All Forum Posts by: Brett Peters

@Jasraj Singh, It really all depends. In a perfect world, yes. But depending on the level of work that is required you and your contractors projections can become much more of an art than a science. You have to have a clear vision/budget and execute near to perfection. It is very easy to spend money on a rehab, especially a total rehab. I've gotten my best deals during the holiday seasons on properties that sat on the market for 6 months and I've lost the most money trying to raise properties from the grave. Just some food for thought!

@Adrian Stamer, Precisely!

@Greg Moore, loving this post! I find it hysterical everytime I get an appraisal. For one, I have access to all or more of their data. For two, it takes me about 30 min max to come to an unbiased decision. And I love how the bank hires them, as if their in the business of giving low valuations lol. The first time I get a low appraisal is the last time I will call them. The last appraisal I got came within $500 of our offer...like really.

@Grace Agb, I closed a transaction yesterday.

@Craig Lessler, call zoning and or building and codes.

@Fabian Marrufo, if this is an actual double, then hell yes. Every day of the week! However, take into consideration your closing costs as well as the elephant in the room ie. Capital gains tax! That double can turn into a quarter rather quickly.

@Kassandra Perez, I couldn't agree with you more.

@Jason Allen, a very refreshing post. Too often, people develop inflated egos and forget their own humble beginnings. Assuming of course there wasn't a sliver spoon involved. We are all in this together. In the commercial/industrial world there is a clause, namely "Force Majeure" which legally allows a tenant and landlord to breach contractual obligations. I am not certain if this is present in the residential realm. Personally, I do not advocate rental decreases. But I do think there is room for payment arrangements or outright breaches of contract. I feel some tenants are taking unfair advantage of the pandemic and others are genuinely struggling. Interesting point of discussion!

@Pope Lake, Is this a syndication deal? If so, whomever was designated as the overseer of distributions would be handling this. If you are that individual, my humble advice is to not use a simple spreadsheet as was suggested by others in this forum. Best practice is to use a property management software to allow the information to be as accurate and transparent as possible. This would be the most appealing alternative to all parties involved. I would recommend "Appfolio". It is very effective and relatively inexpensive. With kind regards!

@Alexandra Feig, It really depends on what type of cap rate or irr you're interested in. As for Pa, if you like a safer 8 or 9 then go for a metro area in a class b neighborhood in Philadelphia. If your looking for an irr of 15+ then class c neighborhoods in south central Pa are very attractive. For example, in Reading Pa I got one of my clients a 5 unit for 179.5k with an irr of around 18. Propert taxes on this particular building were $1,800 per year!