All Forum Posts by: Daniel Urso

@Jay Hinrichs That's really funny but also pretty important.  I was actually listening to the podcast this morning and they brought up the fear that comes along with taking those calls.  I'm going to have to rehearse so I don't sound like a newbie.  Thanks for all of your input.

Thank you everybody who replied to this post, I appreciate the input and hope to make some progress in the coming months.

I follow you now @Jay Hinrichs.  It doesn't seem as saturated as I originally thought, there may be some hope yet.

@Mike Dymski It's kind of sad that somebody put in all that time and money just to throw it away.  I'm going to have to make sure to only mail out what I can manage.  Thanks for your input.

@Johann Jells You'd think that people would have some more sense instead of just blindly mailing out offers.

@Les Jean-Pierre Out of curiosity, do you deal in low rise apartments or smaller?  I wonder how the type of property affects saturation.

@Les Jean-Pierre That's pretty interesting to know, thanks for that advice.

@Jay Hinrichs That's 6-7 unique letters on average daily?  That's insane!  Are many of them repeat throughout the month, or do you get around 180 investors total trying to contact you each month for that property?  Thank you for your input, that cash buyer information is very interesting.

Thank you everybody for your input, it's appreciated.  I'm fairly new to posting, but I can see great value on this site.  Hopefully I can give back once I have a bit more experience.

Thanks for the replies.  I am just trying to get some data to get a feel of what it's like out there.

I like that idea a lot @Marcia Maynard, I think I'm going to start doing the same.  Good luck with that guy.

@Michele Fischer Thanks for that information, how many people try to reach you for that one property?

@Ray Lai I am going to start attending them.  I'm actually getting my sales licence in a month or so where that will come in handy.  I'd appreciate your offer, let me know if I can reciprocate somehow.

Hi everybody, I had a few questions for all landlords who received lead letters from other investors (yellow letters). How many investors contact you per month? Are you a local or out-of-state investor? Do you invest in a city or rural area? Thank you in advance for your answers, I'm interested in putting together a campaign and trying to figure out how much potential competition there is.

Thanks so much for your reply @Greg Scott.  The lost money is rent that they won't be earning due to units being unlivable.  I agree with your point and am reassessing my options.  There may still be an opportunity there, but it won't include being a minority control partner.

Hello BP community,

I am a long time listener of the podcast but a new poster.  I have a deal that I am going to possibly invest $100,000 into that I would like some advice on.  For the purpose of this analysis I'm going to use easy numbers that relate to the deal in question.

My friend and partner found a deal where the original owners of a 40 unit apartment building ran out of money for renovations and need capital in order to move forward.  Here is an example of how they purchased it two years ago:

Sale Price:  $1,000,000

Down Payment:  $300,000

Loan Amount:  $700,000

Over the past two years they have been renting it and realized that they could make 50% more rent income if they did a full renovation.  They ran out of money for the renovation and that's where myself and my partners come in.  They are looking for $200,000 which we are willing to provide as long as the numbers make sense.  I should mention that if they don't find an investor, they are going to be bleeding $20,000 a month from units which can't be rented because they already started the renovation process.

The original owners offered for us to purchase equity at the original appraised value of $1,000,000 which would give us 20% ownership.  We would be expected to split all costs (including the loan) which just doesn't seem to give us our fair share if we're going to be bailing them out of their predicament.  To be honest, even with the deal set up this way we're still looking at a 17% CoCRoI, but I don't think it makes sense that we don't get the advantage of the loan's leverage while still having to split the loan payments.

What percent equity would be fair for us to negotiate if we are assisting with the loan payment?  If we are expected to split the loan payment, should we become 2/5 partners (our $200,000 vs their $300,000 down) minus the equity built in from the loan pay down?  Remember that these owners are quite motivated as they will be losing a substantial amount of money MONTHLY if we don't help them with the renovation costs.  I have a feeling that they are going to counter by just stating that we don't have to be responsible for the loan anymore but stick to the 20% equity.  Would you guys take that counter, or should we lean more towards the <2/5 structure?

Any input would be greatly appreciated.  If anybody's been in a similar situation please chime in!  Also, what would you guys consider fair?  Are we being too greedy going for just under 40% equity?

Thank You

Hi,

I'm a first time poster who has been listening to the (amazing) podcasts and recently discovered the BiggerPockets library. I want to start investing in REO flips with my long time friend in the Hicksville, NY area. We are both hungry and motivated and hope to eventually do this long term and make it our primary source of income.

We are looking for a motivated buyer's agent in our area who focuses on investment properties who is looking for a long term client.  We are willing to put in the work to be successful, and hope to find somebody like-minded who is interested in the possibility of forming a long term partnership.

If you're interested please leave a message, I'd be happy to let you know more.