All Forum Posts by: James Kandasamy

@Troy Williams The moment you say its hard to find overseas, you will be right. Change your mindset and see the possibilities.

@Bjorn Ahlblad @James Nelson @Travis Kramer Thanks

@Roxanne E. The idea is to look for 5 units and above. That will be in the commercial space, where you can find a key principal who can get you qualified by his Networth and liquidity.

@Grant Rothenburger @Andrew Syrios Thanks.

@Michael Hancock   You can do it. Be creative. Get more bids or start with 2-3 crews to do small work. Get them to do on-the -job interview and later choose one team. Sometimes it's not all about the price. It's dependability of the contractor that makes sense.

@Amber Koontz @Andrew Richey @Benjamin Kelly @Joseph M.   Thank you guys/gals . Please let me know if you have any other questions.

@Brian Gerace the NOI was so low at it can only be priced at 6% market cap rate. I can see from the PnL that is mismanaged and has huge upside potential.

@Vince Greenland   This is not a Vinyl Plank. We use Vinyl roll. 

@Casey Christensen Yes, This was found direct mail. We found the seller through text blasting. Listen to few podcast that i was interviewed  on my website. There are details there. There was an agent but they are not the usual MF broker listing. 

@Max Taylor @Jay Helms @Amber Koontz if you want to learn more, please visit my website and read the free blogs

@Juan Rubio

@Juan Rubio undefined

@Jay Strickler  I presume you are asking about due diligence.  We did a lot of estimating cost, walk through of each units and contractor bids to determine the rehab budget.  Of course we did rent comps as well to ensure that the upside is real.  Once a deal is under contract we can’t use rule of thumb . We use actual bids from contractors and our own estimates of interior rehab.

We did call and visit some of the apartments in our rent comps to see what are our competitors were doing in terms of unit quality and rents offering.  We were at $0.82/sqft  and comps were at $0.99/Sqft .

We did not negotiate a lot on the price as the property was sold at 6% cap rate which is market rate.  I just know that improved value at proforma of 12% cap rate. That’s why entry cap rate does not matter.

There was no reason to give equity to contractors.  Unless we bought it at very tight price.  Why should a stranger gets an equity in your deal unless you are not buying it right,

We did The inspection ourselves with a bunch of volunteers and investors. They love it as they get to learn.

We had some differences in expenses in each line items. However we were pretty close to expected expense per door post closing.

@Tim Czarkowski You are right. I just confirmed with my CPA that its a tax free event. You can certainly do in smaller scale. Out of my 11 rental houses, 6 of it was zero cash out of pocket with BRRR strategy.

@Nirmal Khanderia   Thanks. There are many meetups, But I attend occasionally some of the meetups when I get a chance. Send me a PM if you want to chat .

@Patrick Rowe   Sure , let me know what you really want to know.

@Joseph M.   We do cost segregation for all our properties since we like to keep our properties for a long term. We are able to do 5K per door by doing things in Volume. for example, we buy stainless steel appliance in 11 sets at a time.  Of course we are our own GC so we control our cost.  The 5K is average across all units configuration. I have 1500sq ft 3/2 that cost almost 7K for the entire thing and 4.3K for 1/1 640 sqft.

@Rich Lopes Thanks. In commercial space, this is not a HELOC similar to Single family homes. In this case, the value of the property has increased so the new loan will pay back the old loan. Please google IRV triangle to learn more. I have no problem with questions. Problem is many people read my post and don't ask any questions. That is where I am a bit disappointed.

@Account Closed  Thanks.

@José Rivera Thanks

Thanks for @Tristan Cortez @Mike Carr

@Account Closed   The refinance is a tax-free event from what I understand it.  I need to check with an accountant on how does that work when we go above the original capital. In all case, who cares about the taxes when we are earning this much.

@Simon Stahl Thanks

@Peter Tverdov We do pay back the investors as a return but they are still the equity partners in the deal. Their equity % are not diluted just because they get a huge chunk of capital back.

@Patrice Penda Thanks