All Forum Posts by: Kevin Wright

It's something that I'm wanting to understand better as well.  I found podcast #109 to be pretty though provoking.  The attorney featured mentioned that a trust is actually the best form of ownership if one is concerned with keeping info locked down, and the best being a Delaware blind trust.  

I'm curious to know, what lender do you know of who is offering a HELOC product on a non owner-occupied property? You mentioned that BofA had issued the existing one, but who would you be going through to take another?

Also, from what I've seen, if there is no other outstanding debt on the property, most banks that do offer theses type of products would have no issue as long as the combined LTV is under 70 or 80%.

A few thoughts here:

First, I love the ambition! It's where I see myself as well.  

Secondly, this will not be a straight line progression, it will be an accelerating curve. As someone mentioned before, you probably don't have the ability to invest $125k per year of your own money right now.  However, in years 15-20, you may very well be investing $1MM of your own money per year.  It will snowball.  Start slow and steady and know your business inside out. 

Third, the most successful corporations in the world have billions of dollars in debt, and there is a good reason for this.  The key is having well managed and well used debt.  Buy at cap rates higher than the cost of your capital so you earn a spread on the money and you'll be fine if your properties are managed sustainably.  Leveraging for consumption is a problem: it increases your burden without increasing your means.  Leverage for investment is powerful: it has the ability to increase your means more than enough to offset any increase in burden.  

Best of luck!

I actually had a contract on my first property before I had even visited it.  I knew the area and had bee looking for a while, but properties were flying off the shelf. (Beginning of our new boom in late 2012) It was a nerve racking experience, but there were some contingencies.  I think it's best to be direct and not hesitate if you've done your homework. Don't be afraid to send low-ball offers if it's an offer that makes sense to you, and if it's a deal that you know makes sense, jump on it! 

Definitely a MUST for any common area door like a laundry room or storage with multiple tenants accessing the space!

I'll just say that learning to use Excel proficiently for financial modeling has been one of the biggest assets in my understanding of the investment world.  A degree in finance is practically worthless without it.  I'm thankful for mediums that have been created that already have mathematical relationships setup for people, but understanding the mechanics of the deal are where everything is won and lost! I think the training wheels must come off rather quickly for people to not become dependent on them and avoid learning how to do the real thinking behind their transactions.  

Just thought I'd jump in here to keep it going. I've only lived in NYC for a little over a year after moving up after school in South Florida.  I've been working in commercial appraisals and have gotten to see quite a bit.  I live in Bed-Stuy, and even over the past year, have watched things change here.  One of the biggest drivers in desireability for me is the obvious, availability of transit to Manhattan.  I think for this reason that Crown Heights and East Flatbush have a steady growth outlook.  Being on the 2,3,4,&5 with one train access to east or west sides of the city means it's only a matter of time before that area, the other side of Prospect Park, does what Park Slope did a decade ago. 

Thoughts? Equity Partners? 

Thanks all for the input!

@Stanley Okazaki I know of a few 100% offices here and went to talk to one. They charge a flat monthly fee (~$100 / month) and don't require any commission split. Is this common with that type of arrangement? This gives me access to their listings and sales tools as well as REBNY, the list serve here.

I guess the best thing would be if I could also have easy access so some other agents who might keep their eyes open for deals for me.  Since my personal deals will only be occasional I wouldn't be opposed to a more heavy split if it allowed me to have training in the ways of finding listings that I could possibly get to before they hit the market.   

Hi all! I'm new here, and my first post is about the next step I'm trying to take personally. 

I'm wanting to find a broker to work under here in the NYC area.  (Passed test and license eligible.) I work in commercial appraisals by day (not licensed) and would primarily be signing on with said broker for the ability to use resources not available to me in my current position in a search for potential value-add scenarios. I would also market the properties myself through the brokerage. 

I have a partnership in place with a local GC, and we are starting to "cast the net" for opportunity.  I don't expect to find any great open market deal, but I do want to be able to keep an eye on the market myself. 

There are plenty of brokers to work with in the area, so finally, the root question is what is simply: how do I approach the situation, and what would be the best things for me to compare? I'm not completely opposed to paying a fee, as they would know that I probably won't be generating regular commissions, but I want good value in terms of resources and connections. 

Thanks!