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REIN F4 Multi Family Investing Program still current?

sheldon

sheldon

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Sep 26, 2007
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Hi,

I want to get into multi family property investing and have a lot of questions that need to be answered. I found some of the answers to my questions through the forum but I would really like to know how to analyze a multi family property with confidence.

I found a couple potential properties but I`m having a tough time figuring out what my offer should be. Most of the asking prices seem unrealistic to make any real cash flow.

I`m interested in the REIN F4 Multi Family Investing Program and was wondering if this program is still current today?

Thank you,

Sheldon
 
QUOTE (sheldon @ Nov 16 2008, 02:45 PM) Hi,

I want to get into multi family property investing and have a lot of questions that need to be answered. I found some of the answers to my questions through the forum but I would really like to know how to analyze a multi family property with confidence.

I found a couple potential properties but I`m having a tough time figuring out what my offer should be. Most of the asking prices seem unrealistic to make any real cash flow.

I`m interested in the REIN F4 Multi Family Investing Program and was wondering if this program is still current today?

Thank you,

Sheldon


to my knowledge F4 is current .. why not ? Of course prices are always changing .. but not the methods !!

Never confuse asking prices with "sold" prices .. and yes, many prices are indeed inflated .. but not all !

Feel free send me a private message through REIN, post question here or send e-mail ..
 
Hi,

You will find that most Multi-Family properties that are being sold right now (just like residential) are over-priced based on the current rents they are receiving.

It takes time, effort and most importantly relationships to tap into the good multi-family deals. Most are not officially `listed` they are pocket listing that are kept below radar. So make sure you are on ALL the multi-family realtor`s e-mail lists.

Call a few of them and tell them exactly what you are looking for (size, location, age, renovation level). Sit down with a quality veteran multi-family investment mortgage broker (for instance George Hilton in Edmonton Montrose Mortgage) to see what they are witnessing in the market as far as CAP rates, per-suite cost and financing options. Do this BEFORE you find your property.

In the Multifamily game your Sophisticated Investor Binder is even more important and you`ll need to get that ready as well.

The F4 theories and strategies are VERY helpful, and as we discuss Multi`s in REIN you add to and update the program (for instance the CMHC financing presentation at the August All-Day REIN Workshop.
 
What I do is calculate a purchase price based on income that works for me and offer about 15% less. The sellers asking price is not important to me. You will get plenty of rejections but as soon as one comes back with a counter offer you have them on the hook. A counter offer to your low offer means they are desperate to sell. Do not go up any further than your 15% buffer and do it in no less that 2 more counter offers from you. I try to not hit my final offer until my third counter and make it my largest increase indicating I am finished negotiating. That will ware down any desperate seller.

This method only works if you have a real estate agent that is on the same page as you and fully supports your investment approach.
It is extremely important that your agent explains the reasoning behind your offer price.

Personally I found it easier to work directly with the sellers agent. I have found first hand they become slightly more motivated in getting there client to consider lower offers when they are guaranteed a larger commission on the sale.
 
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