All Forum Posts by: Chris Masons

Hi Nate,

Is this a multi family or a business rental? Sounds like your in a good position if the owners arent looking for a large lump sum payout up front but just want steady income without the hassles of Landloring. I can see myself in this position in oh 40 years, God Willing, LOL.......

Maybe agree to all his other terms but try and get him to go from 20 to 10% as your only request. IF the tenants are good paying tenants I would think he would be ok with it as he knows the monthly income is steady and reliable.

good luck,

wish I could find a deal like that on a multi family here in NJ!!!

Chris
Chris

It is probably a conflict of interest on some level somewhere.

I guess it's kind of a slap in the face to the bank also. Here let me take this non performing asset off your hands at 50 cents on the dollar, and while your at it pay me 5% commission on the deal too lol

Did they agree to this deal? If they actually went and got a reverse mtg. It would put cash in their pocket on a monthly basis.

Unless they are unaware of this option I don't see the benefit of your offer to them VS a reverse Mtg.

When you say "live there for free" do they owe anything on thre house or is it owned. I am assuming it is owned??

Yeah U agree with George if they passed in say the first year I think you'd have some VERY angry heirs to contend with. Other thing is do they have a will? Maybe they have plans for the house to pass onto their children??

regards,
chris

Jon,

I always thought that self storage facility would make an excellent investment due to the fact that you don't have to manage people. It's just storage. No tenant issues no noise between tenants, no tenants fighting, first floor tenants complain 2nd floor tenants walk around like bears, etc, etc, etc....

I guess it sounds good in theory but the costs to aquire such a facility and keep it 100% occupied is the other side of the coin...

I'd love to hear your take on it Jon. WOuld you do it again if it was in right location or do you just think it is a losing proposition when you have debt service?

as always thx in advance,
Chris

Why quit there?? Why not buy up all of NYC skyscrapers and sit on them and wait for appreciation?????

LOL

Put simply You get much more bang for your buck on multi families VS SF.

Take a 4 family for example: you are getting 4 income streams while paying taxes, insurance on one property. You can safely assume the taxes and insurance will be higher on 4 single families vs one 4 family - well at least in NJ that is true.

Another great thing is with a 4 fam. for example if you have an apt. go vacant for a month or two that is only 25% of your rental income vs a single family that is 100% or say a 2 family one vacancy would be 50% of your income produced from the property. It hurts alot less when it is a smaller % of your income.

Another plus is it is easier to manage having 4 units at one location vs. driving to 4 differnet locations to manage.

Of course multi families do have down sides - but the positive IMO definitely outweigh the negative.

I'd like to end this by saying Single families can be a great investment as well if you get it at the right price and location. And that may be the way to go for your first investment property so you can get some experience and see if you are cut out to be a landlord and manage property.

My first investment was a 4 family with a 5th basement apt. I bought it for a song back in '97 when I was pretty young (24) everyone said I was crazy. I had initially planned on living in the basement apt. but the guy I bought it from who was living there asked if he could continue to rent from me so my plans changed and I stayed at home with Mom for a few years and was able to collect 5 incomes.

This property turned out to be a phenominal investment as it allowed me to bank tons of cash while keeping my monthly expenses very low.I was able to buy my next property pretty quickly.....

That property is my biggest and still today is my cash cow. Rest of my properties are smaller 2 and 3 families.

kind regards,
chris

I think it's safe to assume he didn't want you to know he owned bld. next door bc associating the same owner to the building he is tryig to sell you with the crapy building next door will leave a bad taste in your mouth. And any kind of deferred maintenance you see over there, you will and should look extra hard at on subject property.

Speak to tenants they hold all the secrets he really doesn't want you to know.. :)

regards,
chris

alot of great advice. I guess I'd echo what already has been said. Try and buy close to where you reside. I own 5 rentals all in the same town where my primary was. Last year I moved about 15 miles west to a nicer town and let me tell you, I miss living in my home town where my rentals are.(one was right across the street) Even if it's only 20 minute drive. Prior to this I was within 2 square miles of my investments and boy do I miss that. I never thought twice about shooting over to my 4 family to meet a tenant or for something silly as it was 2 minutes down the road. Not anymore!!!

As you can figure out I pretty much do all the managing myself which you will probably want to do starting out.

If I did anything different I would have tried to pool my money together with others and invest in something much larger then what I can afford on my own. A nice 24 - 50 unit complex would have been great but takes a decent chunk of change down.I'd still love to find this type of investment here in NJ but they don't stay on market too long.

anyway best of luck!

chris

This works but can also be a major pain. I have a 4 bedroom bi level mother/daughter house that has a small 1 bed room ground floor apt and 3 bedroom upstairs that under normal circumstances I could rent the 3 bedroom for maybe 1350 or 1400 tops. Instead I am renting to roommates @ 600 per bedroom. Utilities are split 3 ways. so 1800 vs 1400.

So yes I am making more monthly income but my turnover is higher. I just had a roommate who got engaged and is now moving out as of Jan 1 so now I am scrambling to find a replacement roommate that will gel with the existing roomamtes.

When it's good and nobody moves and roommates get along it's great but when someone moves it can be a real PITA and I sometimes think if I am better off renting to a family which will get my less hassle longer term stays but less monthly income.

Chris

Yep. Dave is dead on. It's a brave new lending world out their folks!!!

I am definitely green when it comes to the private lending sector. What kind of rate and terms can I expectto get if conventionally I can get say 5% on a 5 yr. arm on a 2 family nonowner occupied investment?

WIll me credit play any roll at all?

thx in advance,
Chris