All Forum Posts by: Jim Biggs

@Carter Anderson welcome to multifamily investing. Smart move to bypass single-family jump straight into multi-unit.

Become friends with a local CRE independent adjuster and follow their recommendations. I can suggest @Gregg Yearwood from Chicago https://www.linkedin.com/in/greg-yearwood-21767722/

On such a small property I would perform your own Capital Needs Assesment utilizing local trades and formulate a replacement reserve plan. There are services that will do all the above for you. But generally anything smaller than 10 units just can not justify the cost. As an example you could expect to speed $3500 to $5000 on a 10 unit from a service provider like https://www.us-hc.com/services/capital-needs-assessment/reserve-study-analysis.html

@Lazaro Din

@Lazaro Dinh connect with @Kevin Bupp 

It sounds like this deal qualifies for a Freddie Mac small balance program non-recourse financing. I agree, I can't imagine why you would not want to use Freddie Mac. This Agency debt is not based on your personal credit but instead on the asset itself. That said, there are certain rules to qualify. Your net worth and liquidity  will be a factor . Do you have any other partners in this deal either silent or  participating  that could get you over the credit hump?

There are an abundance of networking/educational gatherings every week on Meetup website

Are you kidding??? Raise rents, institute RUBS, etc... is this a business or hobby? Or are you trolling the old guys in this thread just to stir things up LOL

When you find a property, manage the property, rent the property and do all of the work; i.e. the Sweat Equity. Ask yourself, who owns 70% of that property ? The bank owns 70% of that property. So if you're in a deal with your uncle, consider the fact that you're still the Sweat Equity but without him you would not have the credit nor the cash to put these deals together.  So a 50-50 partnership in my opinion is really more in your favor than it is his. He is taking most of the risk  and has the most to lose.  I would encourage you to  take a different Outlook about your relationship with him  and realize that you've got a very good thing and leverage that relationship.  As long as you have him you should be able to continue to buy more properties and to scale and to grow . At some point you will be able to break away and do deals on your own.  Having said that  if I were your uncle I would definitely give you a management fee of 10%  but I would not  give you 50% of ownership . My guess is that the cash is more important to you then  the net worth on paper .

Join local apartment owners association

Networking through all Meetups and Reia's in Peoria area in order to find other PM and small apartment owners

Consider starting your own PM, Association and meetup to become local authority. Grow organically, vertical integration.

Partner with local RE brokers to form above

Start hanging out every morning for at least a week at local lumberyard/HVAC/plumbing/electrical supply house and collect cards in order to build a list of go to vendors

Ask every SFR and MFR investor who they use for every service you need

Create a mastermind to share best practice, vendors, group discounts etc for investors

Raise rents to market immediately and hope the long term tenants move out so you can rehab and raise rents

Sell "use master lease" to another investor and continue to make money from cash flow and possible interest from eventual owner finance

Network, Network, Network,Network,Network,

https://www.pjstar.com/news/20170117/peoria-landlords-to-form-group-100-attend-first-meeting

https://principleproperty.net/

https://www.phoenixpropertymanagementinc.com/peoria-property-management

Listen to OLD CAPITAL REAL ESTATE INVESTING PODCAST WITH MICHAEL BECKER & PAUL PEEBLES Episode 164 - ASK THE UNDERWRITER - THIS IS REQUIRED LISTENING. To be successful in 2019 you must know the apartment underwriting guidelines.

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