All Forum Posts by: Dustin Beam

 Thanks Gino. Gaining a 3rd partner with a strong balance sheet like you describe may be the best option. I currently have a partner, which I am not trying to separate from, so I'm ok with partnerships. I just don't too many chefs in the kitchen. 

A some point, selling properties may start to make sense. We have refinanced all our money out of the smaller deals, so we will need to wait a bit for some equity gain. 

Also, thanks for doing your podcast. I've listened to many of them and they have helped me along the way. 

 That's more or less the path I'm on except I have a partner. I'd just like to accelerate the process a little more, and capital is currently my biggest hurdle. Seems like most people in my situation move on to syndication, but it's probably not for me. The answer to my question may very well be "just keep doing what has worked so far". 

 Hi Mark, I'm happy with my KC property manager, but I'd like to know which PM you like should something go wrong w/ my current PM. Mind sharing?

So quick back story, I started investing in 2016 (or was it 2015?) and things have gone well as it has for most people. I was able to quit my job in 2020. I should also mention that I have a partner for most of the property I own. 

Typically purchases were made through buying value add properties and refinancing the cash out and recycling the money. That should continue to work fine, but I'd like to throw a little gas on the fire. 

Problem is, I don't want to syndicate. It doesn't really fit in with my goals. Mainly my partner and I don't really want to sell. Also taking on too many partners could get messy. 

So with that in mind, any real way to accelerate growth? Or do I just keep doing what I'm doing? I've considered taking on "investors" as debt partners for down payments so long as the bank agrees and the dscr still works at full financing. Not sure how feasible that would be for all parties involved. Any thoughts are appreciated. 

Thanks! 

We ended up just going to a different bank. 

I wouldn't normally do this, but I think it's worth letting people know...but the original bank was Bank of the West with Joe Lally as our loan officer. We ended up just being willing to go with the lower appraised value and accepting the LTV of that value. But after paying for expensive appraisals, they came back and said they did not like our level of cash reserves and denied the loan. This was after they received ALL of our financials, so our cash reserves was well known. Furthermore, I asked Joe point blank 3-4 times that if our reserves were not enough, how much would we need to get approved. He hemmed and hawed every time. Basically is was a BS answer. I will never consider him or Bank of the West for future business. Sorry for the rant, but feel like it needs to be said!

So I got a couple full duplexes back in November where each unit is renting for around $1000/mo. Market rent for them is approximately $1500-1600 give or take. I made a plan with my PM to get the tenants through the holidays and have rent raised to about $1250. I asked the PM to let the tenants know about this in December so they could have time to plan and make a decision.

Fast forward to Feb 7th and I asked politely if the rents had been raised because online report looked like they had not. No response. I followed up a few days later (10th) in case the email got lost in the shuffle. No response. I texted yesterday, no response. 

Firing them has a couple problems. One, they manage 48 units of which I'm 50% owner, so firing them from my non-partnership properties could cause problems to my partnership properties. Not exactly fair to my partner when they are doing fine on those. Secondly, I used to self manage some of my property that I handed off to them Jan 1st. Tenants won't exactly like to go to another property manager already, so not real good for business in that regard either.

At the same time, I don't appreciate getting ghosted. 

Trying to make this a strictly business decision, but I won't lie that emotionally I'm bothered by what I consider blatant disrespect (when I've always been easy to work with).

WWBPD?

 I kind of figured, but never really thought about it. Uncle Sam always wants his slice haha

How does the IRS view trading? In other words, if you found a unique seller that would trade property for crypto, would the IRS come after any taxes?