All Forum Posts by: Jim Pellerin

@Jim Pellerin

Focused on MFR for long-term buy and hold. Based on my personal experience, I'm planning to start with a few outreach channels and then expand and experiment over time. I'll initially handle inbound calls personally until I can iron out the script sufficiently to hand it off to a call center or dedicated salesperson on my team.

What's your underlying question? Does the effectiveness of direct marketing vary wildly based on property type? And why does exit strategy matter when considering the cost effectiveness of outbound marketing for purchases?

Im located South of St Louis. Ive never done anything like this but decided to do some investigating on a home in my area that has been empty. The owner lives out of state and is ready to sell. Similar homes comp for about 160 completely fixed up. Im hoping to get under contract for 55k and possibly either just wholesale the property or maybe find a partner to flip it with. Just looking for some information since im trying to get my foot in the door of real estate and kind of new to some of this. The home needs updated from roof to hvac but it a nice split level with garage on a corner lot. 

Thanks, Heath

Quote from @Brian Badolato:

Hey everyone I’ll try to make it short. I’m 20 y/o and my ultimate goal was to primarily learn about real estate. I saw this job app on Indeed “Real Estate Acquisitions” I applied and got hired. 1 week in I realized it’s a small asset management group. 2 wealthy brothers tryna grow their port with 80 units in town and a property manager. Brother A, is the real estate head Acquisitions he meets w sellers lowballs them and also does prop management. Brother B,is the most experienced he’s CEO he’s but now just the numbers guy and talks w mortgage brokers, lenders and brokers etc…

First months was fukin great it was like a newbies dream to enter the real estate. Brother A, took me around properties showed me in person red flags in properties, the construction problems etc... I even saw real estate transactions live in person when he was speaking to sellers directly. I also met this multimillionaire who owns 6 apartments when we wholesaled a this one deal to him. So the experience was awesome.

However once THAT first month was over… the reality set in. I soon realized this job position was to be on the phone for 6-8 hrs a day straight up cold calling. Now I’m two months in I haven’t had my first deal yet this is all commission base. I’m still going…..

To reclarify, The job in a nut shell is to cold call (6-8hrs) get properties under a STRICT ball park range 50-90k a unit in California, then get out to the property and put it under contract. Rinse and repeat cold call again etc…

Both Brothers are encouraging me to keep continuing and tell me these are the “walls” you’ll face. Brother A has been getting deals once a month, that first month I used recycled leads. Now I’m they put me in a market where 50-90k a unit is almost impossible. (I cold called realtors and brokers they said 200-300k in this new market I’m in) and the Brothers rebuttal “they always say that”

This job pay is. Close a 2 units $2,500, close 6 unit and below $5,000. Close 6 units and above $7,500.

I’m having second thoughts about this job and found that I should value my time than cold calling 6-8hrs… It kinda sucks rn, I love real estate and wealth generation but my plan now is to get one property learn the process of acquiring then quit. I’ve been looking into selling life insurance I heard that could be good and has a wayyy better work life balance, I also have a business that helps people and I think life insurance could possibly fit me more than lowballing and offending sellers idk lmk….

The only reason why I’m staying is really gain the experience of that 1st real estate transaction w a seller in person. Then leave…

Let me know what I should do or what you guys would do🙂🙏

BRIAN! I am in the exact same boat as you. I work at a commercial real estate brokerage. I cold call 6 hours a day. I’m 8 months in, and still no sale (although our average sale price is $2.5 million). In my humble opinion, you should get out of that job. Finding $50-90k units is impossible in California. I say that from experience. The fact that you aren’t able to find a deal and they keep pushing towards 50-90k is not good. Maybe stress your worries to them. This might help! Be transparent with them.

Hi All,

Looking for some advice from the BP community!

Background on our journey -  It's been 5yrs since we started our real estate journey in NYC. We purchased our first multi property at the end of Dec-17 and added a new property every year and half. We had some major set backs along the journey - one resulting in owning a vacant building for one year. We have bounced back since. 

Portfolio key stats - We currently run a 9% Cap Rate in NYC with a FCF of $177K on an Unlevered basis-forecast*. We will look to maximize our portfolio (increase rent, property development, etc.) over the next year and half to a reach a 13% Cap Rate with a FCF of $264K+. We currently own 10 rental units split across 4-properties. Our portfolio value will come in shy of $4M (based on our valuation and market comparables) with a debt to equity ratio of 30%:70%. 

As we enter a high interest environment with an impending recession, how do we maximize our FCF and equity value on our portfolio? We are interested in purchasing larger multi-family buildings (6+ units) / mixed-use (commercial + residential building) / Airbnb type of acquisition. We are also exploring investing in other states where our dollar will go much further. 

Any advice/tips are greatly appreciated!

I found a motivated seller wanting to sell their house at 1.1 M but the ARV with the houses around the area comes out to $950,640 my question is why the house estimated value says $110,630 when the houses around it have sold for so much with the similar sq. Does this mean I have to give an offer in reference too the 100k value or the 950k ?

Hi All! I'm Eric and I'm looking to start my journey in REI. I've done a lot of research and plan to untilize a HELOC on my own home for a down payment and finance the rest. We have some reserves as well in case things come up but that is our plan to start. I'm torn as I've done a ton of research and I'm wondering what the best first rental purchase would be (single family vs. multifamily/duplex )? Was initially thinking MF but now am considering SF. This wouldn't be a house hack with me living there, it would only be for renting it out. Just Looking to get your opinions to gauge which direction I should head. Thanks in advance!