All Forum Posts by: Joel O'Leary

@Sovat C. Which podcast episode is it that they explain this strategy?

@David Saxton I'll PM you my CPA's info.  I still use him for my taxes (annually) but haven't connected or consulted with him in some time. This is mostly due to me not purchasing any more rentals the past few years and moving on to syndication investments.

Hey David! Thanks for your service!

I second @Mike Sola and would recommend talking directly to local property managers and realtors.  I chose my property manager before I even had a place for them to manage! PM's in my opinion have the best knowledge about tenant types, rents, vacancies, etc in specific areas because they are the ones who write the contracts, cash the checks, post the vacant properties, and talk with the tenants!

Cheers! Joel

Based on the summary numbers, this is a deal I would pursue. (I can't see what's included in the monthly expense but I assume all maintenance, prop mgmt, lawn care, pest control, vacancy, commissions, etc is included).

Next step is to get the house under contract and pay for an inspection. The inspection will truly reveal whether it's a good buy or not. If it's in bad shape you might have to adjust your numbers by adding either a lump sum (to fix immediate issues) or increasing your maintenance number (to fix ongoing issues).  Look at the new numbers and then decide if it's something you want to live with.  

Good luck!

Hi Cami,

I don’t see why it would take longer than a few days. Any serious seller should have those types of documents on hand and ready to give out. 

My only thought might me that they don’t think you are a serious buyer. One way to show them is to put in an offer (pending receipt of rent rolls) or offer to sign an NDA. They may not be sending the docs because they’re worried about confidentiality.

Good luck!

Joel

Great work getting all the numbers and doing thorough research. At first glance this could be a good deal, but there are other things to consider, like age of buildings, condition of units, appliances, what the leases cover or don’t cover etc. 

Your biggest hurdle is going to be financing, I recommend going to talk to a local bank ASAP.  I doubt anyone will give you $0 down, and like Jim said you’re looking at a commercial loan. 

Good luck!

Get a copy of the county records, and see how the property is legally recorded. If it's classified as a 1 to 4 Unit residential building I see no reason you couldn't obtain an FHA loan. If commercial, you're stuck with commercial lending.

 If you Google “Brazos County Property Record Search” there is a website to show all the publicly available tax information. You can search by the property address. That may show you what it’s recorded as. 

Good luck!

@Aaron Lucas Yes, given your experience I would think a larger acquisition is possible and passive investors would be interested. So, who are you missing on your team? What's your next step? Not sure if I can help - but just thought i'd ask!

Hey Brandon,

The best partners I've had are the ones that:

- Have the same long term goals as me.

- Have different strengths or bring something unique to the table.

- Are fun to work with.

- Have good contingency plans and written contracts in place.

Best of luck with everything!

Joel

Oooh great question. There's no reason you can't go big on your first deal, if you can find a good one and line up the right partners.

One thing to consider... most people want to partner with others that have experience already. For example, if you asked me to invest $$$ in your large apartment complex deal, part of my due diligence would be asking about your track record and prior success. Since you wouldn't be able to provide me much history, I would likely pass - unless it's an absolute steal.