All Forum Posts by: Christopher Lombardi

@LaVonna Shannon really rich people value time as much if not more than money. Make your offer very short and sweet and start with “I’m going to make this a very easy and quick transaction”. Don’t waste his time with contingencies or anything that can slow up the deal. Make a low offer, as is, and quick closing if you can. Because maybe he doesn’t care about the price and just wants his smaller properties off his plate.

@Andrey Y. If 170 people were willing to pay those prices, I think the appraiser was correct in the value at the time of the sale. Prices are usually higher for new construction than on the secondary market. I’m sure you are correct and these guys were probably scammers but if that’s what people were willing to pay then that would seem to be a fair appraisal. In any investment though you need to do you due diligence and figure out the true value for yourself. Never put your money at risk if the person telling you it’s a deal doesn’t have their money at risk as well.

Truthfully, people have made fortunes investing in every state in the US.  Sure, the average cash flow numbers may be higher or lower in some states and laws/taxes will vary, but you should really invest in locations you know and understand.  Look for great deals in areas you are familiar with and you will find them, regardless of what state you are in. 

Those two would be my recommendation is well@ Kim Meredith Hampton. I believe AppFolio is cheaper But I like the websites much better with Yardi.

@Brie Schmidt Removing the drywall usually isn’t necessary, but they do tend to cluster under moldings so you might want to consider removing the crown molding and baseboard molding or window trim to make sure there are no colonies underneath

@Carol Labbe, something for that small of an amount with no income coming in, it probably wont be easy to get traditional bank financing or a commercial loan. I also don't believe you will be able to get a HELOC with an LLC. Try Patch of Land. They give hard money loans on properties like this and at much lower costs than traditional hard money lenders.

Commercial loans are amortized over a longer period and usually balloon at 5, 7 or 10 years.  This is to keep the monthly debt service is smaller.    Imagine if it fully amortized over 5 years.   Your properties would never cash flow because the monthly payment would be huge. 

I agree with Scott W.  People want to see the finished product and usually don't lease a property that is under construction. 

I would say, live close to the property you invest in so you can easily see things with your own eyes.  Make sure the property is in great shape, you have an attorney draft the lease and you thoroughly screen the tenants.  As long as you cross your T's and dot your i's there really isnt too much to worry about.  

Joe Fairless is good.  I also like Old Capital Podcast and Jake and Gino.