All Forum Posts by: Karl Maritato

I have a PM Company and they send me a detailed statement. I use the quick books simply to document my bank accounts and credit card associated with the account. Between those two my accountant is satisfied with the tracking.

Cincinnati area properties for management. Eric Haines at PNC in Anderson on Beechmont for commercial loan.

Im curious to know of some partner strategies. My scenario is I have a few colleagues interested in investing their money in real estate with me, while I do all of the work involved (not property management, we have a company for that) but more of all the looking at properties, dealing with the banks, paperwork, lawyers and managing the property management company. My thought is since there is 3-4 of us, that we all contribute an equal percent of the down payment needed on a property, but that I retain 10% more of the property for doing the work, i.e., if there's 3 of us, we all put in 1/3 down payment but I own 45% and they split the 55% remaining ownership (give up 5% each for not having to work) What are your thoughts? Other strategies? I've done deals solo but not with partners. Thanks!!

Welcome Bruce!

This is a great conversation and something I frequently ponder. I will say, in the end for me, I also like the diversification. You can only put a max 17,5k into your 401 each year (at least for me at particular income level via regulations) and so I don't mind putting that 17 into the 401 and then focus other monies on real estate and other investment opportunities. I, too, don't like to have all my eggs in one basket. I will say that this weekend I was looked at my past year 401k data and it stated I had a 1% return. However that was on the total money compared to last year. At first I thought that was terrible, but when I separated out how much of that came from "free money" by employee matching, that is a much higher return, in the mid 20%. So I do think that if you have the means to put that 17 into 401 and it not affect what else you are doing, gets you free money via employee match and allows more diversification, I think it's a good thing. Given medicine is my profession and not finances, this is all simply my humble opinion.

@Josh Caldwell how is the pittsburgh multi-unit market (>/= 8 units)?

Hello, I'm interested in making contact with realtors specializing in investment properties, particularly multi family >8 units, in Jacksonville Florida. Please message me if you'd like to make a connection. Thanks.

Welcome Ryan!

Thanks guys! I used a commercial loan with a large bank (PNC), 20% down amortized over 20 years. My "real job" is incredibly intense and long hours so I need to be as hands off as possible and have a property management company dealing with all the day to day details. After mortgage and expenses, including PM group, I'm looking at about 1500/month cash flow. I did pay asking price, however, this property was not on MLS and was one of those "my realtor knew another realtor" type of deals and they knew it would be a great "starter property" for me. What stood out the most is the building itself is 40 years old, but was purchased by the seller 4 years ago for something like 29K and was completely redone...the only remaining original structure is the skeleton itself; so basically the property is 3 years old, including all wiring, plumbing, etc. Therefore I felt very comfortable not having large expenses likely in the very near future and the neighborhood is working class and needs good quality rentals, so I'm pretty happy. My realtors have over 30 years experience in this business and are very confident and comfortable that this was a good, safe bet for a newbie to get the taste.

Completed my first apartment complex deal today. 11 unit building, newly refurbished by seller, fully occupied by tenants with great returns. All thanks to the knowledge and connections I made through BP. Looking forward to doing at least one per year. Thanks BP community!