All Forum Posts by: Chiagozie Fawole

congrats on your purchases! All the best

thanks!

@Kurt Gardner @Account Closed in the commercial space, I think having entities is more of the norm. We didn't have any issues to that regard. The bank (the bank's lawyers, I should say) did request specific LLC documents in specific formats though.

@Raphael Thomas sure send them to me.

@Avi Garg I compared rates of managers in the area and ended up going with one recommended by someone on biggerpockets. 

@Moshe H. I haven't moved yet - still in Brooklyn. I'm about to find out :) 

@John Casmon I didn't take an acquisition or management fee on this deal. For the same reason that I dropped our equity portion. I think our equity in the deal is enough for now. On bigger purchases I likely will. 

@Michael Enriquez yes, we financed the rest of it.

@Account Closed I understand your question better now. 12% is not a stretch in Rochester. This property was purchased at a CAP rate of 11.5%. For other markets I'll adjust my criteria.

@Kurt Gardner great plan of action! I wish you all the best. @Michael Blank has a great website with helpful resources; as well as a podcast specific to multifamily investing. One book I found helpful, breaking it all down to nuts and bolts was "Wheelbarrow Profits" by Jake and Gino (I believe they're also on BiggerPockets)

@DL Martin the sellers disclosed they had some "issues" with the boiler last year, but the boiler works. I guess you can call it precautionary. We haven't changed it yet (just one week in). Hoping that goes well.

@Thomas D. I'm fine with growing our portfolio with investors. It creates a win-win for all of us :) and we can do more faster. We will build our "personal" portfolio when time, chance, funds and God permit; but for now partnering has provided a way 

thanks everyone 

@Denise Pauzano my investors were mostly friends/friends of friends/people from church. Whenever anyone came on board I asked if they knew anyone else who might be interested. 

@John Casmon we retained 16.6% equity (one-sixth, if that number seems random) and gave the investors a total equity of 83.3%. Each individual's portion of the 83.3% was then proportional to their contribution to the out of pocket costs. We were initially going to do 70/30, but when we got our interest rate from the bank we adjusted our equity to keep the investors' returns palatable. I manage the LLC and deal with the property manager, but we have voting rights for major decisions. Votes will be weighted based on equity. The plan is for monthly distributions of cash flow, with quarterly financial statements.

@Martin Grizzanti it's in Maplewood

As with investing anywhere, location and a proper analysis of cash flow potential .