I Have CA$H To Invest, Looking For Ca$h Flow
I am selling a property in about a month and will have about $450K in cash after expenses that I would like to invest in a multifamily. I am in NYC, and can find some 4-6 units for about $500-700k, but am looking for advice on how to find the really good deals.
I am torn between using the cash as a down payment on a much bigger unit, or as a newbie (but not afraid of being a landlord) starting out smaller.
Any advice would appreciated and I am willing to help someone here finance/partner a really good deal.
I think you should concentrate on cash flowing on a much bigger project.
-Advertising- Deleted[ Edited by ypochris on Date 08/31/2006 ]
$500 is good, but we use NES and they are $399.
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_________________
Steven Berman
Jay Suttenberg
The Laurel Group
of Prudential Real Estate[ Edited by ypochris on Date 08/31/2006 ]
what do you actually have to do in order to get the 1031 exchange? I have always just bit the bullet and paid taxes but starting to get more aggressive in buying and need to avoid the taxes
with that kinda cash, you could buy 5-7 new townhomes in houston,tx area and get around $1250/month each. possibly more.
thelaurelgroup
How do I find NES for a 1031 exchange?
You can also buy a number of brand new Town Homes in Charolette N.C . There is data to show that this will be the next boom market due to 35,000 new jobs comiing to the area . All the other rentals in the area go for $900 per month but they were built in 1928
I have an apt complex in far north TX that is approved for HUD Section 8. Perm take-out is in place. Opportunity to earn up to 16% on property at 60% value. let me know.
**Please See My Profile** com
The strategy looks good on paper, but control of the investment & monitoring it effectively has to be addressed.
It is not hard to hop on a plane & fly off to an exotic land to invest. Sounds romantic yes. There is also the cost of traveling between home base & your investments. Language barriers, different laws & statutes to understand etc.
Unless, you have a system or person in place to make sure someone is tending the garden so to speak. You money could go down the drain pretty quickly.
How are the prospects for appreciation on your current property? You are getting the equvalent of close to a ten percent return just by avoiding the penalty; a likelihood of substantial appreciation would argue (for me) towards waiting.
However, if prices are looking to remain flat, consider that many investors here are willing to pay considerably more than that for hard money loans so they can start making even more money. If you have a specific property that will yield a much better return, or if you see high yield opportunities where ever you look, you might do better getting your hands on that money and putting it to work. It all depends on a realistic plan with solid numbers, not vague conjecture. If it were me, I would get the money because I know that I can put it to better use.
Another alternative you might consider is getting the English equivalent of a HELOC (Home Equity Line Of Credit). The idea is to borrow the money against your equity for less than it would cost you for an early payoff. Then you get the best of all options- money to invest now, appreciation potential, and not paying as much in interest as you would pay for the penalty.
Chris
First of all, your numbers indicate a big difference between what he is asking and what the property is worth.
If wants 2.3 mil and u think its worth 1.7 mil...and he refi for 1.5 mil. Maybe he wants a quick flip, but hes not thinking 1.7 mil, thats your number. You may get laughed at if you offer 1.7 mil, so think about your approach.
Tell him you got $200k to put down (assuming you do) and low ball. But anyone who is operating 40k per unit home without leases, is a poor manager. So their may be potential to make something.
It looks like a job for an experenced manager to turn around, I hope you know what you are talking about with regard to the market value and potential repairs, you could get burnt big time on something like this.
Thanks for responding!
So would you guys offer more than its currently worth, in a little over a year one could rent all the units at market at it would be awesome (these are college apartments).
Just thought about something... How about offering to pay say $2.2mm, but for the first two years our payments would be equal to $1.7mm with an 8% APR ammoritized over 25 years. After the 2 years all previous leases will have expired allowing us to get market rents. The sellers get there cash, we get the apartments under market and it still cash flows until we can get market rents. What do you folks think? Thanks![ Edited by REInvestorInTally on Date 12/08/2006 ]
Anyone else?
"Get A Structure" -- the staff at Forelosure News (a dotcom and top line consulting/commercial mortgage company ) will tell you.
Without a struture you are a ship in the middle of the ocean with no engine or future. Structure is very important in the investment and financial world.
You seem to have the right stuff: (1)BA Real Estate Finance (2) Aquisition skills (3) Construction Experience (4) Real Estate License
However without a structure you will need to start looking for investors at the family and friends level to raise capital.[ Edited by broadwayeddie on Date 12/12/2006 ]
Perhaps an articulated business plan for prospective members?
Do you mean put one together or offer to send it out through the forum?
I have a full business plan finshed and ready to go.
It sounds like iffgo knows his "fruit".
The credit repair forum might help you out on that one. It too is on the residential side. Click the blue button on the upper left corner of the screen, then click "forums" in the task bar below it once you are on the residential side.
Have fun!
Chris
Or you may need a consultant or a good mortgage broker.
Are you trying to buy discounted commerical properties or residential properties or a market value.
You got the money i got the insight send me a private message.
Please with 250k you get a better return than on your post. Credit or not credit is about leverage,
Thats the purpose of real estate software, kinda works like a consultant. But i dont think many would be interested in just advice. And besides, by the time you waste your time researching their particular situation, you would eventually need to raise the price anyway.
Maybe you can figure out a way to reduce the full service package. Maybe only handle maintenance for the unit.. or only handle the rent and lease.