All Forum Posts by: Jeff Greenberg

Welcome fellow Scal investor. You found a great site for education

Along those lines you may want to get a master lease with an option. Make sure that you get a lawyer to draw up an agreement and lock up the deeds.

You don't want to put all the effort in and then have him change his mind and sell it out from under you or a family member just jump in and take over.

Taylor Green take a look at your competition. What are they offering? Is your property a + or - from theirs on key aspects: location, unit size, floor plan, school district, public transportation, amenities, allbills paid,etc. If you are at 100% your rents are to low. It is good to always include a nuisance increase every year. A $10 increase every year is easier than a $50 increase in 5 years. Even though the increased NOI may not increase the property value as it does in CRE, it still could help the sale down the road.

Taylor Green anything above 4 gets you into commercial and place the value on the NOI. With that said, it will depend if you are buying locally or across the country. It now comes down to manage and finance the property. The smaller properties cannot support on site management unless one of your tenants can take that on for a discounted rent. So you will end up as the manager.

If you can't find deals locally you may find it difficult to find good PM's until you get to much larger properties. As you get larger your net worth, liguidity, and experience will be weighed as much as the property(not like the old days). You may need to partner with someone that has what you are missing.

There are many varibles that need to be considered.

Welcome Rose C fellow southern Californian. Orange County is a tough market as is many areas in SC. There are a lot of good REI groups down there and i would spend some time there and meet some locals. Of course BP is the best place to learn your way around.

Using OPM is a good way to move yourself along with limited funds, but make sure that you understand the SEC regulations. You have a local down there that puts on good seminars for that. Gene Trowbridge.

Find someone that is doing what you want to do, and find a way to be of service to them. Learn from them.

Good fortune

Comps come into play because 1-4s are still considered residential and that is how it will be appraised.

The competition for these sized units is very tight since many investors start out in this space. Quickly moving to larger cuts down on the number of investors that are able to play. That is why partnering with someone to be able to double your size, might not be a bad plan. Then when you get into the 150 and up you get to start playing with the bigger boys and the competition tightens again.

Another option with many of the benefits of RE investments and is a gateway to directly investing in RE, is through a group investment or syndication. The investor comes in as a passive investor, but receives many of the tax advantages of RE.

As in any business where you are trusting your funds to the control of someone else, you must do your own due diligence on the sponsor. Working with a sponsor that is willing to spend time with you on the ins and outs of the transaction will make you that much more prepared if and when you are ready to make that kind of investment on your own. Many investors have found that the passive investment is much more suited to their time constraints while running their own business, or working a w2 job.

We are always happy to buy from those investors that thought that they could run their own business and asset manage a MF project, only to find out that they couldn't keep all of the balls in the air.

You have come to a great place to learn. Welcome and good fortune.

K. Marie Poe is on track with negotiating with the seller to break the lease. You don't want to have to deal with it after close. We were looking at a property where the owner had one of his employees (his cousin) on a five year under market lease. If we would had persued the property we would have required the seller to break the lease.

I have used him in RGV a while back on 20 units and currently in Houston on a 60 unit.

Be sure to mention my name.