All Forum Posts by: Charles Carillo

@Kenny Bao

Typically, larger properties are sourced through brokers. However, I do know 2 investors who have purchased 70+ unit properties via seller outreach, but it takes time. Repeated outreach to the seller and building rapport. Many investors opt for building broker relationships when buying 100+ unit properties, but it also takes time to build a relationship with the broker. 

If you go the direct-to-owner route, commit to doing consistent outreach for at least a year or, better yet, at least 2 years. When I began direct-to-owner marketing for multifamily (12-40 units), I realized it usually takes many months and touchpoints to build rapport with most sellers where they are willing to really open up about their property and financials. 

@Vijay Singh Sambasivam

I would suggest speaking to local banks, and credit unions. Whenever I am having an issue with financing, I normally reach out to local institutions. They are much more reasonable and are more intertwined in a community than some lender states away. The credit committee is usually made up of local people who are familiar with the market they are in. Lastly, they like building relationships. Once you find a lender that finances properties similar to yours, start building a relationship.

@Jay Chung

I would have a handyman frame out a simple wall, 2x4s, and drywall.

Years back, we did something similar in a garage we rented out. We subdivided the bays, and I believe we used plywood instead of drywall, but it was a garage. It was rather inexpensive, and we never had any issues with the tenants.

@Jordan Laney

Would I change PMs over a mistake of $250? It would depend on my entire experience with them. If this is a rare mistake or if this type of mistake regularly occurs. The PM should really cover the $250 mistake, but I would base my decision on my entire experience with them. I have kept managers after mistakes, but they were solid managers who rarely made them. 

@Reyna Ayala

I personally feel this is overkill. When I began real estate investing, I would have one operating checking account per property. Rent goes into this account, and expenses are paid out. I also had one savings account that I used for my reserve fund for all of my properties. I would add to this account every month, allowing me to pull from it whenever there was a large repair or capex event. 

Most of what you listed above are expenses. Typically, if you have a mortgage, the mortgage company will collect taxes and insurance when you pay,  so there is not really any budgeting required for this. Pay your utilities out of this account, and after the month has ended, you can distribute your cash flow from this account to your reserve account and your personal checking account. Or you can just put it all into the reserve account, growing that to buy your next property and/or for future capex or vacancy/unit make-ready expenses.

@Kyle Trotman

I would suggest speaking to local banks, and credit unions. Whenever I am having an issue with financing, I normally reach out to local institutions. They are much more reasonable and are more intertwined in a community than some lender states away. The credit committee is usually made up of local people who are familiar with the market they are in. Lastly, they like building relationships. Once you find a lender that finances properties similar to yours, start building a relationship.

@Zach Howard

We have partners who are foreign investors. DM me, and I will send you contacts for attorneys, lenders, and accountants they have previously used. It is important that you hire professionals who have experience working with foreign investors.

@Oliver Oden

If they are not owners, there shouldn't be any tax consequences. As I understand it, there might be tax consequences when the property owners differ from the LLC owners. I would definitely ask your accountant before making any changes or opening an LLC.

@Scott Gorham

Some of the strategies for buying a property if the original mortgage stays in the seller's name would be subject-to or a wraparound mortgage. If you are assuming the property, you are actually putting the mortgage in your name, and you would need to qualify for the mortgage with the lender. The second part of it is paying the owner their equity. You could see if they were interested in holding a second mortgage on the property for their equity, but you need to check this with the first lender beforehand. Many sellers will not accept this since they are in second position, and it is very risky since if you default (higher probability for investors with no money and/or no skin in the game), they will most likely be wiped out during a foreclosure.

@Carlos Rodriguez

We have partners who are foreign investors. DM me, and I will send you contacts for attorneys, lenders, and accountants they have previously used. It is important that you hire professionals who have experience working with foreign investors.