All Forum Posts by: Gino Barbaro

@Dave Rav

Thanks! I've learned the hard way

Smart men learn from their mistakes

Wise men learn from others mistakes 

@Penny Wilkinson

If there are no comps, then I would try to ask community banks what they would be able to lend on it. You could try to value it with the income approach, with NOI & DSCR, but that usually isn't done with smaller multifamily.

You're going to have to extrapolate out farther and see where other smaller multifamilies have traded. Rents may be high, but where are taxes and insurance. And how much deferred maintenance does the property have? 

A lot of times it is pulling value from thin air. It comes down to supply and demand. Prices have been crazy because there was so much demand. Now that demand is cooling, values are dropping. You may have an advantage since there is very low deal volume in your area, and may have multiple bidders.

Good luck

Gino

@Ram Gonzales
not liking the year. Find out the median income of the neighborhood not the city

The age is why you need to offer what you're offering 

@Avery Robertson

Is your partner charging a mgmt fee? Are you getting all of your capital back first, or is it going to be split 50/50? The same with a refi.Do you get your capital back and then it gets split 50/50.

Gino

@Jay Hinrichs

I read somewhere that Austin's rents are going to drop in the short term. Too much overbuilding, but once it gets absorbed, should rebound. An I agree with you, it's about jb growth, population growth and employers moving into a market, all of which is happening in Texas, and many parts of the Southeast

Gino

@Ray Hage

$6,000 per month? What are they offering for $72,000 per year? 

@Ram Gonzales

What is the age of the property? And what is the median income of the area? I would build in a mgmt fee even if you manage, banks will want to see that. Also a fee for garbage, accounting/legal fees, repairs and maintenance. I think the expenses are light.

If you want to achieve market rents, no central air is going to be an issue. It's odd they have washer dryer hook ups but no central air.

I think your price is reasonable, especially with the cap ex you're going to have to do.

I don't know about owner/occupied status. That would be a nice bonus.

Good Luck

Gino

@Yoana Yordanova

Vacant for one month, maybe two, possibly three months would you being unreasonable. hey should have at least come up with some suggestions.

I would have zero confidence with them at this point. Please find someone to replace them

Gino

@Mario Casarez

In my opinion, you would join a group like this to get access to their community of members, and they shouldn't only be educating, but helping you implement what you're learning, which can be challenging when you're watching videos, but unsure of what the next step is.

They should also have a vast network of resources, docs, vendors, that you can leverage. And I think, most importantly, they should be used to hold you accountable to complete the work and set up a plan for you to follow. Free rarely works because there is nothing for a person to lose, and most don't act on free advice. I know, from decades of experience, my own, and from others.

@Don Konipol

thanks for sharing. I've read several older real estate books, and it seems as if a lot hasn't changed. Even though pricing was a lot less expensive back then, you hear the same objection as you do today:

Where do I get the money for the downpayment? I think it was a lot harder for newer investors to get into the business back then. Nowadays, the internet has made it easier to network, reach a larger audience, underwrite deals, research a market, and have access to education.