All Forum Posts by: Jake Fugman

@Jeremy S.  Great advice.  Taking on the wholesaling role didnt occur to me if I had the available capital.  Id likely go with the later route and since I know brokers I can trust to potentially co-list.  

Clearly there are some legal alternatives to leveraging unique relationships before having a license on the wall. 

Thanks!

Thanks for the quick replies.   The connections I mentioned have come up unintentionally in general networking settings - Im not actively seeking to connect buyers and sellers before having my license.  Pretty clear that the only option is to wait until licensed OR pass the lead(s) onto another agent if the deals cant wait.

Hey all,

I'm in the process of getting my RE license but have already started to casually connect buyers and sellers on some deals that normally would be represented by a broker on one/both sides.  Im still working outside of RE so its going to take me another 30-60 days to complete my testing but I dont want to let any deals linger or pass by.  

Is it common place for non-agents to write up a "referral contract" to collect a similar commission that would be due to a broker?   If so, what terms are legit? 

Thanks!

Hey all, 

I am planning on moving out of my Wicker Park condo soon and shopping a few management companies that are focused on short term management.  Ive been quoted a range from 22 - 29% for full service management (cleaning, consumables, marketing, collections, online inquiries, etc) - curious if others have any recommendations on  a solid company with a good rate.  

It wont be worth my time to reset unit several times per month so Im prepared to pay the fee, but I prefer their definition of "full service" mean that I rarely need to be involved unless there is a serious issue. 

Also, any advice on if its worth piggy back on a management companies "pooled reviews" or better to build my own brand and battle until I have 10+ reviews?

Let me know if anyone can help!

@Scott Skinger thanks for sharing.  I do believe in the model of leveraging group capital via a syndication or crowd funding.  I definitely want to be on the middle ground b/t a truly passive investment VS full on ownership/management of a multi unit building.  I have the time and ability to add sweat equity (finding deals, property management, etc) but dont want it to be a full time job.  

Assuming general conditions - what would you consider a good return, for example, on a 100K equity purchase into a syndication?   20% (post fees) after a 3-5 yr hold?  Any opinions on the croudfunding site RealyShares.com?

@Amanda M Laird I personally am leaning towards whatever can generate the most cash flow short term since I am moving away my salaried day gig. I like the idea of applying BRRR small project (duplex) to start. Self manage it for the first 3-6 months then hire a management company once there is proof of cash flow. Lets keep in touch to see where our money goes!

@Kristina Dodson Dupree  I use Cozy.co  -  Similar to Rentulations they do free payments 5 days after collection but also offer "express payouts" for $2.99/unit to get the money in 3 days VS 5 days.  

Hope this helps!

@Lane Kawaoka - Assuming I have access to get $100 - 200K more what business model would you apply to scale into apartments?  

Would you buy a 5-10 unit for about $1M assuming the need for $300,000 - 400,000 cash (20% down + 6 months capEx + light renovation)?  Knowing this would tie up 100% of my capital would you leverage equity to refinance down the road for future investments or just aim to flip it?

Thanks for all the quick replies!  @Jay Helms It makes sense that there are higher cap rates in lower income areas - trade off for more effort spent on tenant management. @Ted Kuhlmann 

@Casey Mericle Assuming I plan to apply BRRRR would it be smarter to buy, for example, 4 $250,000 properties VS a single $1,000,000 multi family to diversify? OR is it really only dependent on the pure NOI that is projected?

@Jay Hinrichs

@Jay Helms

Hey BiggerPockets! 

Im new to BP and soon to be working towards my first "major" move as an investor.  After selling my logistics business and 2 rental properties Im looking to leverage $200,000 - 300,000 cash the best way possible to achieve long term financial freedom.   Although I have the luxury of a small pool of capital I would prefer to start slow by managing as much of the process myself to save time and gain experience. 

Im leaning towards applying BRRRR method on a multifamily or a few 2-3 bedroom units that are in good areas to maximize cash flow (open to furnished rentals VRBO, AirBnb, etc).  Im also considering living in the first property that I rehab to gain direct experience in the project managing and/or finding a good GC. 

I am targeting Chicago and the surrounding areas for now but eventually open to less established markets.  Would love the portfolio to net $8-10K per month after 5 yrs and a few low risks transactions (BRRRR).

Does 10-15% cap rate exist on $750,000 - 1,000,000 multi unit buildings assuming I needed to put 20% down?  Or smarter to hope for 10%+ average cap rate on several smaller units?  

Any words of wisdom based on success (or failure) taking a similar route would be greatly appreciated!!

Jake