All Forum Posts by: Geordy Rostad

Curious why you want an attorney to write offers for you instead of just paying a real estate broker a small fee to do this. Are you purchasing complex properties?

Typically, people hire an attorney to write up the first LLC and then they carefully look over how it's done and then they go replicate it themselves the next time. Not saying that's how you should do it but that's what I have typically seen.

I hired an attorney in Bellevue declare an LLC for me. It was $800. He also acts as my registered agent on that business for $100/yr. The most valuable thing I got from him was the lessons on how to not unintentionally sabotage the protections of the LLC.

Honestly, I'm not sure, but if you were to go down this route, I'd probably reach out to a real estate attorney first. They should be able to steer you in the right direction and point out some of the pitfalls of this strategy. (Yes, there are pitfalls for sure)

The process is called condominiumization. You have to bring the building up to certain standards and it has to meet certain requirements to do this. Then you have to write up bylaws and CC&R's. Probably doesn't require a rezone because the zoning is usually based on density.

Some buildings/properties this is feasible for, and some it's not.

Thanks Charlie! That was sort of what my approach was going to be. "Hey, I'm a dumb new guy trying to get into the business. What sort of rents can I expect in the area? Do you know of a good property manager?". I wasn't calling to ask them "Hey, what are your rents so I can use that to calculate how much to offer on your property."

As a real estate broker, I've NEVER cold called. Never needed to. I've just always worked my sphere and had enough business that way for my needs. Problem is that I don't really have many apartment owners in my sphere other than ones I have sold the apartments to. I found those deals for my buyers on the MLS or CBA but I've come to find out that most apartment deals are being put together off-market.

That's the thing that's driving me nuts here. The good deals are being procured from people who mostly are fed up with being barraged with calls and letters.

Have you considered just going for a 1/2 bath? The problem with trying to cram a full bath in there is that adding a bathroom to the room would be an attempt to make it a master bedroom but a master bedroom that is only 8.5'~ wide is really substandard.

Half bath will at least give you some value over nothing at all. Try a pocket door into the bedroom if you want to make even better use of the space.

In some areas you can search the city or county building permits online. You can see the contractors who are doing work in the area and start calling around. Alternatively, go to an investor meetup and ask some other investors.

Have you considered looking at a more remote area around where you are now? Hemut has some pretty affordable duplexes. That way you could still run out there if you needed to in a reasonable drive.

I'd suggest building your contact list with contractors and property managers though for any area you want invest in. 

Are the rents actual or pro-forma?

50% expenses seems sorta high at a glance but overestimating expenses is way better than coming up short.

Any chance to do RUBS? That could make a huge difference.

Owner finance the property for the period of time the tenant stays at an interest rate that will cashflow. Here's an example of a loan that could work:

30 year amort/2 year balloon

$675k purchase

10% down $67,500

2% interest

taxes $5k?

insurance $1k?

Payment $2,745

You should find yourself an insurance broker who can do all the legwork and shop all of those carriers for you.

Alternatively, knock on some neighbor's doors and ask them who they use to insure their homes. Also a good time to introduce yourself as an investor and leave your card.