All Forum Posts by: Gino Barbaro

@Sharad Bagri

I would pick up the phone and call an attorney. If you are all going to be active in the business, then you can probably structure as a joint venture. I'm not an attorney, and I would contact @Kim Lisa Taylor with structuring. 

Avoid templates at all costs, especially with laying the foundation for your business. An attorney can create an operating agreement for you and give you ideas on what to include in your operating agreement.

Loans will probably be personally guaranteed, so it doesn't matter if it's in an LLC. LLCs are for asset protection, another phone call you should be having with an entity attorney.

Gino

@Mike Baxter

I would look into the meet ups in Knoxville. Richard Gamble hosts a large meetup in Knox. 

Good luck!

Gino

@Gabriel A Camacho

Before you go out and start investing, and even pick a niche, you need to build a foundation.  Make sure you have funds set aside for an emergency, if you have personal debt, try to eliminate as much as possible, understand what your personal balance sheet looks like in regards to monthly cash flow and net worth.

Investing in real estate is investing in a business, and you need to have a good understanding of your financial picture before you begin to buy a business.

I would then focus on what niche you want to start with.  Wholesaling is the easiest barrier to entry, then single family home investing, and commercial would be a bit harder.

Then, you need to look for mentors in your niche. If you can find someone to teach you for free, then you're going to have to provide some type of value for that person. Their time and experience is valuable, and most do want to help, but are busy like everyone else.

Starting out is the hardest, because weldon't lack motivation, we tend to lack clarity on what we are trying to accomplish. Why do you want to star investing in real estate, and what strategy will help you achieve your goals, two questions that will lead to more clarity

Gino

@Kristin Boekhoff

It depends upon the use of the common areas. I would make sure at least weekly they are cleaned. Pest control varies in each state,, but I would call other owners to see what they are doing. I would also call pest companies in your market to see what the schedule looks like.

Snow removal is on the landlord, and icing the walkways. If the laundry gets hot or cold, I would add ac/heat. Would you wanna be doing laundry while you're sweating?

I would have garbag cans at the curb or a dumpster pad, and have them responsible to throw their own garbage away, and keep the areas clean. Cameras are a good way to prevent others from using it. And I'm not sure what you mean about  discounts for leasing fees?  One month is  rather typical, and if they renew, they typically get a bonus for the renewal.

Gino

@Cory St. Esprit

I had a commercial building that I needed to add a third floor means of egress. I had to construct metal stairs to the third floor. Not a cheap solution, but a lot more aesthetically pleasing and safer than that picture.

Maybe some type of spiral staircase

Gino

@Shannon Mogilinski

Are you referring to the residential market? Rates dropped 50 basis points and the 10 yr shot up. I don't see rates dropping, especially if they can't control inflation, which was supposed to be under control, but appears not. And who knows what is in store with the jobs market.

It also depends upon the election and what policies are implemented.

I am hoping prices continue to drop in multifamily, and we see a pick up in activity. Investors thought they could extend their debt, but that doesn't appear to be the case with what has happened to rates.

This cycle would have been a disaster if our banking system was in the same situation as 08. 

Gino

@Jim Pfeifer

I think those of us that have made the mistake see the importance of a good sponsor, but also taking into consideration our investor goals.

Passive investors NEED to learn the business of investing in real estate, and have to approach it as if they would be managing the deal themselves actively.

That means there needs to be work done on the front end, like underwriting, selecting a market, understanding buy right criteria, etc.

You can't just focus on a good sponsor, and pray things work out.  

@Jose Ignacio Prieto

A lease is a contract between owner and renter. If there are 8 months left, not much you can do in the short term.

An investor can buy the deal, and wait until the lease expires, and send a non renew.

You can always offer one of the residents an incentive to leave, such as cash so you can have a vacant unit

Gino

@Evan Polaski

Great input. Fees, waterfall structure, is a huge alignment of interest piece. For those who are just starting ut and don't understand the business, they need a good sponsor driving the ship

Gino

@Hector Rosario

What was your epiphany to wanting to invest in real estate? You are approaching it the right way with creating a foundation, getting your finances in order and learning about the business

Good luck

Gino