All Forum Posts by: Lelith Walker

Construction Estimator and Bidding App seems pretty nice and comprehensive.  I just started with it.  Property Fixer is another more simpler one.

Make sure communication between yourself general contractor and subs is abundantly clear on every single detail.  Walk through together to make sure.

Always get backup contractors because they get sick, die, leave you etc.

Make sure contractor has his name or company on the permit

Check real estate commission for licenses of realtors

Check secretary of state to make sure contractor is licensed

If you have mold, asbestos, radon make sure the contractor is certified to remove it.

General contractors do not like to work with subs that they do not choose

Project manager can not have too much going on or else they will neglect you

Make sure you get the general contractor sign over a document regarding he will be responsible for paying subs because you do not want his subs to turn around and sue you because they say he did not pay them

Get the names and phone numbers of all subs

Record all phone calls.  (This is legal in most states only a few are against)

As soon as final inspection is passed contact the city inspector for the certificate of completion or occupancy (depends on state).  You may have to call or visit the office more than once to get it. 

Speak with your bank to find out the best ways to make payment.

Don't dismiss any deception and question all body language no matter what their title or position is.

Don't trust all recommendations that you see on the internet. People go on fiverr and pay people to give them glowing reviews

Find a market that matches your strategy.  Seattle is a pretty good market for a lot of strategies depending on the numbers.  Detroit is growing and it is hard to find homes as cheap as before.  A lot of it depends on neighborhood too.  I've seen nice houses over there but across the street or down the block houses looks like they are straight out of the Adams Family.  Ohio is pretty stable especially in the college areas.  I feel most cities there are more of a buy and hold market. 

If you do not want to physically look at a property hire someone like a freelance photographer on task rabbit or craigslist or go to http://www.wegolook.com.  You pay them $50 or more and have them take pictures and video for you. Tell them not to use Photoshop too much because you want to see the quality of the home.    

If you do turnkey then you want to investigate the company. 

@Jaysen Medhurst

I heard about it first at REIA NYC but this is the link I see. https://en.wikipedia.org/wiki/New_Haven_Line#Service_expansions

Not enough education from the right people. Some gurus are not dorus. Plus you can get a lot of the same information by going to the library and checking out a free book as opposed to paying $999 for books and tapes. Even some of those that say they will partner with you can not be trusted. They do not return your phone calls or give you some bogus criteria on what they want you to find. For ex one dude said to find a 50 unit apartment building for 1 million dollars in NYC. 1 Apt in the worst neighborhoods in NYC go for 1/2 million! In addition, if you go ahead and buy property and you fail at least you have equity. If you pay for the education from some that is all you got. It is a lot of people who pay $25000 and still do not do a deal. Also you can NOT trust everyone in REIA either this includes those who have title. Before you do business with them do a background check. Some REIAs get kick back and do not always show you the best program. I am a Christian but I do not trust them either, run a background check on them too.

Not preparing for what comes what may.  A lot of times things do not always go as planned. 

Try to have written contracts even with those you love and trust, exit strategies, reserves, and insurance to kind of protect yourself. 

1. Hurricanes, earthquakes and floods have recently occurred in places that its never happened to before. 

2. This guys 48 unit building was burned down because 1 tenant was trying to make some kind of drug and did not mix the chemicals right. 

3. Tenants, lawyers, contractors and project managers who fail to deliver for whatever reason

4. Misunderstanding and communication issues can cause problems too

Have a good team.  Accountants, lawyers, financial advisors who are also investors are the best.

Beating yourself up for mistakes that you will make and seeing them as bad.  What does not kill you makes you stronger.  Mistakes strengthen you. If mistakes do discourage you then maybe this is not the business for you.  Face it no matter what type of business you go in or if you choose to work for someone else you will make a mistake because you are human. 

1. I do not have daily frustrations.  I just get mad once in a while.

2.  I am angry about people who took advantage of me by taking my money and not giving me the service or work that I paid for in return.

3.  I desire there to be a way to stop people from continuing to practice real estate when they have gone to jail or been sued for real estate fraud. 

Philly is not far if you use Amtrak and many neighborhoods are on the come up.

Connecticut is getting new Metro North Stations and many of those stations are an hour away

Delaware is about an hour and a half on Amtrak and many law firms are moving there as well as credit card companies

Jersey outside of Bergen county may also be good both price and tax wise. 

No matter where you go remember you can fight the taxes.  A friend of mine is in Jersey City doing a rehab and got them to knock off $6000.  They may try to go back up after she is finished. 

I would buy it.  I would consult lawyer to see what I could do.  If you can raise the rent then go for it, even if he/she can afford it.  If you can say that you or a relative needs the apartment then do that.  If you can make it a special needs housing building then do that. 

All of these may not be triggers for you and me but it may be triggers for other investors.

1. The strategy you had in place is not working -trigger
2. There were additional costs that the previous owner did not reveal to you -trigger
3. If you got ripped off by people -trigger
4. If you partnered with someone and you do not get along or can't agree on nothing - trigger
5. One of the big employers in the area filed bankruptcy -trigger
6. One of the big employers in the area decides to move to another city or state -trigger
7. home owners association is similar to Hitler's gestapo -trigger
8. tenants association is unreasonable and troublesome
9. If you see another deal that you like better -trigger
10. you feel the market is going to change -trigger
11. If the weather changes and suddenly you find that your area is not the same ie drought or flood or mud slide -trigger 
12. Insurance increases because of weather change -trigger
13. found out that the land is contaminated - trigger
14. you are tired of dealing with the property -trigger
15. tenants not paying rent -trigger
16. you took on more than you can handle -trigger
17. property taxes went up -trigger
18. gangs in the neighborhood -trigger
19. family issues change your priority and you simply cant handle it no more -trigger
20. your tax abatement has expired - trigger
21. transportation has discontinued in the area -trigger
22. legislation to put in a new transportation station has been vetoed or approved -trigger
23. the team (ex contractors, project managers, etc) you tried to put together doesn't work out- trigger
24. illegal activity found on the premises -trigger
25. tenants tell you place is haunted and you know someone died on property -trigger
26. demonic neighbors
27. abundance of pests -trigger
28. sink hole formed - trigger
29. cess pool discovered -trigger
30. water contamination
31. population change
32. schools accredation changes
33. schools shut down
34. tenants or their family starts shooting at each other or you
35. wrong type of business sets up shop near your property, or they are too close or your comfort. ie gas station or drug dealer or prostitution or cemetery or factory
36. whatever does not float your boat -trigger

My definition may differ from bigger pockets

Class A is richer tenants ceos to upper lever managers, sometimes newer buildings like 15 years old or in the case of NY just extremely well mainained updated  buildings, latest amenities

Class B is slightly older buildings, well maintained, a little outmoded, tenants are normally professionals like mid managers

Class C is working class and buildings need some renovation

Class D war zones a lot more concentration of crime, tenants normally are not working and some will tear up the building