52 Unit Complex

The Daytona Beach area is one of those areas getting ready to explode in values as well due to the Casino & Hotel activity coming. With the train/rail system being designed that will connect Daytona Beach to Orlando; this will have an extremely positive impact in these communities

Regarding this 52-unit property and the upside with the remaining lease up and then flipping the deal; these huge upside deals for apartments this size all almost gone. The US has enjoyed a good run with larger apartment communities beings purchased low and sold high but now a lot more investors are catching on that apartment investing is a very good and safe investment model. Lots of buyers and not as much inventory. That’s what makes this an awesome opportunity; because this 52-unit deal is direct with the seller and the property is not advertised on the open market. Being a seasoned and senior broker here in the US this type transaction makes all the difference in the world with buyers. Essentially there is less competition of other buyers and the direct with the seller allows even the complex deals to get done easier. With this property being purchased right and the trending CAP rates combined with the US Federal 10-year treasury index being low; it allows for a very nice set up to resale this deal in 12-18 months for a compressed CAP rate and a very high yield. I love these kind of deals.

The great thing about apartment ownership is the fact that any risk is spread out between the multiple tenants and the investor’s investment is not subject to loss in value should a tenant or few tenants vacate the property. The opposite of this is where a single tenant property (unless corporately backed) can turn into a distressed situation quickly.

This type of property reminds me of the ideal property where having a small partnership of owners that come together creating a unified front can put their purchasing power to work and hit a financial home run.

• This reply was modified 10 years, 5 months ago by  John-USA-CommercialRE.

John,,, I assume your Nigel’s US partner.

I have to take you to task on this one… For one I know the AU investor has been subject to buying IP that were SFR’s from Turn Key providers. Nigel being one of them… And there was this thought process that these companies had this super secret no one else knows about inventory that they could buy at a huge discount.. Well in reality most of those Schemes the AU investor paid far more than market value or what one could buy on the open market. We have all been down that road.

FOR YOU TO STATE THAT YOUR APARTMENT DEAL IS DIRECT TO THE INVESTOR IS A BIG BUNCH OF GARBAGE IN MY OPINON. Apartment deals are listed on Loop net and with other commercial brokers.. they are not sold like SFR’s through turn key operators where the TK operator rakes a profit off the top for putting the deal together. I am not saying your Apartment deals in FLA are not good investments, What I am saying is these are traded on the open market every day.. and no one need some special secret agent to find them. Especially the deal your touting that is not a particularly great deal folks can find better deals on their own through commercial brokers and loop net.

Now you may be using the foreign exemption were you can pool investors and are exempt from US securities laws since your investors are all off shore I would bet a nice green apple that’s what your doing otherwise you would just sell to the millions of US investors looking for cash flow RE.

Hello all, please let commonsense prevail, if lisa has evidence to support her posts then please present a view, otherwise, I suggest ‘moderation’ as I donot accept potshots with users with 2 posts (no I don’t know Nigel – however, would like some moderation’).

In the interests of the forum please take it offline, after all I heard you were going to call each other or perhaps a candle lit dinner?

Play the ball not the man/ woman
Cheers, Ivan

Ok whoa everyone I got a little carried away and I apologize.. Nigel’s partners post just struck me wrong, I am not commenting on the Merrits of any investments anyone makes other than Nigel and I have also come from the same place we both think low end ghetto Detroit type properties are not appropriate for out of area investors and or out of country for certain.

My point was that if investors want to buy or invest in Multi family in the US its not like SFR’s so to set the record straight here is how it goes from my knowledge.

1. Most commercial brokers do not list on the SFR MLS systems. They list on Loop net or other pay for MLS type systems.

2. There are Hundreds if not thousands of companies in the US that buy these type’s of properties then sell interest in a 506 type securities offering to Mainly what we called Accredited investors. these are investors with net worth over 1mil excluding personal residence and or make over 200k for the last 3 years. So many top notch companies out there with thousands of doors in their portfolios.

3. Many deals do not get to the public through a broker chain but hey get to the public by the listing broker.. The listing brokers are always trying to find their own buyer so they get both the buy and sell side of the commission. These 1 mil to 5to 7 mil.. When you get over 10 mil the listing brokers will not pay another broker any fee usually and the property is usually sold to one of their existing clients in their brokerage network.

4. Prime US multi families trade from 3 caps SF LA NY to 4 to 5 caps Seattle Portland Denver. 6 to 8 Texas.. Then over 8 is other areas of the country were turn over is higher and vacancies are higher so the returns need to be better for the risk. Then you have 10 to 15 caps or higher that are primarily ghetto properties in war zones.

Office commercial is Riskier based on the fact that its so heavily relies on Jobs and overall economy … And in parts of the US were the economies got hammered a lot of office and retail commercial fell through the floor in value… So a little more risk in those..

For comparisons there I a new funding mechanism called Crowd funding running around the US right now. They do all their deals in partnerships 506 D’s and C’s or multi member LLC. You can get on their mailing list and see what deals they are doing in this space.

I have done deals with two of them one is realty mogul ( Juilliene Hellman) and the other is Realty Shares Nav Athwal. If you register on their site they will send you he fine details of many of these types of investment.s

Nigel as to you question of what do I personally invest in… Well most everything RE related.. as you know I ran TWH and sold out to my partner I bought 350 SFR’s and sold our Atlanta homes for a 60% return giving our investors 25 to 30% return.. Had a few Aussie doctors in that group… I build new construction in Portland Oregon I have 15 homes under construction now. and about 100 lots ahead of me enough to do for the next 3 years.. Then I also consult with a company that does non recourse lending for IP properties to Foreigners and USA IRAs We do about 500to 1mil month of this.. Last year we did probably 50 deals with Aussies this year not a one all our borrowers are US Ira’s… Lastly I do JV deals with turn key providers throughout the US all very short term fix and flip deals.

So I guess you could say I have put my money were my big fat and sometimes rude mouth is….:)

It sure is.

I am yet to look into the crowd funding in more detail but it looks interesting. Realty Mogul has hooked up with Investors Beat. *Cough Cough* Spruiker alert – I have an article coming out soon with Investor Beat *Cough Cough* lollol

We have considered doing a JV deal on a larger multifamily with a few investor. We have a few investor on board and are passively looking for a deal.

Not even considering MLS or Loopnet. This deal will come from talks with direct owners or an investor knowing of a distressed seller needing out.

So fortunate to be on the ground and be able to pick up these cheapies. May the market stay like this for another 5 years and hopefully my belly will be full by then hehe

Thanks for reading and have a great day.

ps. I am loving the heat on this thread. Keep it going lol

jayhinrichs wrote:

All anyone has to do is google me in the US… I am proud of my pedigree

Best
JLH

Mugshots.com

Jay Hinrichs hahahaha

Jokesss lollol

Hey engelo how are you doing finding good deals in the USA? I’ve enjoyed reading your blogs- you’ve come a long way. I’m planning on a USA trip at the end of the year so I’ll be contacting you soon to help me find a few good deals. It’s time I build a team i can trust (my new years resolution actually)