All Forum Posts by: Chase Gochnauer

I would think that even with that list, you'd have to weed through a LOT of BS. I couldn't imagine how many people across Des Moines get their water shut off each week but still live there.

I third the tiling. What you're proposing(re-sloping the floor) would not be a cheap fix either, however tiling would be a more permanent solution. It would prevent any water from even running on the floor. It would run in a channel along the bottom of the wall and empty into the sump.

Hello all,

Over the last few years I've acquired 168 residential units. This is a combination of small SFH/duplex as well as some larger complexes. I also have a 14k SF commercial property I've acquired. Lastly, I'm doing a residential land development. All of this is in addition to my primary business in which I have about 15 employees currently. I use a PM for my residential units, they do a solid job, however, there is still some "screws that need tightened" in regards to occupancy and maintenance costs.

I am looking at hiring my first W-2 position for this business. 

I am looking for someone that can:
- Manage the manager. Create budgets for properties and work with the PM to make sure targets are being hit
- Strategy behind maintenance. Potentially negotiate better rates with different trades due to our volume
- Work on larger capital projects at some units, as well as strategy on remodeling units such as certain types of materials, etc
- Help network/find/analyze potential acquisitions
- Manage rehabs of properties that are recently acquired before they're put into service
- Produce reports on performance of properties that can be shared with future investors

Have any of you out there hit this stage that could provide some guidance on how you have continued growing once you've hit this stage? I am in a position to acquire more units, I am just apprehensive until I get some additional help. 

Thanks

Chase

I know this CPA is a family friend but based on what he said in regards to 1031s, I would recommend finding another one that specializes in real estate. You may think he's doing a great job, but that is from your current point of view, not having a better CPA to compare him against.

Hello all,

I have a lot of loans that are 3 years into their 5 year fixed period. I am looking at refinancing them and my banker provided me details on a rate swap, "Assumable Rate Conversion". I'm trying to educate myself on these loans to determine if it is something I want to do.

I can get a 5.36% rate for 20 year fix and 20 year amortization. The initial hedge rate is 2.82% and the loan spread is 2.5%. The loan amount would be a minimum of $1.3m, all of the way up to $3-$4m depending on how many I refinance.

There are prepayment penalties or gains based on the interest rate changes. 

It seems like a no-brainer if I chose to hold for a long time. However, if rates decreased, I'd be in a predicament where it would be quite expensive to refinance. 

Have others went with this type of loan, what are your thoughts on it?

I echo the others. It sounds like you're being played by the tenant, not Cozy. I've used Cozy for a couple of years with no problems. It sounds like the tenant is scheduling the payment and then changing it.

I would think that if this guy is paying capital gains tax on the sale, he's an investor. If he's an investor, then #1, he's probably saavy enough to know to put in some sort of pre-payment penalty. #2, your assumption that this will "sweeten the pot" for him is flawed. 10% interest is really not that great of a return for an investor. 

And to reiterate what others have said, it's misleading, and damaging your name/reputation over an extra 10-15k margin doesn't make sense.

I had a seller sell to me at an extremely low interest rate to incentivize me to hold the contract to save him on capital gains. I'd do the reverse and offer him $100k with a 2% interest rate. That saves you about $3500/yr in interest, over 3 years it saves you $10k. That gets you to your $90k price. He defers capital gains. Win/win.

@Shawn Gor I completely agree that it would not normally be the tenant responsibility. But i find it odd he waited until the move out inspection to tell the landlord that the AC wasn't working?

@James Orr You are mistaken as part of that payment is principal paydown. Re run your numbers only using the interest savings per month. If you have a 5% loan then you aren't saving more than 5% on your money.

@Mike Verna Sure. I got a loan through Aruba Bank. Closing was about 3 months which seemed standard for here. It's 40% down plus approximately 9-10% in closing fees. Interest rate is 7% which is high. 25 year amort. Our house was $625k but is a nice 4bed/4bath home with a pool. Approximately 9 years old. It's about 10-15 min walking to beach or a few minutes. You can see a glimpse of the wind surfers and ocean by the Ritz from the balcony. Feel free to ask any other questions.