All Forum Posts by: Joel Florek

Currently there aren't any real estate groups in my area. I was wondering if anyone has tried to start a group in their area or is apart of one and has any advise.  If you do have a group what is the structure like and how do you work to add value to everyone involved attending meetings. I live in a town of roughly 30k, but our town has been growing rapidly over the past 10 years and has brought in a lot of new players both residential and commercial. 

Thanks Ashley, I appreciate it! About 4 months back we had a good plan on the type of deals we would capture but didn't highlight the deals we had available. Those will certainly be a part of the next presentation. 

I just bought my first 4 plex and have a strategy to pay down my debt until my return on equity is 15% which will be in the 30% to 40% loan to value range. From this point I will refinance my commercial loan every 3 years back to my target loan to value ratio. I then plan to always take that money and replace the roof, windows, boiler, water heater, update units, etc. to ensure my property stays in the "B" range and provides an ROE better then a majority of other investments. I would rather replace things before they break to avoid having to pay overtime fees. I then plan to pull out a line of credit that allows me to pull the other 40% to 50% of my properties value bringing me to 80% loan to value to buy more deals. This provides me an opportunity to close on deals that come up and bring my own cash to the game. 

As a finance graduate I am all about knowing where my ROE is at all times. I bought a $125k 4plex that was appraised at $133k(not a steal of a deal) and cash flow $650 a month. That is based on paying 5.25% on 80% of my loan and 8% on the remaining 20% of my loan and of course accounting for all my expenses and vacancy of 10%. 

I have a number of people in my local area who are ready to work together to buy up bigger real estate deals from $1 to $3 million. We are young investors in our 20's who all own smaller multi family properties(2 to 4 units each) and collectively poses all the skills needed to manage and handle any maintenance or construction work. We understand how to find and value good deals but we need to structure these larger deals. I would like to learn some tips on raising funds or attracting investment partners to be in a position to buy bigger deals with apartment complex's and mixed use commercial buildings. We have opportunities available from older investors looking to exit the marketplace but we need to be prepared to close on these deals when we open the conversations. 

Any suggestions would be great!

Well I can't say Im particularly experienced, although I did just complete my financing and closing of a 4plex in Iron Mountain Michigan. I would be happy to share my experiences with you. I have been involved with single family rentals my whole life through my parents. Now I am on my own but would like to focus on multi family properties. Good luck and if you ever want to get on the phone and chat let me know. 

I worked with a local bank to buy my 4plex, although Wells Fargo bothered me every time I walked into their bank to get the loan through them. I am owner occupied which made this much easier. Also, purchased through my company, not personally. This significantly changed the process and made it very easy to close. Banks are able to give out commercial loans more easily then personal mortgages. I am not sure how financially beneficial it will be in the end but long term I believe this will pay off as I buy more of these properties. 

Wow are those property taxes low…. I pay nearly $416 a month on a 4plex multi family property I purchased for $125k. I will be petitioning to get them lowered and if successful It should bring them down to the $300 a month level but still a stark difference as compared to the price of your property and what your paying. 

Welcome to BP, just bought my first 4 plex!

Congratulations! The beginning is an interesting place to be. Your motivated and ready to get going, but your nervous and unsure of a lot of things. Now your off and running. I am working on closing my first deal in the next month and I will be off and running as well. 

Hey, Im 21 and graduating MTU this spring. I have lived through 15 flips in my life some of them duplexes. Its a great way to learn about the ins and outs of owning a home and learning how to deal with all sorts of situations on your own. Its a good conservative plan and will work if you stick to it. 

If you want to get into bigger things faster start talking to people in your area. Let them know what your passions are, goals, and you may find a great connection in your area. I just finalized my partnership to go into real estate investing full time with a business owner who wants back into real estate but needs someone to handle the management of the business and commit full time. I am getting my realtor license and he is getting his contractors license. We will have our separate sides of the business to focus on which will work well, but also both know bits and pieces of the other parts so we can cover each other when we want to go on longer vacations in the future. 

He also knows lots of people with money since he is a business owner in our area. He is trusted and the money guys are willing to work with him. This all came together by talking to people about what I want in life. Keep at it! Also, stay connected with me as I will be doing some bigger investments in the next few months as we get going. Ill be sure to keep the BP community up to date on everything.