How To Find And Profit From Emerging Real Estate Markets
Hey guys and gals, I’m coming at ya today from Key Colony Beach, Marathon FL 🙂
Wanted to get a quick video out to you about a resource that was shared at our Strategic Investor Mastermind event. Platinum members, Carlton and Nancy Linder, showed how they used it to find and profit from an emerging real estate market.
Check out the video to learn more…
Congrats to Carlton and Nancy on the 34-unit deal! To check out the resource they used to find and close on their first multi-family property, click below…
>>> Click Here For The FREE Training On Finding Emerging Real Estate Markets >>>
Happy Investing!
– Patrick
P.S. – Here’s where I drank my morning cup of coffee… chilling on the back patio… life is good 🙂
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Hey Patrick! Carlton and Nancy here. We had been bouncing around from market to market trying to figure out where to invest not only in apartments but our advertising dollars. With your guidance and the resource you mentioned we were able to put a laser focus on a target market and put an end to months of just spinning our wheels. We close on our first large multifamily deal in 2 months! We are finally reaching our goals and thank Patrick and his team for putting us on the track to success!
Carlton/Nancy, thank you for the kind words. Congrats on the BIG deal from everyone in the PMBP family!
– Patrick
Awesome! Congrats! Carlton and Nancy
I am curious – U R using OPM so you secured that first and then found the property. I would love to know the criteria you used in purchasing this particular property. Any possibility you could share that info?
thanks and again and congrats!
Joe
Thanks Joe! We are using a combination of OPM and our own from previous single family rehabs. We didn’t have OPM at the time of putting the deal together but with Patrick’s coaching we had placed some “seeds” with potential lenders. It is a great question of which to do first, but I think a lot of people get hung up on whether to line up the money or the deal first. I would say work on both and which ever you get first, start working hard on the other. Our base criteria is 20-50 units, cash flow of minimum $65 per unit, no war zones, and a minimum 9-10% cap rate depending on the age and condition of the building. One quick method we use to determine if a building is even worth looking into further is to take the potential rental income minus 10% vacancy (or higher if the owner reports higher). We then multiply that by 45 to 50% for expenses depending again on the age and condition of the property (or higher if the owner reports higher). We then multiply the resulting Net Operating Income (NOI) by 10%. This tells us what we can pay for the building at a 10% cap rate. Of course more goes into than that but this tells us if we are even close on numbers with what the seller is asking and if we should pursue the deal further. Hope that answers it and if not, I’m sure Patrick’s team can help you out or put you in touch with me if I can be of any assistance. I know you’ve heard it from Patrick but take it from me, he is truly there to help you so use him, his team and his training as resources to get you where you want to be. It’s working for us and our business! Take care!