All Forum Posts by: Guy Gemmer

@Domenick Booker-Pomata

No, luckily we didn't have to tear anything down. They just barricaded the permits from being issued from the city by sending letters and complaining. 

I came across the deal by thinking outside the box. I over paid for the property initially, but bought the potential equity that existed in the future build. I did my homework. I knew that property was selling for around $250 per sq ft, in the area and found out that a previous Mayor (Martin Chavez) had signed in a re-zoning initiative to increase population density in the area and put in a rapid transit system (ART). Because of the change in zoning, I was able to build a guest house at $130 per sq ft. - Spend $130 and get $250 - Since then property values have increased further, as have rents, and the property performs magnificently. 

@Domenick Booker-Pomata

Hey Domenick! My wife and I did a really fun BRRRRRRRR here in Albuquerque. It may not be the typical style of BRRR but it falls into the category. I think.

So, the story goes like this... We bought it as a SFH, knowing the zoning allowed for additional units. We had a wild idea and built an additional unit from the ground up. Now, we did also remodel the main house as part of it so it falls into the "rehab" part of the BRRR, but I realize thats not really the way its done. We subsequently refinanced the property and have since rented them on AirBnB and VRBO. So maybe we should call mine a BRRAirBnB? :) Ha Ha Ha

The biggest difficulty we had was that though the property had been re-zoned, the neighbors in Nob Hill hate change. HATE. Very slow downward decline, they can handle. That's change they can deal with. Quick, upward, investment and development? HATE. I'm not bitter, I am not bitter. I'm really not bitter. Ha Ha Ha!

I used the Waterstone Mortgage - Chris Russo for my refinance and they brokered a great deal.

The actual rehab part of the main house was the typical cosmetics. Paint, flooring, kitchen, bathroom.

Would love to help answer any other questions you have! Let know! 

@Craig Bussey I recommend @guygemmer ;) - Did you happen to call my office Friday and talk to Jannette?

Hello Charles,

My team can definitely help with that. I own and manage a little over 100 multi-family units and have helped investors purchase and acquire them for the past 15 years here in the Albuquerque market. Have you already identified a few subject properties that need further review or are you just scratching the surface? 

What exactly are you needing them to review? Purchase Agreement, Lease?

Ben Curry and David Torres hit the nail on the head. I think different people have different ways of communicating expectations. Maybe your Broker in concerned about your performance of the contract. Have you asked him why he thought it necessary to have you sign it?

As an investor, realtor and owner of a property management company my favorite management clients are the ones that have tried to manage their rentals themselves. Heck, my favorite clients in general are the ones that have tried to manage their own stuff. It's a humbling experience and people who have done it themselves tend to be able to extend a lot more grace than those who haven't.

Lydia S. Thank you for thinking of me! I would love to take the time to go through your questions and concerns with your current management company and see how I can help!

How did Albuquerque get grouped in with Compton, Southside Chicago, Detroit? We need to do some serious damage control after the Breaking Bad fad I guess?

Oooh! I love multi-family apartment questions. :) Except that my answer on this one will be pretty universal since the principles apply across the board. As a matter of establishing rapport I will give you a little background on my ownership and management experience. I own 37 MF Apts and 6 SF. I manage 100 MF and 300 SF. - Licensed since 2004 and managing property for others since 2008 - Everyone has an opinion but the proof is in the pudding. If you have a desirable property in a desirable area, you won't have high vacancies. There are 3 working pieces in all types of real estate and they work inversely. PRICE | CONDITION | LOCATION Your price must reflect the condition and location in order to compete with any active competition. Examples: Great Location + Poor Condition = Moderate Price Poor Location + Great Condition = Moderate Price Great Condition + Great Location = Great Price If you already own the property, the location is fixed. (You can't control it) If you figure out a way to move it... Let me know. ;) The price is based on what the market place yields. It's all about what someone else is willing to pay. (You can't control it) The condition is the only thing you can control. There's no secret to supply and demand when it applies to multifamily vacancy rates. Your property manager should be familiar with the competition and give you a quick break down of how your property compares. Have you been doing preventative maintenance and maintaining curb appeal or have you been so focused on cashflow that you've forsaken first impressions and have unintentionally moved your property from a b+ to a c- ? Your property manager was hired to manage the rental portion of your property, not your asset. That's like sending your kids to school and expecting the teacher to instill good morals and values. That's not in their job description. In both cases, the really good ones try but ultimately they're your babies. Everyone has an opinion, mine are free! Feel free to ask for it any time :)