All Forum Posts by: Andy F.

Hi Derek:

Glad to hear you are getting started.  Keep at it.

Most important: Do your due diligence. Then do more due diligence. If the seller is not willing to cooperate in EVERY WAY, move on and don't buy it. Family related or not. Why would I risk my money and time? Make 100% sure any possible issues with the property are aggressively inspected and analyzed. Especially water issues. Remember, it's not just about water, it's about mold (important), structural issues from water, etc, etc. Don't be timid about requiring inspections, contingencies for your inspections and all due diligence. It's your money at risk. For me there is only one exception to this rule...

 I only buy if:

1) The Seller is completely totally forthcoming and cooperative with my due diligence. If they don't I won't buy it. I move on. Remember other properties will come along. Guaranteed. The only exception to this is...

2) The seller will accept a price that is so very low (and or the terms are so favorable) that even if the worst case scenario happens with any home issues I come out whole and ahead. Again, Why would I risk my money and time? If you go this option (low offer), be ready to deal with stuff financially and psychologically, big hassles and expenses and longer time lines and uncertainties. Yes you can make a bunch of money by doing this but it can be a tough route. Decide if that's your game up front.

And don't forget, family is tough to do business with. For many reasons.

I won't address your numbers. First tie up the property with contingencies in the contract. Then do your calculations using all the wisdom provided everywhere, ask the pro's, in books, provided hear and make a decision.  Be OK with bailing. No regrets. Move on. Or buy it and be 100% sure you can be happy with the deal you get NO MATTER WHAT happens.

Good Luck!

Andy

Hi Ryan:

Good to hear you're interested in investing small multi's in the area. 

I acquired a few in 2016. Honestly there is no "easy" way to find them. As you know the market is tight. Generally the best way to get something worthwhile is to network constantly (with EVERYONE) and keep "turning over stones". Generally there are many calls and contacts to be made before you're likely to find a good one. Although sometimes they happen quickly but you can't count on that. When a property is on the MLS any value play is usually gone. Keep digging.

The properties I bought were found by constantly having conversations with other landlords, realtors, mortgage brokers, contractors, anyone who has anything to do with real estate, etc, etc. Once you have chatted with people several times the relationships can bear fruit. The numbers...

I keep that info close, but here's a bit: I found a fourplex previously owned by an owner that was too passive as a landlord. After raising the rents to market rate (right after I purchased) and maximizing other revenues and controlling expenses better, the property is now at a 10% cap rate.  No repairs were needed. 

We also found another 4 units that produce about 11%. Sime repairs and remodel needed but simple stuff. Both were found by networking and calling EVERYONE and once a good property is found by making cash offers. 

I'm always looking for more apartment buildings and complexes. So I stay active and busy.

Hope that helps. Feel free to contact me any time.

Andy

Hi James:

I feel any excuse to buy another property is great! That said, would a property you are thinking about be located in California? I ask because one factor in landlording is always going to be eviction laws.  Evicting tenants in Cali is brutal. But the bigger factors are the personal and family factors. 

If you can work it out so caring for your mother-in-law does not create undue stress for the family while she lives in an apartment you own I'm all for it. To do that, you should figure the cost of having outside caregivers come in to help her. Otherwise your family will end up full time caregivers (now and probably later as well). This is much harder on the caregiver than the patient. Honestly. If the numbers work with an outside caregiver helping (a fourplex or larger makes that likely) and you can stomach the occasional lengthy eviction process, I personally feel it's a great idea imho.

If you decide to invest in Utah I am a very experienced Landlord/investor here and I'm happy to chat more about that as well. 

Good Luck With All,

Andy

Thanks Jeff. My potential buyers keep asking me about lenders. I also like MACU and will recommend. 

Does anyone in SLC, Utah have a commercial multi-family lender they are fond of. Please recommend only if someone has actually funded a deal for you, not just a friend or acquaintance. Looking for someone who can do small apartment buildings (fourplex) and up through 100+ units.

Thanks.

Hi Cindy:

Congrats on your dive into Utah properties. It's a great market.

My name is Andy. I've been a real estate investor and property owner/landlord for multi unit property for 30 plus years... more deals than I can count (I flunked arithmetic :-) ).  

I have a couple properties I may sell (BTW I'm not a Realtor). What and where specifically are you looking for? I may have a property in Utah that works for you. 

Is there something else I can help you with? Feel free to contact me and chat.

My Best,

Andy

Hi:

Congrats on your decision to do more R E investing. It's a great biz.

My name is Andy. I've been a real estate investor and owner/landlord for multi unit property for 30 plus years. I've been on Bigger Pockets just short time, but have done more real estate deals than I can count. Feel free to contact me and chat. is there something I can help you with?

My Best,

Andy

Hi:

Congrats on your decision to dive in to do more property. It's a great biz.

My name is Andy. I've been a real estate investor and owner/landlord for multi unit property for 30 plus years. I've been on Bigger Pockets just short time, but have done more real estate deals than I can count. Feel free to contact me and chat. is there something I can do to help? 

My Best,

Andy

I do not have a license now, I have in the past.

The primary reason not to have a license in my experience is the resistance from sellers. For example, picture calling a prospective seller about a property. Here's a typical call:

Buyer (You): Hi my name is (your name). I'm calling about your property for sale on Main Street. 

Seller: Hi. Are you a realtor?

Buyer:  Yes I have have a real estate license but... 

It does not matter what you say next the Seller's barrier's and resistance go up immediately. They think you want a listing or they think you are "working them" for something.  It makes prospecting much harder. Even when you say: "Yes, I have a real estate license but I'm not calling for a listing. I'm interested in buying."   It won't matter, the barriers and warriness are already up. Just the way it is. 

The Realtor disclosures issue when you have a license:  Folks have mentioned here this as an obstacle for other reasons. It's not an obstacle for the reasons people are discussing. You simply disclose your license to the Buyer and then use the correct documents and verbiage, you're fine. It's the prospecting barriers that are the issue. 

On the other hand, if you do all commercial deals that issue goes away. Commercial deals are just about the numbers. They buyer's don't care if you have a license.

Good luck to all!

Andy

Hello Ruben:

As far as cash buyers your best bet is to simply network everywhere all the time. Tell EVERYONE that will listen you are going to have properties available to purchase. I realize this sounds simplistic but it works when you do it properly and consistently. Speaking of...

"Assignment, assigning" is generally the language to use.  You may want to avoid saying "double closing" as those words can sometime have a negative connotation and are frequently prohibited by mortgage guidelines. However, "assigning" your rights is fine when it is done with the appropriate contracts and proper vesting.

BTW, if you have a multi-unit home or apartment building you'd like to wholesale feel free to message me.

My Best,

Andy