All Forum Posts by: David Wolber

@Arian Hoxha, Welcome!  Good morning!

I'm focused on SECT (Mystic, Groton, New London, Norwich) area, but there are so many of CT investors.  Especially if you get closer towards NY and Fairfield county (See @Kevin Hunter above haha )

A good friend and HS school mate of mine who does syndications in the Midwest told me his biggest regret was not scaling sooner.  

Good luck!  as @Filipe Pereira said, stick around, ask questions, network and most of all have fun!  If it's not fun, its not worth doing.

Cheers!!  

Good morning @Stian Jones !  Hoo-Yah!  

So, GENREALLY speaking, the words "Contractor" and "VA Home Loan" don't generally go together in the same sentence. The VA has some of the strictest inspection and approval requirements of all the funding agencies. Pealing paint and loose toilets are enough, let along anything you could use a contractor on. With that said, the VA does have a program similar to the HUD 203k Rehab Mortgage that could be an option; if you can find a lender doing them right now. I think I may now of AH lender.

Now I was assuming your contractor is doing major renovations. However, it could still pass with a 1950s kitchen as long as it's fully functional and then your contractor go in and modern up the place. All I'm saying, is its basically have to be 100% livable for VA to approve. And then of course that x4 for a 4-family. But then again, if people are living there currently then your halfway there.

How to find a contractor... isnt that fun!  I can pass on a few names if you'd like.  We also have a local investors group that @Mat O'Grady heads up that is a great resource of tried and true contractors.

You should always budget capital expenditures and maintenance into the proforma for any purchase.  Capital expenses are things like the roof, new windows, new mechanicals like boiler or air handler.  Aside from those big items that any home inspector would be able to give you an idea, and unforeseen structural issues, most other repairs inside a residential unit are relatively inexpensive if you are handy and get to the early.  Don't let a leaking toilet go so long it rots the subfloor, things like that.  Pro-active maintenance is the name of the game here.

OK, I think I've rambled enough for one morning.  Send me a message and lets connect.  I'd love to help you out!

Go Navy.

-Dave

Good morning @Joseph T. Williams and welcome to Groton.

I got stationed here in 2003 and I've never left. (Sub Nuke) I know the general idea in the Navy is that it's a terrible place, "Rotten Groton" but it's really not. New England has a ton to offer.  Sure it's not as nice a SC or almost anywhere on the West coast, but keep an open mind and it'll grow on you.

@Filipe Pereira has some great points about snow removal. If you are buying a large multi and depending on the setup, you may have a commercial dumpster to pay for, or common area cleaning. I will disagree with him on one point though.  Since natural gas is only in a few locations in the Groton - New London area, tenants don't really have a negative reaction to the lack of it. Ha! in fact, I have had a few tenants shy away from a unit with gas...scares them I guess. Too many action movies is my guess.

When doing the analysis, I recommend that you don't compare tax rates with other locations, it will give you a false sense of proportion.  You will think the taxes are outrageous and may cause panic.  Perhaps our taxes are high, but are rents are generally higher as well to compensate.    Also, even though you are house hacking, run the numbers like you are not and make sure you add a percentage for property management.  Down the road you will want to hire someone and you still want the numbers to work.

A lot of our properties around here ae converted SFHs, so be prepared for that.  They are also old so take that into consideration when looking. And when you are looking, look fast.  Properties that are priced right are moving in 3 days or less right now with multiple offers.  I'm sure you've noticed this as you've been searching for properties.

Let me know if I can be of any help to you locally while you look.

Good luck!

-Dave

Hi @Margarita Reyes

If you are collecting Realtor fees AND looking to get wholesale income, that's a slippery slope.  I respect the hustle for sure, but as @Filipe Pereira said, Realtors are held to a high ethical standard.  If you try and double dip your getting into an ethical grey area that in MY OPINION I wouldn't want to be in.

As a PM, Realtor and Investor as well I find myself in this situation often as well.  I'm in it for the long game so my primary desire is the PM account.  If I can represent one side or the other (OR BOTH!!!) as a Realtor, than that's a bonus.  

I would be surprised to find a deal at this time that you can pull both a finders fee and Realtor fee and still be a great investment for the investor.

-Dave

@Jaysen Medhurst

@Richard Arden

hahaha I manage several properties that received your letters!!  I respect the hustle.  We should chat as I have a few recommendations for improvements and I am a buyer and have several others actively looking for multis.  I'm glad to hear you received responses.

talk soon.

-Dave

@Filipe Pereira what a great break down! You forgot about the 60% no-show rate though!  Ugh!

 My company, also based in CT, does charge them.  However, as many said, it's part of a bigger fee structure.  We are trying out a progressive leasing fee schedule where we charge very little to place a tenant in comparison to many, but charge renewal fees that eventually grow over the next 5 years to 50% month's rent for life of tenant occupancy. This is as long as the same tenant re-ups.  If they leave, it starts over.

The idea is to remove the PM's ability to chase away tenants to pad their income.  Since I started my company as an investor first and PM second I tried to do everything as I would want.  I wanted the PM company and investors interests to align.  We therefore don't get compensated until about year 5 for the work it takes to place a tenant. However if we're doing our job and the tenant is happy they'll hopefully stay for many years.  At this point, we as the PM start making out a bit better. I've got quite a bit of literature to explain in to my clients, but once they see how it works, it's been received quite well.

I also re-create a new lease each time because I think it's cleaner over an addendum. I'm beyond particular about my paperwork.  HAHA

Who knows, perhaps once I get larger I'll find out why everyone does it one way or another, but so far it seems to be working.

WOW.

Fun times! Well that is probably why there is a huge shortage of inventory right now and crazy bidding wars. Each property my clients have put in offers on have had 6+ over asking offers in under 48 hrs. That's everything from SFH owner occupied to 6+ apartment buildings. Absolutely NUTS right now.

 At what point will it be no longer within their right do you think?  As you and I well know, if a Tenant knows they've got a good thing going and fear getting told to leave they will do everything they can to stall the sale.

@Filipe Pereira I've been showing properties and walking through with a ton of clients these last few months all though all phases of all this.  It hasn't been terrible at all.  In fact, it hasn't slowed much of anyone.  Most are doing two showings, once of common and vacant units, and 2nd showings for occupied units.  This reduces the number of people going through the occupied units.  I'd say, however, most of the tenants i've been dealing with pretty much didn't really care too much about it at all.  A few had elder parents that all they did was make sure they were gone at the time of the showing.  I don't think you'll have any issues.

Good luck!