All Forum Posts by: Gloria Riley

Hey BP! I am determined to (finally) purchase our first rental property in 2020. We've had analysis paralysis for way too long now. We have done some joint ventures in some real estate deals, but never done anything completely on our own (i.e. never had a mortgage). We don't own a home, we currently rent where we live. Question for lenders or others who have gone through this process:

If we want to buy a multifamily property, but we've never had a mortgage before, what exactly are banks looking for criteria wise when they approve you for a loan. Understanding that all banks have various credit score requirements and stuff like that. But I am curious if they generally care more about your income, your credit, if you had a mortgage before, etc.

Basically, where we are at is we are wondering if it's better to buy a single-family rental first (thinking that it will help us qualify for a multifamily loan down the road) before buying our first 20 unit property. Or if it's totally doable to buy a 20 unit property even though we've never had a mortgage before. Have banks given multifamily loans to investors who've never owned real estate before? Trying to figure out exactly what we need to do. Would love to hear your experiences and insight.

Thanks so much!

As a member of CFRI Central Florida Real Estate Investors, I heard great things about All County PM, here's there info:

All County Metro Property Management
Tim Davis

They are based in Kissimmee, FL. Check them out on Google

Hi BP! I am interested in purchasing a multifamily property in Florida. I am not using an agent at the moment. Does anyone have an up to date Purchase & Sale Agreement? 

I've also heard about Letters of Intent. Is it better to put in an offer using an LOI or a PSA?

Thanks so much, can't wait!

Hi BiggerPockets,

I am currently a Florida REALTOR (which I absolutely love), however my long-term goal is to own and develop multifamily properties in Florida and Georgia (perhaps other states in the future). In addition to being a REALTOR, my husband is a supplier in the multifamily industry. We have abundant knowledge and experience in how the apartment industry works, property management, budgets, etc. However we don't know everything.

My question is, if I wanted to develop an apartment building of at least 150+ units:

- Where do I start? Who do I contact?

- How to develop a business plan and business model for developing a new community (is there a good template out there?)

- Where to find potential investors that would want to partner

- How much can I estimate for a project? I know I'll need Contractors and Vendors to get this done.

I don't know exactly where to start. If anyone has had a successful development project that is completed, I would love to know the details of your step-by-step process (i.e. from acquiring the land to hiring the architects, etc.) Thank you!

Welcome! I'm excited for you and your journey. Any thoughts on where you plan to focus your investments? 

My husband and I are strongly considering starting our own property management company (3rd-party management). After doing a little research, it appears that we are required to have a Real Estate Broker's License. At this time, I do not have a Broker's license but I am in the process of obtaining the Sales Associate license.

Questions:

Do I have to wait at least to start our property management company until one of us gets our Broker's License? Or can I go ahead and get it incorporated while I obtain my license?

The only exception I've seen thus far is: "For example, if a property owner employs someone to manage their property, and that employee is paid a salary, as opposed to being paid a commission or on a transactional basis, a broker's license is not required."  

Is there any other way around this Broker's License?

What can I do in the meantime?

Thank you for your input and advice!

I agree with @brandon Quickbooks is only 50 cents per ACH/bank transfer transaction. Can't beat that. However you do need a Quickbooks account. Hope that helps!

Hi BP! I've been analyzing some deals online looking at several duplexes and triplexes to purchase (this would be my first investment deal). 

Currently I'm looking at a $75,000 duplex with 20% down ($15,000). Based on the cash outlay, I'm looking at a total of roughly $17,500 for the down payment, closing costs, and a buffer for repairs. When I did the math with the cash flow, it looks like it'll take me about 4 years to recoup the $17,500 that I would be investing. 

Question:

Is 4 years a decent amount of time to recoup an investment? How long is too long? Any suggestions or rule of thumbs on how long it should take to make your money back? I was thinking if I can make my investment back within 1 to 2 years that would be great. Please correct me if I'm unrealistic. Thank you all for your help!

Hi Kim, thanks for posting on BP. I've read through most of the posts on this forum, and they are spot on. I would just bite the bullet and begin the eviction process. You really can't afford to not evict them. I would always do my own research when it comes to pricing out the evictions. I'm sure this is an unexpected expense, however it is the cost of business. Always have a cash reserve. Things happen and it's up to the business owner to take care of things when it an issue arrives. Do whatever it takes, sometimes we have to tap into our savings, credit cards, etc -- whatever it is to save yourself from losing an asset. 

It's certainly your best interest to move forward on evicting this tenant and certainly not a good idea to ever move in with a tenant. I wish you well on your journey. I'm sure you will look back at this moment and be thankful you evicted the tenant when you had the chance. 

Hi Courtney. That's great advice snd definitely good to hear. I am definitely learning that if the numbers don't meet your goals, then it's not the right property at that time. I haven't yet used the calculator, but I will very soon.  Thank you for sharing your experience! Best of luck to you!