All Forum Posts by: Adam Anderson

Priced that low most lenders wouldn't be interested because there's just not enough money in it for them.  I would sugest talking to your bank about a credit line  or look into peer to peer lenders.  They will do smaller loans at decent rates.

Adam

congratulations on your success! Sounds like that LOC has been a game changer!

 I agree with this idea if you decide to renew.  I have a tenant who pays late just about every other month but it's usually only 4-5 days late.  My lease has a $35 fee after the 3rd day and $5/day after that.  Personally, I'm Ok with a few days late but I think 30 days late would make me to uncomfortable and I would remarked the property now.

Adam

 It doesn't exist where I am in NJ either..... Wish it did.  The taxes make a big difference.  They are less than $1k and they would be over $12k in NJ, if not more

Hi Max,

I recently purchased a 4 plex In NC that has been producing a 24% COC return with 30% down at full occupancy factoring in vacancy, repairs, ect. The taxes are much lower at just under $1k, I paid $135K and total gross rents are lower at $2,300. It nets about $1k/m but if one unit is vacant for a month it would be $400/m and if 2 units are vacant it could be -$200/m (Depending on the unit) if I properly allocate for expense reserves.

One thing I forgot was to budget for lawn care and snow removal. The snow is not an issue in NC but that could be a very big one in PA if there's another winter like last year. You probably don't worry about this on your SFR but you will have to cover it on multi family.

Adam

The 4 Plex was $135K and gross rents are 2 at $600 and 2 at $550. Its in an area I expect to appreciate less than others but I like this one for the cash flow. Its all brick and completely renovated, so Cap Ex should be low. Pencils out around a 12% Cap and 24% COC Return after vacancy, repairs, management, ect. The one thing I did forget to budget for was lawncare, never had to cover this on my SFRs.

Olivia,

Most investment professionals, brokers, advisors, and even CFP's are paid only on commissions and fees generated from managing a portfolio of securities. This is why many forms of real-estate are neglected. If you don't want to manage any aspect of investing in real estate directly you will incur some sort of management fees. The simplest and most liquid way world be to invest in a real estate mutual fund. There are many that will invest in different types of REITS and Debt instruments. You could also invest in a public REITS directly or even a private REIT. There are several private or non traded REITS that raise money, invest in a specific type of real estate or strategy, hold for a few year then liquidate when the time is right. A typical life cycle might be 5- 7 years from start to finish. These are usually not liquid. Private or non traded REITS are offered through licenses investment advisors and many CFPs

Adam

My 4Plex happens to be out of State in NC close to where my sister lives. It is with a local property management company.

Thank you....I almost always recommend clients have a percentage of their asset allocation in real estate.  For many this is in REITS or other liquid securities because they don't have the ability or desire to own the real estate directly, but for those who do I encourage them to hold good properties throughout their retirement!  It can be such a powerful vehicle to create retirement income

Adam

I began Investing in Real Estate in 2002 when I was in college even earned a degree in Real Estate but stopped in 2006 to focus on my career as a Financial Planner.  I said I was going to get back in for 5-6 years but for one reason or another I didn't.  I was a member of BP but didn't do much with it until this past August when something motivated me to tune into a webinar.  That night my Real Estate fire was relit!  I spent a few hours each week In the forums brushing off the dust and the podcasts inspired me to get back in!

Last month, I closed on my first multi family;  a 4 Plex and I just collected my first rent check .  Currently 3 of the 4 units are rented.  I found this deal from a fellow BP member and after running into dead ends with my local lenders, I was able to secure financing from another BP member I met in the forums.

Since closing on the 4 Plex, I'm under contract to purchase a duplex as a buy and hold as well as a SFR foreclosure I plan to BRRR using a hard money lender I met here on BP.

On tract to add 7 units and $5,300/m in potental gross rent since getting involved with Bigger Pockets in August....Thank You!