All Forum Posts by: Charles Carillo

D areas are VERY management intensive. Daily management is required and there is a ton of turnover, tons of make ready and many tenants that change their phone number, apartment and roommates like we change our socks. It takes a very "special" investor/manager for a D property. Your property will not appreciate much but it will/should cash flow nicely. 

Hi Amanda,

Real estate brokers will know the area really well. Local real estate meetups are also a great place to speak to people knowledgeable of your market. Make sure to also setup Google Alerts for your market. This will let you know of any new articles that are about your area.

Hi Jeremiah,

Partnering is the best solution. There are a number of real estate "investors" that want to invest but will never pull the trigger on a property. If you handle the whole project, they could easily co-sign with you. You will need to create a LLC together and I would suggest having an attorney do that along with an in-depth operating agreement that covered EVERY possible issue along with what everyone's role is.

Don't over leverage properties, arrange long-term fixed rate debt and make sure to keep adequate cash reserves.

Hi, 

One portfolio we have is 11 units and we pay 6% for management with no renewal fees and just $250 for new rentals, however; this is not normal. I would pencil 10% into your numbers with the hopes of getting it at 8%. If you plan on buying more in this area in the future, ask if there is a sliding scale on fees. For example, our other management company gave us 7% to start and it scales to 6% at 40 units and possibly lower over 100 units.

Hi @Candido Trinidad, I would highly suggest contacting all credit unions and regional banks in your area and asking them if they will lend on the type of property you are looking at. Then go and meet the loan officers and create a relationship with them. Not all commercial financing is the same and if the institution knows the area, they are most likely to lend there (also no broker fees). This is a relationship business.

@David McCauley how big of a property are you looking at purchasing? What type of financing are you planning on using?

Find an independent insurance agency in your state. They will be able to run your property through 20+ companies. It is also easy for you and them to check every year and verify it is the lowest premium.

Hi,

Here are a list of great real estate books:

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

Best Ever Apartment Syndication Book by Joe Fairless

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

Hi William,

I would suggest joining your local REA meeting and attending any live events in your area. You can network with other investors there. YouTube has a ton of good real estate podcasts as well. It might also be a good idea to partner with an experienced investor on your first few deals.