All Forum Posts by: Johnny Quilenderino

Team, I used a lawyer in the closing. I used an attorney and so did they for the closing. They signed the paperwork a month ago. They did not let the cleaning team in to clean, just allowed them to grab the stuff outside.

Now are complaining about windows, and other defects, when they waived the home inspection. 

Like I said, they are attempting to strong arm me ... Absolute craziness.

I have one but not in that state. 

Good evening BP,

I sold a house we owned for ten years a month ago. Great sell 35k over asking. We had to kick the tenants out one day prior to the sell and turn over the keys the next morning to the attorneys. Then the complaints came in.

1) my property manager said they cleaned and during the final walk through I had to delay closing for 6 hours to get the PM back over to the house to clean. 

2) keys were turned over already so they could not enter the house legally.

3) the sell was 30 days ago; yesterday I got an email from the buyers realtor that the house was not cleaned and the house was a disaster and that legal action is going to be taken against me because we never cleaned the place. This was the first I heard of any problems since the sell.

4) I live 900 miles away, I told the realtor to call the PM not me, gave them their number, CC'd them to inform them of a potential issue. I also told her to directly email me since I cannot help from afar.

5) Today I get five emails from her stating I took advantage of them. I have until 5pm to get the house cleaned or else.

6) The PM emailed her asked her to call and she did not. She ended up e-mailing them at 435pm.

7) As I am trying to relax I get another email saying I took advantage of the situation and did not help, that she took appropriate action and legal action is pending.

I think this family is attempting to strong arm me ... Cannot prove it, buy I feel I am being harassed now ...

What should be my next action?

@Nolan M. I am using traditional funding at the moment. I have a few creative deals in mind, and branching out into them while I am in seasoning phase of year one.

@Arthur Sullivan Sounds like you are off to a good start!!! I recommend going to your real estate groups, seeing about partnering up with someone. Or find like minded people here that are somewhat close to do joint ventures with. 

@Troy Luster definitely had a few of those ... are you kidding me phone calls!! Pushing is the right word. I push through the little bit of pain, for my "forever money" to give back to my family. 

Good afternoon BP,

Well we have done it again!!!! My wife and I have put on contract our 4th buy of the year, engrossing a total of 17 units, and 18 units total for our business. We now/will own a SFR, a triplex, two quadplexs and a six plex. We anticipate by December, when our repairs are complete our GOI will be 11.5k per month and our NOI once fully rented will be 4.5k per month.

To accomplish this mission we had to open two LLC's, successfully execute a 1031, and buy an Air BnB. Every structure I have bought has had termites, bed bugs, or horrible tenants that we have had to "wait" out, and implement a plant to get the structure back to cash flow positive. We opened a HELOC for just in case measures and it has worked out perfectly!!! We have successfully revitalized our first two buys, and are in the process of cleaning out our 6 unit to get it that into a stable structure. All in all we initially anticipated 1 to 2 months for structures to stabilize but it took a little longer. I have definitely learned that if I anticipate 3-4 months to "find" all the hidden gems (insane tenants or lack of them, bed bugs, "do it yourself" tenants that kill two units) that my patience and tolerance level to "pain" (pain = the dreaded phone call that you are not going to cash flow this month) is much higher.

Now, it is time to pay down business debt (about 30k in repairs so far and about 5k in repairs still needed) and get ready for 2018 buying season!!! Our goal is to get NOI to 6k a month by the end of 2018, and work on a big push to 10k a month by 2019!!! My ultimate goal is 15k a month, both my wife and I can retire once we get there, and not take a pay cut.

Our biggest asset has been bigger pockets and the knowledge, and networking that comes from it!!!!

Happy Saturday, and good luck!!!!

Johnny

@Joseph Bramante 

Hmmm what is keeping me out of the game?

1) Lack of knowledge of syndication 

2) Pros and Cons (refer to item one)

3) What else is required when you want to syndicate?

4) Good books to read about syndication

5) Lack of initial capital (my business is doing fine, now I would need to build syndication capital)

6) Still working a normal job, therefore only able to hustle at night and the weekends

I have an area picked out, I have property picked out, I have analyze the area the property rents are under valued by 50 dollars, the property is at 99 percent capacity, I have talked to my CPA about taxes and my lawyer about how to group it together. 

I could go private money and then refinance in five years after raising rents twice. I am not in analysis paralysis, I am in lack of capital and how to pay for everything like appraisal, property inspection of 145 units. My next real local real estate meeting is Tuesday, and I will be going there to talk to some people.

Thank you,

Johnny

@Clarissa Butler I have just started the negotiations to refinance my my two other properties under my LLC through Union, and possibly purchase another 4 unit. Definitely talk to that team about commercial lending if you are going after a 5 unit.

Cheers,

Johnny

Team BP,

Quick update on the 6 Unit, we have filled the vacant unit. I have upgraded the flooring from dingy carpet to laminate and vinyl in the kitchen. We increased rent by 300 dollars in that one unit and it still rented (from 900 to 1200). My intentions are to upgrade as tenants move out. I have about 7k left in repairs to do before the insurance company drops their rate to 2k a year, currently paying 5k, due to roof "holes" but no leaks, no GFCI in the bath rooms, and toilets that were loose an possibly leaking, hand rails on the balconies weak and loose. We expect to complete all repairs by December, have the re-inspection by the insurance agent and collecting about 2k a month starting in Jan.

Thank you for all the encouragement! I could not have done this without my teammate (wife), and all of your strong words of get out there and do it!

Cheers,

Johnny