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All Forum Posts by: John Culotta

John Culotta has started 4 posts and replied 42 times.

Post: lessons learned from my first 20 unit rehab

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

@Tab Teehee -- WOW!! Great job on such a big project / milestone. Any chance you could share some numbers with your BP tribe? Was it a syndication? Did you put sweat equity into it? What kind of team did you have? Thanks in advance and again, congratulations 😁

Post: From teacher to 10 units in 10 months!

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

Congrats!! Your passion for real estate is encouraging :)

Post: Should I loan someone $100k for 10% return?

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

Hey Joe - a couple of great resources and people to ask on this topic would be Joe Fairless @Joe Fairless and Matt Faircloth @Matt Faircloth. They are experts on syndications. Both have books, podcasts and youtube videos on lending as a syndicator. As the others are saying, there seems to be too many red flags:

1. Why can't he qualify on his own?

2. The small cost of inspection will out way any potential major costs discovered

3. Your IRR seems really low - I've been reading and hearing 15 to 18% is more reasonable

4. What was the vetting results of this guy?

5. First position is vital

6. Contact some pros who are gracious to offer advice

All The Best!

Post: Finished Flip, No Traffic - Now What?

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

@Andrew Taylor @Andrew Taylor Kudos to taking on such a big project and sticking to it. You're a smart guy and already have some of the answers, but here's my perspective.

I'm a window and door design consultant for the number one Remodeling company in the nation.

This is just my opinion re the rehab style; it's missing a wow factor and contrasting colors. All the colors just seem to run or blend together except for the counter. Looks like pretty good quality materials except the floor as you mentioned. I would have done a dark wood floor. Front entry looks like a church entrance with that narrow archway. It's a cool style but needs modernizing. I think you have 2-3 styles mixed together that aren't complementing each other. For example The farmhouse country grids between the glass on Windows doesn't match the high end granite and fixtures. Your modern chandelier doesn't match your 1990s wood ceiling fans.

I agree with so many others on staging. It will help warm the place up, add some life and not point out anyting unusual for those Buyers who notice the little details like me 😁

The entryway looks like your typical 70s brick that's just been painted and needs something like partial cedar, wood type material boost that would match some of the other colors inside the house.

the front door with the mailbox slot doesn't work for me at all. It almost looks like you're entering a business. it may be worth it to change out that door and put something with decorative glass. Entry doors are one of the highest value ads you can do. According to Henley wood statistics, changing out or updating garage doors are the highest value-add with a 152% cost to recoup. Entry doors are about 65% and vinyl windows put 70% of the cost back into your pocket ($10,000 spent on window upgrades can recoup $7,000 which means you really only spent $3,000).

I'm not sure if you're advertising outside of Zillow and the MLS, but it may be helpful to find out if the buyers in your area are from a certain demographic and then market to them directly on Facebook, Craigslist etc. Or wherever they're hanging out. For example we have a massive influx of people coming into Idaho from California and they are the largest sector of buyers for our area. if you can't rely on your realtor you may need to start posting advertising and other places. have you advertised on BiggerPockets marketplace?

If you haven't done it yet, I would try to get at least three professionals (other than your agent) in your area, even if you have to pay them, to give their perspective and opinion.

For a higher-priced home your buyer market is much smaller, so regarding the little activity, I wouldn't be too concerned unless it's been on the market for two or three months. Have you had any open houses? That's a great way to see more activity.

There's definitely a lot of great advice on this forum and hope you can figure it out soon and sell it. It's not a bad idea to get a tenant in there to help offset that three grand each month, because going into winter slows down the opportunity to find the right buyer, but you already know that. All the best!

Post: I just built a 36 unit apartment complex.

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

@George Yu

Congratulations! You're an inspiration to many of us. I've also been an Amazon seller and have been struggling the last couple years. My wife and I are on our way back into real estate investing and believe multifamily is the way to go. We have over 16 years of property management and owned the rental property for several years in San Diego. Currently we don't have any real estate portfolio other than our home which were selling. As soon as we sell will be debt-free, woohoo!

Do you suggest starting out with single families first just to get back into the market?

Thanks again and keep venturing upwards 🙂

Post: Seasoned Investors - What Would You Do if You Were In Our Shoes?

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

Thanks everyone for all the great ideas, feedback and input. We are looking forward to the future and have better vision and perspective with the tips you've all provided!

Post: Seasoned Investors - What Would You Do if You Were In Our Shoes?

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

Great questions and answers - The biggest reason for the sale is because almost $2000/mo (70k total) is going towards high interest debt from my business. We'd like to live closer to our kids / grandkids, work, church, etc. Definitely better options for low rate loans with no debt as well. Our payment is low at $950/mo with a balance of $136k. Rent would be about $1350/mo.

I'd like to make the transition into an investment sooner due to a the massive RE price increases (taxes, traffic, etc.) in our area in the last few years. Over 1000 people a month move to the Boise / treasure valley area and over 800 of them are from CA. With only 1.7 million population for the entire state, it's significant for us. We're competing with cash buyers and not enough inventory for the amount of people moving in. Prices are being driven upwards fast and consistently. Houses around here sell within days and many times over the asking price.

The house is a 3bd / 2.5bath, 1539 sq ft, built in 2006 at $242,900 and listed on zillow here: https://www.zillow.com/homedetails/20612-Whitman-Ave-Caldwell-ID-83605/72340354_zpid/?view=public

Post: Seasoned Investors - What Would You Do if You Were In Our Shoes?

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

My wife and I are at an intersection in life and would would be super grateful to hear your feedback on how you might tackle our unknowns regarding a re-start into real estate investing. We have over 16 years of property management which included a rental we owned in the 90's.

We have our house on the market in Caldwell, Idaho (hot market) and we expect to clear over $100k in equity. We will be debt free and have over $30k in cash after the sale. 

Here are some of the challenges: We're both in new careers and can not get traditional lending (I'm commission only and need 2 years income history). So, we're looking at owner financing as primary funding option and possibly hard money (which we don't know much about just yet). The other challenge is . . . Where should we live? Can't afford an investment property and a primary residence at the same time.

Our Long & Short Term Goals: We'd like to get into multifamily and primarily want cash flow over all other benefits of RE investing (we have a lot of catching up for retirement and current cash flow is unpredictable with commission only job).

Experience: We're hard working and not afraid to talk to people, do research and make decisions. Again, we managed a 22 unit apartment building for 9 years and owned a rental property for 7 years back in the 90's. Excellent credit. Several years of new construction, remodeling and handy man experience.

  1. The Big Questions - If You Were In Our Shoes....
  2. 1. Where to Live - Would you try to buy a multifamily with a vacant unit? Would you temporarily rent while starting up the RE investing?
  3. 2. The Money - Would you shoot for owner financing or hard money lender? ....or, both?
  4. 3. How much reserve would you keep in the bank?
  5. 4. What's the #1 most important contact to have?
  6. 5. Any recommendations on contacts in the state of Idaho?

Thanks in advance for the feedback - Have A Great Day!

Post: 2 unit 100% Financing and No Money down

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

Hey Sean, what are the financing terms? Thanks!

Post: Just closed my 10th rental in last 7 months

John CulottaPosted
  • Investor
  • Boise, ID
  • Posts 42
  • Votes 19

Thanks for sharing Daniel. You've definitely inspired many of us who are trying to get to that point. Venture upwards!