All Forum Posts by: Chris Eaker

@Rachel Pivonka I hate this happened. I know this feeling when you want to stick it to the tenant, but you ultimately have had to just eat the cost and move on. Since there are only 8 of them, then you could try to make a case that she put them there, but you probably won't be successful. Ultimately, there is really no way of knowing if this person put those tampons down there. When you purchased the house and were renovating it, the quantity of water flowing down the drain was minimal compared to now when someone is living there, so they may have been there all along. I would probably go with the option of not paying for the hotel and not charging her for the repairs. On the bright side, now you have a brand new sewer line!

@Josh Koett I fail to see how any of the options you laid out will help you reach your goal. If your goal is to become financially free through multifamily real estate investing, then learn multifamily real estate investing and go buy a multifamily property. You day job is basically irrelevant. You won't have it for long if you start buying multifamily real estate.

Originally posted by @John Sherron:

Hey Chris, congrats on the 152-unit hope it all goes well! Thanks!

So when you consulted the management companies, was it strictly for the due diligence phase or were you planning to hire them to manage the units as well? I do plan to hire one of them.

If im only looking into smaller multifamily properties like duplexes, tri's, and quad's would it be neccessary to deal with a management company? If so, what sort of cost could I expect to add to my overall expenses? This all depends on if you want to self-manage. I don't recommend it. I have single-family rentals that I've self-managed over the last few years and I am looking to get out so I don't have to be an active manager anymore. I definitely recommend working it into your expenses. You'll pay one 10% of gross rents for the size properties you're looking at.

Are they good to go through for finding good deals? I have heard of people finding deals through property management companies.

How did you locate the 152-unit property and can I ask what steps you took once you located it? This deal was listed on Loopnet. As soon as it popped up, I called the broker and started getting information on it. I then analyzed it, which included speaking to property management companies familiar with the area and property, and submitted an offer.

Thanks alot Chris!

@John Sherron, property management companies will help you a ton if you're planning on hiring them. I have a 152-unit under contract in GA and I live in TN. I've been in discussions with 3 property management companies to conduct due diligence for me. I will decide which one to go with and then let them go. They'll conduct lease audits, contract reviews, physical inspections, resident interviews, etc., and send me back a report. They charge a fee per door, but if you hire them to manage the property, they waive it. 

@Justin Yocom I'm curious, is this the Greenway property you're referring to?

@Brian Murray thanks for your advice. I told the Broker that I rescind that request. I hope it doesn't mess up the process and make them think I will try to re-trade it again later and cancel it all now. I know it's highly discouraged to re-trade, but I didn't realize this was considered re-trading since we didn't even have a contract yet. I'll chalk it up to a newbie mistake.

@Tracey Williams From what I'm told, the lender (Freddie) will approve the property and the borrower. I have a partner who will be assuming the loan since I don't have experience yet with Freddie Mac loans. There is an assumption process just like a loan approval process and there is a 1% assumption fee.

@Brian Murray well that was a flop... the broker's response was "That ask is considered a "re-trade" to the Agreement we struck-and we are not even under contract yet. I'm certain that that request will be denied. Please tell me now if you intend to deviate from the T & C's of this deal. If so, then please do not proceed to contract." Oh well.

Thank you @Brian Murray for chiming in. I am going to try to negotiate that into the contract. Even a partial credit would help. I'll let you know how it goes.

@Scott S. thanks for the heads up about Brian's book. I have it on Kindle. Is the part you're referring to in Chapter 7? Can you help me narrow it down so I can locate it on my Kindle book? Thanks!