All Forum Posts by: Tyson Cox

I'm pretty sure AKUSA has done them and I heard that Cornerstone is doing something like that.

Whether it is your money or someone else's, I would consider having a downpayment of 20-25%. If you don't have it, get a partner. Leverage is wonderful. It is what a good real estate investment business is built on, but you can take it too far. Over-leveraging can be just as harmful as under-leveraging. It must be balanced to withstand market changes. Changes like the downturn we may see soon here in Alaska. My goal is to be able to run each of our buildings with only 50% of the current income. That means paying all necessary utilities, maintenance, and PITI. This allows for units to be empty or rents to go down without needed to get money out of my pocket. I have only found that to be possible with a 20-25% downpayment.

Here is an example I have used often. Hope it helps.

Hello Everyone!!

Come join us this Wednesday from 6-8pm at Nikko Garden for the monthly Real Estate Meet-Up. Darren Jones will be sharing some of his real estate experiences. It should be very informative.

Please be sure to bring some $$. Nikko Garden has been very kind to let us use the space for free. Let's show them we appreciate it by spending some money on dinner, drinks, and/or an appetizer.

**Folks who are planning to come to the Meet-Up, please bring questions to present to the group with regard to the Fair Housing Act & discrimination. Think about it and be ready. This is how we can all get the most out of these meetings. (Topic to change each month. Suggestions welcomed.)

Please RSVP by replying to this message or going to the Facebook Event at https://www.facebook.com/events/471716279694489/ and click "going" in the right hand corner.

See ya Wednesday!!!

This is for anyone interested in joining us at our local Monthly Real Estate Investing Meet-Up. Please RSVP as soon as possible by going to the Facebook Event link below or replying to this email.

The only requirement for this meet-up is that you be interested in Real Estate Investing. Please invite anyone you think may benefit from such a group.

Real Estate Investing Meet-Up for local Investors to network and learn with each other.

Next Wednesday, March 30. 6-8 pm. at Nikko Graden in Soldotna. 

Email me at [email protected].

Facebook Event: https://www.facebook.com/events/1078577332186438/

AK Real Estate Investors FB Group: https://www.facebook.com/groups/reialaska/

If you have to move into the building as part of the loan you plan to utilize, then it would definitely make the most sense to occupy the longterm tenant/low rent unit. If this tenant is not on a current lease or has a month to month agreement, you are only required to give a 30 day notice to leave for renovations.

I did this with one of our buildings and longterm tenants in Soldotna (gave them 60 days). I explained to them that the apartment really needed fixed up and these renovation would not be possible with them living there. They were very upset at first, but agreed that the improvements were necessary. I have seen them around town since then, and they say they like their new place a lot because of the proximity to stores. Sometimes it takes someone else forcing change for change to happen.

It sucks to have to be the one to tell people they have to move, but that is part of being a landlord. I just try to do it in the most respectful way possible. Always keep in mind that people are very emotional about their homes.

I have a few questions for you:
1) Is $995 already at market rent for the specific area your building is in?

2) Why is one unit at $915? Does it need work? Is the current tenant on still locked in with a lease?

3) Will the increase to $995 for the $700 unit actually get the tenant to move? If comparable rents are about the same, tenant may not move.

4) Do you really want the longterm tenant to move? They probably don't complain about much and are comfortable in their apartment.

I would consider raising the rent on the $915 unit first. If that tenant moves, I would offer it to the longterm tenant at market rent. They can choose to move there or move out. The more choices you can offer tenants, the easier things go.

I hope you get the live chat running :) If you can't, please let me know when you re-schedule. I am very interested to hear about leasing strategies.

Sounds great!!

@Jim C.we plan to have a meeting once a month until summer. Every Alaskan knows how summer goes :)