able to close 1 deal every 4 months as an agent, you would have 15 transactions of experience over that same time period. 

 Awesome! I thought the advice of not looking at percentages for smaller properties and estimating capex and maintenance costs depending on location, tenant base, and previous rehab, on a numeric basis from around $100-$400 was a huge takeaway for me. 

Great summary for the due diligence needed on multifamily properties. How long does this period typically take you to complete?