All Forum Posts by: Johnny Quilenderino

Quote from @Dave Foster:

@Bryant Frazier, or a twist on what @Nathan Harden suggested.  Instead of selling as a package sell them all separately but try and clump sales together  and combine the 1031 exchanges to purchase one larger multi-family property.  The 1031 would be a great way to position your real estate where you want to end up.  @Johnny 

@Johnny Quilenderino did exactly that a few years ago.  He actually made the case studies in my book.  Hey Johnny, you out there??

 Dave! Still out here doing things but in Louisiana!

Definitely study your options. 

We looked at homes at first for a 1031 then opted into multifamily which was a game changer. 

The exchange @Dave Foster is talking about ended up taking us from -200 in cash flow to positive 2000. That was in 2017. Now even with rate changes etc. We are at positive 3k.

Hit me for a chat. I am free most days to talk RE investing.

Quote from @Adrian Gallant:

Hello, I have been searching for two-three family properties in the Bridgeport CT area for the last year now with minimal luck. I have expanded my radius to include:

Bridgeport, Stratford, Shelton, Derby, Ansonia, Milford, and West Haven.

I am beginning to get discouraged. Part of me is wondering if investing in 1-2 multifamily properties is even worth the hassle? Would the cash flow be worth the time and effort required to maintain these properties? It’s hard enough to find a deal right now, I’d hate to have ended up wasting all my time in the end if I even manage to purchase a property or two. 

Thank you!

I have ask. How many deals have you analyzed? What is your goal or your "why" and do you have an "exit" strategy ie 1031 or straight sell?

I analyzed 100's of deals in Virginia from commerical to single family homes until I got one that matched what I wanted to do. This "game" is not easy if you have the right mindset, and patience it will pay dividends and then some. 

My wife and I had a challenge. Who could make the most using either real estate or stocks. Her stock portfolio is great, but our investment portfolio is awesome. 

Take the time to analyze deals until they fit. I had to go 80 miles out of the area for my first deal, and then one city over for my second. The numbers always worked, no fudging no "in ten years" etc. You always have to have the banks perspective in mind, they do not want to own a property and you should not want to lose it because of bad analysis.

Stay patient! Good luck!

As an agent, I did an instagram post about "real estate code words" 

Wont last long - you will see it next year!

Needs a little landscaping - it is a jungle, bring the Rock and his sharpest knife

Needs TLC - bring your contractor and expect full gut

I had fun, did two videos of it, I had to make fun of my fellow agents 

My advice. Read the forums for 6 months, on topics that interest you.. Go as far back as you can! Reach out to people with the same interest or that is possibly a few steps ahead of you. 

When you are ready, get a lender in all 50 states. So, if you move, or whatever, they still have your file and that is one less person you have to find to eventually "know, like and trust."

Ask as many questions as you can, and jump on 30-minute zoom calls with anyone. 

Quote from @Luis Blanco:

How would a new licensee go to work for a brokerage and specialize in investment properties? I'm newly acquiring my license and have it in my mind that it would be great to work for investors. I plan to become a buy and hold investor with small multi family properties and think that associating with as many active investors as possible will be one of the greatest benefits of being licensed. Also, investors will transact on multiple deals, whereas non-investors will only transact on a few, if that makes sense. 

 A brokerage will not prevent you from working with investors. 

Investors will prevent you from working with investors! This is why. 
1. They are not loyal - they are looking for the best deal

2. Most of them do not know what it means to invest in real estate ie downpayment etc. 

3. I have ran into many looky-loos that just want to look at properties to say they are investors. 

Here are some questions to thin the heard when you get investor clients.

1. Why this house? or this multi-family?

2. What does the cashflow look like after the downpayment?

3. Who is your lender and can I speak to him?

4. How many houses have they analyzed before this one?

Train your investors to analyze deals before you take them too it. Or you analyze the deal!! A quick analysis by you prevents a time suck!

Quote from @Neil Patel:

Quote from @Johnny Quilenderino:

Have you thought about room rentals? Potentially, buy near a college or a hospital?

I had a young nurse do that in Northern VA, and within 5 months she has all spare rooms rented. Maybe something to think about? She started paying the mortgage with rental income at the five-month point.

So you mean buy a house and rent out all the bedrooms but 1? I suppose that would be doable logistically, but still an partial to having my own space. Maybe a house with an ADU which I keep for myself?

Yes sir, buy the house and house-hack. I did that for three years in college. Had my house paid for in a few years. California is all about ADU's!!!

Have you thought about room rentals? Potentially, buy near a college or a hospital?

I had a young nurse do that in Northern VA, and within 5 months she has all spare rooms rented. Maybe something to think about? She started paying the mortgage with rental income at the five-month point.

When I deal with MF, it has to cash flow at 50% occupancy. So, cut the rents in half, run your expenses does it cash flow? No, then you need a larger downpayment or walk away.

Why do I say this? I bought my first 6 unit building which met all the criteria above, and it got bed bugs the first month I owned it. Two months, 22k of expenses and 12k in lost rents I finally got my building back.

This one is a little too close for my comfort. 
I am an investor with 28 units.

Cheers,
JQ

Finding the team to support you when you are not there. My wife told me to build the systems and people in place work if I was not around. 

So, I found a good bank, then a PM (I fired four and one was me), and a hanyman. 

Learning the systems and understand key items helped me out tremendously. 
1. Do not use a PM that has a "handyman" business

2. Make sure your bank has a commercial lending side

3. Find a niche that your bank understands (mine was multifamily properties)

Have fun with it. RE is stressful or can be stressful if your systems and processes are not in place.

I got a great laugh reading that a possum was running around the complex and terrorizing the building. Did I get that call, nope, but did I pay immediately to get the little bugger out, yup! You never know what is going to be in your next statement!!! Strengthen your positions with knowledge and teams then scale out, and back to stengthen!!!

@Dylan Smith Section 8 and low income properties have been my bread and butter for years. 
My Journey: I have 12 units that qualify for section 8 in Norfolk Virginia, and 12 that qualify in Suffolk Virginia. Let me tell you the ride has not been smooth, most of them were acquired tenants that I had to slowly evict or not renew until I got a "better" set of tenants. If they are working to get out of the situation, those are the tenants I accept when I get into a multiple tenant situation. I have had headaches, nightmares and just a general "wtf" days with them but, I have been able to expand to 29 units as of now. Just be ready for a rodeo.

Loan types: I am all commercial.

Courses: Not that I know of, but if you have a great PM, then they are going to be well versed in the "in's and outs" of S8 and the do's and don'ts of tenants. 

Are the tenants manageable: Yes, they are required to allow the city in annually, and your PM in annually for inspections. Every once in a while you will get a tenant that is a bad egg. They will lose their voucher and expect eviction. 

Good luck, have fun! I have made a million in appreciation by purchasing section 8 housing. 

FHA section 8, if you are not going to live in it, that is mortgage fraud. If you are going to live in it then yes you can. Some areas it cannot be a room rental.