All Forum Posts by: Benjamin Aaker

20 to 25 year amortization is pretty standard for commercial loans, in my area at least. What you are dealing with is a negotiation issue, not a rate issue. You need to educate the seller that with the rates so high right now, a reasonable investor can't pay 2022 prices.

Since you plan to keep it the ARV doesn't matter in this calculation. For the 4 plex you are spending an extra 80k in renovations (I question your 110k renovation number to get to 4 units - this could be low but I don't know the square footage or layout). For that 80k, you are getting 12k / year extra rent. The ROI on that is 15% in the first year. If you are able to do this at the municipal level and your numbers are correct, this would be a good investment, but there are a bunch of assumptions here.

First consider why you are putting in cameras? Are you trying to deter theft, vandalism, other crimes? Are you trying to raise the rent? It's deterrence vs catching the criminal. For deterrence, you want conspicuousness and durability because it will likely be exterior cameras. I've had success with Eagle Eye Networks.

Next consider if you want it monitored or just recorded. Be aware you will start getting requests from law enforcement and neighbors to view videos. The cameras I have will begin recording based on movement. It takes a lot of tweaking to get them to record what you want and avoid what you don't. 

Congratulations on your first purchase. Please keep us updated on how it is going. 

The best way to find a quality mentor is to go to local meetups and meet people. Join a mastermind group of similar investors. Learn all you can. It takes time to get the required knowledge. 

Agreed with previous.
I use a SDIRA for investments.
Set up fee and an annual custodian fee should be all you need.

At the end of the day, you won't be able to hide who you are even with this complex structure. Keep it simple is great advice. Don't do anything criminal or negligent. Having an or multiple LLCs helps keep the finances separate should you have a loss. Also make sure you have quality insurance with an umbrella policy. I recommend that for those who are moving to serious investing. Those starting out, your own name is good enough.

Happy Thanksgiving to you, too! I'm grateful for my real estate investments and having a property manager to answer the phone on days like today.

Hard to get multifamily for 250k, but I know they are out there. If you are willing to house hack and live in one unit of a 4 plex, this would work. With your VA loan as @Johnny Lynum says, you could get a nice property for little down. I recommend you contact a residential banker and a commercial real estate agent and start looking at deals right now, even before you are ready to buy.

Hi Jack from Dallas. What better thing to do on Thanksgiving Day than learn about real estate investing! I spent three years in Dallas and there are some great deals to be had there. Welcome and feel free to ask your questions here.