All Forum Posts by: Andrew Freed

@Erika Caba -I think you misread my feedback. I made no mention of a property manager. I self manage a lot of my units. Sounds like you need better systems in place. 

@Erika Caba - This is too early to tell if its a good property or not. Usually for multifamily, it takes a good 6-12 months to stabalize a property and deal with all the left over baggage from the previous owner. I go into a multifamily assuming it won't be cash flow heavy for 6-12 months until you finalize your business plan and get it stabalized. 

Additionally, why do you need to be on site? I own over 130 units and never go on side for jobs. You can set up electronic locks and lockboxes on site for contractors to make the fixes. Lastly, you can ask what other investors pay for items in the area and base prices on that. I think you need to get a better understanding of what things cost in the area and if things are priced too high, you need to seek more quotes. Usually for jobs, I seek 2-3 quotes unless I find a vetted and trusted contractor. 

@Matt M Antonio - Good question! Can you find a local portfolio lender from a small bank or credit union. There are a ton of local banks around me that offer owner occupied low downpayment loans but are portfolio lenders for these types of products meaning they hold the loan in house. When they do that, they have the ability to sway from normal Fannie Mae and Freddie Mac requirements which require a certain number of years of employment and a multitude of other items. 

For instance, my partner owns a gym and was self employed for a year. He ended up finding a local portfolio lender that allowed him to househack a couple properties with minimal employment. It's out there, you just have to be willing to make the calls to dozens or hundreds of banks or go on local facebook investor groups and see if anyone has any recommendations. I'm positive you can find a lender that supports this type of product, it's all about putting in the sweat equity to make it happen and not taking no for an answer! 

At 25% down. Nope, not in tertiary markets where you normally can find multifamily in excess of the 1% rule. 

@Chris Seveney - All we can really do is control our own destiny. I personally will be buying cash flowing multifamily. I can make properties cash flow all day at a 5% to 6% rate. Historically that is close to the average. I think people have been spoiled with low rates and expect them to be here for the foreseeable.

What I will add is the US debt is sky rocketing each day. If the mortgage rates are higher, that means the US debt payments will be higher because its tied to the federal fund rate. I personally think the government is incentivized to lower rates in the future to keep their debt payments down. If you had the ability to control your credit card interest rate and you had a ton of debt, wouldn't you lower it? 

@Keelin Brown - That is a tight deal for sure! This is the exact reason why it is good to have your real estate license as a wholesaler. It might not make sense as a wholesale but if you list this property, get the owner the price he wants and still get paid on it via a commission. Having your license as a wholesaler offers options.... you could wholesale it, offer on it, seller finance, conventional financing or list it. Giving sellers options creates a higher probability of creating profit on a seemingly profitless deal. 

@Steve Borawski - Sounds like a tough predicament. I would definitely call an eviction attorney to help with the eviction process, however as you know, that takes time. Have you considered trying cash for keys and pay her to leave in quicker fashion? Since this is affecting the entire property and may result in even more vacancies, I would consider giving her $1 to $2K to simply leave in the next week and move on with your life. I understand it hurts to provide bad tenants money, however it will resolve the problem quicker and remove this frustration from your life, which I'm sure is worth a couple thousand dollars. Just my two cents. 

@Cedric Van Duyn - Suspecting and proving are two different things. In our criminal system, you are innocent until proven guilty hence you really can't do anything until you have proof of it. Additionally, there have been no negative repercussions of this yet so why are you creating a problem out of nothing? Use that thought to focus on your growth and how you can scale your portfolio.

Personally, I don't try to make problems when problems aren't present, especially when I have no means of backing up my argument. I recommend waiting and if issues do arise, document well and hire an attorney and let them take it from here. 

@Ryan Healy - Since this is your first property, I highly recommend you start with some sort of house hack or relatively turn key multifamily (cosmetic upgrades, maybe 1 capex item) buy and hold and not start with a BRRRR. For your first project, it is imperative to start with something easy and build up the complexity of the deal as time goes on. Just like when you grew up, you have to learn to crawl, then walk, the run... same with real estate. I'd hate to see you start with a BRRRR for your first project, take on something too big to chew off and go bankrupt and/or spend a year and a half on 1 project when you could have done 5 single base hits in a given year and built up a whole lot more networth in my opinion. Just my two cents.

@Denise Coffman - Congrats on the investment. Now that you own these properties, action is key to advancing your real estate goals. Set internal timelines on when you will have your drawings done for the new builds, selecting contractors, when you plan on having the project completed. If you don't set internal deadlines and goals, before you know it, years will pass by and you will still have these vacant lots that are not producing cash flow or building your networth to the way you dreamed of. Set actionable measurable goals/timelines and stick with it would be my advice on next steps.