All Forum Posts by: Lamart Gomillion

Charles,

You just basically walked into a Falcons lounge with a "NO" Saints Jersey on, and you may find that you won't get much stock love here. By all means, I consider myself an "Investor" which means I invest into anything I consider passive, RE, Stocks, Auto Pilot Websites, etc etc. I believe RE and Stocks function like brother and sister, they fight sometimes, but they are extremely powerful together, granted you know allot about both of them. When the market crashed in 2008, the most logical approach would be to take defensive positions and set your Stop Markets, example, 1 company that laughed at the crisis was "Dollar tree" and it doesn't take rocket science to know why. As Joel Owens said, his friends take the long term approach, when I invest in the market, I invest with the intent that these companies will be around for the next hundred years, and I conduct research based off of decade averages as Warren Buffet does, does that mean you will get the same performance, no it doesn't, but it does tell me the company has strong stability and growth. RE investors, often class their investments from A, B, or C class properties, the same goes with stocks, you get what you pay for, and stability and predictability in the market cost allot of money, which is why it is easier for individuals with less capital to invest in RE. My 2 cents, is to stay active in both, they are both powerful, if you "REALLY" know what you are doing. You can be aggressive when you know what you are doing, and you understand what you are risking. Diversification is protection against ignorance, it makes little sense if you know what you are doing,  - Warren Buffet. Good Luck Charles.

Peggy, for the record, there is usually an article that says the stock market will crash, (Every Year), and even if it does, smarter SM Investors usually just brace and go defensive in the market, they do not pull out like allot of people think. I like SM Corrections, and Crashes, and I hope your article is correct. Millions are lost, and created afterwards.

Loopnet comes in handy from the investor stand point, allot of listings will have CAP rates, expenses, gross and net. Not saying that the stats are always accurate, but they will most likely make an attempt to add a few numbers. My advice would be to connect with agents in the area for deals that have not yet hit the market, as stated above.

Chris and Ryan are correct, closing cost and insurance may vary depending on size and area it is located in. My Landlord insurance is a little over 1k per year. Closing cost can be allot cheaper if you were paying all cash.

Adam,
Very valuable advice. Everything you mentioned makes sense, especially since I will be refinancing sometime next year hopefully. Thanks for the appreciation, I can certainly appreciate our Military especially when I see what they do first hand.

Adam, I can't thank you enough for your help. My agent in ROC has been a blessing, he is my age and highly motivated and invest on the side also. I am stuck in Afghanistan at the moment as a civilian, but I was in ROC in June and did some house hunting while I was there for 2 weeks. I will stay in touch, I take leave in a few weeks, but trying not to cross the water if it is not necessary, but if I have to, I will be coming to ROC to check up on things or either to finish paper work. Yeah, that is a scary tax number, but that was what I seen on the MLS, I will know next time to have my agent double check to make sure it is accurate before we proceed any further.

Adam/Eric,
Thanks for the feedback. Yeah 4,800 is very high, and it is because of it being a tri-plex. An agent warned me of this before, but I will deal with it. I will make the property taxes as a one time payment to free up some cashflow and hopefully write it off at the end of the year. Adam, yes the PM charges a months rent for placement. You are right about the Rochester area Adam, I scouted places all over the states for the best prices and attractive rents, and Rochester is on fire. :) I would love for you to PM me in regards to the appliances. Thanks for your help guys, I am scared and excited.

Hello BP,

I am in contract now to purchase my first property in Rochester NY. All initial paperwork has been completed. I am just a little nervous as I am just starting out and the first deal seems like it is the hardest thing I have had to do.

This is what the deal looks like.

Year Built 1900:

War Zone Area:

Fully Occupied:

DSS Tenants:

Unit 1 - 500

Unit 2 - 390

Unit 3 - 375

1265 Total

Initial purchase price 25,900.

Offer - 18,000

Seller Counter Offer 20,000 - I accepted.

Inspection yielded good results, roof is 4 years old. No structure damage.

Only issues were the appliances in the home, owner apparently never upgraded. Water Heaters are all ancient, but still operational, heating systems are ancient, but all still operational, when I say ancient, I mean 20 years old. There are some other small problems in the home, but not costly. The appliances I estimate will be around 10,000 total to replace, but I am counting on them not dying soon. But I will purchase 1 per year and pray the others do not die.

Financial Break Down.

Purchase Price 20,000.

Gross Rents 1,265.

Remax Property Management 151.00 - 12 Percent, I know it's high.

Repairs - 80.00 Monthly.

Property Taxes - 400 Monthly.

Did not factor in turnover cost vacancy repairs and Landlord insurance.

Monthly cash flow is estimated around 634.00.

Does this look doable, or have I made a grave newbie mistake. Your input on this is much appreciated.

Oh yeah, sorry almost forgot to mention if anyone ask. The reason I am paying all cash, Banks said I have no credit beacon, even though I see high 700's when I run the report myself, but I understand totally, I don't owe anyone any money. It is weird how America seems like it wants you to be in debt. Anyway, I got a secured credit card which I will be cutting up in a few months after I put a few things on them, I am really cheap, so I think that helps. I have allot of cash saved up, so I will repeat the same process 4 more times this year. Next year I will do cash out refinances on 2 of the 4 that I plan on purchasing.

Please, don't hold back, take me to school, I have thick skin.

Your help is appreciated, thanks.

Thanks Joel, man this is depressing. Looks like I have no choice but to use family members.

Hello,

I tried navigating the site for this question, but no luck. The situation, I am stuck in Afghanistan working for a contracting company, and will be a while before I can get stateside. My question is, can you hire an attorney to take care of the entire real estate transaction for you? I have asked a few attorneys in Georgia if they could, they seemed to want nothing to do with it. Most of them just suggest giving Power of Attorney to a family member but I do not want family involved period if I can help it. Basically the attorney would need to purchase the property, complete all paper work, and close on the property. Is there anything out there like this, or am I out of luck since I am deployed? The property will be for a quadplex in Georgia. Any help is appreciated, thanks.