All Forum Posts by: A.J. D'Asaro

"19 contacts|12 applications" You have 19 leads and 12 applications.

Text each one of them:

Hi this is Victor with ___ Ave

https://www.zillow.com/homedetails/LINK

Would you like to see this property tomorrow after 3pm or Wednesday before 430pm?

That's super awesome, congrats! That's a HUGE first deal - just make sure to have experienced people who have done several rehabs before walk the units with you

Brandon Turner always said, "Live where you want, invest where the numbers make sense." You've answered your own question already.

The numbers look fine, a little low on the cash flow. The question is always how much headache are you taking on for a given level of cash flow. I would buy it if it is in an appreciating area with good population growth, low tax state, and the building was easy to manage (not falling over with a lot of deferred maintenance).

@Carlson Driver In short, yes, that is too complicated by 1 layer (you do not need a holding company LLC), and yes, you will hate yourself for signing yourself up for so much paperwork and state filing fees. But there is another reason why you shouldn't do it -- access to financing. On your first property, go put it under contract as "[Your Name] and/or Assigns" and then tell the bank you want to take title in an LLC name. You will see quickly 1. if they can do it at all, and 2. how your interest rate and downpayment changes (it goes up). At least, that's my experience.

I currently own and manage 23 doors without LLCs. Yes, this means that I take title in my personal name, and yes, I am exposed to liability in a lawsuit. But guess what? There is insurance you can buy to cover that risk. You can opt for higher personal liability insurance when purchasing a homeowner's insurance policy ($5 million is sufficient for 1 property - later, when you have multiple properties, a $5 million umbrella policy covering all the properties over and above the individual policies are recommended). Using liability insurance instead of LLCs allows you to protect yourself while still benefiting from Fannie Freddie conventional financing. This website discusses a possible way to use conventional financing AND have an LLC, but I have not done it personally https://workshopmortgage.com/b... 

Now, I grant you, today, I might use an LLC to purchase my next property. But the situation is completely different now. I'm not worried about a slightly higher rate, or a having to put 30% downpayment. In the past, I wanted to grow as fast as possible and have the best, most efficient financing possible, but now my time is the limiting factor, not money. The LLCs protection is more valuable since I have assets to protect now. This is why the big guys use this structure. But when you are first starting out and hustling, it makes a lot of sense to own property in your personal name.

@Brendan M Brown

Upstate NY is not an overpriced market compared to most parts of the country. You need to remove "I can't" from your vocabulary. Ask yourself: "How can I?" Your mind will start delivering you the answers. Like others have said, IT'S GOING TO BE HARD. You want to be a boss real estate investor. Start with the first deal. Get to work. One day you will wake up and look around and realize you've achieved it. And the last five years has gone by so fast. But now you have 5 rental properties and are looking at big commercial deals, and you are the guy in your story.

Some things to start you thinking:

1) Can you afford to leave a "class A" neighborhood and look for an up-and-coming neighborhood?

2) Can you buy a multi-unit that you could live-in rent free while the other tenants pay the mortgage (house-hacking)?

3) Do you know anyone with money that would invest with you in a multi-unit (family member or investor / friend)?

4) Is running an Airbnb an option for you?

I recommend accepting private bookings in some cases where Airbnb wants to block - I judge by the message they write - if it is respectful and well-written I will usually give them a chance to book privately. 

The upside is you can save a significant amount on Airbnb fees - I usually pocket those, do not pass on the discount. Keep it for the additional risk of doing business outside the app. The Airbnb guarantee is pretty worthless anyway. It is too much effort to file a claim for something small, and typically they side with the guest. Trust me, I've been there. You are much better off asking for a Venmo directly from the guest for anything broken. 90% of guests will pay. Those that don't, do not pursue it - leave them alone and take the loss. They can do more damage by leaving a negative review, so always be pleasant. Damage to your unit is a cost of doing business. Get your furniture from thrift stores in nice neighborhoods (good quality, medium price) so you don't care when it needs replacing.

It's totally fine to move the booking off Airbnb and book a guest directly (just don't double book yourself). The Airbnb app hides phone numbers, but you can creatively leave your number by posting 1 number at a time or another method. Make the guest call you so you can hear their voice and ask them why they are visiting. If they ask weird questions and you feel uncomfortable, it's okay to decline.

I will say about 25 and unders - they are going to drink and party. That doesn't mean they won't be worthwhile guests.. I have had a few, most recently a group of five 19 year-olds who celebrated a birthday and it was fine. I charged them a little extra knowing that the cleaning would be a little more. 

@Patrick Q. I could help. I worked in investment research and financial planning before getting into real estate. I have owned 25 units in Chicago and Northwest Indiana, have sold 8 and now own 17. I do all my own management and hold agent licenses in two states. I'm not the biggest or the best investor on here, but I do know how to run a small rental business, and a lot about residential financing and tax strategy.

@Vidyadhar R. The only way I know of is through a qualified opportunity zone fund- although that tax deferral expires in 2027 - unless future legislation extends it.