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All Forum Posts by: Brian Kloft

Brian Kloft has started 4 posts and replied 120 times.

Post: Significant Increase in Posts For Financing...

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100

@Chris Seveney I will speak to this as I am one of those people. I am not the typical person you hear from on here who does the BRRR. I sold a business and took that money and bought houses back around 2011 and a few years ago 1031'd those into small multi unit properties with big value add that we have completed and out portfolio value has grown significantly. We are actively looking for good new value add opportunities. I thought I had found one last month but during inspections we found major foundation issues and canceled. During this deal we were working on financing. We don't have a huge cash pile, but we own most of our RE free and clear. Our way to buy the property at the lowest rate was to finance the property that we were buying at only a 50% LTV and do a 50% LTV loan on another property. With such low LTV loans we get a very good rate. We were going to buy the new property with 105% debt this way. After 60 days it was still going to cash flow positive. For us, even with doing something like this it would still leave us with a super low LTV for our portfolio (below 15%). For us this is how we plan to finance those deals that we find that are great deals. I expect more great deals to be coming up and I want to able to have a way to do them. We will not be like many you hear on here that are leveraging everything up at 80% plus. For us we want to stop at around 30% LTV. We like the safety and security and less work of the smaller portfolio with low risk. It makes sleeping at night no problem.

Post: Having Trouble Filling a Strip Mall Vacancy

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100

@Account Closed Your space is a nicer one that would typically be leased out by agents in the typical way. However since you are having zero luck then I am going to recommend older centers that are typically run by mom and pop owners techniques. I manage and lease some properties like that. Throw a couple of craigslist ads out there. Also a new one that has worked for us but requires more work is facebook marketplace ads. With these ads you will need to make sure that you are explaining leases better as you will be dealing with people that often do not have as much experience. You will also get a lot of people who want 1-2 year leases (which I am sure you don't want that short term of a lease). I have just had to lease out some small office spaces and I put an ad out on Loopnet, craigslist, and FB marketplace. These are spaces that go for around $1,000/mth modified gross and not as nice as your property, but still a nice small office building. The first of the 3 spaces I got leased thru the craigslist ad to a multi million dollar company. Typically this was my main way to get spaces leased, but this time it did not provide many leads. I got a ton of inquiries thru FB Marketplace. Only about 1/4 of those inquiries ever responded back to me. However I leased out the other two spaces thru these ads. The Loopnet ad provided 3 email leads and none of them every responded back to me after I replied to them. I got three spaces leased in less than 60 days.

This was my first time really trying the FB Marketplace ad, but it worked. You have to realize that there are lots of small mom and pop businesses out there that don't have a clue what Loopnet is. They drive around looking for a place and they look where they look to buy other things which is FB Marketplace. Big companies know to contact a commercial broker but not all mom and pop businesses do. The other thing is to make your sign on the street be very noticeable and very obvious that you have a space available. Most broker street signs just say available and stay up even when nothing is available so after calling on a few where that property is full they stop calling on them. Put a large and clear sign up that states how many sq ft the space you have available is. Something so they know it isn't just a generic sign. Perhaps even a feather flag.

These ideas may be the opposite of what any commercial broker would be willing to do, and will probably look down on them, however you have not had any success with their typical ways so give them a try. 

It is not unusual for large corporate tenants to have a re agent negotiate their lease renewals and that agent expects to get paid a commission. If you have a property management company handling your property they will also typically charge you a lease renewal fee when renewing existing tenants. I agree with @Nathan Gesner   You have had it good. You have what seems to be a golden goose tenant. Unless they are asking for a commission amount that is out of the ordinary just pay it and get the lease signed before something changes.   

Post: New Investor in USA question

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100

@Julien Payne First off why are you wanting to invest in the US instead of continuing to invest where you are? Going overseas to invest can add a whole new level of complication and expenses to your investments. I know zero about investing in Europe and I can guess that there could be many reasons why. The purpose of my question is to make you think about the question as well as my own curiosity.

Quote from @Mitch Messer:

Hey @Brian Kloft, I use HubSpot, it is FREE, and it does all of the things you mentioned needing in your email.

You can set up your account and be loading data into your Contacts database, all well within the next few minutes.

I recommend you start there!

"Done" is the new "perfect!"


 Thanks, I have started using Podio, based on some recommendations from others. Most all programs seem to be overkill for what I want to do. My biggest problem seems to be the learning curve to get any of them set up the way I want them. 

Post: Tenant wants to move her adult son into the home. What should I do?

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100

You need to be very careful of federal housing laws. If the adults are able to pass the application process then you might not be able to say no without causing problems. Your current renters already meet the requirements for income to cover the rent. If the total number of people doesn't exceed 2 per bedroom then you could be treading on shaky ground legally. You have a 3 bedroom and if they wanted more than 6 people in there, no matter how young, then you would be fine denying. 

Also be careful about asking for extra rent because of more adults. If when you were renting the place in the beginning if a family of 5 came to rent it vs a family of 3, would you have charged them more money because they were 5 people? Would it be legal to do so? If no than I doubt it would be legal now. 

Make sure to run applications on any new adult. Also remember that no credit score typically can not be held against someone as it can be a sign of a form of discrimination, depending on the reason.

This is one where you should ask a legal expert if you risk violating any fair housing laws by doing this. 

Post: What is the best way to invest in 2024 for a newbie?

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100
Quote from @Elda Asheley:

Hi, I’ve been researching and contemplating on which area of real estate I should invest in. I came to realize that I am missing professional/ seasoned advice. I would like to know what is the best way to invest right now for a newbie in 2024? 


 There is no one best way to invest in RE. It is more of what fits you and your personality and what gets you excited. With that said, for someone young and just starting out, needing to figure out all of those items; my go to answer is some form of a house hack. That can be renting out rooms in a house to buying a 2,3, or 4plex and living in one of the units while renting the others out. The loans on a house hack are going to be some of the most favorable ones you can get since it is considered an owner occupied plus you should be able to get a first time buyer bonus of some sort. 

Post: Tips for a 19 y/o graduating college in the spring, wanting to invest by summer 2025

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100

Sounds like you are ahead of the curve. My only potential caution is do you know what you will be doing when you graduate in the spring. More specifically where you will be doing it? My daughter graduated 1.5 years ago and when she graduated she was not sure where she was going to land. She got a great job but it wasn't permanent but it was the launching pad for the job that she now has in a different city (4 hours away). If you are currently in a large city and plan to stay there then you have more options, but if you are not sure where you are going to land then you might want to get ready and be prepared but wait until you get settled into that first good job so you don't need to move out of your new triplex 6 months in. My advise would be to get into that first job and give it a few months to make sure that you like it and are happy enough that you know you will want to stay for a couple of years. That way you don't buy a triplex and decide you hate the company you work for and you get a new job an hour away and have that long commute. Being patient 2-3 months could save you a lot of hassle, money and time. Keep doing the research from now until you buy and keep saving up that money to be ready to pull that trigger. Don't let that time table of summer 2025 make you take a deal that is not the right one for you. If it ends up being the end of 2025 you will still be doing great. 

Post: My rental won't rent. What are my next steps?

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100
Quote from @Ruben VanDusen:
Quote from @Brian Kloft:
Quote from @Melissa Faraias:
Quote from @Mike Dumont:

I used to require completed applications (free) to do showings so as to not waste my time.   As things moved slower and maybe missed out on some good tenants not wanting to participate in that process. Now I do showings with a modest phone call - text - pre-qualification (make sure they read your ad - big problem today).  By removing barriers to entry you may get more leads  consequently you will also waste more of your or your teams time.  One other tip is to let your listings expire and re-list that makes them not appear as 'aged and stale' - power users will check history and notice but you may get the attention of some and those that have recently setup alerts.  


I have noticed that once I send prospective tenants a link to fill out my pre qualification form on RentRedi, they just disappear. So then I started texting them the pre qualification criteria and just asking them if they qualify and then agreeing to show the unit. Now I am not sending them the pre qualification criteria and trying to just get them to come see the unit. I will let ethe listing expire and list again. Thank you for your input. 


 I do not send people a link to fill out any application before looking at the unit. I do typically ask them up front what their household income is to make sure it will qualify as well as how long of a lease they want to do so as not to waste time with people that don't make enough or only want a 6 month lease. Pre filling out an app pushes people away. First they don't know if they want your place as they have not seen it. Second the are going to assume that it will cost them, even if you tell them it is free, and a lot of them have spent hundreds of dollars on app fees. Also there are plenty of rent scammers out there saying they have a rental and collecting app fees on a ghost house and sometimes even getting a deposit. There are also apartment buildings that collect app fees and show a show unit even though they don't have a unit to rent. 

Sounds like you got a few more hits this week. Assuming that the property looks good then it sounds like lowering it $100 should get the trick done. When you do that change all of your ad titles to note in BOLD at the beginning something like REDUCED PRICE or $100 OFF/MTH END OF SUMMER SALE.


 Loved* That Response.

     What do you suggest to close the deal?


 If the potential tenant dd not like the property then follow up may not be needed, if it is an objection that you can not overcome. ie they need more bedrooms or they don't like something close to the place. If they didn't give you a firm reason as to why they didn't want to rent then it could have been price. If you are dropping the price then it is worth following up on. A quick follow up text or message doesn't take long and when you drop the price you can let everyone know that you dropped it and you might get a taker or two.

About the only thing that I use to close a deal is offer them free move in early time. Say they want a Sept 1st move in, then I would let them move in a week or two before the first at no cost, as long as they sign the lease and pay the sec dep and Sept rent prior to getting keys.

Otherwise just ask what it would take to get them to move forward and you might just get an answer.

Post: What's The Point

Brian KloftPosted
  • Investor
  • Arizona & Oregon Coast
  • Posts 120
  • Votes 100
Quote from @Ruben VanDusen:
Quote from @Brian Kloft:

I understand the sentiment. There are times when I think the person asking the question just shouldn't be in real estate. It is not for everyone. Also there are times when I see the question and I think, has that person not done any research or listened to any podcasts about RE investing. However there are plenty of great questions that people on here ask and need advise on.

As someone that considers themselves a seasoned investor, there are many reasons I am on here, even if I am a more newbie on here:

- I am here to connect with others. I have already made a few good connections.

- I enjoy helping others that are starting out. I think most successful business people have no problem talking to those wanting to learn and take action. Some people have the idea that a successful business person doesn't want to take their time helping newcomers who might be after part of their business, but I think the only people they don't want to help are those that will never actually take action as that is a waste of time.

- There are times where I want to ask questions.

- No matter how seasoned of an investor you are there will always be something that comes up that you have never dealt with before. 

- It is just plain good to always be listening to other ideas that are different to your own. There are multiple ways to make money in RE and I like to hear the other ideas as it gets my brain turning and makes me think in different ways. Almost 4 years ago I made a shift in my RE portfolio that made a big impact on my income and total net. Since then I started listening to RE podcasts and more recently this forum. If I had started this earlier, instead of staying in my own little bubble, I might have made that shift earlier and had an even bigger impact on my numbers. 

Loved*There are times when I think the person asking the question just shouldn't be in real estate.

     How else are people supposed to learn if they don't ask the community for help?


 It isn't that they shouldn't ask the question. Sometimes it is that what they are asking to do shows that they perhaps shouldn't be in real estate. For example, someone didn't like that one of his tenants had some people over the celebrate their 40th birthday. They were so worried about liability of the people coming over that they were talking about kicking the tenant out because they didn't get their approval for it. This was either a single family house rental or a duplex. RE has risk and you can't hold onto it that tight. You need to let your tenants do normal life things in the place they are renting. You can't eliminate all risk from owning RE and if that is what you are trying to do then you should invest in something where someone can't sue you like stocks or bonds.