All Forum Posts by: Dan Goeckel

Also, how would you set up a partnership, legalities? I have a buddy and he lives in another state. He would invest with us and vice versa depending upon location.

Are there experienced owners of store and lock facilities on BiggerPockets that could help my wife and I understand what is a good deal? I understand price point and if there is "meat left on the bone" in the area but we would like to understand how it would relate to the price you would pay to make it "worth it". IE: If a facility is for sale and say a 10'x20' unit leases for $85 and a similar facility down the road leases for $110, that's good and so is if it is under leased, but what else should we look for? Should we be on site, hire, cap rates, CoC....

Thank you in advance for your input and advice!

Dan

First and foremost, get your finances in order. Understand where every dollar you bring in is going and what you need to do to get to the next step after that. Run a budget for your house, reduce your debts, build up your cash,  while you are learning. Next, if possible house hacking (buy a duplex, live in one half rent out the other) is the next best place to start...if you aren't already. 

We kinda taught our oldest the ropes and she is working her tail off right now to build capital to invest in one when she goes away to school. She just graduated and was slated to do online Community College for a year to finish her associates then moving on to a traditional school. So currently she she is working a W2 and started her own side “gig” to build up capital to do the same thing. In the next year we are going to start taking her to our units, letting her do some observing of in person interviews and some of the grunt work to understand what it truly takes and what to look for. Then hopefully it is on her own. As Emily said Daniel, it is a ridiculously hot market and boots on the ground would be a huge advantage.

Brittney, I did not read what it was in reference to, certainly frustrating. Cooler heads prevail, hopefully the landlord relaxes a little. Have a great day.

@Brittney Cain

If they have done anything unlawful, yes, in MI. I would assume the same still applies in PA. Or if they are “disturbing the peace”. You can go to your local police station and get a no trespassing order and have it served to the person, if you know their name or anything else about them, car, residence...so the police can find them and serve the document.

My wife and I did this for a guy coming and going all times of the day and night, hmmm, and had tenants complaint about the smell of pot when he was there. We knew his name and the local police department did too. So they served it within a week and all noise and problems gone since April...for now.

We are in Lansing, MI. The market has been ridiculously hot. When this started happening the word caution came to mind, not stop, but caution. We have (3) four unit buildings and all cash flow well and so we have spent the last 6 months building cash, with our third purchase in September and our first one 10 years ago. So, with that in mind we are excited to really roll on to our next one (much slower stack), until we recently drove out to see another four unit. I reference this four unit to the gentleman who said buy sight unseen. The price was great the cash flow looked good to great but when we went out and physically looked at the property...needed new roof, siding repaired or possibly replaced, scrap metal everywhere and a hand full of other small items, plus area rents were lower than what this place was getting and the buildings around were nothing to write home about. So no appreciation, no upward mobility in rent, cash to get the property up to”snuff”, respectable and we would have sucked a good portion, half, of our reserves down getting it there. There is something to be said for getting in the game but there is more to be said for being patient. There will be opportunities but you have to do the due diligence and be responsible with what you have been given and worked so hard to get. Young guys and ladies don’t quit and do get in, but don’t be a “ball of fire” and burn out fast. It is a long race of building lifetime wealth, not a get rich quick “scheme”. Take care of people first and they will take care of you.  

Just for reference we are a buy and hold, so our approach is obviously different, more conservative.

Keep moving forward!