All Forum Posts by: Kent Ritter

I would do it.  That is a great rate! Over the life of the loan, you will save a significant amount in interest.

@Jay Helms I prefer in person because my goal is to network and build relationships. Also, the idea of sitting in front of my computer for hours isn’t appealing. I guess if you could watch the sessions over days like a webinar.

@Anthony Waite. You should have 3 accounts

Capital reserves - this is replacing things (e.g., appliances, roof) or improvements. You should put away $250-$350/yr based on property vintage. In some cases could be higher especially if you know you are planning for something.

If your property is large enough a cost segregation study will give you an exact accounting of everything on your property and the typical replacement timeframe, along with the depreciation benefits.

Operating Reserves - 3 months of operating expenses is typical. This is to cover general daily business expenses and occupancy volatility.

Rain day fund - this is for the unknown. Another 3 months of operating expenses. For example, If you have a property built before 1980 with corrugated steel drain pipes, I’d be putting some away for when that backs up.

@Michael Daharsh you can definitely achieve your goal. I started down the same path 3 years ago and now I’ve syndicated my first 250 unit deal.

Focus on networking and finding good partners who have been where you want to go.

Start talking about real estate with your friends and family and warm them up to the idea of investing. They will likely be your first investors.

Best of luck!

@Joseph Dykes if the old tenants and new tenants are too different demographically they won’t mix and you will lose the new tenants.

We’ve done. Renovations in 2 stages to bump the rent up over 2 years and step the tenant base up in 2 phases.

We’ve found less headaches this way.

@Scott Bieri Elements Financial is a local credit union. They have been good for me.

@Michael Breedlove it's the same amount of transaction work to buy a 4 Plex as a SFR. Also you get better economies of scale all around especially if you renovate each unit with the same package. Finally, you have the tenant security you can lose a tenant and still cover your mortgage vs. being stuck with it on the SFR.

More bang for your buck!

Honestly, I would suggest you go as big as you can.

Level up your network and your real state knowledge while having fun with your like-minded, new friends.

This month come hear from our expert speaker - Suzanne Peperak - Executive Vice President of Property and Asset Management at Barrett & Stokely. She has serious credentials!!!

She oversees 13,000+ multi-family homes including suburban garden, urban high-rise, student, and Section 42 properties.

This meeting will be packed with info you can't miss!!!

@Jonathan Farber Thanks for the compliment! I'm glad I could add some value today. 

@Jonathan Farber create a credibility presentation for the bank/any investor. Think of it as a visual resume.

As part of it, highlight:

Your Team - you, property manager, attorney, accountant, advisory board, etc.

Experience - business and RE if you have it. The less experience you have the more you want to show you are surrounding yourself with people that have it and fill in your gaps. Speak in terms of “We” the collective group. “We have Done X projects like this” “We have raised X capital”. Make sense?

Portfolio - if you have it, show the projects you’ve done and the metrics on their returns. Until you

Business Plan - what are you going to do and why does it make sense? Break it down into simple to understand steps to show a process. Also, why is now the right time to do this?

Example deal - if you haven’t done it before and don’t have a real deal, then show an example deal that represents what you will be doing.