All Forum Posts by: Jay J.

Congrats!!!

Simple, you add a "construction manage fee" which is 5% of hard cost in your rehab, an acquisition fee which is 1% of the total purchase price , an annual asset manage fee which is 1% of his invested capital and a 20 over 8 prompt structure, then this way you two can form a 50/50 GP/LP structure. But if I were you, I ask for 25/75 GP LP structure. Hope it helps This is all least equitable proposal to begin with, and this is what's used in commercial space every day. Otherwise I agree with Jay that your 100% cap from him and pay him 10% over 18 months that's non starter And his 50/50 with you doing all work is also non starter.

@James S.@Jason Hanis if you guys are up for it, let's grab a coffee here next Friday 

3:30pm

Koffee? at 104 Audubon St, New Haven, CT 06511

Let's confirm through pm. 

James S. sounds good. I am prepping second lease move-in this weekend, we can try next Friday afternoon to grab a coffee if you Jason Hanis got some time! Gisela Casabella through investing my savings which are from W2 job . My wife and I are pretty thrifty, big savers and passionate value investors across all asset classes

Jonathan Johnson sorry I did not compare various platforms (yet) , need to spend time to learn more about the platform you mentioned. As to the accounting system, it does fine for me so far, I don't have too many units and it's accounts are customizable, figured that need a more focus account software probably from an accountant anyway this system just to keep track the trial balance. Sorry not much value to add. So far I do find rough edges in TenantCloud system though as their screening tools are not good and due to time lag to post application fees, sometimes a prospect can't move to next step until their fee is marked in system as cleared. This it is not useful if I need to screen tenant within 3 days from their application submission So I am using cozy's screening for now

Exterior repair/paint alone can blow the numbe. But without this, half the price should be able to handle.

Thanks all for the kind notes Jason Hanis of course there is hope! Just get hands dirty, be safe, be diligent and push all the way. I am not Patriots fan but their super bowl performance got to be enough to inspire a heck of a generation . Keep pushing !

Last Saturday I signed the lease on the second property I bought in the past 3 months. It has been such a busy but rewarding journey so far.

A bit about myself: Working full time in New York City, Live in NY State Westchester County. Invest in Connecticut (anywhere south of New Haven)

From November last year I decided to start building wealth in Residential Real Estate, diversifying from my regular stock investments. I call myself a student of Warren Buffett (he doesn't know it), made close to 20% return in stock market through carefully read all financial statements of a target company and understand its fundamentals. Around Nov 2016, everything in stock market looked so expensive, even the troubled energy sectors enjoyed ridiculous rally without justification from fundamental. While my entry points were excellent, I decided to diversify at least 50% of my investable wealth into Real Estate. 

However, everyone knows NY City area including northern new jersey gets so pricy and naturally following a value investor's playbook, I spend time in New Haven/West Haven/Milford area. 

Lots of Bank Owned properties and many motivated sellers. If you have cash and send in an cash offer, you can quite easily got a good deal done. 

Got my first deal done through Auction.com - a single family house that just went through foreclosure. I bought it sight-unseen, and the day after closing, I found it had no kitchen. (yes, no kitchen). Previous owner hammed the cabinets and they took away all appliances: fridge, range, dishwasher ... you name it. 

Good news was, the bone of the house was good. Rest of the house looked quite decent (except no kitchen). 

So this first deal was a rehab and rent play (it was carefully underwritten and I am glad I left some buffer in my underwriting model)

Spend many weekend trips up there, and worked with a GC who is not bad, spend overall approximately $30K into the house. Signed the lease last Saturday. It is about a 6.75% cap deal after all initial CapEx (still not too bad in tri-state area but not the best deal) (All in $175K, did a cash-out refi valuing the property at $205K)

While I was working on first one, I came across another Condo in same area (5 mins apart). The deal was back to market on MLS because previous buyer did not perform (failure to get the Mortgage). by that time it has been on the market for well over 4 months, so the seller was a bit frustrated and quite motivated. I came in negotiated a 10% lower than asking price and rented the unit limited the week after closing. And this is a 8.5% cap deal.

Crazy 3 months to do this two transactions, 1 rehab, 2 leasing campaign, 1 cashout refi, 1 HELOC on primary residence. All by myself - one man show, while working in a 50-hour demanding full time job.

But it is so worth it when you put carefully screened tenants into the units (fingers crossed!), when you see rent checks appearing in TenantCloud account. It is addictive and I am onto the third/fourth/fifth deals now. 

A huge thanks for BiggerPockets community, especially the emotional support when I was literally dealing with too many things and my mind won't stop and my mood gets swinging and less controllable. (it happens). 

I used TenantCloud. It takes 2-3 business days to post it to balance, but it integrates with rest of its prop. management platform, accounting booking keeping functions etc, love it. (on it is $9/month but that money covers up to 25 units i think. so the more tenants using this , the lower fee you are having as landlord per lease)

I think the frustration is just that they don't call a spade like a spade. Just tell me all of these upfront and no sneaky 100, 200, 300 etc here and there and closing and no road blocks like "if no replacement cost estimate from Insurance company then no path forward " . Lure me in then show all the stuff along the way and cost at closing is just not the sales practice I want. For example, in original loan estimate there was a lender credit of 500 plus now it becomes 200 credit and even that is used to offset much higher appraisal related charges 650+150(investment cash flow schedule) And to be clear, I made it clear this is investment property upfront, not like I want to take advantage of cheap government money by pretending this is a primary residence Anyway, this ranting was partly due to dealing with them and with insurance along the way accumulated enough negativities and it just pushed me over the edge even by smaller deal surprise at final closing statements. Thanks all for chiming in sharing your experience