All Forum Posts by: Geoff Woods

Congrats Anthony! How did you go about finding your deal?

Hello BP Members,

Many of us are familiar with the concept of "find the deal first, and the money will find you". However, I am learning that a typical offer will give you escape clauses for inspection/appraisal, etc. It seems that the more seasoned investors have their own agreements that they submit as an offer that gives them much more wiggle room to get out of the contract if they feel the deal is not desirable and/or they cannot raise the money.

I am looking for direction on what those agreements should look like...

1. What are some examples of clauses you include that give you flexibility to cancel the contract?
2. Any good attorneys you can recommend that can put one together that won't break the bank?

Bottom line, I want to be able to get more deals under contract, but also want to protect myself so I don't have to spend $500-$1,000 on inspections and appraisals just to get out of each deal.

Thanks in advance for the feedback!

Geoff Woods
858.900.1159
[email protected]

Hi All,

My goal is to have $12,000/mo in passive income in the next 7 years. After locking down my first 4plex through conventional financing, I realized quickly that 10 conventional deals will not get me there. However, after sharing my success with my network, friends and colleagues, many expressed interest in partnering up (I find the deal and manage the business, they put up the money/credit, etc.). Suddenly I realized, the path to financial freedom for me will need to involve leveraging other people's money.

For those of you who have some experience working with OPM, my questions (and common questions I am hearing from others in my shoes) are:

1. What documents should I have in place to protect myself as I form partnerships for a single deal? Someone recommended I have a Private Placement Memorandum in place to protect myself. Any recommendations on how to get these without breaking the bank?

2. Knowing what you know today, what would you do if you were in my shoes as you start to leverage OPM?

3. Are you aware of any good crowd source funding sites for deals? Thoughts on this avenue?

Thanks in advance for your feedback on this. Any other misc tips you would offer are much appreciated.

Geoff
858.900.1159
[email protected]

Hey Matthew, I think you would be very happy of you were able to get the right income property... If you can collect monthly cash flow, build equity over time, and get tax benefits this is a no brainer. Only thing to consider is if you will need that $12k anytime in the near future. If you can comfortably part with it for a while I ow pulls encourage you to move forward. Geoff

Love the ambition. Best of luck!

@Nicholas Jacoby

I decided to invest in Louisville for a few reasons.

1) I wanted to focus specifically on multifamily residences that weren't too expensive (I am acquiring the 4-plex for $213,000)
2) Was looking for strong cash flow
3) Stable market that offered steady consistent appreciation
4) Major metropolitan area, major business, strong price/rent ratio, large % of population who rent, low crime, etc.

Ultimately, Louisville offered me all these things. Are all 8 of your properties there?

Geoff

@Brenda Araujo

I found the property through my network. If you would like, I'm happy to speak with you live and share my experience so you can find yours!

858.900.1159

Geoff

@Stephen McCauley

Thanks for your question. I have been referred to a few property managers out in louisville and am in the process of interviewing them. Assuming I do my job and hire the right person my goal is to maintain good communication (bi-weekly calls) to maintain the pulse on the property and then expand my portfolio.

Hey William, Can you go into a little more detail in explaining how with a 10% cap rate, any dollar in rent increase or expense decrease increases the value of the property by $100? What strategies would you recommend to increase rent or decrease expense? Thanks! Geoff

I just called my lender on this and wanted to share her feedback. In order for the loan to go under your wife's name and not account for one of your 10 conventional loans she would have to have independent income to support that purchase. For someone like me whose wife doesn't work, my name would still have to be on the title. Hope this helps! Geoff