Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Arron Paulino

Arron Paulino has started 58 posts and replied 233 times.

Post: Advice on Selling Portfolio

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Alan Asriants:

Hey Arron, looks like you got some great advice from some users on here. I am glad that you are aware of your situation and are cutting your losses before convincing yourself that the numbers "will" work eventually. As you have experienced this is the nature of these transactions. That being said I do want to leave you with a few pointers for your next deals so you don't run into same scenario

1. Don't invest out of state unless you KNOW the neighborhood. Many investors, especially those from NY and CA are pushed to invest out of state because their price points are way too expensive. This is a good reason to pursue RE out of state. But investing out of state is far riskier when not fully understanding the market. You must rely on people you don't know to tell you what works and what doesn't. this is why many fall into the trap of great "on paper" BRRRRs. We have a lot of these cruddy deals in philly. Sure you get your money out, but then you can't rent the darn thing or sell bc no one wants it at that inflated price, and you realize your tenant pool is doo doo

2. You're better off owning one solid househack in the long term than a bunch of these lower class deals. Just consider your own market. Looking at the history of the market, your appreciation will be 10x stronger in your market holding just 1 property than trying to manage 12 doors out of state. Having one solid 1.5M property is better than 7-12 cruddy 120k properties. You'll thank yourself in 10 years and will have all of your hair from not managing all of those units...

3. Think long term. Don't be concerned about appreication after 1 year. Where is this area going to be in 10, 15, or 20 years? Many people underestimate the power of a couple absolute solid PAID OFF Class A RE!

Sometimes its not about the quantity of RE, its about the quality of the RE- this applies in many parts of life

Good luck!


 Hey Alan, thanks for the response! Yes, I am really getting value out of the input from the community and learning to cut my losses and move on. The numbers only looked good initially and really led to headaches in actuality.

It really was hard to step out of my tunnel vision when I was over the moon when I heard of the profit I could make rather than looking at my own market with my initial funds.

I agree that one or two solid investments outweigh many cruddy properties just to show that I have so many under my belt.

Quality over quantity is the motto going forward for sure.

Post: Squatters and Thiefs Keep It Up

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Jonathan Klemm:

Hi @Arron Paulino - This sounds like some properties we have delt with on the south side of Chicago.  Not fun or enjoyable in any form or fashion.  

We made specific trips to the local police precinct to speak with the drug task unit, but importantly, we networked with someone who absolutely knew what they were doing.  Having someone who has owned and operated a similar asset is worth its weight in gold.  We could also tie our security cameras into the police system as part of a local program here in Chicago.

We also paid "house sitters" to keep the squatters out!!


 Not fun indeed!

Nice to hear you were able to find solutions to make the best of the situation. I didn't know you are able to tie your security cameras into the police system. Did it cost anything to get this setup?

How often would you have these house sitters come to the property? Would they be there while the property would wait to be rented out or until sold?

Post: Squatters and Thiefs Keep It Up

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Sebastian Bennett:

It's funny because I actually had a dream of setting these up and seeing how this would play out lol

Post: Squatters and Thiefs Keep It Up

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Jordan Ray:
Quote from @Arron Paulino:

I have vacant properties that have been a struggle to upkeep while they are on the market either to be rented out or sold, whichever comes first. One property had its water heater stolen not once but twice as well as the furnace in the second attempt. Another property continually has squatters even with boards up and bars in front of the windows and doors. Police reports have been made, but I fear that it has been a consistent battle to deal with, especially with investing out-of-state. Property management has been aware of the situation but can only do so much even with constantly redoing what is being removed and repaired. I know it has been costly to replace/repair the damage done especially with the property being vacant and a monthly mortgage payment due as well without any rental income coming in.

Any advice is greatly appreciated. Would love to hear from investors that have been in this type of situation and what has been successful for you in terms of keeping them out and being able to still sell the property and/or rent it out.

Hey Arron! What zip code is your properties in? I am in Memphis TN and I have buyers looking for property. I am sorry to hear about your experience with trying to sell your properties. Message me, I am interested to see if there is anything I can do to help!


 Hey Jordan! These properties are in the 38127 zip code east of Highway 51 sort of in the Alta Vista neighborhood. Please promote these to your buyers looking for properties. I appreciate you stepping in to do what you can!

Post: Squatters and Thiefs Keep It Up

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Jonathan Bock:

Probably a dealbreaker for a prospective buyer 

@Arron Paulino Has a local investor offered you a price to just exit ?


 Now that looks like some beefy security.

What do you mean by that?

I have had investors try to do seller financing but it was confusing in my case since I still had a mortgage on it and then he also wanted to do cash but drastically dropped the offer price so in the end we didn't come to an agreement. Another almost closed, but thieves stole my water heater not once but twice as well as the furnace to add to my dilemma. One of the properties has been in contract probably three times with long waits to close, and then when closing came, the buyers would either have an appraisal contingency fall through, not be familiar with the area, or didn't end up with enough funds to close the deal. It's really been a rollercoaster these past few months trying to sell the rest of my portfolio.

Post: Advice on Selling Portfolio

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Joe S.:
Quote from @Audrey Scott:

Given the recent market trends, I'd say we're currently in a seller's market. Strong demand and limited inventory are driving prices up.

I’m not so sure that we are in a sellers market 100%.  We got contacted yesterday by a realtor that cannot sell her client’s property. The seller owes more than its worth, since he bought the property at the peak of the market.  The realtor was asking us if we would be willing to buy it Sub2. Whereas it is a higher priced house with no equity we will probably pass, but that is just an example of how the market has changed.

I am leaning toward this reply. I did have a buyer try to purchase my property but I would have to do seller financing and with my current mortgage on the home, it proved to be difficult, and would much rather do a cash sale to avoid more paperwork as well as still being connected to the property based on the terms set.

Post: Advice on Selling Portfolio

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Bud Gaffney:

Why are you liquidating?!


 These properties just haven't been cutting it and exploring new ventures. My income versus expenses are lob-sided with me breaking even or losing money monthly so it just isn't making sense to hold these. Thoughts on how you would improve the situation?

Post: Advice on Selling Portfolio

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Jordan Ray:
Quote from @Arron Paulino:

I am currently liquidating my portfolio, which formerly held my rentals. I was able to package three of them in one deal, which ended up breaking even/not profitable (A little bummed on this one since I think the buyer (an investor) won the better side of the deal in terms of gaining equity on the houses). I have four more that I need to liquidate with a goal of having them all sold by the end of this year. They have been on the market for about three months now and I am working with my realtor to get them sold sooner.

The remaining properties have loans on them with one being free and clear and vacant, two being vacant with mortgages, and one is currently rented with a monthly mortgage payment due. I am trying to see if it makes financial and/or market sense to rehab them and possibly rent them out or just leave them as-is. I am leaning towards as-is due to the lack of funds in my current situation. Once sold, my goal is to have these mortgages paid off from the BRRRR method that I did and move on to different investing opportunities. At first, I wanted to just save it to build up enough investment funds to move to my next deal, but open to suggestions.

Any advice on steps to take to move in the right direction if you were in my position is greatly appreciated. Would like to hear from any investors that have been in this type of situation.


Hey Arron, these are the questions where you should be able to dial up your realtor and ask him/her and get a professional response with a plan of action.. If this is not the case, you might need to look into finding another agent.


 Hey Jordan,

Cool to hear from someone from Memphis about my properties in Memphis! I've had a chat with my realtor and really going over a game plan on how to tackle these properties. We came up with if it made financial sense for me to just have these rented out, but in my case, it would require funds that I don't have, and do not feel comfortable taking out another rehab loan on top of the already existing mortgage to keep the property. Also, we are attempting to sell them as-is to a willing buyer. It has been about three months now. I don't think it has to do with being stuck on the market, but rather I was under contract with a couple of interested buyers, but they backed out for various reasons when it came time to close the property, which was a bummer for me feeling confident we could have closed. I'll give it another month and see where we stand. Maybe if they do not see any movement, you may have another client coming your way.

Post: Advice on Selling Portfolio

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @V.G Jason:

Investing in Memphis tells me almost everything I needed to know.

I don't blame you for selling. I push back against the dogmatic belief that because it didn't work for me this time, it's a failure. My recommendation would be consolidation not liquidation.

Tap out of Memphis,  get your 80c on the dollar back if you can. Re-invest with more of a reserve in a better market, and understand you may not have the quantity or "doors" you are dreaming on your vision board. You'll have better quality assets, and  more reserves. This level of confidence is derived from conviction and discipline, and that's how you invest. Not like a yo-yo. 


 I'm glad we're getting straight to the point. It's been a struggle.

I'm definitely not giving up on real estate investing and just need to clean house for a better result. Do you mind elaborating on the consolidation versus liquidation approach? I currently have the four properties in Memphis on the market and it's probably been about 3 months since they have been listed. Currently, I don't really have wiggle room in my budget to rehab these properties to hold better value on the market, have mortgages on 3/4 of them, and 1/4 is currently rented. Any advice?

Ditto on tapping out. Really just looking to take my L and do better on the next. Trying to get back to the level I was at when I first started my journey with a good chunk of savings and better reserves with the knowledge I have acquired to step into the right situations. For sure looking more for quality over quantity. This up-and-down journey takes a lot of grit.

Post: Advice on Selling Portfolio

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 248
  • Votes 89
Quote from @Cory M.:

Hey Arron, I'm sorry for your negative experience! Can I ask if you've been using a property manager and what circumstances led to the properties being mostly vacant? One way to turn these properties around might just be to get them tenanted with a good manager in place.


 Hey Cory,

Thanks for the comfort! I have been using a property management company to manage these properties, but as many would agree, that you always have to still manage your manager. I would say the type of neighborhood it was in was questionable, although when I ran the numbers, it looked good at first. My property manager was diligent with picking the right tenant, which I appreciated, but that comes with really narrowing down a pool of applicants that would have been okay in the short term.

I am trying to decide what is best right now and getting them rented out would make sense, but my problem is the lack of funds I currently am facing to rehab them to get them back to rent-ready condition and the monthly mortgage really hindering my ability to save up for these rehab funds. That is why I am currently trying to sell them as-is.