All Forum Posts by: Charles Carillo

@Carlo Torres

Yes, you are correct that population and growth is expanding in the South and West. We have some properties in Central CT but we have found that there is not as much appreciation as we are achieving in the southeast.

@Eric Creager

Here are some books I like:

Multifamily Millions by Dave Lindahl

The ABCs of Real Estate Investing by Ken McElroy

The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

Commercial Real Estate Investing by Dolf De Roos

Trump: The Best Real Estate Advice I Ever Received by Donald Trump

Tax Free Wealth by Tom Wheelwright

Commercial Real Estate 101: How Small Investors Can Get Started and Make It Big by David Lindahl

Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money by Matt Faircloth

The Definitive Guide to Apartment Marketing by Josh Grillo

Investing in Apartment Building by Matthew Martinez

Crushing It in Apartments and Commercial Real Estate by Brian H Murray

The 7 Secrets to Successful Apartment Leasing by Eric Cumley

2 Years to a Million in Real Estate by Matthew Martinez

Burn Zones: Playing Life’s Bad Hands by Jorge Newbery

Commercial Mortgages 101: Everything You Need to Know to Create a Winning Loan Request by Michael Reinhard

It’s a Whole New Business!: The how-to book of syndicated investment real estate by Gene Trowbridge

@William Collins

We own some rental properties in New Britain. It sounds like the problems were you accepted credit card and didn't secure the unit after it was vacated. Our New Britain PM only accepts checks (until one bounces) and money orders. We do not accept cards of any type. If you did not have the card payment they would have been out earlier. When we self-managed we never offered an amount with cash for keys. Let the tenant suggest the amount and it was always lower than what we were willing to pay. The break in is bizarre and will most likely never happen again but the NB fire marshals are all over the place and you should always secure the exterior doors with self-closing 30+ minute fire doors to avoid people breaking along with the fact that fire marshals will walk your building if it is open without your consent....the joys of land lording in NB.

@Beth Matherne

We review all financials prior to walking a property however; with smaller multifamily there are usually a number of missing expenses that are never included in the financials so if you have knowledge of the area it will be very helpful in calculating the expenses once you take over. The main expenses; taxes, insurance, utilities and property management are easily calculated from the city's website, insurance broker and current rents.

Is the seller going to be your PM as well or is just the current PM? Normally you would walk the property with the seller's agent and the PM you are going to hire (2 separate people). This way you will get accurate feedback from your PM.

Ask if they own the laundry machines or if they have it contracted out. If they are contracted out, do they know when the contract expires?

@Shawn L.

Are there only $5k-$6k worth of repairs if you have owned it for 9+ years? Are you able to pay for the repairs out of your pocket or with credit (card)? What will the house sell for after the repairs are done? If you are keeping the house to rent, you will need to clean up the taxes or setup a payment plan with the city (if they allow it). If you are flipping it, you will be paying the property taxes at closing from your proceeds. If I was going to sell the house now, I would scrap together the money to get it sale ready and sell it; using the proceeds to cover the taxes. If you do not have the money, you can wholesale it to another flipper for them to finish it. You would need to pay taxes when you sell it.

@Stacey Conte

First, I would suggest contacting local banks and credit unions to see if they lend on the properties you are targeting and setup face to face meetings. Secondly, I would put together your finances so you are ready to apply when you have a property. Create a financial statement, REO schedule, resume and check your credit. This will look very professional in the eyes of the loan originator.

@Antwone Austin

The cap rate is a good indicator if you are paying too much for the property as it is but, investors want to see the ability to add value. When a property has a value-add component, it will ensure that there is equity created quickly (12-36 months) which provides a cushion for the investors in case there is a slow down. You will need to show your investors a business plan that explains how you will add this value over the next few years.

Last year our team invested into a large complex in Phoenix with a current cap rate of about 5%. Now, we weren't getting a deal for the market but there was the ability to add $250+ per door, per month to current rents. There are 3-4 units renovated per month and the value is increased every time a renovated unit is leased.

@Walter Feeney

This is a normal situation we hear about on BP. I typically will tell people to pay off their student debt before investing. Student debt is not releasable by bankruptcy and will most likely follow a person until it is paid off. However, we are on BP and it is assumed we are more financially sophisticated. I personally purchased 2 rental properties before paying off my student debt and used that cash flow to payoff mine but there is certainly more risk. You now have another loan (a mortgage) and a property with tenants that you need to manage. If your property is not cash flowing, you might be out of pocket on 2 loans. 

@David Grant

There is no requirement for having a LLC to purchase properties however; in most states it only costs a couple hundred dollars to form and the annual fees are usually minimal. The largest ongoing fee is your CPA's fee for annual taxes. I would strongly recommend this for any investor and especially for a group of investors. The LLC, when formed correctly, will spell out the roles for each member, ownership percentage etc. Currently it sounds like it is all word of mouth.

@Shahn Sattar

Contact all regional and local banks and credit unions within a 30-60 minute drive of the properties you are targeting. If they do loan on the properties you are looking at, setup a face to face meeting.